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One component of this—the so-called “Bureaucracy Reduction Act IV” (BEG IV)—was promulgated in the Federal Law Gazette on October 29, 2024, and it will come into effect on January 1, 2025. Accordingly, it is worthwhile to take a closer look at the changes relevant to employers.
- Simplifying employment documentation: The Bureaucracy Reduction Act IV (BEG IV) allows essential employment terms and conditions to be transmitted in digital form rather than written form (hard copy), significantly reducing administrative burdens for companies, particularly international ones.
- Age and parental leave flexibility: BEG IV removes the need for handwritten signatures on age limitations and parental leave applications, permitting these to be handled electronically via digital form, thus easing processes for both employers and employees.
- Embracing digital solutions: Under BEG IV, employee leasing agreements and reference letters can now be concluded and issued electronically, streamlining operations and modernizing documentation practices in the employment sector.
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