Compliance
New German Law Allows E-Signatures on Employment Contracts

Germany is taking a major step toward workplace digitalization with a legal update effective January 1, 2025. Under the revised Verification Act (Nachweisgesetz) and related legislation, employers will be able to issue and sign most employment contracts digitally. This change simplifies HR processes and supports Germany’s broader effort to modernize its labor market in line with EU directives.


Digital Signatures for Employment Contracts Now Allowed


New employees will be able to sign their contracts electronically, replacing the longstanding requirement for handwritten signatures on paper. For a digital employment contract to be valid, it must include key information such as:

  1. The full name and address of both employer and employee
  2. The employment start date
  3. Agreed working hours
  4. Job role and responsibilities
  5. Details of compensation, including bonuses and benefits


This reform will streamline onboarding, reduce paperwork, and support remote and hybrid work models.


Handwritten Signatures Still Required in Some Cases


While digital signatures will become widely accepted, they will not be permitted in all situations. Handwritten (wet ink) signatures will still be mandatory for:

  1. Fixed-term or short-term contracts
  2. Employment in specific industries such as hospitality, logistics, construction, and meat processing, as outlined in §2a(1) of the Act to Combat Undeclared Work


These exceptions aim to ensure legal safeguards in high-risk sectors.


New Rules Under §2 Nachweisgesetz for Digital Employment Documentation


The updated §2 of the Verification Act now allows employers to deliver essential employment terms electronically, as long as the format meets the definition of text form under §126b of the German Civil Code. This means documents can be shared via email or employee portals if they are:

  1. Easily accessible, readable, and printable
  2. Sent with a request for confirmation of receipt from the employee


This change provides more flexibility while maintaining transparency and legal compliance.


Employee Rights: Requesting Paper Copies


Even with digital options available, employees still have the right to request a paper version of their employment documentation. Upon request, the employer must promptly provide a physically signed hard copy. This provision ensures that all employees—regardless of digital access or preference—are legally protected.


Mandatory Employment Details That Must Be Documented


Whether delivered digitally or on paper, employers must provide a comprehensive overview of employment terms. The following information must be clearly outlined:

  1. Full names and addresses of employer and employee
  2. Employment start date and, if applicable, duration of a fixed-term contract
  3. Work location(s)
  4. Job title and description
  5. Probationary period details (if any)
  6. Pay structure, including base salary, bonuses, and allowances
  7. Working hours and break periods
  8. On-call or overtime conditions
  9. Paid leave entitlements
  10. Training and development opportunities
  11. Company pension arrangements
  12. Terms of notice and termination procedures
  13. Any applicable collective agreements or workplace policies


Additional Work Documents Can Be Shared Digitally


Beyond employment contracts, the new legislation allows several other key documents to be transmitted electronically. These include:

  1. Work schedules and shift rosters
  2. Break time notifications
  3. Parental and caregiver leave applications
  4. Employment references (Arbeitszeugnisse) at the end of an employment relationship


This further reduces paperwork and streamlines communication between employers and employees.


What Employers Should Do Now


To prepare for the legal changes taking effect in 2025, employers should take the following steps:

  1. Integrate secure digital signature tools into hiring workflows
  2. Ensure all electronic documents meet legal requirements for text form
  3. Set up clear processes to provide paper copies upon employee request
  4. Identify if their business falls under any exceptions that still require handwritten documentation
  5. Audit and update HR documentation and systems to align with the new rules


Conclusion


The 2025 update to Germany’s labor laws represents a major leap forward in employment modernization. By allowing digital signatures and electronic delivery of key documents, the country aims to improve efficiency, reduce administrative burden, and promote a flexible, digital-ready workplace—all while preserving legal protections for workers.