The Digital Employment Contract under the Bureaucracy Relief Act IV: Text Form Instead of Written Form

The digital employment contract has become reality in Germany. Under the Fourth Bureaucracy Relief Act (BEG IV), the essential terms of employment may be recorded in text form since 1 January 2025 — a printed, handwritten-signed document is no longer required. For mid-sized companies this means employment contracts can be concluded faster, more cheaply, and entirely digitally. This article explains what has actually changed, which exceptions remain, and how to make the switch securely.

What is the Bureaucracy Relief Act IV — and since when does it apply?

The Bureaucracy Relief Act IV is an omnibus law through which the German legislature relieves citizens, businesses, and public administration of documentation and formal-requirement obligations. The Federal Council (Bundesrat) approved the law on 18 October 2024, and the majority of its provisions entered into force on 1 January 2025. The federal government estimates the annual relief at around 944 million euros.

For HR departments, the employment-law part of the law is the most significant: in numerous places, text form now replaces the stricter written form. This removes the need to print documents and sign them by hand — the path to the digital employment contract is clear.

Written form, text form, electronic signature — what is the difference?

The reform only makes sense once three terms are kept clearly apart:

• Written form (Section 126 of the German Civil Code): requires a handwritten signature on paper, or a qualified electronic signature (QES) as an equivalent substitute.
• Text form (Section 126b of the German Civil Code): requires only a legible, permanently storable declaration that identifies the person making it. A signature is not needed — an email or a PDF is enough.
• Electronic signature: the digital counterpart to a signature, tiered into simple, advanced, and qualified signatures (under the eIDAS Regulation).

The key point: since 2025, text form is sufficient to record the terms of employment. A qualified electronic signature is therefore expressly not required — a common misconception before the reform. A QES remains necessary only where written form still applies (see below).

What changes for employment contracts in practice?

The core of the reform is the amendment to the Documentation of Employment Conditions Act (Nachweisgesetz, NachwG). Previously, employers had to set out the essential contract terms in writing, sign them, and hand them over. Since 1 January 2025, they may transmit this record electronically in text form, provided the following conditions are met:

• The document is accessible, storable, and printable for the employee.
• The employer requests proof of receipt (a delivery or read confirmation).
• Transmission is made individually to the specific person — for example to their personal email address — rather than as a general announcement.

This relief applies not only to new hires but also to amendments and supplements to existing employment relationships. Side agreements can likewise be concluded digitally in text form.

Can employment contracts now be concluded by email?

Yes. Because text form is sufficient for the record, an employment contract can be concluded with legal effect by email or through a digital signature or contract management tool. A printed copy signed with a pen is no longer required.

What remains important is the record of access and receipt: the employer should document that the document actually reached the employee and could be stored by them. This is precisely where specialised software proves its value (more on that below).

These exceptions remain in place

Text form applies broadly, but not without exception. In the following cases, strict written form — a handwritten signature or a QES — is still required:

• Fixed-term employment contracts: the fixed-term agreement under Section 14(4) of the Part-Time and Fixed-Term Employment Act (TzBfG) still requires written form. To conclude a fixed term digitally, a qualified electronic signature must be used. The sole exception is the age-based fixed term (Section 41(2) of Social Code Book VI), for which text form is now sufficient.
• Workers in specific sectors: in the economic sectors named in Section 2a of the Act to Combat Undeclared Work (SchwarzArbG) — such as construction and hospitality — the record must still be provided on paper.
• At the employee's request: if the employee asks for the record in written form, the employer must hand it over on paper.

Further employment-law relief under the BEG IV

Beyond the employment contract itself, the law relaxes other formal requirements:

• Employment references may be issued electronically with the employee's consent — although a qualified electronic signature is mandatory here.
• Temporary agency work: for assignment contracts under Section 12(1) of the Temporary Employment Act (AÜG), text form is now sufficient; the previous written-form requirement is dropped.
• Parental leave and parental allowance: text form is introduced for the relevant applications under the Federal Parental Allowance and Parental Leave Act.
• Information obligations under the Working Hours Act and the Youth Employment Protection Act may be provided electronically.

Practical implementation in companies

The law permits the digital employment contract — but smooth implementation calls for adapted processes. The following steps are recommended:

1. Clarify the formal requirements per contract type. Determine which documents can go out in text form and where (fixed terms, references) a QES or paper is still required.
2. Document access and receipt in an audit-proof way. Use email addresses the employee actually accesses, and request a confirmation of receipt.
3. Choose a suitable solution. Look for eIDAS conformity, easy integration into your HR systems, and a high level of data protection.

If you want to refresh the fundamentals, see our overview What is an employment contract?. For a starting point, our employment contract template is a useful resource.

Efficiency gains through contract management software

The text-form rule delivers its full benefit only with the right software. A contract management solution such as top.legal digitises the entire journey — from drafting through negotiation to concluding the employment contract. Employees can store and print the document, while the system automatically captures delivery and receipt records — exactly the evidence the Documentation of Employment Conditions Act requires.

This not only reduces paper and costs but also speeds up onboarding considerably and frees HR teams from manual filing. In this way, a statutory relief becomes a genuine efficiency lever.

Frequently asked questions about the digital employment contract

Since when are digital employment contracts in text form permitted?

Since 1 January 2025. On that date, the employment-law part of the Bureaucracy Relief Act IV entered into force, after the Federal Council approved the law on 18 October 2024.

Is a qualified electronic signature required for the digital employment contract?

No. Text form under Section 126b of the German Civil Code — a legible, storable declaration without a signature, for example by email — is sufficient to record the terms of employment. A qualified electronic signature is required only where written form still applies, such as for fixed-term agreements.

Can an employment contract be concluded by email?

Yes. The contract is effective in text form, provided the document is accessible, storable, and printable for the employee and the employer requests proof of receipt.

For which contracts does written form still apply?

Fixed-term agreements under Section 14(4) of the Part-Time and Fixed-Term Employment Act (exception: age-based fixed terms), records for workers in the sectors named under Section 2a of the Act to Combat Undeclared Work, and cases where the employee expressly requests written form. Employment references may only be issued electronically with a qualified electronic signature.

Does text form also apply to changes to existing employment contracts?

Yes. The relief also covers amendments and side agreements in ongoing employment relationships, which can likewise be concluded digitally in text form.