We wanted to let you know that effective 1 August 2022 the German Act on the Notification of Conditions Governing the Employment Relationship (Nachweisgesetz - NachwG) will be updated. The new law passed the legislative process only a few days ago. It still needs to be executed by the Federal President and published, but this will likely happen by end of July at the latest.
The new rules create additional documentation and notification obligations for employers. The list of terms and conditions of employment that employers have to provide information on to their employees is now longer than before. Typically, not all the items are covered in standard employment agreements.
Employees who start on or after 1 August 2022 essentially have to be provided with the necessary written (wet-ink signed) documentation on day one of their employment. Existing employees with a start date prior to 1 August 2022 have to be provided with the written documentation only upon request. However, the employer has to respond within seven days after receiving the request. Many employers are concerned that they will receive a significant number of requests right on 1 August 2022, so they want to be prepared.
The update to the NachwG introduces a regulatory fine of up to EUR 2,000 per violation. Violations can include that documentation is either not provided at all, not provided on time, not provided in full or not provided in the prescribed manner.
Rather than updating standard employment...
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