“German employment law is entering a period of notable, steady change. A long-overdue overhaul of formalities by the Bureaucracy Relief Act—especially the change from written to text form—has driven employers to adopt digital processes. These shifts are already reshaping daily practice and raising difficult questions about transparency, data protection and algorithmic management. Further developments will follow in 2026 as EU-legislation on pay transparency and platform work move from concept to compliance, requiring legally certain and efficient systems and well documented pay structures.”
In 2025, the federal election set the tone for political changes and led employment legislation in new directions. Administrative requirements opened the door to digital work processes and paper-light HR administration. Looking to 2026, EU measures on pay transparency and platform work will move from drafting to implementation. This article highlights the key developments in 2025 and provides a brief outlook for 2026.
1. Bureaucracy Relief Act IV
On 1 January 2025, the Bureaucracy Relief Act IV (Bürokratieentlastungsgesetz – BEG IV) entered into force, reducing administrative requirements across employment relationships.
Employers may now provide essential contractual terms and subsequent changes in text form (be it digital or on paper) rather than in writing (i.e., with wet signature), enabling fully digital onboarding and contract management for permanent employment...
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