What impact will the planned amendment tothe Verification Act have on employment contracts?

In a current initiative to reduce bureaucracy, the traffic light coalition intends to amend the Verification Act in order to support modern working methods and reduce the administrative burden for employers and employees. Lawyer Stephanie Simon-Sommer advises companies on employment law issues, among other things,and knows thechallenges from her in-house experiencein the legal departments of various companies and. also as a manager. In this interview,she provides an. overview of the planned amendments totheVerification Act for thestructuring of employmentcontracts..

The traffic light coalition is planning an amendment to the Verification Act concerning documentation in connection with employment contracts.What exactly is it about?

The planned amendment aims to replace the previous written form for the documentation of the essential contractual terms of an employment relationship required under the Verification Act with the text form. This means that employers will no longer be obliged to physically print, sign and hand out these conditions on paper. An electronic form, such as a simple electronic signature or even an e-mail, would be sufficient in future – according to the current status.

What specific benefits will this change bring for employers and employees?

Employers could save considerable time and resources by eliminating the physical exchange of documents. This simplifies processes, especially in times of remote working and an acute shortage of skilled workers. Many companies still have employment contracts signed exclusively by hand in order to avoid separate documentation and thus an additional step in the recruitment process due to the requirements of the Verification Act. As a result, they lose valuable time and, in the worst case, even the desired candidate.

The planned changes to the law will make it quicker and easier for employees to obtain their employment contracts and thus also the documentation required under the Verification Act, which they will be able to store directly in electronic form. Employers would therefore be able to send their contract offers to candidates immediately after accepting them and would not have to have a separate second version of the employment contract signed by hand or provide separate handwritten documentation in order to meet the requirements of the Verification Act. In particular, the deadlines contained in the Verification Act would be much easier to comply with, which would also reduce the risk of fines.

This change could therefore promote a more comprehensive digitalization of work processes. Simplifying documentation can lead to more efficient processes and then enable even more extensive use of advanced technologies such as document generators for fully automated contract creation and documentation.

Are there any concerns regarding the planned amendment to the Verification Act?

It remains to be seen how this will actually be structured. The current plan is for companies to provide proof of transmission and receipt. The employer must therefore ensure that the documents can be saved on a permanent data carrier.

Any concerns regarding the probative value of electronic documents could then be allayed by establishing automated processes, for example with the help of document generators. This would ensure reliable documentation that is equivalent to physically signed documents, even in the event of a dispute.

The reformed Verification Act facilitates the fully automated creation of contracts – Benefit from the efficiency of appropriate software solutions

With our document generator, you can simplify processes and relieve your legal department. Legally compliant documents can be created by people without prior legal knowledge. In addition to saving a huge amount of time and effort, the document generator enables maximum traceability thanks to Smart Form and freely definable approval processes. As a new, legally compliant document is generated each time and not just individual text modules are compiled, the tool offers variability and flexibility when creating documents.

We would be happy to show you the advantages and possibilities in a non-binding demo appointment.

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