German Act on the Notification of Conditions Governing the Employment Relationship as a brake on digital transformation

How Germany is falling behind on digitization in labour law

Abstract

On 1 August 2022, extensive modifications of the Act on the Evidence of Conditions Essential to an Employment Relationship (Nachweisgesetz - NachwG) became effective in Germany. In addition to adaptations regarding the content of which the employer must inform the employee at the beginning of the contractual relationship (in accordance with Directive 2019/1152/EU), these modifications also included, contrary to the European recommendation, a tightening of the written form requirement in labour law by introducing sanction provisions. The present paper highlights the circumstances surrounding the written form requirement in Germany and illustrates how Germany is lagging behind in the digitalisation process.