On June 23, 2022, the German Bundestag passed the bill to implement the EU Directive on transparent and predictable working conditions in the European Union. This is accompanied by numerous changes to the Verification Act and other laws that are relevant to employment relationships as of August the 1st 2022. In the future, violations of the Verification Act will be classified as administrative offenses and will be subject to fines for the first time. The administrative offense can be punished with a fine of up to EUR 2,000.00 per violation.

CHANGES IN THE VERIFICATION ACT

In the future, the Verification Act will provide for additional material contractual terms and conditions that must be communicated in writing by the employer to employees at the beginning or upon request within certain periods. The written form requirement must be observed here; an electronic signature is not sufficient even after this current amendment to the law.

In the case of new hires as of August the 1st 2022, this obligation will be fulfilled by concluding a written employment contract with all necessary regulations prior to the commencement of employment.

In the context of a discussion with the employee on a change in the duration or location of his or her working hours, the employer must in the future also provide information on corresponding jobs to be filled in the company or enterprise.

In the future, employers will be required to provide employees whose employment relationship has lasted longer than six months and who have notified the employer in text form of their wish to change the duration or location of their working hours with a reasoned response in text form within one month of receiving the notification.

CHANGES IN THE VOCATIONAL TRAINING ACT

The Vocational Training Act also provides for further essential contractual conditions that the training contract must contain.

In addition, the rules on fines have been tightened.Employees who are already employed must be provided with written proof of the essential working conditions upon request within a period of 7 days.

In the event of changes to essential working conditions that are not made on the basis of legal regulations, collective bargaining agreements, works agreements or service agreements, the- se must also be evidenced in writing, no later than the day on which they take effect.

In the future, the Verification Act will also apply to all temporary employees, even if the employment relationship lasts only a few days. Proof must therefore be provided in due time even in the absence of a written employment contract.

CHANGES IN THE PART-TIME AND FIXED-TERM EMPLOYMENT ACT

In future, the probationary period must be in reasonable proportion to the expected duration of the fixed term and the nature of the activity in the case of short fixed terms.

The regulations on on-call work will be tightened. In particular, the employer must additional- ly specify reference hours and reference days in the future.

CHANGES IN THE EMPLOYEE LEASING ACT

In the future, temporary workers must also be informed in text form of the company and ad- dress of the hirer to whom they will be leased before each lease.

The rules on fines have been tightened.

In the future, hirers will also be obliged to provide temporary workers who have been hired out to them for at least six months and who have notified the hirer in text form of their desire to conclude an employment contract with a reasoned response in text form within one month of receipt of the notification.

We recommend that you check employment contracts and letters of verification for the mandatory disclosures under the amended Section 2 (1) Nos. 1-15 NachwG.