To avoid a fine, employment contracts must be revised
facts
Directive EU 2019/1152 came into force on July 31, 2019 and must be implemented by July 31, 2022. For this reason, on June 24th, 2022, the German Bundestag passed some significant changes to the Proof Act.
Some regulations that must now be included in the written employment contract are already included in reasonably worded employment contracts. But there are also new and unusual requirements.
However, the essential new regulation is that violations are now subject to fines. And that’s exactly why it’s worth taking a look at the new law.
New regulations
The obligation to provide evidence of the essential working conditions is significantly expanded.
So it is no longer enough to just state the weekly working hours. Rest breaks and rest times must now also be specified, together with any shift system, shift rhythm and the prerequisites for any changes.
It must also be noted that the termination must be in writing. The notice periods must also be specified. This was lacking in some employment relationships, if only the law was to apply. What is completely new, however, is the obligation to instruct. In the event of a termination by the employer, the employment contract must contain a reference to the three-week period for filing a claim under Section 4 of the Consumer Protection Act. However, according to the explanatory memorandum to the law, a violation of this should not lead to the ineffectiveness of the termination by the employer and also not allow any subsequent admission of an action for protection against dismissal in the event of a missed deadline.
Furthermore, the scope of the entitlement to further training provided by the employer must now be presented in the employment contract. The possibility of ordering overtime must also be expressly mentioned. Finally, in the case of a company pension scheme, the pension provider must also be specified.
If you work abroad, the information requirements are also extended.
There is also a strict deadline regime, by when which information has to be available. In some cases, information must be available on the first day, and full proof must be provided no later than one month after the start of the activity.
Sanctioning Violations
So far, violations of the Evidence Act have had no consequences. Now there is a risk of a fine of up to EUR 2,000 per violation, ie for each individual statement and its submission deadline. Under certain circumstances, this can be a considerable amount, especially since it is usually not just an employment relationship that is affected.
valuation
It is now worth revising the existing employment contract templates as a matter of urgency.
dr Konrad Maria Weber, Attorney at Law, Specialist Lawyer for Labor Law
T +49.89.2000568 60
[email protected]