The EU Working Conditions Directive has caused quite a stir, particularly now that it has been incorporated into German law. For HR managers in start-ups, this presents both challenges and opportunities. In this article, we take a look at the key aspects of the revised Evidence Act and what it means for you.
A brief overview
The Federal Ministry of Labour and Social Affairs has clarified that the essential working conditions – including employment contract, working hours and pay – must be recorded in writing. One point that requires particular attention is the treatment of company pension plans as part of salary conversion.
What the Evidence Act says
According to the Evidence Act, employers are now required to inform their employees in writing of the agreed essential contract terms. This also includes the composition and level of pay. An important statement here is that the Evidence Act does not regulate the use of remuneration by employees, as in the case of salary conversion for company pension plans.
The significance for company pension plans (bAV)
Contrary to the opinion of some experts, who point out that the Evidence Act could also have an impact on bAV, Degura recommends that the deferred compensation agreement should be fixed in writing. This recommendation is based on a thorough analysis of legal requirements and aims to provide clarity and certainty.
A look at digitization
An important consideration in this discussion is the impact of the Working Conditions Directive on digitization. While the law could lead to more bureaucracy in certain areas, DEGURA stresses the importance of digital transformation. It is about taking advantage of the benefits of digitization wherever possible and useful, without neglecting legal requirements.
Conclusion
The implementation of the EU Working Conditions Directive into German law entails specific requirements that HR managers in start-ups should not overlook. At the same time, it offers the opportunity to review and further digitize processes. At DEGURA, we're ready to provide you with the information and tools you need to effectively meet these new challenges.
