On 20 June 2019, the European Union adopted Directive (EU) 2019/1152 on transparent and predictable working conditions, aiming to create more transparency about European working conditions. The new directive must be implemented by the member states by 1 August 2022.

The German bill follows other members – we previously reported on Netherlands -, and has significant practical implications for employers.

It provides for numerous amendments to existing laws, such as the Record of Employment Act, the Commercial Leasing of Employees Act, the Part-Time Work and Fixed-Term Employment Act and the Trade Regulation Act.

First of all, the new law provides for a considerable extension of the employer's obligation to provide documented working conditions. Until now, according to the Record of Employment Act, employers must document the essential terms and conditions of employment (e.g., start of the employment relationship, place of work, remuneration, working hours, notice periods) in writing, sign the document and provide it to employees. However, the current Record of Employment Act does not provide for any sanctions in the event of a breach.

Under the new law, employers have also to provide documentation for the duration of an agreed probationary period, the method of payment of wages, agreed rest breaks and rest periods, details of on-call work, the agreed possibility of imposing overtime and its conditions, the procedure to be followed when terminating the employment relationship, and further obligations to provide documentation in the case of foreign assignments of employees.

Moreover, if the employer does not provide the employee with the terms and conditions of the contract, the violation can be punished with a fine of up to EUR 2,000 per employment contract.

The Part-Time Work and Fixed-Term Employment Act have also been amended, providing that a probationary period for fixed-term employment relationships must be in proportion to the expected duration of the fixed-term and the type of activity.

Finally, according to the changes on the Trade Regulation Act, employees may not be charged training costs if the employer is required by or on the basis of a law, collective agreement or works agreement to offer the training.

The training shall take place during working hours and, if it has to be conducted outside working hours, it has to be considered working hours.

Employers will have a very short time to review their contract models and to be compliant with the new law.