What Temporary Staffing Firms and EORs Need to Know in 2025
Discover how Germany’s Fourth Bureaucracy Relief Act (BEG IV) impacts digital employment contracts in 2025. Learn what’s changed, what hasn’t and what staffing agencies and EORs must understand.
Introduction
As of January 1, 2025, Germany’s Fourth Bureaucracy Relief Act (BEG IV) marked a significant milestone in modernising employment law. For HR professionals, temporary staffing agencies and Employer of Record (EOR) providers, this reform promised smoother smoother processes with a major leap forward – the ability to issue electronic employment contracts.
But if you operate under the Arbeitnehmerüberlassungsgesetz (AÜG), Germany’s employee leasing law, some of these digital freedoms my not apply to you.
This guide unpacks what BEG IV means for the temporary employment industry, where the limits lie and how you can stay compliant while embracing automation and digitalisation.
The Promise of BEG IV and the Shift to Digital Contracts
BEG IV allows employers in Germany to provide essential terms of employment electronically. That means no more mandatory “wet ink” signatures or physical delivery, email and digital formats are now legally valid.
This is a game changer for EOR providers and global HR platforms managing international and remote teams. For standard employment relationships, the change brings:
- Faster onboarding
- Simplified HR documentation
- Greater flexibility for remote and hybrid work
However, not all employment types are treated equally.
The AÜG Limitation and the Ongoing Need for Paper Contracts
If you operate under the AÜG, BEG IV’s digital permissions may not apply. The AÜG maintains strict requirements to prevent misuse in the temporary staffing industry. According to §12 of the AÜG:
- A written, signed contract is still required between the staffing agency (lender) and the client company (borrower)
- Electronic contracts are not legally valid in these cases
As a result, staffing firms and EORs dealing with temporary workers must still rely on physically signed agreements.
What EORs and Staffing Agencies Should Do Now
- Separate Contract Processes – Use digital contracts for direct hires and roles outside AÜG regulations. Keep traditional contracts for leased employees.
- Review Your Compliance Strategy – BEG IV signals a shift toward digital HR, but compliance with AÜG still takes priority
- Educate Your Teams – Ensure HR, legal and onboarding teams know which rules apply to different employment types.
- Adopt Flexible Technology – Invest in HR systems that can handle both digital and paper workflows to remain adaptable.
Conclusion
Germany’s BEG IV is a significant step toward digital transformation in HR, but is not a universal fix. While Employer of Record providers and international companies can benefit from streamlined onboarding through electronic contracts, those governed by AÜG must remain cautious.
Temporary staffing solutions should view BEG IV as both an opportunity and a reminder: move toward digital where you can, but always remain legally compliant.
Ultimately, adopting secure digital tools to support HR operations will help reduce administrative burdens and will likely we welcomed by HR teams across sectors.
Need help navigating these changes? Contact me, adam.drew@darwinrecruitment.com or olivia.hope@darwinrecruitment.com, for tailored advice.
If you want to read more EOR articles or require more information, head over to our EOR page.
