Federal Cabinet approves amendments to the Bureaucracy Relief Act IV

The Federal Cabinet has adopted a drafting aid to supplement the government's draft of the Bureaucracy Reduction Act IV. The skilled trades sector sees no progress in this and calls for more effective relief measures.

This article is part of the special topic Bureaucratic madness in the craft industry

The Federal government has been appointed by the Federal Minister of Justice Marco Buschmann (FDP) presented drafting aid for Amendment to the government draft for the Bureaucracy Relief Act IV (BEG IV). It contains proposals for additional measures to reduce unnecessary bureaucracy for the BEG IV.

Formulation aidThe Drafting aid for the amendment to the government draft for the BEG IV you will find here.With the additions, the government aims to boost the economy by around 2,6 million euros per year In addition, the proposed Introduction of the text form in the Temporary Employment Act Relief effects of around 30 million euros annually which, for methodological reasons, cannot be represented using the instrument of compliance costs.

The following measures are planned: 

• Changes to the Employment Evidence Act and the limitation of the standard retirement age: In the future, employers will also be able to provide information about the key terms of their employment contracts and enter into retirement age agreements in text form, i.e., by email. Only if employees expressly request written proof of their working conditions do employers have to send the information on paper. This change allows companies to digitize their human resources processes. Only in sectors particularly at risk from undeclared work and illegal employment will the paper-based proof remain mandatory.
• Another new regulation will provide listed companies with relief in the preparation of their annual general meeting: If compensation-related resolutions are to be passed at the annual general meeting, companies are required, under current law, to publish the complete documentation relating to these resolutions in the Federal Gazette. In the future, it will be sufficient to make these documents available to shareholders via the company's website. In practice, this will lead to considerable simplification without resulting in a lack of information for shareholders.
• Registration of permanent establishments: Business owners who relocate their premises to the jurisdiction of another trade authority will no longer be required to deregister with their previous authority and register with the new authority. In the future, registration with the new authority will suffice.

"One thing is clear: reducing bureaucracy is a Permanent taskOur Meseberg Bureaucracy Reduction Programme with a relief volume of three billion per year should also be used for the necessary reduction of bureaucracy on European level be a blueprint. Because Brussels also needs a Turnaround for less bureaucracy and more open spaces," explains Buschmann.

From the perspective of the skilled trades, the Federal Government has once again missed the opportunity to "push forward the much-needed reduction of bureaucracy much more decisively." "It is very regrettable that the amended draft law no significant relief for craft businesses and the opportunity was missed, Practical checks to anchor," says Holger Schwannecke.

Crafts demand more effective measures

The Secretary General of the Central Association of German Crafts points out that while it is right to allow the written form for employment contracts, it is "completely incomprehensible" is why the written form requirement for companies in the Construction and building cleaning industry and the Meat industry nevertheless continue to be held.

Schwannecke calls for the Bundestag to quickly implement the BEG IV significantly more effective relief measures "Because the burden of evidence, documentation and reporting obligations is proving more and more dangerous competitive disadvantage for craftsmen and women."

Establish an annual relief law

It is therefore "urgently needed", on the one hand to noticeably relieve the burden on craft businesses and on the other hand to reduce the new burden. "Reduction of bureaucracy must be permanently considered and driven forward. For this, a annual bureaucracy reduction law be firmly established so that the government is constantly being called upon to take the reduction of bureaucracy seriously."

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