Germany Eases AVV Signature Rules with BEG IV

A New Era for Digital Contracting

On January 1, 2025, the Fourth Bureaucracy Relief Act (Viertes Bürokratieentlastungsgesetz or BEG IV) came into effect in Germany. One of its most impactful outcomes is a shift in how companies can conclude certain types of agreements, most notably the data processing agreement, or Auftragsverarbeitungsvertrag (AVV).

Until recently, these agreements typically required a qualified electronic signature (QES) to be legally binding. While secure, the QES added friction to already complex B2B administrative workflows. Thanks to BEG IV, that friction is finally being addressed.

Understanding What Changed

Previously, AVVs and similar contracts were subject to the strict form requirements of German civil law. A QES, essentially the digital equivalent of a handwritten signature with notarial oversight, was often necessary. This was especially true for employment-related and data protection contracts where legal certainty is paramount.

As of January 2025, however, BEG IV has made it legally permissible to use simpler methods of agreement, such as “Textform.” This can include email, PDFs, or other readable formats that clearly indicate the identity and intent of the contracting parties.

The German government’s goal is clear: to reduce unnecessary red tape and enable organizations to digitize more of their operations. This applies not only to AVVs but also to employment contracts and other business agreements, as highlighted by GVW’s legal analysis.

What This Means for You

For legal, compliance, and operations teams, this is a welcome simplification. Here’s why:

• Faster Turnaround: No more delays waiting for a QES setup or approval. Contracts can be concluded as fast as an email exchange.
• Lower Costs: Qualified signatures often require specialized tools, trust service providers, and personnel training. With Textform, those expenses are greatly reduced.
• Greater Flexibility: You now have the freedom to finalize routine agreements directly within digital systems or workflows.
• Standardization & Automation: With more freedom in execution formats, businesses can now integrate contract templates and approval logic into their document workflows more seamlessly.

Integrating with the Tools You Already Use

If you’re working in a contract-heavy environment such as HR, legal, or procurement, these changes open the door for smarter workflows.

Modern contract lifecycle management (CLM) tools like fynk are designed to handle both traditional and new formats. While fynk offers integrated QES for those contracts that still require the highest level of authentication, it also supports simplified workflows using text-based signatures, aligned with the flexibility that BEG IV now allows.

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To make things even easier, AVV templates tailored to GDPR requirements and compliant with the new legal standards are readily available inside the platform. Instead of drafting from scratch or verifying form requirements manually, you can select a ready-made, legally vetted document, send it out, and track its progress all in one place.

A Quiet Revolution in Compliance

While this may seem like a subtle regulatory change, its implications are far-reaching. Less bureaucracy means more time for strategic work. More automation means fewer errors and better oversight.

The digital future of contract management has been on the horizon for years. With BEG IV, it is now firmly here and simpler than ever to implement.

Author:

Rezvan Golestaneh