Paperless, but legally compliant — Standards for payroll accounting

The ongoing digitalisation in the world of work is also reflected in current case law. In its ruling of January 28, 2025 (Ref.: 9 AZR 48/24), the Federal Labor Court clarified that employers can provide pay slips digitally as long as access is guaranteed for all employees. However, the ruling also shows that the introduction of digital processes poses legal challenges and requires transparent regulations.

The initial situation: Digital progress meets resistance

The decision was based on a legal dispute that had previously been dealt with by the Lower Saxony Higher Labor Court.  The parties were in dispute over the issuing of pay slips via a digital employee mailbox. The plaintiff is employed as a salesperson in the defendant's retail business. On April 7, 2021, a group works agreement was introduced in the defendant's retail business, in which the provision of all personnel documents — in particular pay slips — in a digital employee mailbox was stipulated. In accordance with the group works agreement, the defendant provided pay slips exclusively in electronic form from March 2022 on. Since then, employees have been able to retrieve personnel documents via password-protected online access. Employees without access via a private device can view and print these documents at work. 

The plaintiff objected to this change on several occasions and demanded her pay slips in paper form. Her reasoning: The digital mailbox did not constitute a suitable receiving device for her. The provisions in the group works agreement were ineffective and could not replace her lack of consent. In a ruling dated January 16, 2024 (case no. 9 Sa 575/23), the lower court ruled in her favor — pointing out that pay slips are unilateral declarations of intent that must be received by the employee in accordance with Section 130 BGB. Due to the text form prescribed in the Industrial Code (Section 108 (1) sentence 1 GewO), the employer must affect receipt in the form required by law. Access by electronic means is generally possible — however, the digital employee mailbox is only a suitable receiving device if the recipient has designated it for the receipt of declarations of intent in business transactions. Otherwise, the employee does not have to expect transmission by digital means.

Entitlement to a pay slip as a debt to be collected

The Federal Labor Court made a different assessment: The employer only has to make the pay slip available at an accessible location — be it physically or digitally. The employee is responsible for the actual receipt of the pay slip. This is based on the fact that the right to a pay slip is a debt to be collected. In other words: By placing the pay slips in the digital mailbox, the defendant has in principle fulfilled its obligation to provide pay slips under Section 108 (1) sentence 1 GewO.

This does not apply without restriction — the employer must take into account the legitimate interests of the employees. The group works agreement obliges the employer to offer employees without private online access a reasonable alternative. It is sufficient if documents can be viewed and printed out at the company.

Digital mailboxes: between efficiency and legal compliance

Digital employee mailboxes have now established themselves as a common method of providing personnel documents. There is no disproportionate interference with employee rights, as the legally prescribed text form is observed and the legitimate interests of employees without private online access must be taken into account. However, individual employee consent is not required. Remuneration statements can be effectively provided in this way without express consent.

Even though the Federal Labor Court emphasised the permissibility of providing pay slips in electronic form, the Senate was unable to reach a conclusive decision in the present case. This is because it has not yet been established whether the introduction and operation of the digital mailbox falls within the remit of the group works council. However, this question is crucial for assessing the effectiveness of the changeover. The case was referred back to the Higher Labor Court for clarification.

The case is an example of how complex the transition from analog to digital processes can be — especially in the area of conflict between operational efficiency and individual employee rights. While digital solutions are often seen as progress, the rights of employees must not be overlooked.

Practical relevance: A pioneering ruling

This decision by the Federal Labor Court provides legal certainty for operational practice and can be seen as positive overall. The consequences of the Federal Labor Court’s ruling are far-reaching for companies and employees alike. As the decision shows, digitalisation in employment law is possible — but with caution! 

The case of the supermarket sales assistant may seem specific, but it raises fundamental questions about the balance between efficiency and employee rights. Employers are allowed to use digital solutions but must ensure that they are implemented in compliance with the law. Among other things, works agreements must be drawn up properly and in compliance with responsibilities. And for employees, the ruling remains a signal that their rights must also be taken into account in the digital age. 

A glimpse into the future shows that the digitalisation of payroll accounting not only brings opportunities, but also new challenges. Companies will therefore continue to be called upon to develop innovative solutions that are both legally compliant and practicable.