German Courts Rewrite Rules on Vacation, Layoffs, and Travel Time as Work Hour Reform Stirs Controversy
Published on 06/22/2026 at 18:28 | Redaktion boerse-global.de
Plans to let German employers replace daily maximum working hours with weekly limits have triggered opposition from unions, business groups, and even a majority of workers. A draft bill circulated by the Federal Ministry of Labour and Social Affairs (BMAS) in June 2026 would allow collective bargaining partners to set a maximum weekly work time instead of the current eight-hour daily cap. The existing 11-hour uninterrupted rest period could also be dropped — provided electronic time-tracking is used on the same day.
The proposal faces resistance from the centre-right Union parties and employer organisations such as Gesamtmetall. Surveys by the German Trade Union Federation (DGB) show three-quarters of employees want to keep the eight-hour day. No parliamentary timetable has been announced for the reform.
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Vacation: no blanket two-week limit
While the working-time debate is political, courts have already reshaped employer obligations in other areas. The Thuringia Regional Labour Court (LAG ThĂĽringen) ruled on 2 March 2026 (Az.: 4 Ta 15/26) that companies cannot automatically cap consecutive vacation at two weeks. The case involved an employee who won an interim injunction for three weeks of consecutive leave.
The judges pointed to Section 7(2) of the Federal Holiday Act (BUrlG), which requires vacation to be granted in a continuous block. The law’s mention of twelve working days sets a minimum, not a maximum. Mere “established practice” is no justification for rejecting longer requests. Employers who refuse more than two weeks must now cite compelling operational reasons.
Mass layoffs: paperwork errors now fatal
The Federal Labour Court (BAG) toughened mass-dismissal rules on 1 April 2026 (Az. 6 AZR 157/22 and 6 AZR 152/22). If the mandatory consultation procedure with the works council is not completed before the notice is filed, or if the notice is missing, the dismissal is permanently void. A later correction cannot cure the defect.
Separately, on 18 June 2026 the BAG clarified that the pre?emptive special protection against dismissal applies before each individual block of parental leave — even when several periods are applied for in one letter.
Home office: reasons required, no automatic 50% right
A DĂĽsseldorf labour court decision (Az. 3 Ca 6587/25) struck down a company order requiring an IT employee to work from the office. The employer could not prove that on-site presence would improve communication with colleagues who themselves worked remotely. However, the same judges refused to imply a general entitlement to a 50% home?office quota.
Travel time counts as paid work
Following a European Court of Justice ruling on 9 October 2025 (C?110/24), employer?organised group trips from a base to a worksite are now considered full working time. This has immediate consequences for the statutory minimum wage.
The German minimum wage rises to €13.90 per hour on 1 January 2026 and to €14.60 on 1 January 2027. If unpaid travel time pushes the effective hourly rate below that level, employees can claim back?pay. The statute of limitation is three years, and waiving the minimum wage is legally void. Violations can carry fines of up to €500,000.
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Contact during vacation – a nuanced picture
The BAG ruled on 4 December 2025 (Az. 2 AZR 55/25) that there is no absolute ban on contacting an employee during holiday. In a planned dismissal based on suspicion involving a criminal offence, the employer is obliged to try to reach the worker for a hearing — otherwise the two?week deadline for giving notice may be missed.
For long?term illness, the BAG’s earlier decision of 15 July 2025 (Az. 9 AZR 198/24) remains binding: holiday entitlement expires only 15 months after the end of the relevant leave year.
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