Germany’s Labour Overhaul: Fewer Sick Notes, Longer Contracts – and a Push for AI Job Tools
04.07.2026 - 03:53:49 | boerse-global.de
Only 24 percent of German employees said they felt comfortable at work in 2025 – a dramatic slide from 41 percent just two years earlier. The newly released figure underscores a growing disconnect between workplace reality and the policy changes now taking shape in Berlin. Among the most exposed groups: workers without a fixed desk, where 60 percent lack access to internal communication apps.
That sense of unease arrives as the CDU/CSU/SPD coalition rolls out a 34-point reform package that touches everything from sick leave to hiring rules. Announced on 2 July, the measures scrap the remote sick note and reinstate a requirement to bring a doctor’s certificate from the first day of illness. At the same time, dismissal protection is loosened for high earners – those with gross annual salaries above roughly €177,450 – effective 1 January 2027, alongside a severance solution. Fixed-term contracts without cause are extended to up to 48 months with a maximum of six renewals.
The IT industry federation BITMi welcomed the reduction in red tape but said a comprehensive corporate tax reform was still missing.
Two start-ups have timed their launches to match the shifting landscape. On 2 July, CompLens went live as a SaaS platform that helps companies comply with the EU Pay Transparency Directive by automatically analysing wage gaps. The first reporting deadline is 7 June 2027; a full-access licence for firms with 150 to 500 employees costs just under €6,000 per year. A day later, Karriva debuted – an AI career coach that guides professionals through CV writing, interview preparation and onboarding for roughly €29 a month.
Onboarding itself has become a critical battleground for retention. Human resources expert Doris Brenner says a clear roadmap, a decent workspace from day one, and regular feedback are essential. Several tools now target that need. Trupeer creates onboarding videos automatically from screen recordings. Platforms such as SkyPrep and TalentLMS function as all-in-one training suites, starting at about US$40 monthly. In late June, WorkBoard presented an AI agent for portfolio management that runs conversational scenario analyses and claims to integrate with Workday or Teams within a day.
Major software vendors are also retooling their workforce. SAP, which cut roughly 10,000 jobs two years ago, has since created more than 3,500 new positions and is focusing on retraining rather than further layoffs. The rationale: software developers’ roles are evolving, with checking AI outputs becoming a core task. The combined effect of new tools, tighter sick rules and longer fixed-term contracts points to a German labour market that is simultaneously more flexible and, for many employees, more uncertain.
