From Day-One Sick Notes to Looser Dismissal Rules: Germany’s Ambitious Workplace Reform
Veröffentlicht: 07.07.2026 um 09:24 Uhr, Redaktion boerse-global.de
Germany’s coalition government is pushing through a sweeping labour-law shake-up designed to raise productivity and cut red tape, but the package also weakens protections for high earners and tightens rules around repeat illness. The measures form part of 34 “immediate actions” for growth and bureaucracy reduction.
Tougher sickness certification. From now on, workers must present a medical certificate on the first day of illness, ending the pandemic-era practice of phone-in sick notes that was widely used. Chancellor Merz justified the change by pointing to rising absenteeism: in 2025 the average full-time employee took 8.2 sick days. European comparisons show Germany ranks seventh for lost weekly working time at 6.8%, well behind Norway (10.7%) and Finland (10%).
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The favourability principle protects existing contracts. Labour lawyers stress that many current employment agreements already contain clauses that are more generous than the planned minimum standard. The legal principle called “Günstigkeitsprinzip” dictates that when multiple regulations apply, the one most favourable to the employee prevails. So a contract requiring a sick note only from the third or fourth day remains valid. One exception concerns the relationship between collective agreements and works council deals: here the principle is limited under Section 77(3) of the Works Constitution Act. A Federal Labour Court ruling on 3 December 2025 (4 AZR 123/18) also underlined the importance of a “group-of-cases” analysis.
High earners face weaker job security. Employees earning more than €177,450 annually will see their dismissal protection reduced. Severance caps of between 12 and 18 gross monthly salaries are being discussed. In addition, fixed-term contracts without a specific reason will become easier to use until 2030, reversing earlier restrictions.
A separate court judgment underlines the heightened expectations for senior staff. On 29 May 2026 the Berlin-Brandenburg Regional Labour Court (case 12 Sa 861/23) upheld the summary dismissal of a manager at public broadcaster RBB. The executive had approved consultant invoices totalling €14,000 without review, violating internal compliance rules. The court ruled that in a role with special responsibility and an annual salary of €160,000, even a single serious breach justified immediate termination without a prior warning.
Stricter rules for recurring illness. Under the reform, employees who are repeatedly sick must prove that a previous illness has fully healed before they can claim the statutory six weeks of continued wage payment. Otherwise the entitlement lapses.
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Criticism from doctors and unions. The German Association of General Practitioners and trade unions warn of a growing “culture of mistrust” and question how the new rules can be implemented in busy practices.
Practical advice. Employer associations recommend that companies review contracts and processes, but avoid premature personnel moves based on reforms that have not yet passed parliament. Employees receiving amendment requests from their employer should seek legal advice, as “change dismissals” remain subject to strict legal hurdles.
