German Cabinet Approves Four-Week Job-Testing Periods Without Quitting, Targets €16B Annual Red Tape Cuts
Veröffentlicht: 15.07.2026 um 15:20 Uhr, Redaktion boerse-global.de
The German federal cabinet has passed a legislative package that lets employees experiment with a new job for up to four weeks – and in some cases six weeks – without having to resign from their current position. The reform, spearheaded by Labour Minister Bärbel Bas (SPD), is part of a broader drive to slash bureaucracy and overhaul labour law.
Under the new SGB III amendment bill, workers can try out a different role at another employer while their original contract remains legally intact. The legislative process is expected to wrap up by the end of November 2026. Supporters say it gives employees greater flexibility in career transitions, while critics argue the measure fails to address structural shifts such as artificial intelligence and industrial decarbonisation.
Alongside the job-testing rule, the cabinet greenlit a series of measures designed to cut red tape for businesses. The government estimates these changes will save companies roughly €600 million annually. The SGB III revision alone is projected to lower bureaucratic costs by €720 million per year.
A significant chunk of those savings comes from looser workplace safety rules. Thresholds for appointing safety officers in small and medium-sized enterprises are being raised, meaning up to 123,000 such positions could become voluntary rather than mandatory. Digital Minister Karsten Wildberger said the administration’s goal is a 25% reduction in bureaucracy costs by 2029, equal to €16 billion in annual relief.
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The cabinet also adopted a law on data and digital innovation in healthcare, promising an additional €445 million in savings through digital processes.
Sick notes, fixed-term contracts and further changes
In early July, the coalition committee agreed on far-reaching changes to individual employment law. A key element: extending the period during which employers can hire staff on fixed-term contracts without providing a reason. The limit jumps from two to four years, with up to six renewals allowed within that timeframe. The rule is capped at the end of 2030.
Meanwhile, the rules for reporting sick leave are tightening. From now on, employees must present a medical certificate – an Arbeitsunfähigkeitsbescheinigung (AUB) – from the very first day of illness, replacing the previous rule that only required one after three days. The option of a telephone sick note will be abolished. Although companies could already demand a day-one AUB under existing case law, the reform makes it a statutory standard. The coalition’s July 2nd resolution aims to finalise the legislative procedure by the end of this year.
Minimum wage, temporary work and partial sick leave
The statutory minimum wage reached €13.90 per hour in January 2026. A further increase to €14.60 is scheduled for 1 January 2027, which will push the mini-job earnings ceiling to €633. In the temporary staffing sector, pay floors are rising in stages: after a July increase to €14.96, further steps are set for September (€15.33) and April 2027 (€15.87).
A new concept of staggered partial incapacity for work is also being introduced. On 10 July, the Bundestag passed the Beitragssatzstabilisierungsgesetz (Contribution Rate Stabilisation Act), which from 2027 will allow partial sick notes at 25%, 50% or 75% capacity. This applies to employees covered by statutory health insurance who are expected to be ill for more than four weeks. Employers can object within seven calendar days. Full wage continuation remains in place for the first six weeks; after that, a proportional sickness benefit kicks in.
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Digitalising the labour administration
Reforms also modernise communication with the Federal Employment Agency. Unemployment benefit recipients will no longer be required to have a physical postal address, provided digital contact is guaranteed. The cabinet decided that personal visits can increasingly be replaced by video calls. In another move, if authorities fail to decide on an application within four months, the application will be automatically approved.
Labour market expert Sylvia Rietenberg criticised the job-testing rule for not adequately accounting for the challenges posed by artificial intelligence and the decarbonisation of industry. Business representatives voiced similar scepticism, arguing that the new regulations often cancel out the promised savings.
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