German Labour Court Strengthens Parental Leave Protections, Rules Each Phase Restarts Dismissal Shield

German labour court closes parental leave dismissal loophole: protection renews per leave period. Also: bureaucracy cuts, sick note reform, maintenance payment age reduction.

Germany’s Federal Labour Court has issued a landmark ruling clarifying that workers entering parental leave gain renewed protection against dismissal at the start of each separate leave period. The decision, announced on June 18, 2026 (case reference 2 AZR 213/25), closes a loophole that employers had used to fire employees who had previously applied for multiple leave blocks at once.

The judges made clear that the protective effect – known in German labour law as “preliminary dismissal protection” – arises anew for every individual phase of parental leave, even when several phases were requested in a single application. A dismissal without prior consent from the responsible state authority is null and void. The safeguard applies regardless of company size and extends into the probationary period.

The ruling comes as Chancellor Merz’s second relief cabinet convened on Wednesday to tackle what officials call excessive documentation burdens in the workplace. Digital Minister Wildberger announced that the government aims to cut bureaucratic red tape by roughly 600 million euros annually. Among the targets: risk assessments under the Maternity Protection Act and the so-called “leader certificate” for building caretakers, both singled out as prime examples of over-regulation. The initiative also includes exempting electric-vehicle license plates from the requirement to display an environmental badge, streamlining administrative processes.

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Yet workplace safety experts are urging caution as the government pushes for simplification. The German Social Accident Insurance Institution (DGUV) insists on mandatory annual safety briefings for all employees who work with electric or hydrogen-powered vehicles. That obligation covers service workshops, manufacturers, suppliers, and research-and-development units. Training must be completed before starting work and then repeated at least once a year. Digital formats, such as those offered by TÜV Süd, are being promoted to ease compliance.

Separately, policymakers are debating whether to introduce a general requirement for a doctor’s note – an “AU” certificate – starting from the first day of illness. Industry representatives warn that workers covered by collective agreements, for instance in pharmacies, may be exempted because of specific sector-wide contracts. At the same time, a reform of statutory health insurance scheduled for 2027 plans to introduce partial sick notes. Employees would be able to be signed off at 25, 50, or 75 percent capacity. Employers would have the right to object. Full wage continuation would remain in place for the first six weeks; after that, workers would receive proportional sick pay.

In a cost-cutting move, the Federal Family Ministry intends to lower the age limit for advance maintenance payments from 18 to 16 years. The budget projections for 2027 would shrink accordingly. An estimated 80,000 children are expected to be affected by the reduction.