German Labour Overhaul Risks Longer Sick Leaves as Mandatory Doctor’s Note from Day One Draws Fire

Germany's plan to mandate a medical certificate from day one of illness could paradoxically prolong sick leave, overwhelm GPs, and strain employers, as part of broader labor law changes.

A planned reform requiring employees to present a medical certificate from the first day of illness threatens to increase, rather than reduce, absenteeism, according to labour lawyers and doctors. The measure is part of a broader package of changes to German employment law announced in early July under the government’s “Programme for Recovery and Employment”.

Paul Krusenotto, an employment lawyer, warns that forcing workers to visit a doctor on day one may paradoxically result in longer sick notes. “A requirement to see a doctor from day one could lead to more extended certificates,” he said. The German Association of General Practitioners has also voiced concern that GP surgeries would be overwhelmed. Currently, a medical certificate is only needed from the fourth day of illness, unless the employer demands it earlier.

The reform would abolish the option of a telephone sick note and replace it with a blanket attestation obligation from day one. Krusenotto noted that the Günstigkeitsprinzip (favourability principle) could preserve existing contracts that stipulate a later deadline, but for new agreements the change would be binding.

Sick Leave Statistics Underscore the Stakes

The DAK health insurer recorded an average of 19.5 sick days per employee in 2025. OECD data places Germany seventh internationally, with 6.8 per cent of working time lost. Critics argue that forcing more doctor visits may strain primary care without improving productivity.

On the other side of the reform, the rules for dismissal due to illness remain tight. Employers must still run a company integration management process (BEM) whenever an employee is unfit for work for more than six weeks, either consecutively or repeatedly, within a twelve-month period. Without a proper BEM procedure, a later sickness-related dismissal is generally void.

The Federal Labour Court (BAG) requires a three-step test for such dismissals: a negative health prognosis, substantial operational disruption, and a balancing of interests to see if continued employment is reasonable. Behaviour-related dismissals, for example for misconduct in home office or expense fraud, are separate; many cases end in a settlement, according to employer lawyer Alexander Birkhahn.

Mass Dismissal Ruling Eases Formality Fears

A BAG judgment of 25 June provided relief for employers: formal errors in a collective redundancy notification do not automatically invalidate dismissals. In the case at hand, an insolvency administrator had announced more redundancies than were eventually carried out. The court ruled that the Federal Employment Agency had still been able to perform its duties.

The reform also targets high earners. From 1 January 2027, employees with annual gross income above €177,500 will be easier to dismiss, with a severance-based termination option. Experts, however, rate the practical impact as limited. The government also plans to extend fixed-term contracts without a specific reason to up to 48 months with six renewal options until the end of 2030. The Centre for European Economic Research (ZEW) is sceptical: Dr Eduard Brüll said longer fixed-term periods create few new jobs and only slow the transition to permanent employment.

Disability and Minijob Changes

Special rules apply to employees with disabilities. The BAG ruled in April 2025 that no prevention procedure under Social Code IX is needed in the first six months of employment. From month seven, the Integration Office must approve any dismissal. Workers must inform their employer of a severe disability within three weeks of receiving a dismissal notice, if the employer did not previously know. A ruling by the Baden-Württemberg State Labour Court on 2 July confirmed that employees can claim compensation if discriminated against by customers.

Finally, the reform package raises the flat-rate tax on mini-jobs from two to five per cent. Sector dialogues with automotive, chemical, steel, and mechanical engineering industries are scheduled until October to monitor the reforms’ impact.