When a Sick Note Loses Its Power: German Court Ruling Reshapes Dismissal Law for Chronically Ill Employees
07.06.2026 - 02:03:55 | boerse-global.de
His doctor's note coincided with a dispute over work schedules and a demand to return company equipment. The regional labor court (Az. 7 SLa 54/25) ruled that under such circumstances, the evidentiary weight of a medical certificate can collapse entirely. Once that happens, the employee must prove they were genuinely unable to work.
The case illustrates a broader legal reality for German employers and workers alike: terminating an employee due to illness requires navigating a strict three-stage test developed by federal courts. None of the stages involve misconduct—the focus is solely on the worker's diminished capacity.
Across Europe, employer obligations regarding workplace health are under scrutiny. For UK companies, one of the biggest compliance gaps is incomplete health and safety documentation. The free Health & Safety Toolkit provides ready?to?use risk assessments, checklists, and toolbox talks that help you meet legal requirements and protect your workforce. Download the free Health & Safety Toolkit
The first hurdle is a negative health prognosis. Objective facts must indicate that significant absences will continue. This applies especially to patterns of frequent short-term sickness or a single prolonged illness. Second, those absences must substantially disrupt business operations or generate high continued-pay costs. Third, the employer's interests must outweigh the employee's. A milder alternative—such as a redesigned workstation—would block dismissal. If an employee has been unfit for work more than six weeks in a single year, the employer is legally required to offer a Return-to-Work Management program.
What happens when the diagnosis is doubted
The Cologne ruling shook a long-standing assumption: that a standard sick note is almost unassailable evidence. The bus driver had a medical certificate, but its timing created reasonable doubt. When the evidentiary value is "shaken," the burden shifts to the worker. They must detail exactly which health restrictions existed and why those restrictions made work impossible.
A separate principle also governs pay. Under the Entgeltfortzahlungsgesetz, the illness must be the sole cause of the absence—monocausality. If the employee lacks the will to work, there is no entitlement to continued salary.
Pay protections extend to standby duty
The Federal Labor Court (Az. 6 AZR 210/22) clarified that scheduled on-call shifts count as regular work for wage-continuation purposes. They are not overtime and must be included in the six-week calculation. Church employment guidelines—often found in hospitals and social services—cannot undercut this legal standard.
Meanwhile, the Koblenz Labor Court ruled in November 2025 that cosmetic surgery performed without medical necessity triggers no wage-continuation entitlement. An aesthetic procedure does not meet the legal definition of "illness."
Employers also have a tool under Section 4a of the Entgeltfortzahlungsgesetz: they can reduce special payments like holiday bonus by up to 25 percent of the average daily pay for each sick day, under certain conditions.
New rules for sickness benefits tighten deadlines
A draft bill from April 2026 proposes changes for those receiving Krankengeld. Starting in 2027, health insurers will be allowed to contact claimants without prior consent, although patients retain the right to object. At the same time, pressure rises: refusing to participate in rehabilitation measures can lead to benefit cancellation.
For dismissed employees, the clock runs fast. A wrongful-dismissal lawsuit must be filed at the labor court within three weeks. However, the Federal Labor Court (Az. 2 AZR 156/24) ruled in April 2025 that pregnant women may still file after the deadline if they only learned of the pregnancy late and produce a medical confirmation.
Vacation entitlement also expires. The Federal Labor Court decided in July 2025 that for long-term sick employees, unused leave lapses 15 months after the end of the vacation year.
Just as UK employers must stay on top of legal deadlines for vacation claims, they also need to ensure compliance with health and safety law. The Health & Safety at Work Act 1974 Toolkit offers nine free tools, including risk assessments and a directors' liability guide, to help you avoid costly penalties. Get the free Health & Safety at Work Act Toolkit
Broader labor market shifts and strengthened reference-letter rights
Structural changes are hitting the manufacturing sector. In early June 2026, a company in Zweibrücken announced plans to cut roughly 130 jobs as it abandons in-house production. Such reductions trigger mandatory mass-layoff notifications and works council negotiations.
Managers are increasingly in the crosshairs. Experts advise strategic communication and realistic severance expectations—often one gross monthly salary per year of service is standard.
The Federal Labor Court bolstered reference-letter rights in May 2026 (Az. 8 AZB 25/25). An agreement requiring the employer to issue a letter based on the employee's draft is generally enforceable. The employer may deviate only if they can prove the draft violates the principle of truthfulness.
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