Germany Demands Doctor's Note from First Sick Day, Extends Fixed-Term Contracts in Labour Overhaul
05.07.2026 - 00:20:38 | boerse-global.de
Germany is shaking up its workplace rules, requiring employees to present a medical certificate from the very first day they call in sick. The measure, part of a broad labour package approved by the federal government in early July, replaces the phone-based sick-note system that became common during the pandemic.
Chancellor Friedrich Merz justified the change by pointing to rising absenteeism. Official figures show that the average German worker took 14.8 sick days in 2024. The new rule does not necessarily force someone to visit a doctor's office on day one – physicians can backdate a certificate up to three days, and video consultations remain an option. But the Kassenärztliche Bundesvereinigung, the association of statutory health insurance doctors, warned the policy would swamp practices and add bureaucracy.
Labour Minister Bärbel Bas (SPD), who championed several elements of the package, also secured the preservation of the eight-hour day. A proposal to move from a daily to a weekly maximum working time – pushed by business groups and the centre-right Union bloc – was dropped from the coalition deal on 1 July. Any deviation from the daily cap still requires a collective bargaining agreement, and even then workers cannot exceed an average of 48 hours per week over a year.
Electronic Timekeeping and Court Clarification
A separate pillar of the reform makes electronic time recording mandatory. The obligation to log start, end and duration of work already exists following a September 2022 ruling by the Federal Labour Court, but the government is now drafting precise legislation on how that must be done electronically. The goal is seamless documentation of breaks and overtime, including for home-office employees. Companies that violate the recording rules face fines of up to €30,000.
That requirement is already being tested in the courts. In June the Labour Court of Stralsund dismissed a lawsuit filed by the Marburger Bund doctors' union against the University Medicine Greifswald. The union had demanded minute-by-minute electronic logging. The court ruled that the hospital’s existing system satisfied the collective agreement. The Marburger Bund is considering an appeal.
Longer Fixed-Term Hires and Looser Protection for High Earners
Other parts of the package aim to make hiring more flexible. Fixed-term contracts without a specific reason can now last up to four years – double the previous limit – and be extended up to six times. This rule applies through the end of 2030. The requirement for a written agreement on such contracts has also been dropped.
At the top of the income ladder, job protection is being relaxed. Starting in January 2027, employers will find it easier to terminate contracts for workers earning roughly €177,450 per year or more, as long as they pay a severance settlement.
The package left some business advocates disappointed. While industry groups had hoped for a move to a weekly-hours model, the minister held firm. Meanwhile, the hospitality sector has been especially vocal about the tighter time-tracking rules, arguing that major events will force them to hire extra staff just to keep up with the paperwork.
