German workers will need sick note from day one of illness
Workers in Germany will require a sick note from the first day of illness after Friedrich Merz unveiled a package of reforms that also affect fixed-term contracts, executive dismissals and severance payments.
Merz said that sick leave certificates can no longer be issued over the phone and that a certificate will soon be required from the first day of illness. Currently, a sick note is only required if the illness lasts longer than three calendar days.
“This is a tough decision, we know that,” the chancellor explained. “But we can no longer afford this competitive disadvantage caused by long absences from work.”
For employees hired until 31 December 2030, it is planned that fixed-term contracts without “objective grounds” will be permitted for a maximum duration of up to four years. It was two years.
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FTCs may be extended up to six times, instead of the current limit of three. It will also be possible to rehire an employee to the same employer for the first time.
“This is a particularly important opportunity for young companies, for start-ups, but also for companies that want to expand, to create new jobs,” said Merz.
For “high earners”, the German government plans to introduce regulations from January 2027 that allow for the termination of the employment relationship in exchange for a severance payment.
Modelled on rules in the German financial sector, where an employer can file a petition to dissolve the employment relationship if a court deems the termination unlawful. The labour court then terminates the employment at the employer’s request, and the employee loses their job but receives a severance payment determined by the court. It is expected to apply to people earning around €180,000 or more.
“We want to get Germany back on track,” Merz said. The reforms also include €10 billion in annual tax relief for lower-income earners, and job cuts of 8% in federal ministries through digitalisation.
People with annual incomes of €280,000 or more will see the top rate of tax rise from 45% to 47% to help fund the tax relief for lower earners.
Dr Rainer Dulger, president of the German Employers’ Association, said: “With its reform package, the coalition has embarked on a long‑overdue change of course. The shift towards growth and employment is an important message of the package – and it builds confidence. This change of direction must now develop into a genuine economic turnaround.
“A number of measures strengthen the competitiveness of Germany as a business location, stabilise the social security systems, and help to reduce red tape as well as modernise the state. For the first time in decades, extending fixed-term employment without objective reason introduces greater flexibility into labour law.
“By abolishing the telephone-based sick note and requiring a medical certificate from the first day, the coalition is rightly responding to the comparatively high level of absenteeism due to illness.”
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Source: www.personneltoday.com