Germany’s coalition committee approved a draft growth-and-employment package that would loosen labor rules, notably allowing fixed-term contracts without cause for up to 48 months and six extensions for hires through 2030.
From Jan. 1, 2027, employers could more easily sever ties with high earners making about €178,000 or more, using a court-backed severance route that would reduce reinstatement risk and cap exposure.
The package also would abolish telephone sick notes and require incapacity certificates from day one, while offering preferential tax treatment for severance when workers quickly move into new jobs.
Working-time rules were left unresolved apart from longer Sunday opening hours for bakeries, confectioneries and libraries, and several measures — including mini-job tax changes and AI-related works council reforms — still need legislation.