Chancellor Friedrich Merz's coalition government has introduced a comprehensive reform package targeting Germany's labor market, with stricter sick leave regulations at its core. The changes, announced on July 2, 2026, require workers to provide medical certificates from the first day of absence, eliminating phone-based sick notes. The reforms are part of broader adjustments to work, tax, and pension policies aimed at boosting economic productivity.The Independent+2
📊 Key Labor Market Changes
The reform package includes:
- Mandatory medical certificates for all sick leave starting July 2, 2026
- Abolition of phone-based sick notifications
- Tightened dismissal protection rules
- Adjustments to employment contract regulationsSüddeutsche Zeitung+2
💼 Economic and Social Impact
The government aims to:
- Reduce absenteeism through stricter sick leave verification
- Increase net income for small-to-medium income families
- Implement higher taxes for wealthy individuals
- Address concerns about workforce productivitySüddeutsche Zeitung+2
🏛 Political Consensus and Criticism
The black-red coalition (CDU/CSU/SPD) achieved:
- Agreement on major labor market reforms
- Combined approach with tax relief measures
- Criticism from employee representatives about stricter rules
- Questions about whether reforms represent minimal consensus or breakthroughDer Spiegel+2
⏱ Implementation Timeline
Key dates and considerations:
- Immediate effect for sick leave changes starting July 2
- Simultaneous rollout with tax adjustments
- Ongoing debates about reform effectiveness
- Potential need for further adjustments based on impactThe Independent+2
GermanyBärbel BasFriedrich MerzLars KlingbeilPension Commission