Labour Reforms Merz targets sick leave and dismissal rules in German labour law overhaul Proposed reforms aim to make the labour market more competitive, but employers lament abandoned plans to abolish the eight-hour workday iStock.com/Christian Ader Image Freya Gilbert Deputy Editor Thursday 09 July 2026 German Chancellor Freidrich Merz unveiled a sweeping package of labour law reforms last week, targeting persisting issues around absenteeism, loosening rigid dismissal processes, and promisin Get AccessContinue reading International Employment LawyerAlready have access? Login now Email Enter your email address. Password Enter the password that accompanies your email address. Reset your passwordLog in Need access? Find out how to enjoy unlimited accessGet access For more on legislative change across the globe, see the IEL Monitor – IEL’s forward-looking tracking tool that covers developments in labour and employment law around the world. You might also like... Sick Leave Suspicious of mounting sick leave, German bosses turn to private eyes Sick Leave Tesla defends visiting homes of sick German workers Sick Leave German government considers wage deductions to curb sick leave abuse Working Time Germany poised to lift cap on eight-hour workday