No sick leave without proof as Germany overhauls workplace rules

Workers in Germany may no longer be able to call in sick over telephone as the government is preparing for stringent leave reforms. The workers would be required to produce medical certificates from day one, Reuters reported.

The leave reforms is part of German Chancellor Friedrich Merz’s 34-point package of pension, tax and labour reforms. The package also introduces measures to cut red tape that Merz said would boost growth, jobs and competitiveness while maintaining social welfare protections.

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Merz said the government aimed to pass the main elements of the 34-point package through parliament by the end of the year.

Merz said the ruling coalition has agreed on the economic reforms, a breakthrough aimed at reviving the struggling economy and countering the rise of the far right.

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As the German government is looking to overhaul workplace rules, companies would be offered greater scope to offer fixed-term contracts for up to 4 years for new hires through to 2030. They would also be offered greater freedom for dismissal-with-compensation arrangements for very high earners.

“We are working to cut red tape. We are working to protect our welfare state, and we are working to ease the burden on employees and companies by lowering taxes,” Merz said.

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The package includes income tax cuts worth 10 billion euros ($11.4bn), to be financed by higher taxes on those earning more than 250,000 euros a year. And changes to the pension system will eventually see the retirement age rise past 67.

“The highest earners in this country will take on a larger share” of the tax burden, said Finance Minister and Vice Chancellor Lars Klingbeil of the SPD. “That is fair, so that our country can move forward.”