If you are a worker in Germany and feeling under the weather, you may not be able to call in sick over telephone or text. That’s because the German government is rolling out stricter workplace rules and stringent leave reforms that would requires workers to produce medical certificates from day one of sickness, Reuters reported.
“We know this is a tough decision. But we can no longer afford this competitive disadvantage caused by prolonged absences from work,” Merz said, The Independent reported.
This comes amid sweeping labour, tax and pensions reforms being introduced by German Chancellor Friedrich Merz’s to keep the German economy afloat as he pitched a 34-point package. The package also introduces measures to cut red tape as Merz said the initiatives would boost growth, jobs and competitiveness while maintaining social welfare protections. It also includes reduced taxes for lower income groups.
“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 was quoted as saying.
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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, adding that 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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Among other labour reforms 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.
What Merz said
“We are working to increase the flexibility of our businesses,” Merz was quoted as saying by AFP.
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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.”