Politics · Germany · 6 hrs ago
Germany proposes looser dismissal rules and longer fixed-term contracts
Labour Minister Alexander Schweitzer has proposed changes to Germany’s employment rules to make it easier for companies to hire workers.
The draft would let employers end the jobs of some high earners by paying compensation, even when a dismissal is not legally justified.
The change would apply to workers earning over about €186,000 a year, and would take effect no earlier than 2028.
Companies could also offer fixed-term contracts for up to four years without giving a specific reason, instead of two, with more extensions allowed.
Employers welcomed parts of the plan, while union leaders warned it could leave workers in insecure jobs for longer.
The draft also proposes more Sunday work in public libraries, bakeries and confectioneries, and measures to protect employee representation in companies.
The government will discuss the draft before a planned December cabinet decision, after which it would go to parliament; the changes are intended to take effect from early 2027.
Germany’s labor ministry has proposed making it easier to dismiss some high earners and allowing longer fixed-term employment contracts.
The draft would let employers use fixed-term contracts without stating a reason for up to four years, with as many as six extensions, for new hires through the end of 2030.
The proposed dismissal changes would apply to employees earning more than about 186,000 euros a year and would take effect no earlier than 2028.
Employer representatives welcomed the plans, while unions warned they could leave workers in insecure conditions for longer.
The draft is now under government consideration, with cabinet approval planned for December and changes due to take effect in early 2027.
- Who
- Labor Minister Alexander Schweitzer (SPD) presented the draft. Employers and unions have responded differently.
- What
- The proposal would loosen dismissal protections for some high earners and expand fixed-term contracts without a stated reason.
- When
- The draft was reported on November 11, 2026. The changes are planned to take effect in early 2027, with the dismissal changes no earlier than 2028.
- Where
- Germany.
- Why
- The draft says the changes are intended to make it easier for companies to hire workers.
Employer representatives
Unions
Dismissal protections and fixed-term contracts
Employer representatives
The BDA welcomed the proposed changes as a positive signal and said they were moving in the right direction.
Unions
Verdi and the DGB warned that the changes could harm workers and prolong insecure employment.
Coalition leaders from the CDU/CSU and SPD agreed on measures intended to help revive Germany’s economy.
The draft’s proposed labor-law changes and reactions from employers and unions were reported.
The draft is due to be considered by the cabinet and then the Bundestag.
The changes are planned to take effect.
The proposed loosening of dismissal protection for high earners would begin.
The expanded rules for fixed-term contracts would apply to new hires.
- Dismissal salary threshold
- More than about 186,000 euros a year
- Dismissal changes
- Would take effect no earlier than 2028
- Fixed-term contracts
- Up to four years without a stated reason, with up to six extensions
- Eligible new hires
- Contracts made through the end of 2030
- Sunday work
- Libraries could employ staff for up to six hours on Sundays and public holidays
2 sources
What people are saying
Disappointment and also danger for many employees
The expansion of fixed-term contracts without a stated reason, Sunday work and the loosening of dismissal protection are not needed.
This is a positive signal