Politics · Germany · 6 hrs ago

Germany proposes looser dismissal rules and longer fixed-term contracts

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.

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What people are saying

Frank WernekeVerdi chairman
Disappointment and also danger for many employees
via WirtschaftsWoche
Anja PielDGB board member
The expansion of fixed-term contracts without a stated reason, Sunday work and the loosening of dismissal protection are not needed.
via WirtschaftsWoche
Steffen KampeterBDA chief executive
This is a positive signal
via WirtschaftsWoche