German Chancellor Friedrich Merz announced a significant overhaul of the nation's labor market on July 2, 2026, eliminating the long-standing three-day grace period for employee illness. This new policy mandates that all public and private sector employees across Germany must now provide a medical certificate from the very first day of sick leave.
New Rules Target Productivity and Absenteeism
Previously, workers could be absent for up to three consecutive days without a doctor's note, known as an Arbeitsunfähigkeitsbescheinigung. The policy shift is a core component of a broader 34-point economic strategy designed to enhance Germany's productivity and mitigate workplace absenteeism.
In addition to requiring immediate medical certification, the new measures permanently discontinue the pandemic-era practice of telephone-based sick leave. This temporary rule had allowed individuals with mild symptoms to obtain a week-long medical certificate simply through a phone consultation.
Chancellor Defends Strict Regulations Amid Criticism
Chancellor Merz defended these stringent corporate regulations as an essential step to address Germany's current economic and competitive challenges. "We know that you, ladies and gentlemen — the citizens of our country — want decisions, and you don't want conflict," Merz stated during a press conference in Berlin, urging public support for the necessary reforms.
However, the reforms have drawn criticism from opposition leaders, who argue that presenting this as a "breakthrough" highlights the government's "complete inability to reform." Opponents also voiced concerns about the potential strain the new mandate could place on the country’s already burdened healthcare infrastructure.
Broader Economic Reforms Expected
The government aims to push these structural labor modifications through parliament by the end of the year. These changes are part of a larger package of economic initiatives, which also include proposals for income tax relief, pension system overhauls, and significant reductions in bureaucracy.