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German Scaffolding Scare and the 34-Point Labour Shift: From Sick-Note Crackdowns to Super-Earner Severance

Rodolfo Hanigan by Rodolfo Hanigan
July 4, 2026
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Only one in five construction sites in Hesse passed a full safety check during a June crackdown on scaffolding protections, state regulators reported. The inspections, carried out by regional government presidiums, found that just 21 percent of monitored sites had guardrails, boards and nets entirely in order. The action comes against a grim backdrop: between 2009 and 2023, falls from height accounted for 31 percent of all fatal workplace accidents in Germany.

The safety snapshot lands at a moment when Berlin is pushing ahead with a sweeping 34-measure package that loosens hiring and firing rules while tightening sick-leave oversight. The scaffolding numbers highlight the gap between legislative ambition and on-the-ground enforcement, but the government’s focus is squarely on labour-market flexibility.

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Falls from height remain the leading cause of workplace fatalities, yet many employers still lack proper risk assessments for working at height. A free Risk Assessment Toolkit offers 41 ready‑to‑use templates and checklists to help you document hazards, comply with safety law, and protect your team. Download the free Risk Assessment Toolkit

Sick notes return to paper

One of the most visible changes: telephonic sick certification will be abolished. From now on, employees must present a doctor’s note from the very first day of illness. Anyone submitting a false medical certificate faces tougher sanctions.

Fixed-term contracts stretched further

The coalition is dramatically expanding the rules for causeless fixed-term contracts. The maximum duration rises to 48 months, and within that period up to six renewals are permitted. The arrangement is initially valid until the end of 2030. As of 1 January 2027, the written-form requirement for fixed-term agreements will also be dropped – another administrative relief for employers.

High-earner firing gets cheaper for firms

Starting January 2027, special provisions apply to top earners. The threshold is anyone earning more than 1.75 times the contribution assessment ceiling for pension insurance – currently about €177,450 annual gross salary.

Employers can then terminate the employment relationship by paying severance, even if the dismissal would be socially unjustified under normal rules. The severance is capped at 12 to 18 months’ salary. The model mirrors existing rules for risk-takers in the financial sector. Workers who quickly land a new job will receive tax incentives – a move intended to boost labour-market mobility.

Minijobs cost more, overtime stays tax-free

Tax and social-security changes also feature. The flat-rate tax on minijobs rises from 2 percent to 5 percent. In exchange, supplements for Sunday, public holiday and night work remain tax-free up to an hourly wage of €75.

On artificial intelligence, the government is opting for dialogue. The social partners have until October 2026 to submit proposals on co-determination in AI-driven processes.

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As workplace regulatory demands grow, keeping your health and safety documentation up to date is essential for legal compliance. The free Health & Safety Toolkit provides ready‑to‑use risk assessments, checklists and toolbox talks that cover key UK regulations – helping you protect employees and avoid costly enforcement action. Get the free Health & Safety Toolkit

Courts tighten procedural screws

Alongside the political moves, recent labour-court rulings have sharpened requirements for dismissals. The Federal Labour Court (BAG) ruled in March that if a proper mass-layoff notification is missing, the dismissal is invalid. Making up for the omission later is not possible – that would violate European law.

A further ruling from May concerns proof of delivery for documents. A registered letter with proof of posting alone is insufficient evidence that a document actually arrived. In the concrete case, a dismissal failed because the employer could not prove that the invitation to a company reintegration management (BEM) meeting had reached the employee.

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Rodolfo Hanigan

Rodolfo Hanigan

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