Companies that try to silence workers about their salaries are finding such bans unenforceable. Salary is not a trade secret, and courts have consistently thrown out warnings linked to pay discussions. Germany’s Pay Transparency Act already gives employees specific information rights aimed at closing the gender wage gap.
However, the European Union’s Pay Transparency Directive, which was meant to be written into national law by 7 June 2026, has not been fully implemented in several member states, including Austria. On 10 July 2026, AK President Renate Anderl and Sandra Konstatzky of the Gleichbehandlungsanwaltschaft (the equal treatment ombudsman’s office) briefed the public on the consequences of the delay. Despite the missing national transposition, workers can already invoke certain rights directly from the directive.
Brussels aims for equal pay for equal or equivalent work. In the tourism sector — where the minimum is €2,026 a month for a 40-hour week — the union Vida is pressing for higher base wages. State Secretary Zehetner is mediating between the parties.
Two Federal Labour Court Judgments Strengthen Workers’ Hands
The Bundesarbeitsgericht (BAG) has reinforced the principle of equal treatment in pay. In a ruling dated 26 November 2025 (case reference 5 AZR 239/24), the judges held that an employer cannot exclude individual employees from general wage increases simply because they refused to sign a new contract. The court awarded the claimant a gross difference of €148.81 — no objective reason for the unequal treatment existed.
Variable pay is also under scrutiny. On 22 April 2026 (case 10 AZR 28/25), the BAG ruled that performance targets for bonuses or commission must be set in good time. If a company culpably fails to do so, employees can claim damages equal to lost profit.
Reform Plans: Sick-Note Rules Tighten, Fixed-Term Contracts Lengthen
Alongside the transparency debate, the federal government is preparing a broad reform package. It would allow fixed-term contracts without a material reason for up to 48 months until 31 December 2030. Tax incentives for severance payments in quick job changes and a smoother introduction of artificial intelligence in businesses are also on the table.
The most contentious element: changes to sick leave certification. A proof-of-sickness requirement from the first day of illness and the scrapping of telephone sick notes are planned. Chancellor Merz defended the move by pointing to high absence rates.
The AOK health insurance fund dismissed the measures as symbolic politics. According to OECD data, Germany ranks seventh internationally for lost work time due to illness, with a rate of 6.8%.
Even if the reforms go ahead, the favourability principle remains: existing contractual terms that are more generous to employees than the new legal minimums stay in force. Whether any of these changes will significantly reduce sickness absence is doubted by experts.
