German Coalition Agrees to Major Employment Law Reform Package
Employers with operations in Germany must track the governing coalition’s agreed employment reform package, which will modify core workplace obligations and labor costs once enacted.
The CDU/CSU and SPD federal coalition’s joint committee has approved a comprehensive “Program for Growth and Employment” that includes a slate of employment law reforms. The package proposes updates to working time rules, temporary employment regulations, employee representation requirements, and other core workplace provisions, designed to balance labor market flexibility with worker protections. In-house counsel for organizations with operations in Germany should review the proposed changes now, assess impacts to existing workplace policies and compliance programs, and monitor the formal legislative timeline for introduction and passage.