The German government is moving to overhaul the Krankschreibung (sick leave) system to reduce the number of short-term medical certificates and lower the financial burden on employers. According to recent coalition agreements, the reform aims to curb “sick-leave abuse” by implementing stricter requirements for medical certifications and adjusting the timeframe for when employers must pay sick pay.
This policy shift targets the high rate of short-term absences in Germany, which impact productivity and increase operational costs for small and medium-sized enterprises. By modifying the legal framework surrounding the Entgeltfortzahlung im Krankheitsfall (continued payment of remuneration during illness), the government intends to incentivize a faster return to work and reduce the administrative load on the healthcare system.
The proposed changes center on a “three-day rule” and a revised approach to digital certificates. Under current laws, employees are often required to provide a doctor’s note after three days of absence, but many employers request them from the first day. The new reform package seeks to standardize these expectations while strengthening the role of the Medizinischer Dienst (Medical Service of the Health Insurance) in verifying suspicious patterns of illness.
Standardizing the Three-Day Rule for Sick Notes
A core component of the reform is the formalization of the waiting period before a formal Arbeitsunfähigkeitsbescheinigung (AU) is mandatory. According to the Federal Ministry of Health, the goal is to prevent the “over-prescription” of sick notes for minor ailments that do not require medical intervention but do prevent work.
Currently, the law allows employers to request a certificate from the first day of illness if the employment contract specifies it. The reform package proposes a more uniform application of the three-day window. This means that for the first three days of a short-term illness, employees may be allowed to notify their employer of their inability to work without an immediate doctor’s visit, provided the illness is not chronic or long-term.
For companies, this change reduces the administrative overhead of processing thousands of single-day certificates. For employees, it removes the necessity of visiting a clinic for a common cold, which in turn reduces waiting room congestion in German medical practices.
Impact on Employer Sick Pay Obligations
The financial impact of the reform focuses on the Lohnfortzahlung—the period during which an employer must pay 100% of an employee’s salary during illness. Under the Entgeltfortzahlungsgesetz, this typically lasts for six weeks.
The coalition’s reform package explores mechanisms to shift some of this financial risk. Discussions include the possibility of introducing a “waiting period” or a deductible for very short-term absences, similar to models used in other European labor markets. This would mean that for the first few days of a short-term illness, the employer’s obligation to pay full salary could be reduced or shifted to the health insurance provider.
Industry representatives from the Bundesverband der Deutschen Unternehmen (BDA) have argued that the current system encourages “yellow slip” culture, where employees seek certificates for minimal health issues. The reform aims to break this cycle by making short-term absences less financially attractive for the employee and less costly for the business owner.
The Role of Digital Certificates and Monitoring
The transition to the eAU (electronic sick note) is a critical pillar of this reform. By digitizing the process, the government can more accurately track sickness trends and identify “hotspots” of absenteeism. According to the Kassenärztliche Bundesvereinigung, the eAU system allows for a seamless transfer of data from the physician to the health insurance fund and then to the employer.
This digital trail enables the Medizinischer Dienst to conduct more targeted audits. If an employee shows a pattern of falling ill every Monday or Friday, the digital system flags these anomalies. The reform grants employers more streamlined pathways to request a medical review of the employee’s fitness for work if there is a documented suspicion of abuse.
However, data privacy advocates and labor unions, such as ver.di, have expressed concerns that increased monitoring could lead to “pressure to work” while sick, potentially worsening long-term health outcomes and increasing the rate of burnout among the workforce.
Comparison of Current vs. Proposed Sick Leave Rules
| Feature | Current System (Standard) | Proposed Reform |
|---|---|---|
| Certificate Requirement | Often from day 1 (per contract) | Standardized 3-day window for short-term |
| Sick Pay (Lohnfortzahlung) | 100% from day 1 for 6 weeks | Potential waiting period/deductibles |
| Verification Process | Manual/Paper-based (transitioning) | Fully integrated eAU digital tracking |
| Audit Frequency | Case-by-case request | Data-driven flags for “suspicious” patterns |
Who is Affected by the Reform?
The reform primarily affects employees in the private sector and small-to-medium enterprises (SMEs). Public sector employees, who often fall under different collective agreements (TVöD), may see a slower implementation of these changes depending on their specific union contracts.
For the employee, the “what it means” boils down to a potential loss of income for the first few days of a minor illness if the waiting-period model is adopted. For the employer, it means a reduction in the “hidden cost” of short-term absenteeism and a more robust toolset to challenge fraudulent sick leave.
The healthcare sector also sees a significant shift. Doctors will spend less time issuing certificates for minor ailments, allowing them to focus on patients with acute or chronic needs. This is a direct response to the ongoing shortage of general practitioners in rural areas of Germany.
Next Steps for Implementation
The reform package must now move through the legislative process in the Bundestag. The next confirmed checkpoint is the presentation of the detailed bill, which will include the specific financial thresholds for the proposed sick pay deductibles. Once the bill is debated and passed, a transition period for employers to update their internal HR policies and employment contracts will be established.
We will continue to monitor the legislative progress of the Entgeltfortzahlungsgesetz amendments. Please share your thoughts on how these changes might affect your business or employment in the comments below.