Germany to Require Doctor's Note on First Day of Illness and Ease Firing of Top Earners

The German government is introducing a policy that requires employees to obtain a doctor's note on the first day of illness, ZeroHedge reported. The change ends the prior practice of allowing notes via phone call starting on the third day of absence.

Chancellor Friedrich Merz said the number of sick days is too high and that the government is creating tools for employees and companies to address the issue.

He added that Germany can no longer afford the competitive disadvantage caused by prolonged absences from work. The average German takes nearly three weeks of sick leave per year on top of six weeks of vacation, a rate roughly double that in the United States. The reform package resulted from negotiations between the Christian Democratic Union Party and the Social Democrat Party.

It includes a gradual increase of the retirement age from 65 to 67, a capital-markets fund for state pension contributions, and greater ease in hiring short-term workers and firing top earners. Additional provisions cover welfare changes that incentivize laid-off workers to find new jobs quickly, €10 billion in income tax relief for working-class and middle-income households funded by higher taxes on earnings above €250,000, deregulation that reduces employer reporting requirements, and permission for bakeries and pastry shops to stay open later on Sundays.

The package is expected to pass parliament by the end of 2026.

Frank Werneke, leader of the services-sector union Verdi, said Merz was creating a culture of distrust of employees. The German Association of Family Physicians called the new sick leave rules an absolute catastrophe.