Germany tightens sick leave rules amid economic reforms

Germany's coalition government has abolished first-day telephone sick leave as part of a sweeping economic reform package aimed at reviving the nation's competitiveness. The move contrasts sharply with Australia's current trajectory, where policymakers are exploring expansions to worker entitlements amid a cost-of-living crisis.

Why is Germany changing its sick leave laws?

Chancellor Friedrich Merz announced that the ruling coalition agreed on broad tax, labour and pension reforms intended to jumpstart Germany's ailing economy and counter the rise of the far right. A central pillar of this labour reform is the removal of telephone sick leave, requiring employees to visit a doctor in person to obtain a medical certificate from their very first day of illness.

Merz defended the decision by pointing to the economic impact of prolonged absences.