Berlin. Labor Minister Alexander Schweitzer (SPD) is receiving different reactions from employers and unions with his reform plans for the German labor market. Schweitzer wants to make it easier to limit employment contracts with a new law. Bakeries should be allowed to work longer on Sundays. Protection against dismissal for high earners should be relaxed. The draft is available to the German Press Agency; the “Süddeutsche Zeitung” first reported.
The general manager of the Confederation of German Employers' Associations (BDA), Steffen Kampeter, spoke of a “positive signal”. The draft is initial evidence that the Federal Ministry of Labor is taking action. Schweitzer only took over the office in October from his predecessor, Bärbel Bas (SPD), who resigned. Kampeter urgently called for further reforms, such as the Working Hours Act.
While the BDA praised the plans for protection against dismissal and fixed-term contracts, the unions warned of the consequences. Verdi boss Frank Werneke called these projects a “disappointment and also a danger for many employees”. Many young employees would then have to work twice as long in unsafe conditions. DGB board member Anja Piel said: “There is no need to extend the unfounded fixed-term contracts, Sunday work and the relaxation of protection against dismissal.”
The 32-page draft states that the central goal of the controversial measures is: “Above all, these adjustments are intended to make it easier for companies to hire employees.” The law is intended to implement decisions made by the coalition leaders in July, with which the Union and the SPD want to “get Germany back on track” in view of the economic downturn, said Chancellor Friedrich Merz (CDU) at the time.
Schweitzer's draft is now being discussed in the government and is expected to be approved in the cabinet in December and then in the Bundestag. The changes are scheduled to come into force at the beginning of 2027.
The possibility of job limitations without an objective reason is to be expanded, namely for hires until the end of 2030. “Up to this total period of four years, a maximum of six extensions should be permitted,” says the draft. There should be exceptions to the current ban on such a time limit following another. Fixed-term contracts are typically concluded for young professionals.
Changes to the Working Hours Act affect public libraries and bakeries and pastry shops. In the future, libraries should be able to employ staff for up to six hours on Sundays and public holidays. Bakeries and pastry shops should be able to employ workers longer than before on Sundays and public holidays when it comes to goods produced for the day.
Protection against dismissal for employees with an annual income of just under 180,000 euros is to be restricted. They should be treated the same as senior employees for whom a severance payment without justification is sufficient in the event of termination. According to experts, the planned regulation only affects around 0.27 percent of employees.
In addition, the co-determination of employee representatives in certain large companies is to be strengthened. According to the draft, this is aimed at “misuse” of the legal form of the European stock corporation (SE). Five out of six large SEs have no equal co-determination, affecting 480,000 employees.
