Draft law from Labor Minister Alexander Schweitzer is intended to relieve companies of the burden of hiring
AI-generated summary
The measures are based on decisions made by the coalition leaders of the Union and SPD in July. The aim is to stimulate the economy in the face of international crises.
The federal government wants to make it easier to limit employment relationships with a new law. In addition, the draft law by Federal Minister of Labor and Social Affairs, Alexander Schweitzer (SPD), is intended, among other things, to relax protection against dismissal for high earners. “Above all, these adjustments are intended to make it easier for companies to hire employees,” says the draft, which the dpa news agency quotes.
The law is intended to implement decisions made by the coalition leaders of the Union and SPD in July. The aim is to revive the economy, which has been burdened by international crises and conflicts. The 32-page paper went into internal coordination between the ministries on Tuesday, the “Süddeutsche Zeitung” also reports.
Even if a labor court considers a dismissal to be unjustified under the Dismissal Protection Act, a separation should be possible against payment of severance pay. The employer could therefore request the termination of the employment relationship in return for a severance payment without having to give reasons for this. However, only a small group of employees would be affected.
In recent months, the Union has repeatedly pushed for an expansion of fixed-term employment options and relaxation of protection against dismissal. Federal Economics Minister Katherina Reiche (CDU) reiterated this demand on Tuesday and described the current protection against dismissal as “very strong, rigid, immobile”.
AI outlook — possibilities, not facts
Internal coordination between the ministries on the draft law.
Very likely · Within weeks
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