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Saturday, May 16, 2026

“All or Nothing” or Only in Part? – What the Proposed Concept of Partial Incapacity for Work Entails Under German Law - Littler Mendelson P.C.

With the recently announced healthcare reform, the German Federal Government intends, for the first time, to codify the concept of so-called partial incapacity for work. Should the draft legislation be enacted in its current form, the question arises: What are the implications under employment law? We provide an initial overview.

Current Legal Situation: “All or Nothing”

Under German employment law, an employee is either fit for work or fully incapacitated for work. It is immaterial whether, due to illness, the employee might be able to perform work to a limited extent. An employee who is certified as sick does not work.

Partial Incapacity for Work Constitutes an Exception — Provided that Both Parties to the Employment Relationship Agree

The concept of partial incapacity for work, planned for introduction in 2027, departs from this principle. Under the proposal, incapacity for work may exist to the extent of 25%, 50%, or 75% of the employee’s weekly working time. Such certification is made by a physician. If the employee is partially fit for work, the employee may continue to perform their previous duties to that extent notwithstanding the illness. For the remainder, the employee does not work and continues to be deemed incapacitated due to illness.

However, a medical certification of partial incapacity for work does not operate automatically; it requires both the employee’s willingness and the employer’s consent. First, the employee must elect this option and consider...



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