On November 24, 2021, the “traffic light” coalition, consisting of the Social Democratic Party of Germany (SPD), the Free Democratic Party (FDP), and Bündnis 90/Die Grünen (the Greens), reached an agreement on its coalition treaty.
The traffic light coalition—so named for the parties’ signature colors, SDP (red), FDP (yellow), and, of course, the Greens’ green—is committed to shaping the modern business world. It intends to open up new professional opportunities while offering job security and flexibility.
Some undertakings on the employment agenda of the traffic light coalition may offer advantages to employers, while other initiatives may bring disadvantages for companies in the next legislative period:
The statutory hourly minimum wage should would be increased to 12.
The maximum daily working time of eight hours per day would remain in the German Working Hours Act. However, trade unions and employers would be able to provide flexible working-time models with the support of the government. In 2022, a temporary transitional arrangement will take effect, according to which employees will be able to organize their working time more flexibly on the basis of collective bargaining agreements under certain conditions and in compliance with certain deadlines.
During an experimental phase, the parties would explore creating, on a collective legal basis (by collective bargaining agreement or works agreement), limited deviations from the current maximum daily working time.
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