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Friday, April 17, 2026

The coalition agreement is out - the guidelines for German labor law are set for the next four years - Lexology

On Wednesday, November 24, 2021, the newly formed coalition of the Liberals, Greens and the Social Democrats, which will lead Germany during the next four years, presented its coalition agreement. In negotiations lasting a little over four weeks, the parties discussed the new direction for Germany.

In their election programs the parties already had many ideas concerning German labor law. With the coalition agreement, the new prospective government has now set the direction for the next four years and given us insight into its plans for labor law.

Fixed-term contracts and home working

Because home offices have become the working place for most employees during the pandemic, it was likely that the coalition would focus on that topic. However, they agreed that there would not be an enforceable right to work from home, but only a right to a discussion. Nevertheless, employers may only object to an employee's wish to work from home if this conflicts with operational interests. This means that a rejection may not be inappropriate or arbitrary. In addition, mobile work within the EU should be possible.

There will also be changes regarding fixed-term contracts. The coalition has agreed that fixed-term contracts with cause (i.e., the fixed term is based on a reason provided for by law, e.g. temporary replacement of an employee on long-term sick leave or parental leave) will be limited to a maximum of six years with the same employer. Currently, there is no maximum duration for a...



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