A daily briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK and Switzerland.

Top story: Germany agrees sweeping employment reform

On 2 July 2026, Germany’s CDU/CSU-SPD coalition agreed a comprehensive reform package titled “A Programme for Economic Recovery and Employment,” containing 34 measures that include significant changes to employment law. The most immediate impact for HR teams: employees will be required to present a certificate of incapacity for work from the very first day of illness, replacing the previous rule that only required a certificate after three calendar days. Telephone-issued sick-leave certificates, introduced during the pandemic, will also be abolished. Beyond sick leave, the package proposes extending the maximum duration of fixed-term contracts without objective grounds from two to four years (for hires until 31 December 2030) and introduces a new termination-with-severance mechanism for high earners from 1 January 2027. The Bundestag is expected to vote on the package before the summer recess on 10 July.

What to do: German employers should prepare for day-one medical certificate requirements by updating internal absence-reporting policies and briefing managers. If you rely on telephone sick notes, begin communicating the change to staff now. Monitor the parliamentary vote this week for the final wording.

Also developing

Belgium: Several reforms took effect on 1 July 2026. Employer notice periods are now capped at 52 weeks for contracts entered into from that date, meaning seniority beyond 17 years no longer increases the notice period. Night-work premiums for new hires now apply only between 23:00 and 06:00, a narrower window than before (existing employees retain their current entitlements under transitional rules). Employers may also define a general working-time framework rather than fixed schedules, specifying permitted working days, daily time windows and minimum/maximum hours. HR teams with Belgian employees should review contracts and work rules to reflect these changes.

EU (Pay Transparency Directive): One month after the 7 June 2026 transposition deadline, only four member states (Slovakia, Italy, Lithuania and Malta) have complete legislation in force. A larger group, including Germany, France, Spain, the Netherlands, Sweden and Denmark, missed the deadline. Commissioner Hadja Lahbib has confirmed there will be no extension, and infringement proceedings under Article 258 TFEU may begin later in 2026 with letters of formal notice. Sweden, which voted against the Directive, has paused its own implementation and called for renegotiation, though the Government has instructed the Equality Ombudsman to continue preparations. Employers in late-transposing states should not wait: begin auditing pay structures and preparing gender pay gap reporting now, because the Directive’s requirements will apply retroactively once national law catches up.

France: A new paid parental leave entitlement applies from 1 July 2026. Each parent of a child born or adopted from 1 January 2026 may take up to two additional months of leave, compensated at 70% of net salary for the first month and 60% for the second. Parents of children born or adopted between 1 January and 31 May 2026 may use their rights until the end of the year. Separately, the employer contribution on mutually agreed terminations and employer-initiated retirements has risen from 30% to 40%, increasing the cost of negotiated exits. HR teams should update leave policies and payroll calculations accordingly.

Netherlands: Several bills are targeting a 1 July 2026 effective date. The Wet VBAR would codify a legal presumption of employee status for workers earning below €36 per hour, placing the burden on the hiring party to prove genuine self-employment. The Flexible Workers Act provisions on equal pay for temporary agency workers may also enter into force on the same date. A separate proposal would require organisations with ten or more employees to adopt a formal code of conduct against undesirable workplace behaviour, though Senate approval is still pending. Companies using freelancers or temporary workers in the Netherlands should assess their workforce classification now.

UK: From 1 July 2026, employees hired from this date onwards will qualify for unfair dismissal protection after six months of continuous service, down from the current two-year qualifying period. This is the first practical milestone of the Employment Rights Act 2025. Separately, a government consultation on misuse of non-disclosure agreements in the workplace closes today (8 July), and a consultation on strengthening seafarer protections closes on 17 July. UK employers should review probation and onboarding procedures to account for the shorter qualifying period.

On the radar

• 10 July 2026: German Bundestag expected to vote on the coalition’s reform package before the summer recess.
• August 2026: EU AI Act high-risk obligations begin applying. Any business using AI to recruit, screen, monitor or terminate employees must ensure transparency, fairness and human oversight.
• 2 December 2026: Deadline for EU member states to transpose the Platform Work Directive (Directive 2024/2831), introducing a rebuttable presumption of employment for platform workers and regulating algorithmic management.
• 1 January 2027: Germany’s proposed high-earner termination-with-severance mechanism and the Netherlands’ and Denmark’s delayed Pay Transparency Directive transpositions are all targeting this date.

Sources

• Baker McKenzie: planned significant changes to German employment law
• Euronews: Germany’s Merz announces sweeping reforms
• Bird & Bird: key employment law provisions of the German reform package
• Baker McKenzie: Belgium new legislation on employment law provisions
• Lewis Silkin: EU Pay Transparency Directive 2026 employer compliance
• Morgan Lewis: EU Pay Transparency Directive deadline passed
• European Commission: new EU rules on pay transparency explained
• KMH Benefits: French social law 2026 key reforms
• CMS: Netherlands employment and pension law developments 2026
• MBM Commercial: UK key employment law change from 1 July 2026
• DLA Piper: Nordic employment law bulletin July 2026

Europe HR Compliance Pulse is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. Always confirm obligations for your specific situation and market with a qualified adviser.