A daily briefing on European HR, labour law and compliance developments for SME HR teams across the EU, UK, Switzerland and the Nordics.
Top story: Germany passes sick-leave overhaul with day-one doctor’s note and partial sick pay from 2027
The Bundestag approved the GKV-Beitragssatzstabilisierungsgesetz (GKV Contribution Rate Stabilisation Act) on 10 July 2026, introducing significant changes to sick-leave rules that will take effect from 1 January 2027. The law scraps the pandemic-era option for employees to obtain a sickness certificate by telephone and requires a doctor’s certificate from the first day of illness, replacing the current rule that allows employees to self-certify for up to three days. It also creates a voluntary three-tier partial sick-leave model: employees covered by statutory health insurance who are expected to be off for more than four weeks may choose to work at 25%, 50% or 75% of their usual hours, provided both their physician and employer consent. No employer may unilaterally order partial work or pressure a sick employee into accepting it. The projected savings for the statutory health insurance system are modest at first (EUR 40 million in 2027) but are expected to reach EUR 160 million by 2030. The law still requires Bundesrat approval before formally taking effect.
What to do: Review your absence-management processes and prepare for the administrative impact of day-one medical certification from January 2027. Brief managers on the new voluntary partial sick-leave model and ensure payroll systems can handle split-hours calculations. If you currently rely on telephone sick-note procedures, begin transitioning to in-person or digital alternatives now.
Also developing
Ireland: The Employment (Contractual Retirement Ages) Act 2025 took effect on 29 June 2026, giving eligible employees a new statutory right to refuse retirement at a contractual retirement age below the State Pension age of 66. Employees who have completed their probationary period may notify their employer in writing that they do not consent to retire. The employer must then respond within one month with a reasoned written reply demonstrating that enforcing the retirement age is objectively justified by a legitimate aim and that the means are proportionate and necessary. Simply relying on an existing retirement clause is no longer sufficient. The minimum three-month notification period means 29 September 2026 is the earliest date to which the Act applies. What to do: Review employment contracts and retirement policies. Train managers handling retirement requests on the one-month response deadline and the objective-justification test. Document any legitimate reasons for enforcing retirement ages now, before the first requests arrive in the autumn.
Italy: The Supreme Court issued two rulings with practical implications for employers. First, it held that temporary agency workers are entitled to performance bonuses paid to direct employees of the user company, extending the principle of equal overall economic treatment to variable remuneration. Separately, the court ruled that an employee who is a caregiver to a person with a disability is exempt from night-work obligations, regardless of the degree of disability of the person they assist. What to do: Audit bonus policies to ensure agency workers receive equal treatment on variable pay. Review night-shift rosters for employees with caregiving responsibilities and confirm that exemption procedures are in place.
Spain: Supreme Court Judgment No. 516/2026 of 28 May clarified that the attendance bonus (a salary item linked to ordinary work activity) must be paid in full during any statutory paid leave, including leave for family bereavement, hospitalisation or prenatal examinations. However, the bonus does not accrue during temporary disability leave, when the employment contract is suspended. What to do: Review compensation policies to ensure attendance bonuses continue to be paid during all forms of statutory paid leave. Payroll teams should confirm that only temporary disability periods are excluded.
On the radar
Germany, broader employment reform package: Separately from the GKV law, the CDU/CSU and SPD coalition agreed on 2 July to a 34-measure reform package that would double the maximum fixed-term contract duration to 48 months, introduce a severance-based dismissal mechanism for high earners and extend fixed-term renewals to six. No draft legislation has been presented yet.
Switzerland, short-time work compensation extended: The Federal Council extended the temporary 24-month maximum for short-time work compensation to 31 January 2027, beyond its original 31 July 2026 expiry.
Belgium, 1 August notice period change (previously covered): From 1 August, a uniform one-week notice period applies during the first six months of employment for new contracts.
EU Platform Workers Directive (previously covered): Member states must transpose by 2 December 2026.
Sources
- Federal Ministry of Health: Bundestag passes GKV-Beitragssatzstabilisierungsgesetz (10 July 2026)
- Personnel Today: German workers will need sick note from day one of illness
- Ad Hoc News: Germany introduces partial sick pay and stricter sick-note rules for 2.5 million public sector employees
- Gov.ie: Employment (Contractual Retirement Ages) Act 2025, what is changing
- Lewis Silkin: Contractual retirement ages in Ireland, new employee rights and employer obligations (16 June 2026)
- Adare HRM: Employment (Contractual Retirement Ages) Act 2025 now in force (July 2026)
- Baker McKenzie: Italy employment law newsletter, July 2026
- DLA Piper: Supreme Court partially recognises performance bonuses as wages (Italy)
- Andersen: Employment news, July 2026 (Spain)
- DLA Piper: German reform package, employment law implications
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.
