Germany employment law

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: UK rewrites the rulebook on workplace discipline and grievance for the first time in 17 years Acas has opened a public consultation on a comprehensive redraft of its statutory Code of Practice on disciplinary and grievance procedures, the first full revision since 2009. The consultation, which runs until 23 September 2026, proposes a fundamental shift in how employers and workers handle workplace conflict: from formal, adversarial processes towards early, informal resolution. The draft Code introduces several significant changes. For the first time, guidance on resolving concerns informally becomes part of the statutory Code itself, meaning employment tribunals will take it into account when deciding cases and can adjust compensation awards by up to 25% where either side unreasonably fails to follow it. A new section on mediation and facilitated conversations encourages their use where appropriate, and the language throughout has been softened to move away from terms such as "allegations," "penalty" and "a case to answer." The Code also now addresses the use of artificial intelligence in disciplinary and grievance processes, inviting views on the benefits and risks of AI-driven decision-making in these sensitive areas. The consultation is framed against Acas research showing that formal disciplinary and grievance procedures cost UK employers an estimated £2.36 billion a year, while informal resolution costs ten times less. Separately, 44% of working-age adults in Great Britain reported experiencing conflict at work in the past 12 months. What to do: UK employers should review the draft Code and consider responding to the consultation before 23 September. In the meantime, audit existing disciplinary and grievance policies against the proposed emphasis on informal resolution and mediation. HR teams should also assess how AI tools are currently used in any part of the disciplinary or grievance process, as the final Code is likely to set expectations on this. Also developing Germany: The coalition's 34-point reform package for economic recovery and employment, announced on 2 July and with its first tranche approved by the Bundestag on 10 July, is reshaping employment law on multiple fronts. Fixed-term contracts without objective justification can now run for up to 48 months (doubled from 24) with up to six renewals (up from three), for hires made through the end of 2030. From 1 January 2027, employers will be able to terminate the employment of high earners (gross annual salary above €177,450) in return for a severance payment, bypassing traditional unfair dismissal protections. The telephone sick note has been abolished: employees must now present a doctor's certificate from the first day of absence. The written-form requirement for fixed-term contracts is also set to be replaced by digital text form from 1 January 2027. What to do: German employers should update fixed-term contract templates to reflect the extended limits and prepare for the shift to digital form requirements. HR teams managing high-earning employees should monitor the legislative passage of the severance-based termination option. Adjust absence management processes now for the day-one certification requirement. Netherlands: The government submitted the Bill to Modernise Non-Competition Clauses (Wet modernisering concurrentiebeding) to the Council of State for its advisory opinion on 26 June 2026. The proposed reforms would cap non-compete clauses at a maximum of one year, require a defined geographical scope and oblige employers to justify a compelling business interest in all employment contracts, not only fixed-term ones as currently required. Crucially, for as long as an employer holds a departing employee to a non-compete restriction, it must pay compensation equal to half a monthly salary for each month the restriction remains in force. Existing clauses agreed before the law takes effect will remain valid, but the new rules on invoking them will apply immediately. The bill is expected to be submitted to the House of Representatives towards the end of 2026. What to do: Dutch employers using non-compete clauses should begin reviewing all current agreements for scope, duration and justification. Factor the mandatory compensation cost into workforce planning for roles where non-compete restrictions are routinely applied. EU: The Council and European Parliament reached a provisional agreement in June on the sixth revision of the Carcinogens, Mutagens and Reprotoxic Substances Directive (CMRD6). The update introduces new binding occupational exposure limits for cobalt and its inorganic compounds, polycyclic aromatic hydrocarbons (PAHs), 1,4-dioxane and isoprene, and adds welding fumes to the list of regulated substances for the first time. A transitional period of seven years was agreed for the PAH limits. The European Commission estimates the revision will prevent around 1,700 cases of lung cancer and 19,000 other occupational illnesses over the next 40 years, saving EU healthcare systems up to €1.16 billion. What to do: Employers in manufacturing, metalworking, construction and automotive sectors should begin reviewing workplace exposure assessments against the forthcoming occupational exposure limits. While the directive still requires formal adoption and member state transposition, the agreed limits provide a clear signal of the compliance standards ahead. On the radar UK zero-hours contracts consultation (previously covered): Closes 25 August 2026. The government's preferred model would require employers to offer guaranteed-hours contracts to zero-hours and low-hours workers based on hours worked over a 12-week reference period, with implementation expected in 2027. UK electronic union balloting (previously covered): Takes effect 25 August 2026. Spain flexible retirement (previously covered): Royal Decree 416/2026 takes effect 28 August 2026. Netherlands Staatsblad publication deadline (previously covered): The legal presumption of employment act must be published by 31 August 2026 for the planned 1 January 2027 commencement to hold. Ireland My Future Fund opt-out (previously covered): Window closes at the end of August 2026. EU Platform Workers Directive (previously covered): Member states must transpose by 2 December 2026. Sources Acas consultation: draft Code of Practice on disciplinary and grievance procedures Acas: draft Code of Practice on disciplinary and grievance procedures (full text) DLA Piper: German reform package, employment law implications CMS: Labour and employment law 2026, the reform package for economic recovery and employment Orrick: German Government Reform Package, Part I Global Workplace Insider: Reform of Dutch non-competition clauses CMS: Non-compete clauses in the Netherlands, how the landscape is set for change Council of the EU: Council and Parliament agree on measures to protect workers from exposure to hazardous substances EU-OSHA: EU Directive revision to better protect workers from hazardous substances Europe HR Compliance Pulse is an informational summary of publicly reported legal and regulatory developments. It is not legal advice. 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