Summary of Key Points
The government of German Chancellor Olaf Scholz has proposed a reform of the sick leave system due to the high domestic rate of sick leave (20 days per year on average, 2.5 times the EU average), which is detrimental to corporate competitiveness. Under the new proposal, employees will need a doctor's certificate on the first day of taking sick leave, and the practice of obtaining sick leave permits over the phone will be abolished. This reform is accompanied by corresponding tax and labor legislation changes. While employers support the initiative, unions and doctors have criticized it, arguing that it shows a lack of trust in employees and could overwhelm the healthcare system. The reform must be approved by law before it can be implemented in 2027. Behind this effort are the underlying issues of high labor costs and work habits in Germany, such as short working hours and frequent leave requests, which affect the country's competitiveness.
1. How High is the Sick Leave Rate?
The sick leave problem in Germany has become so severe that it's a source of concern for employers:
- Data Comparison: The EU average annual sick leave rate is 8 days, whereas in Germany, it is 20 days. Employees at Mercedes' German factories take leave twice as frequently as those at factories in other countries. In August 2024, the sick leave rate at Tesla's German factory was 17% (2,000 employees took leave), three times the industry average.
- Current Reality: Currently, a doctor's certificate is only required for sick leave lasting more than three days, but enforcement is lax. Some employees simply call in and then return to work for a couple of days before taking another leave period, resulting in them being absent from work for most of the month without much oversight from their employers. It's even possible to obtain a one-week leave permit from a family doctor over the phone without a formal medical consultation.
Elon Musk was shocked by these practices and later sent representatives to employees' homes for "home visits" to reduce the sick leave rate.
2. What Does the Reform Change?
The Scholz government's reform focuses on the requirement for a doctor's certificate:
- Current Rules: A doctor's certificate is not needed for sick leave within the first three days; after that, a certificate is required starting from the fourth day. It was also possible to obtain a leave permit over the phone.
- Future Rules: A doctor's certificate will be mandatory on the first day of taking sick leave, and phone-based permits will no longer be accepted.
The goal is clear: to prevent employees from taking unnecessary leave and reduce the impact of absenteeism on businesses. Scholz stated, "If this continues, Germany will lose its competitiveness."
3. Reactions from All Parties:
The reform has divided opinions significantly:
- Employers Support: The president of the German employers' association called it a long-overdue change that will finally help control the problem of employees taking unnecessary leave.
- Unions Oppose: Union representatives in the service industry argue that requiring sick employees to see a doctor on the first day is a sign of distrust (for example, insisting they go to the hospital even if they have a 39-degree fever).
- Doctors Worried: The president of the general practitioners' association described the reform as catastrophic, stating that the already overburdened healthcare system will be further strained by the increased number of leave requests.
4. Why is the Reform Difficult?
Changing the sick leave system is not easy for several reasons:
- Deeply Rooted Culture: Germans value a balance between work and life and believe that they should rest when they are sick. Scholz's criticism of the current system (which includes working four days a week and allowing long periods of sick leave) has even angered some members of the public.
- Strong Unions: German unions advocate for fairness and fear that the reform may undermine employees' rights, so they are unlikely to compromise easily.
- Pressure on the Healthcare System: There is a shortage of doctors, and the additional demand for leave permits will certainly increase their workload.
Professor Shi Shiwei noted, "Changing people's lifestyles is difficult, but if nothing is done, Germany's competitiveness will indeed be at risk."
5. The Underlying Reason: High Labor Costs
The sick leave problem is merely a symptom of higher labor costs in Germany:
- Cost Pressure: Employers are still responsible for covering employees' medical insurance expenses even two weeks before they take leave. Frequent leaves not only result in a shortage of workers but also additional financial burdens for businesses.
- Competitive Crisis: German automakers, such as Mercedes, have realized that their domestic factories face significant competitive disadvantages due to high labor costs. Scholz's goal is to reduce these burdens and restore Germany's competitiveness globally.
Although the reform is challenging, companies like Mercedes and Tesla are already taking proactive steps (such as implementing home visits by representatives). After all, if no changes are made, business opportunities may be lost to other countries.
In Conclusion
Germany's sick leave reform is a result of the need for businesses to survive in a competitive market. The question remains: how can the rights of employees and doctors be balanced? Only time will tell whether legislation can find a middle ground. However, one thing is clear: if Germany wants to maintain its competitiveness, the long-standing issue of sick leave must be addressed sooner or later.