Germany Expands Job-to-Job Trial, Tightens Dismissal Protection

The German federal cabinet approved a draft law on 15 July 2026 to introduce a Job‑to‑Job trial (new § 45a SGB III) that will take effect on 1 January 2027. The instrument lets employees test a possible new employer for up to four weeks, or six weeks in exceptional cases, while their existing contract remains in force and the current employer continues to pay the salary. The employee cannot apply directly to the agency; the current employer must initiate the procedure and cover at least the regular wage. Eligibility is limited to insured employees, including those receiving supplemental benefits, and both the employee and prospective employer must consent.

In a separate development, the Federal Labor Court (Bundesarbeitsgericht) issued rulings that strengthen dismissal protection during probation and the protection period of the Kündigungsschutzgesetz. The court clarified that a scanned drop‑box proof does not constitute presumptive proof of receipt for a termination notice (decision of 7 May 2026, Az. 2 AZR 184/25). The judgments also tighten obligations under SGB IX and the anti‑discrimination provisions, emphasizing rigorous documentation for lawful terminations.