Germany's coalition labour market reforms draw mixed reactions

The governing coalition in Germany has introduced a package of labour‑market reforms aimed at increasing hiring flexibility. Key measures include extending the maximum duration of fixed‑term contracts to four years, granting tax advantages for severance payments and loosening dismissal protection for high‑earning staff.

In an interview with ntv, Christoph Werner, CEO of the drugstore chain dm, said the reforms are “in the right direction” and could help companies respond more quickly to market changes. He added, “I think it is right that sick‑note notifications will no longer be possible by phone,” reflecting support for the new regulations while acknowledging concerns about job security for lower‑paid workers.