German labor law reforms

A July 2026 overview described Germany’s existing dismissal‑protection procedures, where employees can file a Kündigungsschutzklage within three weeks of a termination and public‑sector wages are set by collective agreements such as TVöD and TV‑L. The following day, the federal cabinet approved a draft law to introduce a Job‑to‑Job trial (new § 45a SGB III) effective January 2027, allowing employees to temporarily work for a prospective employer while retaining their current contract and salary, subject to employer initiation and consent. Simultaneously, the Federal Labor Court issued rulings that tighten dismissal protection during probation and clarify that a scanned drop‑box receipt does not satisfy legal proof requirements for termination notices. Together, these developments show a coordinated effort to expand flexible job‑testing options while reinforcing procedural safeguards for terminations under German labor law.