German Coalition’s 48-Hour Week Plan Sparks Battle Over Worker Protections
30.06.2026 - 22:52:18 | boerse-global.de
A broad overhaul of Germany’s working-time rules—including a switch from daily to weekly maximum hours—is set to be debated by the coalition committee starting July 1. The proposed package, which also touches on pensions and taxes, has opened a sharp rift between business groups and unions, with the fate of a key reform likely to be decided before a pivotal state election.
At the heart of the conflict is a plan to allow employees to work an average of 48 hours per week instead of observing a rigid daily limit. The CDU-affiliated Economic Council applauds the flexibility, arguing it would help companies adapt to fluctuating demand. But unions and the left wing of the SPD condemn the move as a rollback of hard-won protections, warning it undermines the basic principle of predictable rest.
The Economic Council is also pushing to weaken dismissal protection for high earners. Workers earning above the social-security contribution ceiling of €8,450 gross per month could, under the proposal, negotiate a severance package instead of relying on standard job-security law. The SPD left faction has already declared this a “red line” they will not cross.
Courts Already Reshaping the Rules on Commuting Time
Even without legislative action, German and European courts have been tightening the legal landscape. Since the Federal Labour Court (BAG) in 2022 and the European Court of Justice (EuGH) in 2019, employers are required to systematically record working time. Bundestag President Bärbel Bas has promised a new statutory draft by June 2026.
More immediately contentious are rulings on travel time. An EuGH decision from October 2025 established that journeys from a company base to a customer site—and the return—count as working time when the employer dictates the travel arrangements. That affects workers in field service, construction, assembly, caregiving and security.
Germany’s BAG has reinforced the principle: trips from home to a first client may also be compensable if they are inseparable from the core job. Special rules for road transport remain covered by § 21a of the Working Time Act.
Home-Office Lunch Breaks: A New Insurance Gray Zone
The boundary between work and private life in home-office settings continues to confuse. On April 28, 2026, the Hessian State Social Court ruled that, under certain conditions, heading out to get food can be considered a covered work journey. The key factor: the employee must be tightly integrated into company operations. For mobile workers without fixed instructions, that protection normally does not apply.
International Data Points Enter the Debate
While German politicians spar, evidence from abroad is adding fuel to the discussion. In the United Kingdom, 92% of companies that took part in a four-day-week pilot chose to keep the model. Portugal saw a 95% retention rate. Iceland reported productivity gains while reducing hours to 35–36 per week with full wage compensation.
In Germany, these examples are debated mainly in the context of skilled-labour shortages. The coalition aims to pass a final reform package before the Saxony-Anhalt state election on September 6. Whether the competing factions can bridge their differences remains unclear.
