Employers Call for Revisions to Sick Leave Compensation Policies

In recent discussions, significant concerns have been raised by employers regarding the costs associated with sick leave compensation, which they argue places a heavy financial burden on businesses. Employers are advocating for the future government to implement changes that would alleviate these expenses, which currently amount to billions annually.

The recent coalition talks between major political parties outlined key investment areas, including substantial funding for infrastructure and defense. However, employers believe that vital issues such as sick leave compensation were overlooked. Rainer Dulger, president of the Confederation of German Employers' Associations, stated that the current system of sick pay is financially unsustainable for companies, costing them approximately EUR77 billion each year--more than the national defense budget or the total expenditures for nursing care.

Moreover, Dulger voiced concerns over the misuse of sick leave, citing a survey indicating that 13% of respondents had taken leave under questionable circumstances in the past year. Additionally, 60% admitted to calling in sick even when they were capable of working, highlighting a potential need for reform.

Current laws stipulate that employees are entitled to receive compensation from their employer for up to six weeks during sickness. However, Dulger proposed that this period should be reconsidered, suggesting a cap of six weeks per calendar year. He emphasized that reforms are necessary to ensure that the financial burden does not fall disproportionately on employers.

In light of these discussions, proposals have emerged to introduce a waiting period for sick leave compensation, which would mean that the first few days of illness would not be compensated by employers. This suggestion has faced opposition, with critics arguing that it unfairly penalizes workers, particularly those with lower incomes who cannot afford to lose pay during illness.

Michaela Engelmeier, chair of the Social Association of Germany, criticized the proposed changes, describing them as inappropriate and suggesting that policymakers should first understand the challenges faced by workers before proposing such adjustments. Engelmeier's stance reflects a broader concern that changes to sick leave policies could lead to financial hardships for many employees.

Dulger has also highlighted the need for broader reforms beyond sick leave compensation, advocating for significant changes to social security systems. He pointed out that the current proposals from political parties lack comprehensive solutions and warned that maintaining the sustainability of pensions could require up to EUR500 billion in the next 20 years.

As discussions continue, it remains to be seen how the government will address the concerns raised by employers while balancing the needs of workers. The outcome of these negotiations will likely shape the future landscape of labor laws and employee benefits in Germany.