Employment Law Updates for 2026: Germany

Germany is facing a number of important developments in the field of labour law through 2026. These include changes already in force that employers must now embed into their day-to-day practice, alongside forthcoming reforms driven by EU legislation and public procurement requirements. While not all proposals are finalised, the direction of travel is clear: employers should start preparing for stricter transparency obligations and higher expectations when it comes to compliance.

In this blog, we explore the key aspects of these developments and what they mean for employers in everyday practice. We, as Parakar, can support your organization in dealing with these changes, complying with regulations, and translating new requirements into manageable, day-to-day processes.

Potential Updates of Working Hours Laws

Changes to German working time regulations are currently being debated at government level. One of the ideas on the table is to move away from the current daily limit of eight hours and switch to a weekly maximum of 48 hours, so that national rules are more in line with EU requirements. In addition, legislators want to clarify employers’ responsibility to keep track of working hours, in line with European Court of Justice guidelines.

At the moment, no draft legislation has been published and there is still uncertainty about when and whether these reforms will be implemented. Although employers do not need to take any action at this stage, those who use flexible or trust-based working time arrangements should monitor developments closely and be ready to adapt if necessary.

Implementation of the EU wage transparency guideline

Germany is on track to implement the EU Pay Transparency Directive into national law by June 7, 2026. A draft bill is expected around January 2026. The new rules are intended to broaden the framework for equal pay in the country and introduce greater transparency in the workplace.

The main changes likely to be implemented are:

• Salary ranges will become a standard part of job advertisements
• A ban on asking applicants about their previous salary
• Stronger rights for employees to request pay data for comparable positions
• Mandatory reporting on gender pay gaps for larger employers, with additional follow-up requirements if the gaps exceed the set limits

This is the perfect time for employers to prepare. This means reviewing their salary structures, implementing fair and unbiased pay-setting processes, and training hiring managers and recruiters on the new boundaries around pay discussions and recruitment.

Observation of public procurement and collective bargaining

Germany is set to introduce stricter rules for companies wishing to secure public contracts worth €50,000 or more. The proposed law would require bidders to ensure that their employment conditions comply with the standards set out in the relevant collective agreements. This includes essential issues such as wages, working hours, breaks, and vacation entitlements.

Although the changes are not expected to come into force until 2026, companies planning to pursue public sector contracts should start reviewing their employment conditions now. In order to remain eligible for public tenders after the new requirements are introduced, it is crucial to ensure alignment with sector-specific collective bargaining agreements at an early stage.

Miscarriage Protection: Stronger Support for Employees

Germany has recently tigthened its maternity protection rules to better support employees who undergo a miscarriage. From June 1, 2025, employees are entitled to two to eight weeks of leave after a miscarriage, even if it occurs before the 24th week of pregnancy, unless the employee chooses to continue working.

If the miscarriage occurs after the 12th week of pregnancy, the employee also receives four months of protection against dismissal. These changes significantly strengthen existing protections and require a sensitive approach in the workplace.

Employers must make sure that HR teams and management understands the updated protections and review internal policies related to pregnancy, pregnancy protection, and absence management. This will help make sure employees get the right support and that company policies stay compliant with legal requirements.

How Parakar can support

As German labour law continues to develop, Parakar helps employers stay compliant while maintaining practical and efficient HR processes. Our local HR experts help companies prepare for upcoming reforms, including changes to working time regulations, increased salary transparency requirements, and stricter public procurement and collective bargaining requirements.

We simplify compliant hiring in Germany by managing job administration, contracts, and onboarding, while ensuring that recruitment practices comply with new transparency rules, such as salary range disclosure.

For companies that employ remote workers, we provide comprehensive human resources management, covering payroll, compliance, and ongoing employee administration in accordance with German regulations. Parakar also provides comprehensive support in human resources administration, including absence management and maternity and miscarriage protection policies.

When complex or sensitive human resources issues arise, our bilingual experts guide you through conflicts, terminations, and compliance challenges, allowing you to navigate regulatory changes with confidence and focus on growing your business.

Get in touch with Parakar today to ensure your business is fully equipped to handle these important responsibilities, allowing you to focus on what truly matters, supporting your employees.