German Chancellor Friedrich Merz announced a package of economic reforms on Thursday, July 2, 2026, that mandates medical certificates for all sick leave [2].

The policy change targets perceived abuse of the current system and aims to reduce costs for the state and employers. By removing the ability for workers to simply phone in sick, the government intends to increase workforce productivity and stability.

Merz appeared at a press conference in Berlin alongside Minister-President of Bavaria Markus Söder, Federal Minister of Labour and Social Affairs Bärbel Bas, and Federal Minister of Finance Lars Klingbeil [1]. The announcement followed seven hours of coalition talks [3].

Under the new rules, employees must provide a medical certificate starting from the first day of their illness [1]. The government said that phone-in sick leave will no longer be accepted [1].

"From now on employees will need a medical certificate from the first day of illness; phone-in sick leave will no longer be accepted," Merz said [1].

The sick-leave mandate is part of a broader strategy to overhaul the national economy. The package also includes sweeping tax and pension reforms designed to streamline government spending, and stimulate growth [2].

Merz said the measures are necessary to stabilize the country's financial trajectory. "We want to get Germany back on track. It is now clear that this is possible," Merz said [1].

Critics and labor advocates have previously questioned the impact of such mandates on worker wellbeing, but the coalition government said that the reforms are essential to reduce the economic burden of absenteeism [1].

“"From now on employees will need a medical certificate from the first day of illness"”

This shift represents a significant tightening of German labor protections, moving away from a trust-based system of short-term illness reporting. By requiring immediate medical documentation, the government is prioritizing employer cost-reduction and labor availability over worker flexibility, signaling a broader pivot toward fiscal austerity and productivity-driven economic policy.