The German government’s “Program for Economic Recovery and Employment,” presented on July 2, 2026, includes far-reaching changes to German employment law. One of the key and highly debated proposals is the introduction of a statutory requirement to submit a medical certificate of incapacity for work from the very first day of illness. In addition, the popular option of obtaining sick leave certification by telephone would be eliminated entirely. For nonprofit organizations (NPOs), associations, and foundations, this reform creates an immediate need for action regarding employment agreement structures.
The three-day rule for sick leave certification would be eliminated
Under the current statutory rule set out in Section 5(1), sentence 2 of the German Continued Remuneration Act (EFZG), employees are only required to submit a medical certificate of incapacity for work if their inability to work lasts longer than three calendar days, meaning the certificate must be provided starting on the fourth day.
With the proposed new rules, the German government intends to reverse this relationship between the general rule and the exception. Going forward, the statutory standard would require employees to provide a medical certificate already on the first day of illness.
Mandatory medical certificates create additional burdens for NPOs and medical practices
The German government justifies this measure by pointing to historically high levels of sick leave and aims to reduce unjustified absences. From an employment law perspective, and particularly from the perspective of the nonprofit sector, however, it is highly questionable whether this rule would provide any meaningful benefit or could even prove counterproductive.
Employees who only need one or two days of rest due to a gastrointestinal illness, a cold, or a migraine would in the future be required to visit an already overcrowded medical practice on the very first day of illness. Whether this would actually support the recovery needed for short-term illnesses appears doubtful. Moreover, given the significant strain already placed on primary care practices, it can be expected that physicians may issue medical certificates covering several days at once. As a result, one or two potential days of absence could quickly turn into three to five days in practice. The overall rate of sick leave could therefore even increase.
In addition, nonprofit organizations would face increased administrative burdens due to the need to retrieve the relevant sick leave certifications in each individual case.
It is also unclear what genuine added value the proposed rules would provide for employers, because under the current legal framework (Section 5(1), sentence 3 EFZG), employers already have the unrestricted right to require a medical certificate of incapacity for work from the first day of illness without having to provide any justification. Any NPO that considered such a strict rule necessary could already have implemented it through an employment agreement, works agreement, or management directive. No legislative amendment was required for this purpose.
The proposed change also conflicts with the established culture of trust in many NPOs. The new rule would legally impose a principle of distrust between employers and employees, which contradicts the partnership-based cooperation practiced in many social and charitable organizations.
Why NPOs must review and amend their employment agreements
The German government has explicitly clarified that employers may deviate from the new statutory rule through individual employment agreements or works agreements. NPOs may therefore voluntarily continue to apply the previous, more generous three-day rule.
However, a significant employment agreement risk arises if existing agreements are not amended. If an existing agreement contains a reference clause stating that the statutory provisions apply with regard to the obligation to submit medical certificates of incapacity for work, the contractual provisions currently in place will automatically change once the proposed rules enter into force. Employees would then be required to provide a medical certificate from a physician starting on the first day of incapacity for work.
If the nonprofit organization intends to continue handling the matter as before and allow employees to remain at home for three days without seeing a physician, the actual practice would conflict with the employment agreement. This could result in considerable legal uncertainty, unintended risks of formal written warnings, or dissatisfaction among employees.
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To avoid this, NPOs should urgently review their employment agreements (or existing staff agreements) and amend or supplement them in good time. No legal disadvantage is expected to arise from doing so, as employers may continue to reserve the right – through their managerial authority, or preferably through an express provision in the employment agreement – to require submission of a medical certificate from the first working day in individual cases in the future.
Against this background, there should also be no significant issues in the opposite scenario, where an employment agreement currently provides that a certificate must only be submitted on the second, third, or fourth day. Such clauses generally already contain a reservation allowing the employer to deviate from this arrangement in the future and require a certificate from the first day instead.
WINHELLER advises nonprofits in Germany on employment agreements
The statutory tightening of these rules is primarily a political signal that, in practice, is likely to result in more bureaucracy and overcrowded waiting rooms. NPOs should assess in a timely manner what approach and organizational culture they want to maintain when dealing with employee sick leave notifications in the future.
We therefore recommend reviewing existing arrangements now and considering how this matter should be handled going forward, so that employment agreements can be adjusted promptly once the new rules enter into force.
As employment law specialists, we are happy to support you with all related questions and with the drafting and revision of employment agreements for NPOs in Germany. Please feel free to contact us at any time.
