Ifo on partial sick leave: entrepreneurs have a new opportunity

A new German law allowing partial sick leave has sparked mixed reactions among business owners, according to a survey conducted by the Ifo Institute and Randstad. The measure, which will take effect on January 1, 2028, allows employees to reduce their working hours during periods of partial work incapacity, such as when they have a minor injury or illness that does not fully prevent them from performing all tasks. Despite its potential benefits, many employers remain skeptical about its implementation. The proposed change comes amid broader reforms aimed at reducing sickness absence rates in Germany, which are higher than in many other industrialized nations. Under the new rules, doctors can certify varying degrees of work disability, 25%, 50%, or 75%, allowing affected workers to adjust their schedules accordingly. However, the transition has been met with resistance from some sectors, particularly in manufacturing and logistics, where the practicality of implementing the system is questioned. According to the survey, nearly half of the companies surveyed believe that partial sick leave would not be beneficial. Only around 25 percent consider the option useful, while another quarter view it neutrally. The majority of respondents fear complications in distinguishing between employees who are fit to work and those who are not. They also worry about increased administrative burdens, which could complicate workforce management. The law was passed by the German parliament alongside the GKV Stabilization Act, which aims to stabilize the healthcare system. The legislation reflects ongoing efforts to modernize labor practices and align them more closely with European standards. However, the success of the policy hinges on how effectively businesses can adapt to the new framework. Industry-specific challenges highlight the uneven impact of the reform. While administration departments show the highest level of interest in utilizing the new system, 55 percent of companies see potential benefits, only 33 percent in sales and customer service think it applicable. In contrast, fewer than 15 percent of firms in logistics and production believe the measure would be useful. These disparities suggest that the effectiveness of the policy may vary significantly across different types of employment. Some companies anticipate positive outcomes from the change, including shorter absences and faster returns to work. A third of the surveyed firms hope for reduced time away from work, while 21 percent expect longer working hours from partially disabled employees. Twelve percent foresee improved flexibility in staffing planning. Nevertheless, these expectations remain tentative, given the current uncertainty surrounding the policy's real-world application. As the implementation date approaches, further discussions and adjustments may be necessary to address concerns raised by business leaders. The debate over the new sick leave regulation underscores the complex balance between employee health and operational efficiency in the German economy. With the law set to come into force soon, the coming months will likely reveal whether this reform achieves its intended goals or faces unforeseen obstacles.