At a glance
- The Act on the Stabilisation of Contribution Rates in Statutory Health Insurance (Act) introduces partial incapacity for work into German social security law for the first time.
- Employees who are expected to be unfit for work for more than four weeks may, with their doctor's confirmation and their employer's consent, work at 25%, 50% or 75% of their regular weekly working hours.
- Employers are not obliged to agree to this form of partial work; if they decline or fail to respond in time, the employee remains fully incapacitated and retains full sick pay entitlements.
- Employers must pay pro rata remuneration for the work performed. Continued remuneration during sickness applies on a proportional basis without extending the statutory maximum period.
- There is no statutory right to have a workplace adapted or created to accommodate partial work.
- Whilst parts of the Act came into force on 30 July, the provisions on partial incapacity for work and associated measures will take effect from 1 January 2028.
The Act on the Stabilisation of Contribution Rates in Statutory Health Insurance introduces the concept of partial incapacity for work for the first time. Whilst parts of the Act came into force on 30 July, the provisions on partial incapacity for work and associated measures will take effect from 1 January 2028.
Conditions for partial incapacity for work
Partial incapacity for work is regulated in section 44c of Book V of the Social Code. Insured persons may perform their work duties to a limited extent during the period of medically certified incapacity for work if, as a result of an illness that is not merely minor, they are foreseeably unable to work for a longer period. An illness is considered to be more than minor if incapacity for work is expected to last for more than four weeks.
With the insured person’s consent, the attending doctor determines a partial incapacity for work amounting to 25%, 50% or 75% of the regular weekly working hours. The employer’s consent is required. Further details on the determination of partial incapacity for work and its individual levels are regulated by the Joint Federal Committee in the Incapacity for Work Guideline until 1 January 2027.
Procedure between employer and employee
The law provides for a notification and consent procedure. The insured person notifies the employer of their willingness to work, specifying the extent and duration of their partial work. The employer is not obliged to agree to partial work. If the employer refuses or fails to respond within the specified time limit, the employee is deemed to be fully incapacitated for work and retains their entitlement to continued payment of wages or sickness benefit in full.
It is expressly stipulated that there is no entitlement to the provision or adaptation of a workplace to enable the partial performance of the employee’s previous duties.
Both parties may terminate the partial incapacity for work before the end of the certified period. Upon termination, the employee is deemed to be fully incapacitated for work.
Continued payment of remuneration in the event of partial incapacity for work
The Act sets out two key provisions: if the insured person performs part of their work during the period of partial incapacity for work, the employer is obliged to grant them a pro rata remuneration for this. At the same time, the provisions of the Continued Remuneration Act apply as appropriate, subject to the provision that a pro rata entitlement to continued remuneration exists insofar as the insured person is prevented from performing their duties as a result of illness. This does not extend the maximum duration of the entitlement as set out in the Continued Remuneration Act.
Practical note
The Joint Federal Committee must issue the detailed guidelines for determining partial incapacity for work and for grading its extent by 1 January 2027. This gives employers a further year to prepare for the implementation of the partial incapacity for work provisions.
This period should be used to amend employment contracts and works agreements. In addition, a process should be established to determine which tasks are feasible at 25%, 50% or 75% capacity, and which criteria are used as a benchmark for approving or rejecting a claim for partial incapacity for work.
The Act stipulates that the new regulations are to be evaluated for the first time by 1 July 2029. Among other things, the evaluation will examine the effectiveness of the scheme in comparison with phased reintegration and workplace integration management, as well as its impact on the duration of periods of incapacity for work.
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