Productivity Tumbles in Heat as Germany Girds for Landmark Partial Sick Leave Law

Rising workplace temperatures are pushing productivity down sharply, according to studies from Allianz and the European Central Bank cited by German health authorities. Once the mercury hits 27 to 28 degrees Celsius, work efficiency begins to slip, and for every degree above 30°C, output falls by roughly three percent. Manufacturing, mining and pharmaceuticals are the sectors most affected. Experts are urging employers to adopt flexible hours and organizational tweaks, warning that air conditioning alone cannot compensate.

The heat findings come at a moment when German companies must overhaul their approach to employee health across multiple legal fronts. A recent ruling from the Federal Labour Court (BAG) has raised the bar for proving that a formal reintegration process—known as betriebliches Eingliederungsmanagement, or bEM—was properly offered before a dismissal.

Court Raises Hurdles for Sickness Dismissals

On 7 May 2026, the BAG (case reference 2 AZR 184/25) declared a termination invalid because the employer could not prove the worker had received an invitation to a bEM meeting. The firm had used a registered letter with a scan receipt created before the letter was posted. The judges ruled that such a scan does not prove actual delivery when the employee denies receipt. They also stressed that employers must offer a fresh bEM procedure each time a worker is absent for more than six weeks within a twelve-month period, even if a prior offer was rejected.

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Partial Sick Leave Debuts in 2027

A broader shift arrives on 1 January 2027, when a law passed on 10 July 2026 introduces partial sick leave for the first time. Under the new rules, doctors can certify incapacity in steps of 25, 50 or 75 percent for illnesses lasting longer than four weeks. The employer must agree within seven days; if it refuses, the employee remains fully unfit for work. During partial sick leave, the company pays wages for hours actually worked, while the statutory health insurer contributes a proportional amount of sick pay. The scheme covers only people enrolled in the public health system—private patients and mini-job holders are excluded.

Prevention Efforts in the Spotlight

While complying with the new rules, some employers are also investing in proactive health measures. The city of Düsseldorf won the AOK Health Prize on 9 July 2026 for its prevention programs. Its 12,000 municipal staff have access to AI-powered ergonomic coaches and virtual-reality relaxation tools. The city has also trained roughly 300 workers as mental-health first responders, a priority as absenteeism climbs.

In Thuringia, the AOK PLUS health insurer and the state’s Skilled Labour Agency will run digital workshops in September 2026 to train company-based “care pilots” who support employees with caregiving responsibilities. Meanwhile, Austria’s Social Minister Korinna Schumann has announced a permanent legal guarantee for the care bonus: full-time workers there will receive 2,200 euros annually until at least 2028.

Political Debate Adds More Uncertainty

Alongside the partial sick leave law, politicians are debating a requirement for a doctor’s note from the first day of illness, the abolition of phone-based sick certification, and the introduction of unpaid waiting days. Business representatives back the ideas, but family doctors warn of higher workloads. With heat and legal changes converging, German employers face a demanding period of adaptation.

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