The CDU Economic Council is pushing for two major reforms to strengthen the economy, aiming to tackle labor market rigidities and modernize working time regulations.
As part of this initiative, the council has requested that termination protection laws be relaxed for high-earning employees. General Secretary Wolfgang Steiger informed newspapers from the Funke-Mediengruppe that employees whose income surpasses the contribution assessment ceiling for the statutory pension insurance should be granted the option to agree to a specific severance package in their employment contract, instead of being subject to standard legal protection.
This measure is intended to ease hiring processes for small and medium-sized businesses by significantly lowering the risk associated with protracted legal disputes over dismissals. Steiger added that if this option is utilized, the size of the potential severance payment would need to be stipulated in the contract from the outset. These changes would only affect a relatively small subset of the workforce, targeting those who earn above the contribution assessment limit-which, nationally, is set at 8,450 euros gross per month in 2026.
Beyond changes to termination rules, the council also advocated for reforming labor law. Steiger urged that the Working Time Act should orient more toward a weekly maximum working limit rather than a daily one. According to him, this shift would foster greater freedom and independence for both employers and employees, thereby better accommodating the demands of a modern working environment. These proposals are being directed at the Cabinet Committee, which is scheduled to deliberate on economic strengthening measures.
