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WORKING IN GERMANY

Could Germany introduce a four-day working week for employees?

Should employees in Germany be able to work four days a week for the same pay? An overwhelming majority of Germans apparently think so - and the largest union in the country is pressuring employers for exactly that. Here's what the debate is all about.

Campaigners in Erfurt call for a four-day work week.
Campaigners in Erfurt call for a four-day work week. Photo: picture alliance/dpa/dpa-Zentralbild | Michael Reichel

When many foreigners think about life in Germany, they’re likely to think about its reputation for having strong workers’ rights and a healthy work-life balance.

As well as unlimited sick leave, generous paid holiday allowances and some of the highest salaries in Europe, there’s also the famed obsession with ‘Feierabend’: a term that designates a hard stop between the day of work and an evening of leisure. 

However, despite the benefits of working in Germany, not everyone is happy with the status quo.

In a recent poll conducted by the Hans Böckler Foundation, 73 percent of respondents said they would fully support a switch to a four-day working week – as long as they received the same pay. In contrast, just 17 percent said they didn’t support a shorter work week.

People who supported the move cited the need for more time with their family, for themselves, hobbies and voluntary work as the main reasons for wanting to cut their hours. 

Three quarters of respondents also said they were keen to reduce their workload in general. 

READ ALSO: Myth-busting: Do Germans really have a perfect work-life balance?

At the same time, Germany’s largest union – IG Metall – has recently been calling for a reduction in work hours for employees in the steel industry.

They want to slash contracted hours from 35 a week to 32 spread over just four days, but maintain the same salaries for workers. The union had successful negotiated a cut in working hours to 35 per week way back in the 1990s and more recently a 28-hour working week for people going through exceptional life circumstances. 

The move is symptomatic of growing interest in more flexible working schedules as people increasingly feel overwhelmed by the constraints of balancing their private lives with a 40-hour, or five-day, working week. 

With other countries conducting trials of the four-day week in recent years, it is also a sign that the idea is gaining traction in Germany.

What’s the idea behind the four-day week?

Proponents of the four-day working week say that reducing working hours can give people a much healthier work-life balance and can even improve the productivity of workers.

In particular, they state that people have much more energy, focus and job satisfaction when they aren’t overwhelmed with long hours, meaning they can get the same amount of work done in significantly less time.

This concept was tested in a recent UK trial in which several companies switched their employees onto a four-day contract instead of a five-day one. The deal was that these employees could still take home the same pay, provided they were able to maintain the same level of productivity in 32 versus 40 hours. 

Back in February, after the trial ended, the experiment was hailed as a “breakthrough moment” as the 56 of the 61 companies involved decided to extend the four-day working week for longer – with 18 of them adopting it long-term. 

Doctors call for a shorter working week at a demo in Berlin.

Doctors call for a shorter working week at a demo in Berlin. Photo: picture alliance/dpa/Deutsche Presse-Agentur GmbH | Fabian Sommer

Another model that’s been proposed is one in which people work longer hours over four days in order to gain a three-day weekend. Belgium recently introduced legislation to make this an option for workers. 

Meanwhile, steel workers’ union IG Metall has argued that more part-time workers – and especially women – would be willing to return to the workforce if they only had to work for four rather than five days out of seven.

“Eleven million employees, mostly women, work part-time,” IG Metall chair Jörg Hofmann told Bild am Sonntag in a recent interview. “That is almost 30 percent of all employees subject to social security contributions, which is one of the highest percentages in Europe.” 

READ ALSO: Why Germany is debating a shorter working week

The author of Vier Tage Woche or “Four-day Week” Martin Gaedt interviewed around 150 companies in Germany, Austria, and Switzerland who have successfully introduced the initiative. 

Gaedt predicted that 20,000 or even 30,000 German companies could be on a four-day work week by the end on the year, no matter how the political debate goes.

“I don’t think we need politics in this discussion because it’s a decision every company can already choose today,” Gaedt told the Germany in Focus podcast recently. “There’s not one company with reduced productivity. Everybody who’s painting this dark image can’t even show one bad example.”

INTERVIEW: A four-day work week will become more widespread in Germany

So a four-day week is kind of a no-brainer, right?

For a lot of the proponents of a shorter working week, it does seem that way – but there are a fair amount of counter-arguments too.

Prof. Dr. Enzo Weber, who works at the Institute for Employment Research (IAB) at the University of Regensburg, points out that expecting a huge jump in productivity with a dramatic cut in hours may be an unrealistic dream.

“In my opinion, a four-day week with full wage compensation is not possible from a macroeconomic point of view,” Weber told The Local.

“For that to happen, productivity would have to increase by 25 percent because of the reduction in working hours, which is not realistic. In many jobs it is also completely impossible; think of bus drivers or care workers, for example.”

However, Weber notes that in the case of IG Metall, a small drop from 35 hours to 32 would only require an 8.5 percent uptick in productivity to compensate for the lost time.

IG Metall union demo

A member of the IG Metall union holds a sign that states “Steel is the future” at a demo in Lower Saxony. Photo: picture alliance/dpa | Friso Gentsch

Nevertheless, a blanket rule that cuts employment contracts down to four days could be tricky to organise in certain industries such as healthcare or hospitality.

“But in these cases a four-day week would not necessarily mean that all employees have the same days off,” Weber added. “This requires a flexible way of organising (rotas), but this has been common practice for decades in industries with many part-time workers.”

In the case of the recent UK trial, the companies who participated already had a positive view of the four-day working week and a vision for implementing it in their workflows. 

READ ALSO: Jobs in Germany: Should foreign workers join a union?

Indeed, many also experimented with other strategies for boosting productivity in the meantime, such as changing their processes or introducing new technologies.

As Weber summarises: “Even though companies may be satisfied with the results, one should not conclude from this that the four-day week in itself significantly increases productivity.”

Perhaps more importantly, introducing a three-day weekend may not suit everyone’s career goals and preferences.

In the recent Hans Böckler Foundation poll, most people who rejected the idea of the four-day week felt that they simply couldn’t achieve the same in a shorter amount of time and that nothing much would change about their level of stress in the workplace.

A man works at his desk.

A man works at his desk. Photo: picture alliance/dpa | Finn Winkler

Around 86 percent of the people who were content with their current schedules said they enjoyed their work, while a significant number said they felt it would be hard to put work aside for a day. 

Others felt the shorter hours would hinder their career opportunities.

“The often-heard statement that people (especially the young) want to work less today than in the past is wrong,” said Weber. “Desires have remained fairly stable for decades. However, there are many (today as in the past) who would like to work shorter hours and many who would like to work longer.”

READ ALSO: COMPARE: Which countries in Europe have the most public holidays?

When will see a shorter working week in Germany? 

At present, the government has no firm plans to enforce a four-day work week in the country – though some prominent politicians have spoken out in favour of the idea.

“I can well imagine that we would achieve good results with a four-day week,” former SPD leader Saskia Esken told the Redaktionsnetzwerk Deutschland (RND). “There are studies according to which people work more effectively in a week reduced to four working days because they have higher job satisfaction. Because they have more time for their private life.”

Currently, it seems the most likely route to more flexible hours will be through the unions. 

When IG Metall sits down for its next round of contract negotiations in November, it says it will be fighting for a 32-hour week instead of a 35-hour one.

A woman signs an employment contract.

A woman signs an employment contract. Photo: picture alliance/dpa | Annette Riedl

According to the Ministry for Work and Social Affairs (BMAS), collective negotiations could be the best avenue for workers to improve their work-life balance.

“The introduction of a statutory four-day week is not planned in Germany,” a spokesperson for BMAS told The Local. “Decisions on the organisation of working time are left by the Basic Law to the parties to collective agreements and the respective employment contracts. These are free in their decisions in this regard, subject to the provisions of the Working Hours Act.”

Of course, big industry employers – including those in the steel industry – are not likely to go down without a fight.

Speaking to Bild am Sonntag, Stefan Kampeter, the head of the employers’ association BDA, dismissed the four-day week for the same pay as “milkmaid’s maths”. 

READ ALSO: Is a four-day working week possible in Germany?

“We will only be able to finance our welfare state and climate protection in the long term with more work and innovation,” he said.

For Mercedes CEO Ola Källenius, meanwhile, shorter hours would make Germany less competitive.

“If our first priority is to work less with full wage compensation, we won’t win any more games internationally,” Källenius told Bild.

In short: the battle over a four-day week is likely to be raging for some time yet. 

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TAXES

EXPLAINED: How do you close down a freelance business in Germany?

Leaving the country? Got a steady job offer you can’t say no to? Winding down your self-employment activities in Germany still requires taking a few bureaucratic steps.

EXPLAINED: How do you close down a freelance business in Germany?

Striking out on your own as self-employed is one of the scariest – and potentially most rewarding things – you can do. In Germany, it also comes with its own set of rules around tax and social insurance.

But there are times when – for whatever reason – it may be time to move on.

Whether it’s because you have an exciting new opportunity or things haven’t quite worked out the way you hoped due to economic pressures – winding down self-employment the right way is crucial to avoid gaps in your health and social insurance coverage in Germany.

The steps you have to take are also a bit different depending on if you are new self-employed (Freiberufler) or have a trade licence (Gewerbe) – with some steps not being necessary for new self-employed.

Trade licences are automatically cancelled if the licenced person dies or the company ceases to have financial assets.

Resigning the trade licence or declaring it dormant

New self-employed people like writers or speakers don’t need to go through this step, as they don’t need a trade licence.

Those who have a trade licence will need to contact their competent local authority and resign it, or declare it dormant (withdrawing the licence). If you’re only winding down temporarily, declaring your trade licence dormant instead of de-registering completely may save you a few headaches later.

You may have to do this in person at your local trade office – or Gewerbeamt – depending on whether your local authority allows online de-registration or not. You’ll need to bring your official ID, trade licence, confirmation of registration and possibly an extract from the trade register. Fees are dependent on your local authority and can range from being free to €25.

You can declare the date you intend to resign the licence – which can be in the future. To ensure no gaps in your social insurance protections, including health insurance, set this date for the day before whatever comes next. For example, if you’re starting a new job on January 1st set the date for your trade licence to expire as December 31st.

The trade office will typically notify your local tax office, so you won’t need to do this yourself.

Notifying your tax office

If you’ve had to resign your trade licence, you can skip this step as your trade office will do it for you. If you’re a Freiberufler without a trade licence you need to resign, you’ll have to notify your local Finanzamt, or tax office, yourself.

Luckily, this is a pretty easy step.

First, you need to decide whether you’re ceasing operations completely or wanting to continue them part-time. If you’re ceasing completely, you’ll end up surrendering your self-employed tax number.

You don’t have to do this though. If you think you may still carry on some self-employed business as a side gig, you can inform the tax office that you intend to do so and keep your number.

At that point, the tax office should treat you as a Kleinunternehmer – or a small business making less than €22,000 a year. Having this status means that you will not need to pre-pay taxes or charge VAT on your invoices for freelance side projects.

If you derive any income from your side gig in the future though, you’ll still have to file a tax return.

READ ALSO: Can I have a freelance side gig as an employee in Germany?

Notifying your health insurance

While different private plans in Germany may have different notification requirements, if you have public health insurance in Germany, you should notify them that you’re winding up your self-employed business. Specifically, advise them exactly what date you’re wrapping up.

Again, this should be right before you start your new job or leave the country, to ensure no gaps in your coverage.

If ending your self-employment in Germany, take care to ensure that there’s no gaps in your health insurance coverage, by giving the right date for when you’re ceasing activity. You don’t want to be caught without coverage. Photo by Stephen Andrews on Unsplash

If you are in an artistic profession and thus pay pension, health, and nursing insurance through the Artist Social Insurance Fund (KSK), you should also advise them as well. If you’re leaving self-employment completely, you can typically give notice to KSK as to when it’s ending.

If you’re not, and intend to still make money freelancing as a side gig, they should know this as well. In this event, you’ll no longer pay health or care insurance through KSK, as this is covered through your main job.

You may need to continue to pay pension contributions through KSK based on the amount of money you still make from self-employed activities — depending on how much of them you continue.

KSK: How creative freelancers can pay less for German health insurance

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