Coalition Agreement: 7 Topics That Concern HR

Germany's new coalition agreement contains plenty that HR teams should keep on their radar: more flexible working hours, more remote work, fewer fixed-term contracts, digitalisation, diversity – and more. Here's an overview of what is planned and where action is needed.

1. More flexible working hours – between wish and reality

What does the government plan? Modernising the Working Hours Act – including pilot projects for weekly instead of daily maximum working time. The goal: more flexibility for employers and employees.

What does it mean for HR? Trust-based and flexible models become easier. At the same time, requirements for documentation and fairness rise – everything must be transparent, balanced and socially fair.

Concrete measures:

• Evaluate and adjust internal working-time models.
• Review contracts and works agreements (especially overtime & flextime).
• Roll out digital time-tracking tools (record-keeping obligations).

2. Right to remote work – the next step toward New Work?

What does the government plan? A statutory right to mobile work is to be examined. The goal: enable remote work permanently wherever the role allows.

What does it mean for HR? Remote work becomes the rule rather than the exception. HR has to create the framework for data protection, availability and ergonomics. That's exactly what our products & services address.

Concrete measures:

• Develop or update home-office policies and agreements.
• Prepare managers for remote leadership.
• Centralise IT and equipment provisioning (e.g. in onboarding).

3. Fixed-term contracts – more planning, less leeway?

What does the government plan? Restricting fixed-term contracts without a substantive reason – particularly in cases of multiple extensions or in larger companies.

What does it mean for HR? Less legal flexibility. HR has to plan further ahead and invest more in employee retention.

Concrete measures:

• Review current fixed-term practices and ratios.
• Develop concepts for permanent career paths.
• Adapt contract templates and HR systems.

4. Securing skilled workers – immigration & international talent

What does the government plan? Simplified immigration via a points system for skilled workers, faster visa processes and broader recognition of foreign qualifications.

What does it mean for HR? International recruiting becomes significantly more attractive. At the same time, onboarding and legal know-how become more demanding.

Concrete measures:

• Build international recruiting capabilities (e.g. specialised platforms).
• Improve integration: language, culture, official processes.
• Partner with relocation specialists or immigration lawyers.

5. Strengthening continuing education – HR's role in learning culture

What does the government plan? A continuing-education strategy with funding programmes for qualification (e.g. via the Federal Employment Agency).

What does it mean for HR? Learning is no longer a "nice-to-have" but strategically essential. HR can leverage public funding to deliver qualification cost-efficiently.

Concrete measures:

• Analyse skill gaps across the company.
• Roll out a digital learning platform or targeted training programmes.
• Use funding schemes (e.g. Germany's Qualification Opportunities Act).

6. Diversity & equality – from obligation to opportunity

What does the government plan? Equal opportunities regardless of gender, origin, disability or sexual orientation. The implementation of the EU pay-transparency directive is a clear signal.

What does it mean for HR? Diversity, Equity & Inclusion (DEI) become mandatory components of modern people work.

Concrete measures:

• Introduce diversity management or a DEI officer.
• Monitor the gender pay gap and equality measures.
• Awareness training and barrier-free HR processes.

7. HR digitalisation – using political tailwind

What does the government plan? Digitalisation is a cross-cutting goal – also for administration, education and labour. Funding programmes are meant to accelerate the transition.

What does it mean for HR? HR should rely more on digital tools – for more efficient processes and a better employee experience.

Concrete measures:

• Introduce or expand HR software (e.g. for recruiting, onboarding, time tracking).
• Digitise internal processes: from application to payroll.
• Identify where AI or automation can already help today.

Conclusion

The coalition agreement covers a wide range of HR-relevant topics. Those who act early gain a clear advantage – both legally and in the competition for talent.

Want to learn how to sustainably support the health and productivity of your employees in the home office? Book a consultation.