The days of filing expense reports from a beachside café in Spain are over for employees at Germany’s Health Ministry. Since mid-June, the “Mallorca Rule” — which allowed staff to work remotely from other EU countries — has been scrapped. Civil servants in that ministry may now only work from home within Germany, and for a maximum of 60 percent of their working hours.
The change reflects a broader shift in Berlin’s approach to mobile work. Several federal ministries had previously permitted their employees to work from anywhere in the EU for 40 to 100 percent of their time. Now the Interior Ministry, led by Alexander Dobrindt (CSU), is examining whether to adopt similar restrictions. Chancellor Friedrich Merz has underscored the need for a renewed willingness to perform if Germany is to sustain its prosperity.
Unauthorized Remote Work Carries Real Risks
Many workers are testing those limits. A survey by the job platform Indeed of 1,000 employees found that about 10 percent regularly work from home more than their employer officially allows. Another 27 percent have struck informal, undocumented deals with their supervisors about attendance. Labour law expert Pascal Croset warns that such arrangements leave workers exposed: employers are legally entitled to monitor presence through electronic access controls, provided no cameras are used. Missing office hours or working from an unapproved location counts as a breach of duty, potentially triggering a warning and, if repeated, dismissal.
Tax and social insurance complications add another layer of risk for anyone considering unauthorised foreign remote work. The tax jurisdiction depends on the length of stay in the destination country, and accident insurance coverage only applies at the agreed-upon workplace.
Technology Closes the Loopholes
New software is making it harder to go unnoticed. Microsoft is rolling out a Teams feature that automatically updates a user’s location by detecting the office network via Wi-Fi or connected peripherals. In Germany, Austria and Switzerland, works councils retain a co-determination right over such monitoring systems.
Working Time Reform Looms
Parallel to the debate over where people work, the government is preparing to change how long they can work. A reform of Germany’s Working Time Act is in the pipeline that could set a maximum daily limit of 13 hours — effectively discarding the traditional eight-hour day.
The issue gained fresh relevance with the upcoming football World Cup in North America. Due to the time-zone difference, many matches will kick off during German night-time hours. Legal experts are clear: sleep deprivation caused by late-night spectating does not excuse lateness the next day. Employers have no obligation to grant special arrangements. Similarly, there is no statutory claim to paid leave for bereavement; such provisions must be spelled out in collective agreements or individual contracts.
