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German Court Ruling on Online Sick Leave Highlights Risks for Payroll and HR

Written by Max van der Klis-Busink, MCIPP, RPP | Apr 15, 2026 3:05:10 PM

A recent labour court decision in Germany highlights how digitalised sick leave processes can introduce new compliance challenges for employers. Under German employment law, employees must provide proof of incapacity to work when they are absent due to illness. Typically, this proof takes the form of a medical certificate (Arbeitsunfähigkeitsbescheinigung or AUB) issued by a doctor.

In this case, the employee sought and received a certificate over the internet. It was issued on the basis of an online questionnaire without any contact with a doctor in person, on the telephone, or through video. The website where the employee purchased the medical certificate offered two options: “sick note without consultation" and a "sick note with consultation." The second option was more expensive.

The employee chose the first option. The website advised purchasers, “For sick leave certificates WITHOUT a doctor's consultation, you should ask your employer to accept the certificate immediately, especially if they are suspicious.” The employer later discovered that the certificate could not be verified through the electronic reporting system used between doctors and health insurers. Suspecting irregularities, the company terminated the employee’s contract without notice. The employee sued for wrongful termination.

Court Upholds Dismissal for Misleading Sick Leave Certificate

The lower court ruled in favour of the employee but on appeal the validity of the employee’s termination was affirmed and the employee’s action was dismissed. In ruling for the employer, the appellate court said submitting a certificate obtained without any medical examination diminishes the value usually associated with sick leave documentation. Here, the employee knowingly submitted a document indicating that a proper medical consultation had taken place. Since no such consultation actually occurred, the court saw this as a deliberate misrepresentation that breached the employee’s contractual obligation to provide valid proof of incapacity for work. The employee’s behaviour was serious enough to warrant immediate dismissal.

Practical Implications for Payroll and HR

This case involved German employment law decided in German courts, but it underscores broader trends that payroll professionals across Europe and beyond should watch. Digital healthcare services and governments digitising the sick leave process are expanding quickly but nevertheless must adhere to the medical standards required by employment and social security regulations.

The sick leave process is a sensitive process and a moment that matters in an employee's lifecycle, usually with a pay impact. For payroll and HR teams, this change brings several practical considerations:

  • Ensure sick leave certificates meet local legal and medical standards and align with internal policies and procedures.
  • Learn how electronic reporting systems confirm medical absences.
  • Check how specific policies handle suspected irregular or unverifiable sick leave documents.
  • Work closely with HR and legal teams when absence records raise compliance issues, and check that dismissal processes are legally sound.

As digital healthcare and electronic sick leave documentation continue to expand, payroll teams will increasingly need to understand local documentation and evidencing standards and ensure compliance throughout absence management processes.

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Max van der Klis-Busink, MCIPP, RPP, is the Owner of Passion For Payroll and Vice President of Global Strategy on PayrollOrg’s Board of Directors.