Retaining Skilled Staff: New Flexibility Through the Reform of § 41 SGB VI

The shortage of skilled workers calls for new ways of keeping experienced experts in the company. A key role is played by the new version of § 41 of the Sixth Book of the German Social Code (SGB VI), which entered into force on 1 January 2026. Whereas strict formal requirements and prohibitions on fixed-term contracts previously made it difficult to continue employing pensioners, the new paragraphs 2 and 3 bring noticeable relief for practice.

The newly introduced § 41(2) SGB VI lifts the so-called prohibition of prior employment (Vorbeschäftigungsverbot) for employees drawing an old-age pension. Employers can now conclude fixed-term employment contracts without an objective reason (sachgrundlos befristet) with employees who have reached the standard retirement age – even if they were previously employed in the business. This creates considerable flexibility in workforce planning without the risk of an open-ended commitment.

In addition, the new § 41(3) SGB VI provides that text form (Textform) is now sufficient for agreements on the termination of the employment relationship upon reaching the retirement age. This means that the handwritten signature (written form, Schriftform) that was previously mandatory is no longer required, and modern means of communication noticeably reduce the administrative burden.

These reforms make it more attractive than ever to secure proven know-how in the company in a legally sound and uncomplicated manner. Make use of this new legal leeway to keep your most valuable skilled staff on board flexibly.