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Tesla halts sick pay for Berlin workers amid legal backlash

A bold cost-cutting move at Tesla's Berlin plant puts sick workers in limbo. Could this push legal boundaries—and union patience—to the limit?

The image shows a group of people walking through a factory, with machines on the left side and a...
The image shows a group of people walking through a factory, with machines on the left side and a wall in the background. The people are wearing suits and footwear, suggesting they are on their way to work.

Tesla Sick Leave in Grünheide Plummets Dramatically

Sick leave rates at Tesla's Grünheide plant have fallen sharply—from a peak of up to 17 percent in August 2024 to below five percent today, according to Handelsblatt, citing statements by plant manager André Thierig at the Hannover Messe. For months, the high number of employees on sick leave had been seen as a major challenge for the U.S. automaker.

New Incentives for Employees

Thierig said Tesla has taken targeted countermeasures, introducing new incentives such as an employee stock program, an on-site gym, and additional perks like a barbershop. Workers can also rent a Tesla for €25 a day. At the same time, management describes a cultural shift, with employees now coming to work "willingly," as Thierig put it. However, observers may also attribute the decline to increased pressure on staff.

Threats to Employees on Sick Leave

According to the Handelsblatt report, Tesla has once again sent letters to employees on sick leave, halting their continued wage payments. The company claims that some cases may involve a so-called "recurrent illness"—meaning the same condition rather than a new medical issue. Affected workers are then required to provide detailed accounts of their symptoms and release their doctors from confidentiality obligations. Tesla has even questioned statements from health insurers.

The legal landscape is complex. Under German labor law, employers must generally continue paying wages for up to six weeks per illness. A new entitlement only applies if the employee is suffering from a genuinely new condition. The Federal Labor Court allows employers to express doubts in such cases. However, experts argue that Tesla's demands may go too far: employees are not obligated to disclose diagnoses themselves, and doctors are not required to provide details beyond what is stated on a sick note.

Conclusion

The case highlights a fundamental tension: while Tesla aims to boost efficiency and reduce absenteeism, the company is operating in legally contentious territory—amid ongoing disputes with works councils and unions.

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