The mechanical and plant engineering industry is facing new challenges: Legislative changes, political decisions and recent court rulings are changing the employment law framework and presenting companies with new challenges.
Labor law reforms and new labor market policy decisions are changing the framework conditions for companies – especially for small and medium-sized companies in the mechanical and plant engineering sector. Early information about current developments is crucial in order to act with legal certainty and be prepared for changes.
To provide its member companies with targeted support, ProduktionNRW hosted a virtual information event on October 28, 2025. The focus was on a compact overview of the latest developments in labor market policy and labor law.
Current trends in labor market policy
Fabian Seus, lawyer in the VDMA Legal Department and Head of the Competence Center Labor Market, outlined the current situation: In August 2025, the number of employees in the German mechanical and plant engineering industry was around one million – a decrease of 2.1% compared to the previous year. The number of vacancies also fell significantly: in September, only around 9,000 jobs were registered with the Federal Employment Agency – around 17% fewer than in the previous year.
The shortage of skilled workers remains a key issue: around 21% of companies continue to report production bottlenecks due to a lack of workers. The employment expectations of many companies are correspondingly cautious.
Among other things, the political discussion focused on stabilizing pension levels, tax-free overtime bonuses, collective bargaining, flexible working hours and pay transparency. In addition, the Federal Ministry of Labor and Social Affairs presented a concept for more efficient and less bureaucratic occupational health and safety. Many reform projects were initiated, but concrete results are still pending.
Current case law in labor law
In the second part of the event, Dr. Christian Hess, a lawyer from the VDMA’s legal department, highlighted key employment law rulings from recent months.
The focus was on rulings on equal pay, electronic payroll accounting, vacation law, probationary periods for fixed-term employment contracts, co-determination in whistleblower systems, data protection and the GDPR. Decisions on unfair dismissals and continued payment of wages in the event of tattoo complications were also discussed.
The cases show: Employment law is becoming increasingly digital and the demands on companies are rising. Some decisions could still be reviewed by higher instances – a final assessment remains to be seen.
Discussion and exchange of experience
The event made it clear that companies are operating in a dynamic employment law environment. Political and legal adjustments can have a significant impact on operational processes. Continuous information and legal evaluation therefore remain essential.