AGG (Anti-Discrimination Act) Reform 2026: Longer Statute of Limitations for Victims of Discrimination – What This Means for Employees

On May 6, 2026, the Federal Cabinet approved a reform of the General Equal Treatment Act. The most significant change: The deadline for taking action against discrimination will be doubled. Those who have been terminated or feel they have been treated unfairly at work will thus have more time—but still only a narrow window of opportunity.

What did the Cabinet decide on May 6?

At the suggestion of Federal Minister for Family Affairs Karin Prien (CDU) and Federal Minister of Justice Stefanie Hubig (SPD), the Federal Cabinet passed a draft bill to amend the General Equal Treatment Act (AGG). Since 2006, the AGG has protected employees from discrimination based on race, ethnic origin, gender, religion, ideology, disability, age, or sexual identity.

The draft bill primarily serves to implement European directives, but in some respects also goes beyond the law currently in force. An overview of the most important changes:

• Extension of the deadline: The deadline for asserting AGG claims is doubled from two to four months (Section 15(4) AGG, as amended).

• Expansion of protection against discrimination: The prohibition on gender-based discrimination will no longer apply only to everyday transactions but to all civil law transactions—including lease agreements, insurance policies, and service contracts.

• Protection against sexual harassment: The scope of protection is being expanded: Sexual harassment is no longer prohibited only in the workplace, but also, for example, in the housing market or at driving schools.

• New mediation body: An independent mediation body will be established within the Federal Anti-Discrimination Agency (ADS) that is easily accessible. In addition, the ADS will be permitted to act as a representative in court proceedings in the future.

Important: Not yet law The cabinet decision is only the beginning of the legislative process. The law must still pass the Bundestag and the Bundesrat. Until it takes effect, the old two-month deadline remains in force. Anyone currently affected should not wait for the reform.

What does the new four-month deadline mean in practice?

Previously, victims of discrimination had only two months to claim compensation or damages under the AGG—calculated from the moment they became aware of the discrimination. This is a so-called statute of limitations: Anyone who misses it loses their claim irrevocably, regardless of how clear the legal situation is.

By extending the deadline to four months, lawmakers are responding to reality: Many affected individuals need time to understand what has happened to them, seek legal counsel, and make an informed decision. In practice, two months were often simply too short.

4 months—that is how long the new deadline for asserting AGG claims will be in the future. Previously, it was only two.

The Connection to Protection Against Dismissal

For employees, the AGG reform is particularly relevant when a termination is involved. Two deadlines run parallel here—and are often confused with one another:

• Action for protection against dismissal (Section 4 KSchG): Anyone wishing to challenge a dismissal has three weeks to do so from the date of receipt of the written notice of dismissal. This deadline is not affected by the AGG reform. It remains fixedly short and allows for no extension.

• AGG claims in cases of discriminatory termination: Anyone who considers a termination to be discriminatory—for example, because it was based on gender, origin, or a disability—may also seek compensation under the AGG. This deadline is set to be four months in the future.

Important: Both claims exist side by side and must be asserted separately. The unfair dismissal lawsuit before the labor court is based on the invalidity of the termination. The AGG lawsuit is based on compensation for the discriminatory motivation. Anyone who files only one of the two lawsuits may lose the other claim due to the expiration of the deadline.

Practical Note: Probationary Period Is Not a Free Pass The protective provisions of the AGG also apply without restriction during the probationary period. While termination may occur without cause during the first six months, the employer is still prohibited from discriminating. If a discriminatory motive can be proven or made credible, a claim for compensation under the AGG exists.

What changes for employers?

Employers must prepare for a longer period during which AGG claims can be asserted. This has practical consequences: decisions regarding recruitment, promotions, or terminations should be documented more carefully—in such a way that the documentation remains reliable and traceable even after four months.

The new independent conciliation board at the Federal Anti-Discrimination Agency offers, on the one hand, the opportunity for out-of-court settlement. On the other hand, complaints can be handled more professionally and with stronger institutional support in the future. Companies without clear internal processes will find themselves in a defensive position more quickly.

Criticism: Is the reform sufficient?

Extending the deadline to four months is a step in the right direction—but falls short of what experts are calling for. The Federal Anti-Discrimination Commissioner, Ferda Ataman, had advocated for a deadline of at least twelve months and described the AGG as one of the weakest anti-discrimination laws in Europe.

In fact, the AGG has been in effect since 2006 and has hardly undergone any fundamental changes in 20 years. The current draft does not provide for a right to bring class-action lawsuits—so that those affected do not always have to fight discrimination on their own. An extension to government agencies is also missing. Federal Minister of Justice Hubig has announced her intention to continue advocating for more ambitious protection against discrimination.

Have you been discriminated against or are you facing termination? The deadlines in labor law are short—even after the AGG reform. Whether it’s a wrongful termination lawsuit, discriminatory termination, or severance negotiations: I’ll review your case and advise you before important deadlines expire. Contact me now—I can provide an initial assessment at short notice if desired.