ARTICLE
24 March 2026

Germany’s Defense Sector Is Entering A New Era – With Major Employment Implications

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A&O Shearman

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A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
Against the backdrop of the ongoing war in Ukraine and fundamentally shifting geopolitical alliances, Germany's defense sector is experiencing unprecedented growth – with the Bundeswehr special fund and recent spending reforms set to create around 200,000 new jobs.
Germany Employment and HR
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Against the backdrop of the ongoing war in Ukraine and fundamentally shifting geopolitical alliances, Germany's defense sector is experiencing unprecedented growth—with the Bundeswehr special fund and recent spending reforms set to create around 200,000 new jobs. For companies looking to enter or expand their business in this market, this opens up significant opportunities—but also poses a host of employment law complexities and considerable implications for HR departments.

Our latest briefing cuts through the complexity, covering the key considerations for businesses operating in this space: from security clearance requirements and trade secret protection to specific grounds for dismissal, working time schemes (and documentation obligations), works council co-determination, and the implications of the recently passed Federal Collective Bargaining Compliance Act (Bundestariftreuegesetz).

If you are exploring opportunities in Germany's defense sector—or already navigating its challenges—we would be delighted to discuss how these developments could affect your business. 

We invite you to read our A&O Shearman client alert for a better understanding. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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