The current labor-market reforms are not being approached systematically. International comparisons show that the transition from a welfare state to an activating state leads to changes in all subsystems of the labor market and results in a further need for reform in these areas. 

The project aims to develop an overall concept for modern regulation of the labor market, in order to improve regulatory quality, thereby reducing red tape and decreasing related costs for business and society. Regulations can be improved considerably in the short term by consolidating individual laws impacting employment contracts into a uniform code and thus significantly increasing transparency for employees and employers.

This means revamping the labor market regulations so that the existing structures of labor legislation are realistic and geared to the demands of a society's industry, service and knowledge-related sectors. Ultimately, however, long-term solutions for the problems impacting the German labor market can only be achieved by completely rethinking labor market regulation. Effective momentum for greater employment can be found only through a comprehensive approach that sees labor market regulation holistically and integrates both labor law and active and passive labor market policy into a consistent reform strategy.

The objective is

first, a simplified and clear code for employment contract law as a contribution to greater transparency and the overall legal framework and
second, a complete reform of the labor market system to increase the employment rate and reduce long-term unemployment.