Austria – Employment & Labour Laws and Regulations 2024

General labour market and litigation trends

Social/legislative/economic developments which have impacted on the employment and labour market and new legislation.

Recently, the Austrian Chamber for Labour published figures on the number of legal consultations carried out in 2023 announcing a record number of 2.3 million consultations for the year.  In 2023 the Chamber of Labour was able to obtain payments in the amount of EUR 645 million for its members (= regular employees) in employment and social insurance law matters.  These numbers seem to indicate that the younger generation entering the employment market is more willing to take legal action against their employers than previous generations were.  This emphasises the importance of preventative legal measures for employers, such as advice on the writing-up of legally sound contract templates, as well as regular reviews on their legal actuality.

Trends in volume and types of employment claims over the last year and possible causes for that

As reflected by the numbers stated above, we are witnessing an increase especially in out-of-court legal enforcement measures supported by the Austrian Chamber of Labour, influenced – in our opinion – heavily by the way the younger generation entering the employment market approaches and values employment.

Trends and issues related to hybrid, flexible and remote working arrangements

As can be observed globally, the necessary increase in hybrid, flexible and remote working arrangements that came along with COVID-19 has especially influenced employees’ valuation of such arrangements, as many of these now seem basic prerequisites when searching for a new job.  Of course, such working arrangements now come with issues such as difficulty in balancing interests between the employee’s privacy and the operationally necessary measures on confidentiality and protection of personal and company data, in particular, business and trade secrets.

Redundancies/reductions in force, business transfers and reorganisations

Legal considerations and best practices in implementing redundancies/reductions in force

Applicable general and special worker protections against termination must always be considered (please see in more detail below).  Additionally, when terminating a certain number of employees, the mandatory early warning obligation may apply as follows.

Employers who intend to (unilaterally or mutually) terminate the employment relationships with:

• at least five employees in businesses with more than 20 and less than 100 employees;
• at least 5% of employees in businesses with between 100 to 600 employees;
• at least 30 employees in businesses with over 600 employees; or
• at least five employees older than 50 years,

within a period of 30 days are required to preliminarily notify the regionally competent office of the Labor Market Service (Arbeitsmarktservice; AMS).

The written notification must be filed with the AMS 30 days before giving notice of termination of the first employment relationship at the latest, otherwise employees may claim that the terminations are null and void and their employment relationship is still in force (“blocking period”; sec 45a para 2 AMFG).  Terminations are legally invalid if they are issued before the notification is submitted to the regional office of AMS or after the notification has been sent but within the 30-day blocking period.

The approval of the AMS is not required for terminations.  Not only terminations by the employer trigger the notification obligation described above, but also mutual terminations initiated by the employer.

The 30-day period of sec 45a para. 1 AMFG is a continuously moving period: it is therefore possible to remain below the thresholds if terminations are spread over a period of more than 30 days and thus not trigger a notification obligation within the meaning of sec 45a para. 1 AMFG.

Relevant test for business transfer legislation to apply

Today’s statutory Austrian provisions concerning employees’ rights in the event of business transfers are a result of the implementation of the European Union’s Council Directive 2001/23/EC.  Pursuant to sec 3 Labour Contract Adjustment Act (AVRAG), if a company, business or part of a business is transferred to another owner (transfer of business), the new owner shall automatically take over as employer all existing employment contracts with all rights and obligations existing at the time of the transfer.  The constitution of a transfer of business pursuant to sec 3 AVRAG is determined by a number of factors such as the transfer of tangible and/or intangible business assets, takeover of (or even part of) the workforce as well as the degree of similarity of the activity performed by the business before and after the transfer.

From an employment law perspective, a transfer of business takes place at the time when the actual power of disposal over the business and thus the essential employer functions are transferred to the new owner.  The date of transfer is therefore determined by the factual takeover of the organisational and management power by the new owner.  The effectiveness of restructuring measures from a company law perspective or an agreement between the seller and acquirer, are only of secondary importance.

Process for electing employee representatives

Employees can establish a works council in companies with a minimum of five employees.  The works council is established on the basis of a works council election organised by employees.  The number of works council members is determined by the number of employees.  The details of the election process are regulated in the Labor Constitution Act (ArbVG) and the Works Council Election Regulation (BRWO).  As a general rule, employers may not impede the establishment of a works council and must provide organisational assistance (e.g., by providing a list of employees for the purpose of drawing up the voter list) if requested.

Consultation/communications with employees subject to redundancies/reductions in force

Pursuant to sec 109 ArbVG, the owner of a business must inform the works council of planned changes to the business in good time so that the works council can assess the possible effects of the planned measure in detail and issue a statement on the matter.  Changes in operations include, for example, cutbacks in operations, mass layoffs and relocations.  In the event of a breach of the obligation to provide information in the case of mass terminations, the owner of the establishment is liable to a penalty.

Information to the works council shall be provided at such time, in such manner and with such content as to enable the works council to assess in detail the possible effects of the planned measure and to issue a statement on the planned measure.  Upon request of the works council, the owner of the business shall consult with the works council on the measure.

In a business employing at least 20 employees, the works council (provided that such is established) may demand that the owner of the business negotiates a social plan if (i) there is a change to the business in the above sense, and (ii) this change entails significant disadvantages for a substantial part of the workforce.  Possible contents of a social plan may be, e.g., voluntary severance payments or compensation for retraining costs.  If no agreement can be reached between the owner and the works council on the conclusion, amendment or cancellation of a social plan, a conciliation board (Schlichtungsstelle) shall decide at the request of the works council or the employer.

Ability of employer to change terms and conditions of employment and method(s) for doing so

Generally speaking, the amendment of terms and conditions of employment requires the consent of the affected employee.  General exceptions are contractual reservations of the right of modification and revocation.  Further, employers have the option of terminating employment contracts by notice of change.  Such notice of change constitutes a termination of the employment contract combined with an offer to continue the employment relationship under amended conditions.  Employees can prevent the termination from becoming effective by accepting the offer for amended conditions in due time.

On the occasion of a transfer of business, a change of the terms and conditions of employment to the detriment of employees is unlawful.  Sec 3 AVRAG obliges the new owner to enter into all existing employment contracts with all valid rights and obligations existing at the time of the transfer.

Business protection and restrictive covenants

Employee duties of confidentiality (express and implied) and good faith

A variety of provisions of the labour law oblige employees to protect trade or business secrets (e.g. sec 82 lit e Trade Regulation (GewO) 1859, sec 122 para 1 no 4 Labor Constitution Act (ArbVG)).  In addition, in accordance with sec 123 Penal Code (StGB), it constitutes a criminal offence to spy on a trade or business secret with the intention of exploiting it.  Further, sec 11 Unfair Competition Act (UWG) also makes the unauthorised disclosure of trade and business secrets for competitive business purposes a criminal offence.

Aside from these explicit regulations, every employment relationship carries the employees’ implied duty of loyalty (Treuepflicht), which includes a duty of confidentiality covering information received in the course of an employment relationship to which outsiders have no – or only very limited – access, in the confidentiality of which the employer has special operational or business interests (cf. OGH 25. 6. 2003, 9 ObA 66/03a).

Restrictive covenants, including post-employment non-competition agreements, non-solicitation of customers and/or vendors, non-solicitation of employees and contractors – business interests which can be protected; types of restrictions available; typical length of restrictions; ability/willingness of Court to amend or reform defective/unenforceable restrictive covenants

White collar workers are subject to the statutory non-competition provisions pursuant to sec 7 White Collar Workers Act (AngG) according to which employees may not operate a commercial enterprise or engage in commercial transactions in the employer’s line of business for their own account or for the account of third parties without the employer’s approval during the duration of their employment contract.

It is frequent practice to contractually extend this prohibition via post contractual non-compete clauses paired with contractual penalties.  Pursuant to sec 36 AngG, such post-contractual non-compete clauses are only valid insofar as:

1. the employee was not a minor when the clause was concluded;
2. the clause relates to the employee’s activity in the branch of business of the employer and does not exceed the period of one year; and
3. the restriction does not constitute an unreasonable impediment to the employee’s occupational advancement in terms of its subject matter, time, or place and in relation to the employer’s business interest in complying with it.  Additionally, the validity of the clause requires the employee’s last monthly salary to exceed a certain minimum level (currently, twentyfold of the assessment base under the General Social Insurance Act = gross EUR 4.040,00 for 2024).  If a contractual penalty is agreed upon to become due in case of violation of the non-compete clause, such penalty may not exceed sixfold of the net monthly salary due for the last month of the employment relationship (sec 37 AngG).

Moreover, employment contracts regularly include post-contractual non-solicitation clauses prohibiting a former employee from soliciting his/her former employer’s employees to leave the company as well as to solicit any business from the employer’s customers.  The validity of such clauses is also measured in accordance with the requirements of sec 36 AngG outlined above and are also frequently tied to contractual penalties.  Pursuant to sec 38 AngG, contractual penalties are subject to the mandatory right of judicial mitigation, allowing for the court to reduce such penalties by an equitable ruling.

Whether the standards or length of restrictions are different in situations involving the sale of a business

There are no differences regarding the sale of a business in particular; however, it is worth mentioning that that the enforceability of non-competition clauses depends on how the employment relationship has ended.  In the event of termination by the employer, for example, the employer can only invoke the non-competition clause if he continues to pay the employee’s remuneration for the duration of the validity of the clause and this has been explicitly agreed with the employee.

Methods of enforcement of restrictive covenants, including temporary restraining orders and preliminary injunctions

Preliminary injunctions in connection with the breach of non-competition clauses are possible in principle but very rare in practice as a concrete (and not merely possible) threat of breach must be proven.  Usually, such clauses are enforced via contractual penalties.

Discrimination/retaliation protections

Protected classes/characteristics

The Austrian Equal Treatment Act (GIBG) prohibits discrimination with regard to:

• gender;
• ethnicity;
• religion;
• world view;
• age; and
• sexual orientation.

The Disability Employment Act (BEinstG) as well as the Disability Equality Act (BGStG) prohibits discrimination regarding disabilities.

Different types of discrimination claims

On the basis of the above-cited protected characteristics, persons may not be directly or indirectly discriminated against, e.g., when:

• concluding the employment contract;
• determining remuneration;
• granting voluntary social benefits that do not constitute remuneration;
• granting measures of education, training and retraining;
• deciding on career advancement, in particular promotions; and
• terminating employment relationships.

Burden of proof, defences to discrimination

When claiming to have been discriminated against, the claimant is granted ease of evidence as he/she must only make his/her argument plausible.  It is then up to the employer to prove to the court:

• on a balance of all circumstances, it is more likely that another motive, plausibly put forward by the employer, was the decisive factor for the difference in treatment; or
• the rules, criteria and procedures which lead to discrimination are objectively justified and the means used are appropriate and necessary.

Compensation and other remedies

In the event that a discriminated claimant prevails in dispute, he/she is entitled, in certain cases, to the granting of the desired benefit (e.g. voluntary social benefits that do not constitute remuneration) or to compensation for tangible as well as intangible damages.  In connection with the discriminatory termination of employment relationships (retroactive) reinstatement is also a possible legal remedy.

Other means of tackling gender pay gap

Adding to the above, the Ombud for Equal Treatment (Gleichbehandlungsanwaltschaft) is responsible for advising and supporting employees who feel discriminated against within the meaning of the Equal Treatment Act, as well as for conducting independent investigations and preparing reports on the subject of discrimination.

Confidentiality and the use of non-disclosure agreements in discrimination settlements (NDAs)

Confidentiality clauses are fairly common as part of settlements and are often paired with contractual penalties.  However, in practice, it is difficult to prove breaches of confidentiality.

Whether or not attorneys’ fees are recoverable for claims of discrimination or retaliation

Yes, attorneys’ fees are recoverable in such cases on the basis of the Attorney Tariff Act (Rechtsanwaltstarifgesetz; RATG).

Whether or not independent contractors are protected by anti-discrimination and retaliation laws

Yes, discrimination laws especially are aimed at the prevention of discrimination in all matters of business and – in some cases – even protect self-employed persons.

Protection against dismissal

Potentially fair reasons for dismissal

Fair reasons (= good cause) entitling the employer to dismiss employees effective immediately are, for example:

• if the employee is disloyal in the performance of his service or allows himself to receive unjustified benefits from third parties in the course of his work without the knowledge or will of the employer;
• if the employee is incapable of performing the services promised or those which can be reasonably expected;
• if the employee operates an independent commercial enterprise without the employer’s consent or conducts commercial business in the employer’s branch of business for his own account or for the account of a third party;
• if the employee, without a lawful impediment, fails to render service for a considerable period of time, or persistently refuses to render his services or to comply with the employer’s orders justified by the scope of the employees’ work, or if he seeks to induce other employees to disobey the employer;
• if the employee is prevented from performing his services by a prolonged term of imprisonment or by absence for a considerable period, except due to illness or misfortune; or
• if the employee is guilty of assault, violation of morals, or serious defamation of character against the employer, the employer’s representatives, relatives or fellow employees.

Process to be followed when dismissing

Dismissals must follow the realisation of a fair reason for dismissal by the employee without undue delay. Generally, once the employer has knowledge of such a reason, immediate action is required.  However, depending on the complexity of the facts, employers are granted sufficient time to seek legal counsel prior to giving notice of dismissal to employees.  An untimely dismissal is unlawful, regardless of the severity of the employee’s actions.  Nevertheless, dismissals are effective unless they are challenged and considered unfair by court ruling.

Compensation and other remedies available for wrongful dismissal

In the event of unfair dismissal, employees can sue for the dismissal to be declared invalid by the labour court.  By successfully challenging the dismissal in court, it is annulled as legally invalid.  In practice, the court’s decision is usually issued after the expiration of the notice period, so that the employment relationship has already ended. In these cases, the employment relationship is reestablished with retroactive effect.  The employer must compensate the employee for the loss of remuneration for the intervening period.  Alternatively, employees have the option to sue for financial compensation (payment in lieu of notice) for the remuneration they would have received if the employer had chosen an ordinary termination instead of immediate dismissal.

Whether or not attorneys’ fees are recoverable for claims of wrongful dismissal

No, attorneys’ fees are not recoverable for claims of wrongful dismissal.

Whether or not independent contractors are protected against wrongful dismissal

Independent contractors/freelancers (freie Dienstnehmer) are only protected against dismissal for discriminatory reasons (in more detail, please see above).

Statutory employment protection rights (such as notice entitlements, whistle-blowing, holiday, parental and maternity leave, etc.)

Mandatory/statutory notice periods for employment terminations

Employment contracts concluded for an indefinite period can be terminated by ordinary termination without cause.  When terminating, the employer must observe statutory notice periods depending on the length of employment, the classification as a white collar or blue collar worker and possibly on the individual employment contract.  Pursuant to sec 20 AngG, the following notice periods must be adhered to by the employer:

Termination is only possible with effect as of the end of each calendar quarter (“termination date”).  However, the termination date can be amended by individual agreement (contract) so that the 15^th or the last day of each calendar month also serve as termination dates.

Protection against ordinary termination

Generally, employers do not have to provide employees with a reason for their termination.  In the event a termination is challenged in-court by employees (this can either be for social hardship or illegal motive) potential grounds for justification (or fair reasons) for termination can be, e.g.:

• circumstances relating to the employee which adversely affect the interests of the company, such as:
• significant underperformance;
• disruption of peace within the company;
• long lasting or frequently occurring sick leave; or
• operational requirements which prevent the continued employment of the employee, such as:
• plant shutdowns; or
• rationalisation measures.

The notice of termination is a unilateral declaration of intent which must be received and therefore only becomes effective at the time it is received by the recipient.  This must be taken into account with respect to statutory notice periods, especially when terminating via postal letter.

In companies where a works council is established, the employer must also inform the works council of the intention to terminate an employee’s employment contract at the latest one week prior to giving notice of termination.  The works council then has one week to take a position.  Depending on the works council’s reaction (consent, objection, abstention), there are different options for the employee to challenge the termination.  The employer must also inform the works council once the employee has been given notice of his or her termination.  A notice of termination issued before the end of the one-week period is legally invalid unless the works council has already issued its statement to the employer.

Under the ordinary termination protection, an employee can sue for the termination to be declared invalid by the labour court.  In the event of untimely termination (lack of observance of relevant notice periods), employees can sue for financial compensation (please also see above concerning unlawful dismissals).

Restrictions on working time

Pursuant to sec 9 Working Time Act (AZG) the daily working time in general may not exceed 12 hours and the weekly working time may not exceed 60 hours.

Right to annual leave, holiday pay

Per year, employees are entitled to 30 workdays (= five weeks) of paid leave, increasing to 36 workdays (= six weeks) after the completion of the 25^th year of service with the company.  While on paid holiday, employees continue to earn their regular salaries (sec 2 Holiday Act UrlG).

Family-friendly rights

Expectant mothers are not allowed to work for the last eight weeks before the forecasted date of delivery. In case of danger to the mother or child, an earlier leave of absence may be granted.  If the child is born before or after the expected date of birth, the pre-birth protection period is shortened or extended accordingly.  Maternity protection after childbirth lasts eight weeks.  If the period of protection before childbirth is shortened because the child arrives earlier than expected the period of protection after childbirth is extended correspondingly to a maximum of 16 weeks (Mutterschutz).  In the case of premature births, multiple births or caesarean sections, the period of protection after delivery amounts to at least 12 weeks.  During maternity leave, mothers receive a weekly allowance (Wochengeld) directly from the health insurance fund.  The employer does not pay wages or salary during this period.  The amount of the weekly allowance is calculated on the basis of the mother’s average net salary during the last three full calendar months before the start of the protection period.

Following the post-birth mother protection period, parents may take parental leave, up until a day before the child’s second birthday, if the parental leave time is divided between both parents.  If only one parent takes parental leave, the duration is limited to the end of the child’s 22^nd month of life.  There can be a maximum of two switches between maternity and paternity leave, or vice versa.  Each part of parental leave must last at least two months.  The employer must be notified in writing of the duration of the parental leave.

During parental leave, parents receive state childcare allowance.  The choice of two variations for the calculation of childcare allowance are: (i) income-dependent childcare allowance; and (ii) a childcare allowance account.  Parents are entitled to the income-dependent childcare allowance until the child’s first birthday.  If both parents receive childcare allowance, this period is extended to a maximum of 14 months.  Irrespective of this, statutory parental leave can be taken until the day before the child’s second birthday (or for a duration of 22 months after the child’s birth).  The childcare allowance account allows parents to decide how long they would like to receive the allowance within a certain time frame.  The total amount of the childcare allowance account is the same for all parents and amounts to EUR 14.355,45 (2024).  If both parents take advantage of the childcare allowance account, the total amounts to EUR 17.934,48 (2024).

Special protections for workers against detriment/dismissal

During pregnancy and until four months after delivery, mothers are protected from termination and dismissal.  If a pregnant employee is terminated or dismissed – who has not yet informed her employer of her pregnancy – she must inform the employer of the pregnancy within five working days after the notice of termination/dismissal has been given, for the protection to take effect.  A delayed notification (after the five-day period) by the employee is only timely if the employee makes up for it immediately after a justifiable impediment has ceased to exist (e.g. the mother’s unknowingness of her own pregnancy).  During the protection period notice of termination/dismissal can only effectively be given following the labour court’s approval.  Such approval must be obtained by the employer in advance by filing a claim to the labour court requesting the court’s approval in writing.

If a mother takes parental leave immediately after the maternity protection period, protection against termination/dismissal continues.  If the father takes parental leave immediately after the maternity protection period, protection against termination/dismissal begins with the notification of the employer, but not before the birth of the child.  In all other cases, protection begins with the notification of the employer, but no earlier than four months before the start of the parental leave period.  The protection period ends four weeks after the end of parental leave.  Additionally, during the parental leave protection period, notice of termination/dismissal can only be given with legal effect if the court’s approval has been obtained in advance.  The court may approve termination, for example, if continued employment is not possible without inflicting damage to the company due to the company’s closure (or the closure of parts of the company).

Worker consultation, trade union and industrial action

Worker consultation

The following measures require the consent of a company’s works council by way of a plant agreement in order for an employer to be able to implement them with legal effect (cf. sec 96 Labor Constitution Act; ArbVG):

• introduction of a company disciplinary code;
• introduction of qualified personnel questionnaires;
• implementation of control measures/systems potentially aimed at controlling employees if such measures/systems affect the human dignity of employees; and
• implementation of certain remuneration systems based on statistical, data collection or micro-time procedures.

If the employer cannot obtain the works council’s consent, the implementation of the above measures is legally ineffective and employees (or the works council) can sue for injunction.

Additionally, pursuant to sec 96a ArbVG, the following measures also require the works council’s consent:

• introduction of systems for the automation-supported determination, processing and transmission of personal data of the employee, which go beyond general information on the individual and information concerning professional requirements; and
• introduction of systems for the assessment of employees, provided data collection with these systems is not justified by operational use.

However, unlike sec 96 ArbVG, the works council’s consent for the implementation of such measures may be replaced by decision of the conciliation board (Schlichtungsstelle; method of alternative dispute resolution).

Protections for employee representatives

Works council members may only be terminated or dismissed after the competent labour court has given its prior approval, which may only be given for certain reasons (e.g. permanent shut-down of business).  This does not apply to certain severe grounds for dismissal; in these cases, subsequent court approval is sufficient.

The special protection against termination and dismissal for works council members begins with the acceptance of their election as works council members and ends three months after the expiry of membership of the works council.

Special protection against termination and dismissal also applies to election candidates until the expiry of the period for contesting elections.  Their protection period commences at the point in time at which their intention to run for office became apparent to the employer.

Trade unions

Austria’s trade unions are organised in the Austrian Trade Union Federation (ÖGB).  Nine regional organisations exist which represent the political, economic and social interests of employees vis-à-vis the state and employers.  Membership in unions is voluntary and must be applied for.  Membership in a particular union depends on an employee’s occupation and the industry to which the union belongs.  The union’s main competencies include the negotiation of collective bargaining agreements and the provision of legal advice to its members.  The right to unionise is constitutional and therefore employees are protected from dismissal due to their membership or activity in a trade union.  Dismissals for said reasons can successfully be challenged in court.

Industrial action

Employees have a statutory right to strike (Streikfreiheit).  Participation in strikes is protected by constitutional law, as Article 11 ECHR guarantees the right to form and join trade unions.  This right also includes the right to strike (or take other forms of industrial action) in important cases.  Dismissals based on participation in industrial action are unlawful.

Employee privacy

Data protection rights for employees and obligations for employers

Generally, in accordance with the EU General Data Protection Regulation (GDPR; DSGVO), employers may only process such employee data, which is necessary (i) for the performance of the employment contract, (ii) for compliance with legal obligations to which the employer is subject, or (iii) in order to protect the vital interests of the employer (cf. article 6 DSGVO).  The processing of additional data will, in most cases, require the employee’s explicit consent.  Employees have the right to receive information on the nature and purpose of processed data, a right to rectification of inaccurate personal data, as well as a right to erasure of unlawfully processed data.

Monitoring/surveillance in the workplace

Pursuant to sec 12 para. 4 no 2 Data Protection Act (Datenschutzgesetz, DSG) video surveillance for the purpose of employee monitoring is prohibited.  However, video surveillance may be permissible if the employer has other justified interests, such as  protection against theft.  If the employees’ work area is in the field of vision of surveillance cameras, the employer requires the consent of the works council for the legality of such surveillance measures, again by way of a plant agreement.  In companies where no works council has been established, the individual consent of the affected employees is required (cf. sec 96 para. 1 no 3 Labor Constitution Act, sec 10 Labor Contract Law Adjustment Act).

Vetting and background checks

From the perspective of employment law, vetting and background are in principle permitted.  However, employee rights and employer obligations pursuant to regulations on data protection must be observed.  As a rule of thumb, knowledge collected on the employee must be necessary with respect to the employee’s function within the company.

Drug testing and other forms of testing in the workplace

Employees are not obliged submit to workplace drug tests without their express consent as such test constitutes an intrusion into their protected personal sphere.  This applies to all variations of drug tests, regardless of their intensity (blood testing, body searches, breath analysis, etc.).  Therefore, if an employer suspects an employee of being impaired by drugs and demands a test, the employee has the right to refuse, unless special regulations provide for exemptions to this rule due to high risk in the employee’s field of work.  Dismissal for the justified refusal of drug testing can be successfully challenged in court.

Other recent developments in the field of employment and labour law

Notable judicial developments

In 2021, the – previously far shorter – statutory notice periods for blue collar workers were harmonised with those for white collar workers.  However, the new statutory provision for blue collar workers contains a clause whereby deviating agreements may be concluded as part of collective agreements for sectors with predominantly seasonal business, allowing for a return to the previously applicable shorter notice periods in those sectors.  Recently, the Austrian Supreme Court applied to the Austrian Constitutional Court for the repeal of this exemption clause on the grounds that it violates the constitutional principle of equality.

Implementation of the EU Transparency Directive

In June 2019, the European Union passed the Directive on transparent and predictable working conditions in the European Union (“Transparency Directive”; (EU) 2019/1152).  Effective 28.3.2024, the Transparency Directive was implemented in Austria which, in particular, brought changes with regard to the minimum content of employment contracts.  For example, employees must now be informed in writing about circumstances such as the mode of compensation of overtime work, or the duration and conditions of a probationary period.  Further, violations of the provisions on the minimum content of employment contracts are now subject to administrative penalties.

Multilateral Framework Agreement on Cross-border Teleworking

On 1.7.2023, the Multilateral Framework Agreement on Cross-border Teleworking came into force within the EU.  This agreement allows for employees to work up to 50% of their working time in their country of residence without this resulting in a change of social security jurisdiction.  Applications can be submitted for a maximum of three years with extensions being possible.  Employers can make use of the framework agreement if the country of employment and the country of residence have signed the agreement.  The following countries have signed the agreement to date: Austria; Belgium; Croatia; Czech Republic; Finland; France; Germany; Italy;  Liechtenstein; Luxembourg; Malta; Netherlands; Norway; Poland; Portugal; Slovakia; Slovenia; Spain; Sweden; and Switzerland.  Such applications require the consent of the employee in question and must be submitted to the competent social insurance institution of the country whose social insurance law is to apply.  In Austria, the competent authority is the Head Social Security Organisation (Dachverband der Sozialversicherungsträger).

Originally published for GLI international by our affiliate Prchal Law.