Austria HR Information

Updated on: 2025/08/05 15:25 (UTC)

Overview

A number of federal statutes govern employment relations, including the Employees Act, Contract Law Adjustment Act, and Labor Constitution Act. Labor regulations are found in the General Civil Code. Austrian collective bargaining agreements, which often provide greater employee benefits than the minimum required by law, are another important source of labor law and cover the vast majority of Austrian workers.

Hiring

Employment Contracts

While written employment contracts are not required, the employer must provide a new employee with a written statement detailing the duties and terms of the job.

Employment contracts can contain a probationary period, which in most cases cannot exceed one month. During this period, either the employer or the employee can terminate employment without notice or cause.

Temporary agency workers, both during and between assignments, are guaranteed the same employment rights as permanent employees. In addition to equal pay, temporary staff must have access to social benefits available to permanent employees, such as subsidized lunches, participation in annual work outings, access to company child care and special working time arrangements.

A temporary worker who has been employed on fixed-term assignments for more than four years is also eligible to join occupational pension plans. A 2014 law established a “social and further training fund” from which unemployed temporary agency workers can draw to finance training courses to improve their employability. The fund is available to both white- and blue-collar workers and is financed by contributions from temporary work agencies.

All permanent job vacancies at a company employing temporary staff must be announced publicly to allow these workers to apply.

Remote work is not an entitlement for employees and employers are not obligated to offer it. If such an arrangement is agreed between an employer and employee, it must be set out in writing and the employee must be given necessary equipment to work remotely, including a computer or laptop, mobile phone and internet connection. Employers must compensate employees in cases where they need to use their own equipment.

Restrictions on Hiring

Minors up to the age of 15 may not be employed.

Access to the labor market is restricted by a labor market test, which requires employers to prove that the respective vacancy cannot be filled by an Austrian citizen, citizens of the EU or a legally residing third country national with access to the labor market.

Pregnant women and breast-feeding mothers are prohibited from doing dangerous or physically heavy work; from working at night (8 p.m. to 6 a.m.), on Sundays or holidays; and from working overtime.

Recordkeeping

Employers must, no later than a week before the work begins, notify the EU’s Central Coordination Office for the Control of Illegal Employment of the hiring of a foreign worker. Employers must keep a copy of the reporting form ready for inspection, along with any documents used to register workers for social security at their place of employment in Austria. Where the work performed by the employee requires official authorization in the country in which the employer is based, this authorization must also be kept available.

Employers are also required to keep records of documents used to determine employees’ remuneration under Austrian law. These documents must be kept available in German for the duration of the employment at the place of work. These documents include:

• the employment contract or a written record of its content;
• pay slips, proof of payment of wages by the employer, or bank transfer statements;
• pay records;
• working hours records; and
• documentation concerning pay grades.

Background Checks

Austrian privacy laws limit an employer’s right to ask applicants about their criminal records, particularly when a conviction has been expunged.

An employer can require a physical examination when necessary to determine whether an applicant can carry out the job requirements or to determine if the applicant has a disease that might affect other workers. The employer cannot use the test to discriminate against an applicant.

An employer can require a drug or alcohol test only in special situations (e.g., for pilots) or when the alcohol or drug use appears to be an addiction. Unless the applicant can show discrimination, the employer can deny employment to a job candidate who refuses to be tested.

A job candidate has the right to access data being processed about him or her by an employer by filing a request in writing with proper identification, or orally if the employer has so agreed. The employer must make available to the data subject the processed data, information about its origin, the data’s recipients or categories of recipients, purpose of the data’s collection and use, the legal basis for these activities, and at the data subject’s request, the names and addresses of the data processors.

Noncompetition Agreements

The Employment Contract Law Amendment Act limits the use of covenants not to compete. These agreements cannot exceed one year, must apply only to the line of business in which the employee worked, cannot impede the employee’s future job opportunities and are only allowed when the employee’s salary exceeds a certain amount.

Under the Act Against Unfair Competition, trade secrets are defined as information that:

• is not generally known or readily accessible,
• has commercial value because it is secret, and
• has been subject to reasonable steps under the circumstances, by the person lawfully in control of the information, to keep it secret.

Reference Citations

Employment Contracts: Employment Contract Law Amendment Act, 1993, § 2 (German); Salaried Employees Act, 1921, §§ 6, 19 (German)

Restrictions on Hiring: Employment of Children and Young Persons Act, 1987, § 1 (German); Act Governing the Employment of Foreign Nationals, 1975, § 4b (German)

Recordkeeping: Employment Contract Law Amendment Act, 1993, § 7 (German)

Noncompetition Agreements: Employment Contract Law Amendment Act, 1993, § 2c (German); Act Against Unfair Competition, as amended, § 26(b)(German)

Immigration and Work Permits

In General

Foreign nationals who wish to live and work in Austria must obtain a residence permit and a permit to work. Access to the labor market is restricted by a labor market test, which requires employers to prove that the respective vacancy cannot be filled by an Austrian citizen, citizen of the EU or a third country national legally residing in Austria. Employers must submit an application for an employment permit with the regional Labor Market Service.

Visas and Work Permits

Access to the labor market is restricted by a labor market test, which requires employers to prove that the respective vacancy cannot be filled by an Austrian citizen, citizens of the EU or a legally residing third country national with access to the labor market.

Employers must submit an application for an employment permit with the regional AMS (Labour Market Service) office, in the area of the district where the place of employment is located.

Citizens of a country within the European Economic Area or of Switzerland may work and reside in Austria freely, although if they are staying in Austria for longer than three months they must file a Certificate of Registration with the competent settlement authority. Bulgarian and Romanian citizens must either acquire the same documentation as citizens of non EEA countries or special permits for Bulgarian and Romanian citizens.

Foreign workers who are not citizens of a country within the EEA or of Switzerland must generally obtain residence and work permits. If foreign workers reside in Austria less than six months, however, they only require a visa and a work permit.

Otherwise, foreign workers must obtain one of the following permits:

Residence permit: Foreign workers must apply at their local Austrian consulates for the residence permit corresponding to the field of work they will be employed in. Permits are generally valid for up to a year and are renewable. After the employee acquires the residence permit, the employer must apply for a foreign worker’s employment permit unless the employee possesses a permanent residence permit.

Employment permit: Employment permits are granted to foreign workers who already possess a residence permit (or are exempt from the residence permit requirements) and wish to work for a specific employer in Austria. The permit is valid for up to one year and is renewable. To apply, employers must submit the Application for Employment Authorization to the regional office of employment along with other required documents and the application fee. The permit must be granted before the foreign worker can begin work.

Red-White-Red Card: This card is intended to facilitate the immigration into Austria of qualified workers and their families. It is valid for 24 months and allows the holder to work for a specified period for a specified employer.

RWR eligibility is limited to:

• very highly qualified workers,
• skilled workers in shortage occupations,
• key workers to fill positions for which no equally qualified Austrian national can be found and
• graduates of Austrian universities.

The labor ministry provides a points calculator for prospective employers and employees to determine employment eligibility.

Effective Oct. 1, 2022, the Austrian government introduced changes to its immigration laws to improve the recruitment of foreign and skilled workers into its economy by streamlining the process to obtain the RWR card.

All visa applicants are required to submit biometric data (fingerprints), for which an appointment must be scheduled at the Austrian Embassy.

Visa applicants also must show evidence of adequate financial resources to live in Austria, as well as proof of local accommodation, health insurance and work experience.

Spouses of authorized workers are entitled to a residence permit and—depending on the type of residence permit—to limited or unlimited access to the labor market.

Nearly all non-EEA citizens who apply for a residence permit and plan to stay in Austria for more than 24 months are obliged to fulfil the “integration agreement”, which means they need to prove certain German language skills.

Third-country nationals may apply for a trainee visa in order to complete a study-related internship in Austria for up to six months.

Penalties

Sanctions for noncompliance with Austria’s visa rules vary depending on the extent of the violation—in particular, the number of workers involved. Fines for smaller infractions typically range from 150 euros to 50,000 euros. Illegally employing a large number of employees is considered a criminal offense with a penalty of up to six months’ imprisonment.

Reference Citations

Visas and Work Permits: Act Governing the Employment of Foreign Nationals, 1975, §§ 304; Residence Act, § 41; Directive (EU) 2016/801 of the European Parliament

Nondiscrimination

In General

Discrimination against employees based on sex, ethnicity, religion, world view, age or sexual orientation is prohibited. Disabled persons are also protected from direct or indirect discrimination. Mandatory arbitration is conducted before a disability discrimination claim can be brought to court. Employers with 25 or more employees must hire a set number of disabled persons or make compensatory payments. Harassment in employment on the basis of gender, ethnic origin, religion or belief, age or sexual orientation is also prohibited. Under the Equal Treatment for Men and Women Act, companies employing more than 150 workers must disclose the average annual incomes of their female and male employees separately, anonymously and adjusted for working time.

Types of Discrimination

The Austrian Antidiscrimination Act, updated in 2009 to implement European Union law, prohibits discrimination against employees based on sex, ethnicity, religion, world view, age or sexual orientation. The act applies in the areas of hiring, compensation, training, promotion, working conditions and termination.

The Austrian Equal Treatment Act prohibits harassment in employment on the basis of gender, ethnic origin, religion or belief, age or sexual orientation.

Disability Discrimination

The Disabled Persons Equalization Act and the Engagement of Disabled Persons Act protect disabled persons from direct or indirect discrimination. Mandatory arbitration is conducted before a disability discrimination claim can be brought to court.

The laws also impose a duty to employ disabled persons. Employers with 25 or more employees must hire a set number of disabled persons or make compensatory payments.

Gender Discrimination

The Austrian Equal Treatment Act prohibits harassment in employment on the basis of gender. The act also prohibits sexual harassment, defined as any sexually related conduct affecting a person’s dignity that is undesirable, inappropriate, or indecent for the female or male employee concerned and that creates either an intimidating or a humiliating working environment or negatively affects an employee’s working conditions.

Pay Discrimination

Employers must provide men and women equal pay for equal work.

Gender Pay Reporting: Companies employing more than 150 workers must disclose every two years the average annual incomes of their female and male employees separately, anonymously, and adjusted for working time. The report must be provided to the works council. If there is no works council, the employees must be made aware of the report.

EU Pay Transparency Directive: As a member state of the European Union, Austria has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings. The national law may go beyond the minimum requirements of the directive, but the law may not directly conflict with the directive requirements.

Reference Citations

Nondiscrimination: Austrian Antidiscrimination Act, § 1 (German)

Disability Discrimination: Federal Disability Equality Act, 2005 (German)

Gender Discrimination: Austrian Equal Treatment Act, 2004, § 6 (German)

Pay Discrimination: Austrian Equal Treatment Act, 2004, § 11, 11(a) (German); Austrian Equal Treatment Act (Amended), 2011

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

The Data Protection Amendment Act, which aligns the Austrian data protection law with the GDPR, took effect on May 25, 2018.

Employee Monitoring and Surveillance

Under the GDPR, employers can monitor employees only if there is a lawful basis for doing so. Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures. Employees must be given prior notice, and any data that is collected must be used and kept only to fulfill its original purpose.

Reference Citations

Employee Data: General Data Protection Regulation, 2016; Data Protection Amendment Act 2018

Employee Monitoring and Surveillance: General Data Protection Regulation, 2016

Compensation

Hours of Work

The Working Time Act sets standard working hours at eight a day and 40 a week.

Pregnant women, nursing mothers, and those under the age of 18 may not perform night work. Night work is defined as any work done between 10 p.m. and 5 a.m.

A flextime arrangement may consist of nonconsecutive days (e.g., Monday, Tuesday, Thursday, Friday) generally not exceeding nine working hours each, although the maximum may be raised to 12 hours per day by a collective bargaining agreement.

If a work shift exceeds six hours, employers must allow for an unpaid rest period of at least half an hour. Employers must provide employees with 11 hours of rest between work shifts. Additionally, employers must provide employees with a weekly uninterrupted resting period of 36 hours which starts on Saturday at 1 p.m. at the latest and includes Sunday.

Minimum Wage

In Austria, the minimum wage is set by collective agreement rather than by law and at the industry rather than the individual enterprise level.

Overtime

As a rule, work beyond 8 hours per day or 40 hours per week is considered overtime. Total hours worked including overtime is generally limited to 12 hours per day and 60 hours per week.

Pregnant women and breast-feeding mothers are prohibited from working overtime.

However, employees may refuse to work overtime beyond a 10-hour working day and a 50-hour week without providing a reason. Employers may not be retaliated against for such refusals. Regardless, employees must comply with their employers’ request to work overtime if their work time would not exceed 10 hours in a day or 50 hours in a week, unless there are compelling personal reasons.

Employees who work overtime must be given an equivalent amount of leave or a 50 percent surplus for the overtime hours, whichever they prefer. Employees cannot be required to work more than two overtime hours in a day and 10 in a week.

Overtime on Sundays, public holidays or between 12:00 a.m. and 7:00 a.m. must be compensated at 200 percent of the employee’s regular rate.

Wage Payment

In most cases, remuneration is paid 14 times a year: 12 monthly salary payments plus one month’s pay in the form of a Christmas bonus and one month for a holiday bonus (special payments).

Taxes, social insurance contributions and other deductions (e.g. union contributions) are deducted from gross pay and withheld by the employer, which then transfers them to the relevant institutions (finance office, social insurance institution, etc.).

With their pay each month, employees receive a written statement of remuneration (payslip), which contains a precise breakdown of deductions (e.g., taxes, social insurance, legally required and voluntary contributions). An employee who leaves the firm receives a final statement including severance entitlements.

Under the Austrian Act Against Wage and Social Dumping, foreign employers must pay the remuneration to which the employee is entitled as stipulated by law or collective bargaining agreement. Employers must have employment contracts, “service notes”, pay slips, time records and records of payments as well as other documents necessary to verify the salaries their employees are entitled. All documents are to be prepared in German.

Penalties for the failure to pay the remuneration the employee is entitled to vary between 1,000 euros and 10,000 euros for each underpaid employee, and between 2,000 euros and 20,000 euros in case of recurrence or if more than three employees are being underpaid. In case of recurrence with more than three employees underpaid, penalties between 4,000 euros and 50,000 euros for every underpaid employee apply.

Mandatory Bonuses

There are no legally required bonuses under Austrian labor law, but most Austrian employers give their employees one month’s pay in the form of a Christmas bonus and another month for a holiday bonus.

Reference Citations

Hours of Work: Working Time Act, 1969, §§ 2 - 4; Rest Periods Act, 1983, § 2 (German); Working Time Law, Amendment, 2018 (German)

Overtime: Working Time Act, 1969, §§ 6, 9, 10; Working Time Law, Amendment, 2018 (German)

Wage Payment: Austrian Act Agains Wage and Social Dumping §§ 7d, 7i (German)

Benefits

Vacation

All employees are entitled to uninterrupted paid vacation of at least five weeks annually. Employees with 25 years of service or more are entitled to six weeks. During the first six months of employment, vacation time accrues in a proportional share of the annual vacation allowance (approximately two days per month). After the first six months of the first year of service, the employee is entitled to the entire amount. From the start of the second (and any subsequent) year, the entire vacation entitlement is due with the beginning of the new year of service. The employee continues to receive salary while on leave.

Unused leave can be carried over but is forfeited if not used within two years. Payment in lieu of leave is not allowed.

Under the Holidays Act, all employees are entitled to uninterrupted paid vacation of at least five weeks annually. Employees with 25 years of service or more receive six weeks of paid leave. For purposes of the act, Saturdays are considered part of a workweek. Part-time employees receive vacation on a pro rata basis. Years of service include employment with all employers, periods of self-employment, and some periods of higher education.

The scheduling of vacation requires consent of both the employer and the employee. An employer can refuse an employee’s request for leave but only if the refusal is based on legitimate operational needs that are greater than the individual interests of the employee.

The act forbids payment in lieu of leave, and agreements between employers and employees to the contrary are invalid. The employee continues to receive salary while on leave.

During the first six months of employment, holiday accrues in a proportional share of the annual statutory holiday (approximately two days per month). After the first six months of the first year of service, the employee is entitled to the entire amount. From the start of the second (and any subsequent) year, the entire annual holiday entitlement is due with the beginning of the new year of service.

Unused leave can be carried over, but the leave is forfeited if not used within two years from the year in which the entitlement arose.

Holidays

Austria has 13 statutory public holidays, for which employees are entitled to paid leave. Employees who work on holidays are entitled to a 100 percent premium (double time). The holidays are:

• Jan. 1: New Year’s Day
• Jan. 6: Epiphany
• Easter Monday
• May 1: International Workers’ Day
• Ascension
• Whit Monday
• Corpus Christi
• Aug. 15: Assumption
• Oct. 26: Austrian National Holiday
• Nov. 1: All Saints’ Day
• Dec. 8: Immaculate Conception
• Dec. 25: Christmas
• Dec. 26: St. Stephen’s Day

Employees are also entitled to one additional paid day off per year to be taken on a day of their choosing. The request for the day off must given to the employer three months in advance. Employers can request that employees refrain from taking the extra day off. However, employees must receive pay in lieu for working on the extra day and receive an additional day of paid holiday leave the following year.

Holidays are always observed on the day on which they fall, even if they fall on a weekend. Holidays are not moved to the nearest Monday, nor do workers get a free day in compensation for a holiday falling on a non-work day.

Maternity Leave

The Maternity Protection Act forbids pregnant employees from working during the eight weeks preceding the expected date of delivery and the eight weeks following the birth.

A pregnant woman whose doctor certifies that she is experiencing medical complications that endanger her or the child’s life or health may not work even before the eight-week mark.

In case of caesarean or multiple births, the work restrictions after delivery are extended to at least 12 weeks. If maternity leave was reduced before delivery, the work restriction after work extends according to that reduction after delivery (16 weeks at the longest).

During maternity leave the employee receives maternity pay from the social insurance system. Maternity pay is equal to 100 percent of the employee’s average earnings based on the last 13 weeks of employment. Immediately following maternity leave, employees are entitled to take parental leave.

Pregnant women and breast-feeding mothers are prohibited from doing dangerous or physically heavy work; from working at night (8 p.m. to 6 a.m.), on Sundays or holidays; and from working overtime.

Mothers may reduce their working hours from full-time to part-time until their child’s seventh birthday or until the child starts school, whichever is later, as long as they have been continuously employed by a business with more than 20 employees for at least three years.

An employee cannot be terminated from the date of pregnancy until at least four months after giving birth.

Paternity Leave

Fathers who have worked for their employers for 26 weeks are eligible for paternity leave of 28 to 31 days. While on leave, employees receive an allowance from their local health insurance provider.

Sick Leave

Depending on their length of service, employees are entitled to up to 12 weeks of paid sick leave during an illness or following an injury and an additional four weeks at half-pay. When paid sick leave from the employer is exhausted, the Health Insurance System provides partial pay for a maximum of 52 weeks.

Other Leave

Parental leave. On Oct. 12, 2023, Austria modified its labor code to transpose the EU Directive on Work-life Balance for Parents and Carers (2019/1158) into national law. The entitlement to parental leave is only 22 months instead of the previous 24 months. The full 24 months can only be reached if leave is transferred between the parents, or if a parent taking leave is single or does not live together with the other parent. Any period of leave that is transferred must be at least two months. Parents who earn less than a certain yearly salary may receive a child-care allowance paid by the government.

Each parent also is entitled to part-time work until the child’s eighth birthday or until the child starts school, whichever is later, if they have been continuously employed by a business with more than 20 employees for at least three years.

Employees cannot be terminated during parental leave (continuing up to four weeks after their return to work).

Adoption leave. Employees who adopt a child after its second birthday but before its seventh birthday are entitled to six months of parental leave.

Care-giving leave. Employees are allowed up to one week of paid care leave to care for a family member or other person living in the same household.

Nursing leave. Employees have the right to work reduced hours or to take paid family care leave to care for a dying relative or partner or a seriously ill child.

Education leave. After completing six months of service with an employer, an employee may apply for education leave, which may be granted at the employer’s discretion. A total of one year’s leave may be taken over the four calendar years following the employer’s agreement. The employee will not receive a salary during this time but will receive a training allowance from the employment service equivalent to the level of unemployment benefit to which the employee is entitled.

Pensions and Social Security

Full old-age pensions may be collected by men at age 65 and women at age 60 (rising gradually to age 65 between 2024 and 2033) with at least 180 months of coverage. Early retirement can be taken at 62 with reduced benefits.

The employee and the employer both contribute to social insurance to finance sickness, accident, unemployment and pension funds.

Workers’ Compensation

After the period of sick leave expires, employees can claim social security benefits from the government. If the employer requests, the employee must provide written medical confirmation of the illness or injury. In the event of total loss of earning capacity, employees may be entitled to a social disability pension.

Reference Citations

Vacation: Holidays Act, 1976, §§ 2 - 6 (German)

Holidays: Rest Periods Act, 1983, § 7 (German)

Maternity Leave: Maternity Protection Act, 1979 (as amended), §§ 2-8 (German)

Paternity Leave: Paternity Leave Act, 2016, §§ 2-4 (German)

Parental Leave: Maternity Protection Act, 1979 (as amended), § 15(a), (b) (German)

Sick Leave: Salaried Employees Act, 1921, § 8 (German)

Other Leave: Maternity Protection Act, 1979, § 15, Holidays Act, 1976, § 16 (German)

Pensions and Social Security: Pension Harmonization Act, 2004 (German)

Workers’ Compensation: General Social Security Act, 1955 (German)

Labor Relations

In General

The Labor Constitution Act regulates collective bargaining agreements, which almost without exception are negotiated at the multi-employer sectoral level, since Austrian labor law gives an advantage to multi-employer bargaining over single-employer bargaining.

Workers at a business with more than five employees may establish works councils, which have the right to be informed of changes in the business, such as mass layoffs or restructuring; to negotiate with the employer; to be notified of dismissals; and to oversee compliance with occupational safety and health regulations. Once formed, the works council must meet to deliberate pending employment matters at least once a month.

An employer must get authorization from a court or administrative agency to dismiss a works council member or candidate.

Strikes and lockouts are extremely rare in Austria.

Right to Organize

The Austrian Constitution confers a freedom of association. Almost without exception, collective bargaining agreements are negotiated at the multi-employer sectoral level, since Austrian labor law gives an advantage to multi-employer bargaining over single-employer bargaining.

Works Councils

Workers at a business with more than five employees may establish works councils, which have the right to be informed of changes in the business, such as mass layoffs or restructuring; to negotiate with the employer; to be notified of dismissals; and to oversee compliance with occupational safety and health regulations. Once formed, the works council must meet to deliberate pending employment matters at least once a month and should meet with the employer once every three months.

An employer must get authorization from a court or administrative agency to dismiss a works council member or candidate.

Dispute Resolution

Union leaders and employers work together to solve most disputes through consultation or informal mediation. The most formal way of dispute resolution takes place in the Employment Courts.

Strikes and Lockouts

Strikes and lockouts are extremely rare in Austria. Following a philosophy of social partnership, union leaders and employers work together to solve most disputes through consultation or informal mediation.

Successorship Clauses

Under European Directive 77/187/EEC on the transfer of undertakings, incorporated into Austrian law, when a change occurs in the legal structure of an employer—through sale, merger, acquisition, transformation, or incorporation—all existing employment agreements remain effective and are transferred to the acquirer, which becomes the new employer. The transfer of employment itself cannot therefore be sufficient reason to terminate employment contracts entered into by the business transferred, although the new employer may amend or terminate these contracts if its economic and financial situation requires.

Reference Citations

Right to Organize: Labour Constitution Act, 1973, § 2 (German)

Works Councils: Labour Constitution Act, 1973, § 50 (German)

Successorship Clauses: Employment Contract Law Amendment Act, 1993, § 3 (German)

Safety, Health and Security

In General

The Protection of Employees Act regulates health and safety in the workplace. The Austrian Tobacco Act bans smoking in all public places and requires signs where smoking is forbidden. Certain businesses, such as restaurants and clubs, may set up separate smoking rooms under strict specifications so that no smoke enters other areas of the establishment.

Workplace Safety and Health

Austria has enacted many laws that address health and safety in the workplace. Depending on the size of the company, the employer might need to provide employees who are specially trained to ensure that safety provisions are being followed.

The Worker Protection Act regulates health and safety in the workplace. The act establishes specific obligations that employers and employees must meet, including provisions governing detection, monitoring, and prevention of safety hazards in the workplace.

The Decree on Workplace Requirements also contains safety provisions that employers must follow, including minimum and maximum temperatures at the workplace and required ventilation.

The Maternity Protection Act requires employers to conduct safety inspections to assess possible risks for pregnant and nursing mothers in the workplace. Pregnant women and breast-feeding mothers are prohibited from doing dangerous or physically heavy work.

Healthcare providers must develop and implement Covid-19 prevention measures based on a risk analysis to minimize the risk of infection. The measures must address:

• specific hygiene requirements
• steps to take in the event of infection;
• requirements governing the flow and number of visitors/patients;
• regulations regarding the use of sanitary facilities; and
• employee training in relation to hygiene measures.

Employees must submit to “suitability testing” by authorized doctors before starting work, as well as regular follow-up tests, if:

• there is a danger of occupational disease and there is preventive significance to an occupational health examination with regard to the specific work or the effect of a substance such as lead, benzole, or toluene;
• a breathing apparatus is used frequently or for long periods within the framework of gas rescue services or in the case of heat that places a particular strain on the body;
• the job involves potentially hazardous noise exposure; or
• the job involves other specific health hazards.

Drug and Alcohol Use

The Austrian Tobacco Act bans smoking in all public places and requires signs where smoking is forbidden. Certain businesses, such as restaurants and clubs, may set up separate smoking rooms under strict specifications so that no smoke enters other areas of the establishment.

Reference Citations

Workplace Safety and Health: Worker Protection Act, 1994 §§ 49-51(German); Maternity Protection Act, 1979

Drug and Alcohol Use: Austrian Tobacco Act 1995, § 13 (German)

Termination

Termination by Employer

Employers must give minimum notice to terminate an employee without cause of from six weeks to five months depending on the employee’s length of service. Blue-collar employees must be given at least two weeks’ notice prior to termination.

Austrian employment law does not provide for payment in lieu of notice, but when an employer does not adhere to the notice requirements, an employee is still entitled to the remuneration he or she would have received during the appropriate notice period. This “dismissal compensation” is calculated as the amount of regular wages plus pro rata compensation for holiday and Christmas pay for the period that would have constituted the employee’s period of notice.

An employer may terminate employment without notice if there is good cause. Good cause includes deceit when entering into the employment contract, incompetence at work, drunkenness at work despite repeated warnings, persistent neglect of duties and absence from work without permission. For white-collar employees, valid grounds for immediate dismissal include untrustworthiness or disloyalty, competing with the employer or accepting bribes, incapacity or failure to carry out work and physical or emotional assault on the employer or co-workers.

Dismissal may not be discriminatory based on the employee’s race, color, sex, marital status, sexual orientation, religion, political opinion, ideological conviction or national or social origin.

Members of and candidates for a works council, pregnant women and women on maternity leave, parents on parental leave or exercising their option of part-time work while caring for a child, disabled employees and employees performing military service or alternative service for conscientious objectors can only be dismissed if the action is authorized by a court or by an administrative agency.

On 25 February 2023, Austria’s Whistleblower Protection Act  (known as HinsweisgerberInnenschutzgesetz) entered into force. The Act transposes the EU Whistleblowing Directive (Directive 2019/1937/EU) into Austria’s national law. Whistleblowers now benefit from protection against termination, without the usual 14-days-contestation period. For violations of the Act administrative fines in the amount of up to EUR 20,000 may be imposed.

Plant Closings and Mass Layoffs

A collective dismissal is defined as the reduction within four weeks of:

• at least five employees in a business with 20–99 employees,
• at least 5 percent of employees in a business with 100–600 employees,
• at least 30 employees in a business with more than 600 employees or
• at least five employees older than 50 years of age.

The works council, if there is one, must be informed as soon as possible of any plans for a collective dismissal. The works council may make proposals to prevent or alleviate the consequences of a collective dismissal. The employer must also notify the Austrian Labor Market Service at least 30 calendar days before notice is given to any employee.

During the 30-day period following the date of notification, no notice of redundancy may be issued and no termination by mutual consent may be agreed, unless the approval of the Labor Market Service has been obtained.

Payment on Termination

An employee is generally entitled to severance pay unless the employee resigned without justification or was terminated by the employer for good cause.

If the employment relationship was established before Jan. 1, 2003, the amount of severance pay is based on the length of service if termination was by mutual consent, by the employer without good cause, or by the employee’s justified resignation. In addition, the employee must have worked for the same employer for three years to be eligible.

If the employment relationship was established on or after Jan. 1, 2003, severance is paid from a fund to which the employer makes mandatory contributions based on the employee’s salary. For an employee to be eligible, more than 36 monthly contributions must have been made to the fund on the employee’s behalf by one or more employers.

Unemployment Insurance

Both employees and employers contribute to the unemployment insurance fund. A worker who has previously received unemployment benefits must have been employed at least 28 weeks during the last 12 months to newly qualify. An employee applying for benefits for the first time must have made 52 weeks of contributions within the previous 24 months to qualify.

All persons receiving benefits must be registered at an employment office and be capable of and willing to work.

If unemployment is due to voluntary resignation without justification or to misconduct, a waiting period of four weeks is generally applied.

Reference Citations

Termination by Employer: Salaried Employees Act, 1921, §§ 19 - 20 (German)

Plant Closings and Mass Layoffs: Austrian Tobacco Act 1995, § 13 (German)

Payment on Termination: Salaried Employees Act, 1921, § 23 (German)

Unemployment Insurance: Unemployment Insurance Act, 1977, § 14

Personal Taxes

Residency Requirements

Individuals are deemed to be residents of Austria for income tax purposes (and thus subject to unlimited income tax liability) if they have a domicile and/or their habitual abode in Austria. A domicile is maintained where a taxpayer has a dwelling place under circumstances demonstrating that the taxpayer intends to keep and use it. An habitual abode is maintained where a taxpayer stays under circumstances demonstrating that the taxpayer intends to dwell there not only temporarily. Staying in Austria for more than six months irrefutably leads to unlimited income tax liability.

Taxable Income

Individuals having a domicile and/or their habitual abode in Austria are subject to unlimited Austrian income tax liability on their worldwide income. Individuals having neither a domicile nor their habitual abode in Austria are subject to limited Austrian income tax liability, including employment income if such work is carried out or utilized in Austria.

Tax Rates

Employers generally must pay social taxes and also withhold the employee portion of social taxes from employment income paid to employees. Part-time workers and foreign workers are subject to the withholding requirement. Coverage begins on the first day of employment.

The income tax return must generally be filed electronically by June 30 of the calendar year following the tax year.

Reference Citations

Residency Requirements: Income Tax Act, 1988 (German)

Taxable Income: Income Tax Act, 1988, (German)

Web References

In English.

Law and Regulation

Corporate Staff and Self-Employment Provision Act

Federal Constitutional Law

Federal Act Concerning the Protection of Personal Data

Federal Act Establishing Parental Leave for Fathers (Paternity Leave Act)

Federal Constitutional Act on Elimination of Racial Discrimination

Federal Act on the Organization of Working Time (Working Time Act)

Maternity Protection Act 1979

Government Websites and Publications

Austrian Embassy, Washington

Austrian Parliament

Foreign