Like most member states of the European Union, Austria has a comprehensive set of employment policies that ensure a wide range of rights, protections, and benefits for all employees in the country. Austria's labor code is well-structured and easy to follow, combining elements of Austrian and European Union regulations. This has led to the creation of unique provisions, such as collective bargaining agreements and legal engagements (oral or written) that represent mutual agreements between employers and employees.
As a country that prides itself on ensuring a good work-life balance for its employees and residents, Austria's labor law provides for many public holidays and holiday benefits. The main decrees that make up Austrian law include:
Staff Act. Working hours and working laws.
Paid Leave Act.
Labor Guarantee Order.
Rest Period Decree.
In addition to these statutory regulations, employment contracts are also regulated by collective agreements, as mentioned earlier. Some of these are legally agreed verbal agreements that cover employees who are not unionized.
The Employment Act covers all private sector employees, dependent workers, foreign nationals, and ** employees in Austria and the European Union. In addition, Austrian labor law provides a wide range of provisions for expatriates.
Austria's labor laws cover a variety of forms of employment, including full-time employees, part-time employees, independent contractors, and freelancers. A written employment contract or appointment letter is not required by law in Austria. This means that the employee can enter into an employment relationship based on a verbal agreement. According to Austrian labor law, collective oral agreements are sufficient to determine minimum working conditions that balance the interests of both parties.
Read on for more details on the main provisions of the Salary and Wages, Working Hours, Benefits and Vacation, Rights and Protections, and Termination Regulations.
In Austria, the social security system is a highly beneficial and contribution-based system that supports gainful employees and their dependents. This system is regulated by the Austrian Federal Ministry of Labour, Social Affairs and Social Security and includes medical care, unemployment, education, pensions, parental benefits, benefits for disabled workers and accident victims, and survivors.
According to the amendments to the Austrian labor law that came into force in January 2020, the contributions of employees and employers each account for 1812% and 2132%。
Read on for more details on paid and unpaid leave under Austrian labor law.
With regard to holiday payments, according to Austrian labor law, every employee is entitled to one of the most generous leave policies in the world, 25 days of paid annual leave per year. This figure increases to 30 days for employees who have completed 25 years of service. In addition, there are 13 public holidays in Austria, which are paid holidays for employees. Austrian labor law states that employees must receive their vacation pay before starting their vacation. In addition, employees who work more than normal working hours, such as night shifts or weekends, can receive compensatory annual leave.
Under Austrian labour law, the parental rights of employees as well as maternity and paternity leave are guaranteed. Austrian labor law stipulates that pregnant women cannot work eight weeks before their due date and eight weeks after giving birth. In the case of cesarean section, preterm birth or multiple births, the postpartum rest period is extended to 12 weeks. In addition, Austrian labor law protects employees from dismissal during the two-year joint parental leave and for 4 weeks after the end of that leave. In terms of cash benefits, parents can choose between a flat-rate scheme, in which mothers are paid in addition to their income, or another scheme, in which they receive benefits based on their earnings for a year after childbirth. This benefit is only available to parents who live together in Austria.
Regarding the provisions of sickness leave, the Austrian labor law establishes the statutory sickness pay to which employees who are absent from work for health reasons are entitled. This sickness pay can pay the employee's full pay within 6 to 12 weeks, with half of the pay paid within 4 weeks. In addition, employees who remain ill even after the end of this period are eligible for sickness benefits provided by their employers under the compulsory social insurance system in an amount equivalent to 50% of their salary. In there is.
In the case of dependents, this benefit amount is increased to 75% of the salary.
There are no statutory rules or provisions in Austrian labour law regarding the provision of unpaid holidays. However, both parties can mutually agree to the terms of unpaid leave in an oral employment contract. Since 2020, Austrian labor law has incorporated a provision that allows employees to take unpaid leave or work part-time without the consent of the employer if they have a sick dependent person who needs care. However, this provision only applies if the employer company has more than five employees and the employee has been with the company for three months or more. In addition, the Austrian labour law provides for a nursing leave allowance for employees, which is financed by the state.
With regard to workers' rights, protection against discrimination and health and safety at work, Austria has adopted and adheres to the 1965 United Nations Convention on the Elimination of All Forms of Racial Discrimination. Austria therefore prides itself on strong anti-discrimination legislation to ensure that the constitutional provisions of equality are enforced. In addition, criminal protection against hate crimes has been strengthened over the past decade.
Austria's efforts to support victims through the effective detection and suppression of online hate crimes are particularly commendable. In addition, Austria's 2017 Roma strategy aimed at combating anti-Gypsyism and the integration bill to promote the integration of expatriates and immigrants into the state and the labour market further demonstrates the commitment of Austrian labor law to ensuring equal and just employment rights and opportunities.
Austria's Safety and Health at Work Guarantee** places employers responsible for ensuring high safety standards and implementing preventive health and safety regulations at work. When required, employers must consult with health and safety experts, and labor prosecutors oversee the entire compliance process.
Under Austrian labor law, there are four ways in which an employment contract can be terminated:
1.In dismissal, the employer must provide sufficient reasons for the dismissal. Dismissal can occur verbally or in writing and is effective immediately. The notice period is six weeks, two weeks for white-collar and blue-collar workers. In the event of an unfair dismissal, the employee may dispute this or file a complaint with the Labor and Social Security Court.
2.Voluntary withdrawal, where an employee voluntarily resigns with advance notice to the employer. The notice period varies depending on the length of the employment period and can range from 6 weeks to 3 months. When resigning, Austrian labor law requires employers to provide departing employees with authorization documents such as salary statements, employment certificates, job confirmations, final settlements, and more.
3.Redundancy, any employee who has contributed to ** in the private sector for more than three years can claim severance pay upon termination by the employer, unless it is a voluntary resignation or dismissal due to misconduct.
4.Retirement, male employees reach retirement age at the age of 65, and female employees can receive a pension when they reach the retirement age at the age of 60. Employees must have contributed at least 15 years to receive a pension. Austrian labor law stipulates that employees who work beyond the required retirement age must receive a bonus.
Austrian labor law imposes a variety of fines for employers who violate key provisions of labor law. For example, if an employer fails to comply with the minimum wage set out in the employment contract, the employer must pay a fine. Similarly, employers who fail to keep proper records of payments or are found to have discriminated on the basis of age, race, or gender will face severe fines.
For employers, the country's laws and regulations must be strictly adhered to in Austria. Failure to do so will result in heavy fines. Here are some of the ways employers can ensure better compliance:
The sole responsibility of hiring a compliance manager is to effectively manage employees and human resources, ensuring compliance with all regulations on employment and collective agreements.
Outsource to a company that specializes in ensuring compliance.