Austria Labor Law and Employment Policy Overview

Employment Law Overview

• Key Laws and Regulations:
  • Austrian Labor Code
  • Collective Bargaining Agreements
  • Working Time Act
  • Wage Protection Act
  • Equal Treatment Act
• Legal Characteristics:
  • Aims to protect employee rights and promote a fair working environment.
  • Sets minimum working standards, paid time off, sick leave, and maternity leave, among others.
  • Encourages social dialogue and collective bargaining.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Terms:
  • Must include job description, remuneration, working hours, vacation, and termination clauses.
  • Must be written in German and state currency in Euros.
• Language and Currency:
  • German
  • Euro (EUR)

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks:
  • Minimum of 24 hours of rest per week.
  • Entitled to a 30-minute break after 6 hours of work per day.

Vacation Policy

• Annual Leave:
  • 25 days of paid annual leave after 6 months of continuous employment.
  • Annual leave increases to 30 days after 25 years of service.
• Public Holidays: 13
• Special Leave:
  • Sick leave: 6-12 weeks of full pay, 4 weeks of half pay, depending on years of service.
  • Maternity leave: 16 weeks of paid leave.
  • Paternity leave: 1 month of unpaid leave.
  • Parental leave: 2 months of unpaid leave, can be shared with spouse.

Employee Severance and Termination of Contract

• Notice Periods:
  • Probationary period: 0-1 month
  • Indefinite-term contracts: 6 weeks - 5 months, depending on years of service.
• Severance Pay:
  • Employers must pay 2 months' salary into a severance fund after 3 years of service.
• Unfair Dismissal Protection:
  • Employers must have valid reasons for dismissing employees.
  • Employees have the right to appeal unfair dismissals.

Tax Laws

• Personal Income Tax:

  • Salary Range (EUR)	Tax Rate
    0 - 11,693	0%
    11,693 - 19,134	20%
    19,134 - 32,075	35%
    32,076 - 62,080	42%
    62,081 - 93,120	48%
    93,121 - 1,000,000	50%
    1,000,001 and above	55%

• Social Security Contributions:

  • Employee: 21.03%
  • Employer: 29.88%

Health Insurance

• Insurance Policy:
  • All employees must participate in the national health insurance scheme.
• Insurance Coverage:
  • Healthcare, dental care, fertility treatments, etc.

Compensation and Benefits

• Minimum Wage: None
• Compensation Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Non-EU/EFTA citizens require a work permit.
• Application Process:
  • Employer applies for a work permit on behalf of the employee to the local labor office.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Austria.
• Common Provisions:
  • Restrict employees from using or disclosing confidential information after leaving employment.
  • Restrict employees from working for competitors after leaving employment.

Training and Development

• Legal Requirements:
  • Employers must provide safety training and career development opportunities to employees.
• Government Support:
  • Government provides training and development programs, such as apprenticeships and continuing education courses.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibits discrimination based on race, gender, religion, or sexual orientation.
• Enforcement Measures:
  • Employers must establish anti-discrimination policies and provide diversity and inclusion training.

Remote Work Policy

• Legal Framework:
  • Remote work is legal in Austria but must be agreed upon with the employer.
• Tax and Insurance Implications:
  • Remote work may impact tax and social security contributions.

Authoritative Website Addresses

• Austrian Federal Ministry for Economic Affairs, Family and Youth: https://www.bmaw.gv.at/