Key Elements Of Austrian Work Contracts

what to look at an austrian work contract

If you're considering a job offer in Austria, it's important to understand the country's employment laws and the key elements of a standard Austrian work contract. Austria is known for its robust work-life balance, generous holiday schemes, and well-structured employment law, making it an attractive place to live and work. Before signing an employment contract, it's crucial to carefully review and understand your rights and responsibilities, as the contract is legally binding once signed. Here's a guide to help you navigate the essential aspects of Austrian work contracts.

Characteristics Values
Contract language Austrian employment contracts can be drafted in a foreign language, provided that the parties understand it. However, there are certain risks associated with a contract without a German version, such as difficulties in interpretation and the need for an official translation in court.
Minimum salary and minimum wage Unlike Germany, there is no statutory minimum wage or minimum salary for employees in Austria. However, there are de facto industry-specific minimum wage laws in place due to collective labor agreements, with the lowest being €1,500 per month for full-time employment.
Employment contract type Legally, a distinction is made between a contract of employment (Arbeitsvertrag), a freelance contract (freier Dienstvertrag), and a contract for works (Werkvertrag).
Employment contract conclusion A contract of employment may be concluded in writing, verbally, or implicitly (e.g., by commencing the work and receiving subsequent payment). Apprenticeship agreements must be concluded in writing.
Employment contract content The contract should include details about duties (Aufgaben), work hours (Arbeitszeit), breaks (Pausen), overtime (Überstunden), pay (Gehalt or Lohn), notice period (Kündigungsfrist), vacation days (Urlaub), and more.
Collective agreements Collective agreements (Kollektivverträge) are industry-specific and cover remuneration, benefits, and working guidelines for employees. They stipulate a standard working time of eight hours per day and 40 hours per week, but many industries have shorter working weeks.
Disciplinary measures It is not advisable to refer to "disciplinary measures" in Austrian employment contracts. Imposition of disciplinary measures is only permissible if provided for in a collective agreement or works agreement. Disciplinary measures include fines, exclusion from voluntary services, omission of promotions, and punitive warnings.
Termination and dismissal Employers are not required to disclose the reasons for dismissal and should avoid listing them in the contract to prevent restrictions on their right to terminate. Dismissals must not be discriminatory, and employers can settle claims with employees at any time.
Strikes Participation in a lawful strike is considered a breach of contract, as employees fail to fulfill their work obligations. Strikers may face legal consequences and are not eligible for unemployment or social security benefits during collective action.
Health and safety Employers are responsible for preventative health and safety measures in the workplace and may need to consult experts in this area. In workplaces with more than 10 employees, a company must appoint a health and safety representative.
Foreign nationals Foreign nationals must have an employment permit, a work permit, or a Red-White-Red Card to work in Austria. They must apply for approval and an employment permit from the regional employment office, which is valid for one year.

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Contract language

In Austria, an employment contract can be drafted in a foreign language, provided that the parties understand the language. However, there are certain risks associated with a contract without a German version. Firstly, some terms in Austrian law are difficult to translate into other languages, which can lead to interpretation issues. Secondly, if the contract is disputed in court, an official translation will be required, and an imprecise translation can affect the outcome of the proceedings. Thus, a bilingual version with German text is recommended.

A written employment contract is not necessary to secure a job in Austria, and it can be concluded in writing, verbally, or implicitly (e.g., by starting the work and receiving payment). However, if a written contract is provided, it must be signed by both parties to be valid. It should include details such as duties, work hours, breaks, overtime, pay, notice period, and vacation days. It is legally binding, so it is crucial to understand the rights and responsibilities outlined within.

Austrian employment contracts are typically negotiated on an industry-wide level between unions and organisations representing employers, resulting in collective labour agreements that cover 98% of employees. These agreements stipulate remuneration, benefits, and working guidelines for each industry. For the remaining 2% without specific agreements, such as those in the recreational or entertainment industries, employment offers must still meet the requirements of the collective labour agreements.

It is important to note that disciplinary measures and reasons for termination are not usually included in Austrian employment contracts. Additionally, participation in a lawful strike is considered a breach of contract, as the employee fails to fulfil their work obligations, which may result in legal consequences.

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Working hours and overtime

Austria is known for its solid work-life balance, with a high proportion of public holidays and generous holiday schemes. The country has well-structured and easy-to-understand employment laws that provide broad protection and rights for employees.

The standard working week in Austria is 40 hours, with an eight-hour workday. However, the daily working time can be extended to nine hours for the four working days between a Friday with shorter working hours and the weekend. This period of 13 weeks is also known as "Fenstertage" or "bridge days", allowing employees to enjoy a longer, uninterrupted period of rest.

The maximum daily working time, including overtime, is 12 hours, and the maximum working week is 60 hours. However, the weekly working time must not exceed 48 hours over a 17-week average. Employees have the right to refuse overtime if it would cause them to work more than 10 hours a day or 50 hours a week. They are not required to explain their reasons for refusing. Additionally, employees can decide whether they prefer monetary compensation or time off in lieu for overtime work. The law mandates a 50% bonus for overtime, which equates to 1.5 hours off for every hour of overtime.

In the case of an increased workload, up to 20 hours of overtime per week are permitted. However, permanent overtime is not allowed, and there must be a valid reason for it. For example, if an employee has to accompany their child to a medical appointment, they can refuse to work overtime even if their employer requests it.

Overtime regulations may differ depending on the industry and the specific terms outlined in the employment contract or collective bargaining agreement.

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Salary and benefits

When it comes to salary and benefits in Austria, there is no statutory minimum wage or minimum salary for employees. Instead, the minimum salary for employees is set out in collective agreements, which are negotiated between unions and organisations representing Austrian employers. These agreements cover 98% of employees in the country. If no collective agreement applies, the salary is based on the employment contract. The average annual salary in Austria is approximately €48,000, and employees typically receive 14 salaries per year, which equates to receiving a double salary twice a year. These special payments are usually paid in June and November as holiday and Christmas bonuses.

In terms of working hours, office hours in Austria are typically from 09:00 to 17:00, but many Austrians start their day earlier and are at their desks by 08:00. The country is known for its solid work-life balance, with a high proportion of public holidays and generous holiday schemes. Full-time employees are entitled to 25 days of holiday per working year, and this increases to 36 or 30 days after completing 25 years of service. Employees who are absent due to sickness or injury are entitled to sick pay from their employer, which covers six to 12 weeks of full pay plus four weeks of half pay, depending on their length of service. After the statutory sick pay period, employees can receive sickness benefits from the statutory social insurance system, which is equal to 50% of their previous pay. If the employee has dependents, this amount may increase to up to 75%.

Social security contributions, including unemployment, health, and pension insurance, are paid jointly by the employee and employer. The share of the gross salary that goes towards these contributions is around 40%, with the employee paying 18.12% and the employer paying 21.23%. Additionally, when an employee's yearly income exceeds €11,000, a wage tax (Lohnsteuer) is deducted from their paycheck each month. Employees can also receive a commuter allowance if they meet certain conditions, such as the distance between their home and work and the accessibility of public transport.

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Termination and notice period

In Austria, there are no statutory regulations on the permissible reasons for termination or the maximum duration of a fixed-term contract. The notice period in case of termination should be outlined in the contract. If the employer fails to meet the notice period, the employee can demand compensation for termination.

It is important to note that participation in a lawful strike is considered a breach of contract under Austrian law, as employees fail to fulfill their work obligations. As a result, strike participants may face legal consequences and may not be eligible for unemployment or other social security benefits during the collective action.

Employment contracts in Austria are typically negotiated between unions representing employees and organizations representing employers, such as the Austrian Economic Chambers (Wirtschaftskammer). These contracts, known as collective labor agreements (Kollektivverträge), cover 98% of employees and stipulate remuneration, benefits, and working guidelines for each industry. For employees not covered by these agreements, such as those in the recreational or entertainment industries, there are no specific collective labor agreements, and negotiations are handled individually.

In terms of contract language, Austrian employment contracts can be drafted in a foreign language if both parties understand it. However, there are risks associated with a contract without a German version, including potential difficulties in interpretation and the need for an official translation if disputed in court. Therefore, a bilingual version with German as the prevailing text is recommended.

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Disciplinary measures

In Austria, disciplinary measures are a complex mix of EU and Austrian legislation. While it is not advisable to refer to "disciplinary measures" in Austrian employment contracts, it is important to note that the imposition of disciplinary measures is only permissible if provided for in a collective agreement or a works agreement. Disciplinary measures can include fines, exclusion from voluntary services, the omission of planned promotions, and warnings with a punitive character.

It is worth noting that immediate dismissal, regular dismissal, simple warnings, or reprimands are not considered disciplinary measures. Instead, they are governed by a different part of the law from disciplinary procedures. This means that dismissals or other acts terminating an employment relationship cannot be regarded as disciplinary measures.

The Austrian system of employee representation confers various representation and information rights on the works council, the elected representative body of the entire staff. These rights are set out in the Labour Relations Act and allow the works council to veto certain measures passed by the employer, such as the introduction of a formal disciplinary code or code of conduct.

Additionally, certain measures sensitive to employees (disciplinary rules, staff questionnaires, control measures) may only be implemented with the consent of the works council and within the framework of a company agreement. This is known as the co-determination right of the works council.

Furthermore, disciplinary procedures designed to improve and maintain satisfactory standards of conduct, attendance, and job performance, emphasizing corrective rather than punitive action, are typically exempt from the approval or participation of the works council.

In terms of termination, Austrian law provides statutory minimum notice periods and dates. However, collective agreements and their notice periods rarely apply unless a more favourable contractual agreement exists. Managing directors generally have fixed-term contracts or long contractual notice periods. A summary dismissal does not require any particular notice period but must be issued without undue delay and for good reasons or a serious breach of duty.

It is important to note that employees are entitled to General Protection against Dismissal and may claim reinstatement in court if they can prove that the termination adversely affects their personal life and the employer cannot justify the termination.

Frequently asked questions

In Austria, a work contract can be drafted in a foreign language, as long as both parties understand the language. However, there are certain risks associated with a non-German contract. Some terms in Austrian law are difficult to translate, which can lead to issues in interpretation. If the contract is disputed in court, an official translation will be required, and an imprecise translation could negatively impact the outcome of the proceedings. For this reason, it is usually recommended to have a bilingual version with German as the prevailing text.

Your contract should outline your duties, working hours, breaks, overtime, pay, notice period, vacation days, and more. It is important to read and understand your contract thoroughly before signing it, so you are aware of your rights and responsibilities.

Yes, a contract can be concluded in writing, verbally, or implicitly (e.g. by starting the work and receiving payment). If there is no written contract, the employee must be provided with a written summary of the key rights and responsibilities associated with the work. This is called a 'Dienstzettel' or 'notice of employment'.

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