All countries have certain rules in place to protect employees from harm — and Austria is no exception. For example, the Whistleblower Protection Act (HinweisgeberInnenschutzgesetz), which was passed in 2023, offers protections for whistleblowers who speak out about wrongdoing they witness in the workplace.
In this section, we’ll discuss the various laws and regulations in place to protect employees in Austria, including the Whistleblower Protection Act, the Data Protection Act, and the Disabled Persons Employment Act. We’ll explore what employers need to know about these key pieces of legislation in order to keep employees safe and protect their business interests.
The Austrian National Council passed the Whistleblower Protection Act (HinweisgeberInnenschutzgesetz) in February 2023. The law, which implements the EU Whistleblower Directive, offers protections for whistleblowers and obligations for employers in Austria. It entered into force at the end of March 2023.
Austria’s whistleblowing law requires employers with 50 employees or more to set up an internal reporting channel through which employees can report wrongdoing. It must be possible to report either in writing or verbally, and companies must document and acknowledge reports within seven days of receipt.
In addition, they must set up a department within the company that is independent and sufficiently funded to deal with internal investigations. This law also applies to businesses of all sizes in certain sensitive sectors.
Whistleblowers in Austria can use either internal or external reporting channels to report legal violations. The Federal Office for the Prevention of and Fight Against Corruption (Bundesamt zur Korruptionsprävention und Korruptionsbekämpfung or BAK) is an external reporting channel.
The scope of the Whistleblower Protection Act covers reports of violations related to data protection, product safety, public procurement, and certain criminal offences such as bribery. It applies not just to employees, but also to:
The Austrian Whistleblower Protection Act also prevents employers from retaliating against employees who make reports through whistleblowing channels. Retaliation might include dismissal, refusal to extend a temporary contract, withholding a reference, or disciplinary measures. Employees can claim compensation in the case of any retaliation for their whistleblowing activity.
Employers generally need to process data on their employees and candidates as part of the employment process. However, there are limitations on the processing of personal data in Austria, which employers must be aware of.
Austria’s main data protection law is the Data Protection Act (Datenschutzgesetz or DSG). It’s based on the EU’s General Data Protection Regulation (GDPR). Other laws governing data protection in Austria include:
Under the GDPR and the Austrian Data Protection Act, employers in Austria must have a legal basis for processing employee data. For example, they can generally process data of candidates or employees if it is necessary for the creation of the employment contract.
In practice, employers often ask employees for consent to process data. However, this can put employers in a vulnerable position, since the GDPR requires consent to be given freely, which is questionable in this case due to the imbalance of power inherent to the employment relationship.
Another problem is that employees and candidates can withdraw their consent at any time, meaning that the employer must not process any further data. This means that relying on consent as a legal ground for data processing is inadvisable.
Employers in Austria may only use monitoring and control systems with the agreement of the works council. If there is no works council, they must have the individual agreement of each employee. This includes things like video surveillance and systems that monitor internet usage.
Austria’s data protection laws put certain limitations on the background checks employers can perform on potential employees. For example, processing data related to criminal records is only allowed if the employer has a legitimate interest in determining whether a candidate has a criminal history.
This depends on the position the candidate is applying for. For example, it would usually be allowed if the position was in the financial services sector or involved working with children. Employers cannot require criminal records checks for all employees simply because they don’t want to employ people with criminal records.
Temporary agency workers are workers leased through temporary work agencies. Employers can hire temporary agency workers in Austria if they only require a worker’s services for a limited time, for example to meet additional demands during a busy period. There are strict rules that apply to the use and treatment of temporary agency workers in Austria.
Temporary agency workers in Austria are employed by temporary work agencies, which lease them out to user companies on a temporary basis. These workers have rights and protections under employment law, and there is a specific collective agreement for temporary agency workers. Where a job is covered by both this and a sectoral collective agreement, the conditions that are most favourable to the employee apply.
Temporary agency workers have the right to equal treatment with employees at the user company where they are assigned. This applies to pay, working conditions and social benefits such as subsidised lunches, participation in annual work outings, and access to company childcare. After four years of employment on fixed-term assignments, a temporary worker can join the company’s occupational pension plan.
Unlike in some other countries, these rights apply from day one of the worker’s assignment to a user company. Companies violating the rules can be fined between EUR 1,000 and EUR 5,000. There are also harsh penalties for discrimination against temporary agency workers, and employers have to pay a penalty of EUR 110 per day if they terminate a temporary worker’s contract early.
Employers of temporary agency workers must provide the workers with written information about their pay and how it is calculated, including details of any collective wage agreement that applies. They must also be informed in writing about the specific requirements of their job and any relevant health and safety risks.
Companies employing temporary work agencies must also publicly announce any permanent positions that become available within the organisation so workers have a chance of securing permanent employment. Temporary workers must also be given at least 14 days’ notice of termination for any contract that lasts longer than three months.
Employees in Austria have the right to be free from discrimination and harassment in the workplace — and employers are responsible for protecting their employees. Read on to find out what you need to know about harassment and discrimination in Austria.
The main law preventing discrimination in Austria is the Equal Treatment Act (Gleichbehandlungsgesetz or GlBG), which guarantees equal rights to all employees. Discrimination against people with disabilities is covered in the Disabled Persons Employment Act (Behinderteneinstellungsgesetz or BEinstG), and civil servants and employees of public authorities are protected by the Federal Equal Treatment Act (Bundes-Gleichbehandlungsgesetz or B-GlBG).
Austria’s anti-discrimination laws prohibit discrimination on the grounds of:
The law prohibits both direct and indirect discrimination. Direct discrimination means treating a specific person or group differently based on one of the protected characteristics listed above. Indirect discrimination is when rules or arrangements theoretically apply to everyone but disproportionately impact one group of people. An example would be an unjustified height requirement for a certain role since this is likely to rule out more women than men.
Employers in Austria are required to take action in the event of harassment, which is defined as unwanted and unpleasant behaviour related to a protected characteristic. Harassment is covered by the same laws that prohibit discrimination since it’s considered to be a form of discrimination in Austria.
In the case of sexual harassment at work, employees can claim compensation for damages amounting to no less than EUR 1,000. They can claim this from:
Employers in Austria are not specifically required to put in place policies or deliver training to prevent discrimination and harassment. However, there is a legal obligation to use gender-neutral and non-discriminatory language in job advertisements. Publicly listed corporations are also required to prepare a consolidated corporate governance report containing information on diversity and measures for the advancement of female employees.
Pay equity means granting employees equal pay for the same work, regardless of their sex. Austria is one of many countries that has specific laws in place to promote equal pay and reduce the gender pay gap.
Austrian companies with more than 150 employees are required to submit a remuneration analysis report every two years. Among other things, this report must include the median or average income of men and women within the organisation.
In addition to reporting requirements, the Austrian government has implemented several other measures to promote pay transparency (and therefore pay equity). First, employers are obliged to state the minimum wage for a position in all job advertisements. The government has also provided an online wage calculator that offers easily accessible information about the average wages in each sector or region.
In 2023, a new EU directive was approved by the European Parliament and Council. It will be transposed into law in all member states, including Austria, by 2026. This law grants employees new information rights and gives employers certain new obligations related to pay transparency and pay equity.
Here are some of the things that will change in Austria when the directive is in effect:
Understanding what you can and can’t do as an employer is one of the biggest challenges of hiring in Austria. Get it wrong, and you could face legal action and damage to your reputation.
Our solutions protect both you and your workers, thanks to our team’s in-depth knowledge of local and international labour laws. That means you can stop worrying about compliance issues and focus on getting the job done.
Employees in Austria are protected by laws including the Employee Protection Act, Working Time Act, Annual Leave Act, Equal Treatment Act, Maternity Protection Act, Paternity Leave Act and Labour Constitution Act. Austria’s data protection laws and the EU GDPR also apply to employee personal data. Other important legislation includes the Salaried Employees Act, Employment Contract Law Adaptation Act and Disability Employment Act. Austria does not have one consolidated employment code, so the applicable rules are spread across several statutes.
The Employee Protection Act (ASchG) covers workplace health and safety and requires employers to protect employees from work-related risks. The Equal Treatment Act (GlBG) protects employees against discrimination based on characteristics including sex, age, ethnic origin, religion or belief, and sexual orientation. Disability discrimination is primarily addressed under separate disability equality legislation.
Other laws regulate working hours, paid annual leave, maternity and parental protections, while the Labour Constitution Act covers areas such as works councils and employee representation. Collective agreements can provide additional employment rights and conditions for employees in specific industries. Where a collective agreement applies, its mandatory minimum conditions cannot generally be reduced by the individual employment contract.
Austria’s Whistleblower Protection Act (HSchG) protects people who report qualifying breaches from retaliation, including dismissal, suspension, demotion, loss of pay, disciplinary action or other workplace disadvantages.
The law covers reports in specified areas including corruption, public procurement, financial services, product and transport safety, environmental protection, food safety, public health, consumer protection and data protection. Protection can apply to employees, former employees, job applicants, contractors, suppliers, interns and others who obtain information through their work.
Companies with 50 or more employees generally need an internal whistleblowing system. The reporting channel must protect the identity of the whistleblower and other people named in the report, and reports must be handled impartially. Certain regulated businesses may have reporting obligations regardless of employee numbers. The internal channel must generally acknowledge receipt within seven calendar days and provide feedback on follow-up measures within three months. Whistleblowers can also use the competent external reporting channel, and Austrian law does not make protection conditional on first completing an internal reporting process.
The Equal Treatment Act prohibits workplace discrimination in the private sector, while separate legislation protects people with disabilities. There is no single law called the equal employment opportunity act in Austria, but these rules provide the protections normally associated with that term.
Employers cannot discriminate because of sex, ethnic origin, religion or belief, age, or sexual orientation. Disability has its own legal protection. Protection against sex discrimination also covers pregnancy and maternity, while discrimination can include direct discrimination, indirect discrimination, harassment and instructions to discriminate. These rights cover recruitment, pay, training, promotion, working conditions and dismissal. Harassment and sexual harassment are also prohibited, along with retaliation against someone who raises or supports a complaint.
Different treatment is allowed only in limited circumstances, such as when a genuine requirement of the role applies. Employees can seek free support from the Ombud for Equal Treatment and may bring a case before the Labour and Social Court. Employers must also respond appropriately when harassment comes from a manager, colleague, customer or another person at work.
Employers need a valid legal reason and a clear work-related purpose before processing employee data. These privacy requirements form part of labour law in Austria and work alongside the EU General Data Protection Regulation and the national Data Protection Act.
Employees must be told what information is collected, why it is needed and how it will be used. Employers should collect only the data they need and keep it secure. Consent can be difficult to rely on because employees may not be free to refuse it. Health records and other sensitive information receive extra protection.
Workplace monitoring must be necessary and proportionate. Employers cannot use continuous video surveillance simply to watch staff. Surveillance in highly private areas, such as toilets and changing rooms, is prohibited. Covert monitoring requires particularly strong justification and cannot be adopted as a routine management practice.
Some camera, email, internet or location-tracking systems need a works council agreement because of their effect on employees. If there is no works council, individual consent may be required. A valid business reason does not remove these privacy and consultation rules.
Under employee protection laws in Austria, temporary agency workers have rights covering pay, working time, leave, equal treatment and workplace safety. The agency remains their employer while they carry out an assignment under the host company’s direction.
The agency must provide written details of each assignment, including the host company, role, likely duration, working hours and pay. The information must also cover matters including the required qualifications, workplace, applicable classification and essential working conditions before the assignment begins.
During the assignment, the worker’s pay cannot fall below the legal or collectively agreed minimum for a comparable role at the host. The host’s generally binding rules on working time and annual leave apply to leased workers where required by the Temporary Agency Work Act (AÜG). Pay must take account of the remuneration prescribed for comparable work in the host business.
The host generally gives agency workers the same access to shared facilities, such as canteens or childcare, as its own employees, unless objectively justified reasons support different treatment The agency remains responsible for the employment contract and wages. Both organisations have responsibilities for a safe assignment. Clear communication between them is essential, as using an agency does not remove the host company’s duties.
Employees have the right to equal pay for equal or equivalent work without discrimination. The employee protection laws in Austria also require salary information in job advertisements and pay reports from larger companies.
Equal pay covers basic salary and other employment benefits. An employee who receives less because of a protected characteristic may claim the difference and compensation. Job advertisements must show the minimum salary under the relevant law or collective agreement. They must also say whether the employer is willing to offer more.
Companies with a more than 150employees prepare an anonymous income report every two years. It compares the pay of women and men across the relevant job groups. The employer gives the report to the works council. Employees must be able to access it directly when there is no works council. The report must generally be completed in the first quarter following the reporting year, and part-time and partial-year earnings must be converted to full-time and full-year equivalents for comparison.
Clear job levels and consistent pay records make it easier to identify and explain differences. The existing Austrian rules should also be distinguished from the broader requirements in the EU Pay Transparency Directive. Austria was required to transpose Directive (EU) 2023/970 by 7 June 2026, so employers should check the status of implementing legislation before relying solely on the existing job-advertisement and income-report requirements.
The Arbeiterkammer (Chamber of Labour) is the statutory organisation representing most employees and apprentices. It helps members understand and enforce their rights under labour law in Austria, social security rules, tax law and consumer law.
Most employees become members automatically when they start work. Membership and the Chamber levy are governed by law, although some categories of workers are excluded. The Chamber offers information and personal advice, checks employment documents and pay calculations, and supports members in disputes. It may also represent an employee before the Labour and Social Court when the case meets its requirements. Each federal province has its own regional chamber.
The Chamber also comments on proposed laws, carries out research and represents employees in wider economic and social discussions. It is not a trade union and does not negotiate every collective agreement, although the two often work on related issues. Its support gives employees an informed route for raising employment concerns and resolving disputes.
Employers with at least 25 employees generally need to hire one person with an officially recognised disability for every 25 staff members. The Social Ministry Service manages the quota. For quota purposes, the employee must generally qualify as a begünstigte behinderte Person, usually requiring an officially established disability level of at least 50%. A disability pass by itself does not necessarily prove this status.
When an employer does not meet the quota, it pays a monthly levy for each position left unfilled. In 2026, the amount ranges from 344 EUR to 512 EUR, depending on the size of the workforce. The monthly rates for each unfilled position are:
The Social Ministry Service calculates the amount after the end of the calendar year and sends the employer a formal notice. Rates are updated each year.
Only employees who meet the official recognition rules count towards the quota, and some people receive a higher weighting. Paying the levy does not replace the wider duty to treat disabled employees fairly. Employers must still avoid discrimination and may need to make reasonable changes to the workplace or role.
The Einkommensbericht (income report) compares the pay of women and men across a company. Under labour law in Austria, businesses with more than 150 employees on a permanent basis must prepare one every two years.
The report groups employees by the relevant pay system and job category. It then shows the number of women and men and their pay figures without naming individuals. This allows the company and its employees to see where gender pay differences may need a closer look.
The employer gives the report to the works council. If there is no works council, employees must be able to read it directly. Anyone receiving the report must keep its contents confidential, although employees can seek advice about what it shows. The figures do not prove discrimination by themselves, but they help identify differences that may need explanation or action.
CXC helps employers maintain fair workplace practices in Austria by managing local employment requirements and supporting consistent treatment of employees throughout their employment.
Through our Employer of Record service, CXC handles employment contracts, payroll, statutory benefits, leave and local HR administration. We also account for the collective agreement that applies to the employee, and the employment conditions it requires.
Your HR team continues to manage the employee’s role, performance and day-to-day work, while CXC handles the local employment administration and supports employees when they have questions about their employment.
Speak to our team to learn more about managing employees in Austria with CXC.
With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.
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