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Employee protections in Austria

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.

Whistleblowing in Austria

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.

Understanding Austria’s whistleblowing law

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.

What is covered under whistleblower protection laws in Austria

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:

  • Job applicants.
  • Interns and trainees.
  • Volunteers.
  • Self-employed workers.
  • Temporary contracted workers.
  • Suppliers.

Protections from retaliation for whistleblowers in Austria

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.

Data privacy in Austria

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 data protection laws

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:

  • The Austrian Constitutional Act (Arbeitsverfassungsgesetz or ArbVG).
  • The Act on the Adaption of Employment Contracts (Arbeitsvertragsrechts-Anpassungsgesetz or AVRAG).

What employers need to know about Austria’s data protection law

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.

Employee monitoring and surveillance in Austria

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.

Data protection and background checks in Austria

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.

Equal treatment for temporary agency workers in Austria

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 work 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.

Equal treatment for temporary agency workers in Austria

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.

Other requirements for employing temporary agency workers in Austria

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.

Anti-discrimination laws and protection against harassment in Austria

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.

Anti-discrimination laws 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:

  • Sex.
  • Ethnicity.
  • Religion or belief.
  • Age.
  • Sexual orientation.
  • Disability.

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.

Protection from harassment in Austria

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:

  • The person responsible for the harassment.
  • The employer if they failed to take appropriate action.
  • The federal government if the employer’s representative failed to take appropriate action.

Employer obligations related to harassment and discrimination in Austria

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 laws in Austria

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.

Gender pay gap reporting in Austria

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.

Other pay equity legislation in Austria

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.

The impact of the EU pay transparency directive in Austria

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:

  • Employers will not be allowed to ask candidates about their past salaries.
  • Employers will have to meet new gender pay gap reporting obligations.
  • Employees will be able to request information about their pay and how it’s calculated.
  • Employers will have to conduct a joint pay assessment with workers’ representatives if they find a pay gap of 5% or more in any category of workers.

Safeguard your business with our compliance expertise

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.

Compliantly hire workers anywhere with CXC

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