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Employment contracts in Austria

Every country in the world has its own rules and regulations regarding employment contracts. For example, some countries require contracts to be concluded in writing, while others consider verbal agreements to be valid and binding.

In this section, we’ll discuss everything you need to know about employment contracts in Austria. We’ll cover the mandatory terms that must be provided to employees in writing, as well as the rules surrounding fixed-term contracts and extensions. We’ll also talk about several key aspects of employment law, including the rules on working hours and remote work.

Employment contracts and policies in Austria

In Austria, written contracts are not mandatory, and verbal contracts are common and acceptable. That’s because many employees are covered by collective bargaining agreements that lay out the main terms of employment, making detailed individual agreements unnecessary. Employers in Austria may not change the terms and conditions of employment to make them less favourable to the employee than those laid out in the relevant legislation, collective agreements, or works agreements.

Written statement of terms and conditions in Austria

While written employment agreements are not mandatory in Austria, employees must still be provided with a written document containing certain information. This document is called a Dienstzettel. It is not a contract per se, but rather a statement of facts. It must include specific information including the name and address of both parties and the contract’s start date. Both employees and independent contractors should receive the Dienstzettel at the beginning of the working relationship.

Probationary periods in Austria

Probationary periods are permissible in Austria but are limited to one month (or three months for apprentices). During the probationary period, either the employer or the employee can end the employment contract with no notice, and with no need to give a justification.

Third-party approval in Austria

Unlike in some other countries, there is no obligation to lodge employment contracts with third parties in Austria.

Other types of contracts in Austria

The most common type of contract in Austria is a contract of employment (Arbeitsvertrag). However, it’s also possible to engage workers in Austria under either a freelance contract (freier Dienstvertrag) or a contract for works/services (Werkvertrag). It’s important to ensure that workers are correctly classified since misclassification carries a risk of fines and other penalties. In the case of a dispute, employment status is determined by the actual particulars of the arrangement and not by the type of agreement an employee has signed.

Mandatory employment policies in Austria

It’s advisable for employers in Austria to have at least the following policies in place:

  • Whistleblowing policy/reporting channels.
  • Health and safety policy.
  • Equality policy.
  • Data protection policy.
  • Code of conduct.
  • Working time policy.
  •  nternal grievance procedures.

Some of these, such as whistleblowing policies and health and safety policies, are mandatory under Austrian employment law. Employers may also want to put together other types of policies, like social media, remote work, or training and development policies.

Contract terms in Austria

As stated, employment contracts in Austria can be verbal. That means there are no mandatory terms that must be included in an employment contract. However, employees without a written contract must receive a statement called a Dienstzettel when they begin work.

Mandatory contract terms in Austria

An employee’s Dienstzettel must include at least the following information:

  • Name and address of the employer.
  • Name and address of the employee.
  • Contract start date.
  • Normal place of work.
  • Job Classification.
  • Antended assignment.
  • Basic salary or wages.
  • Additional remuneration (e.g. bonuses).
  • Date payable.
  • Annual leave entitlement.
  • Normal daily and weekly working hours.
  • Collective agreement or works agreement applicable.
  • Notice period.
  • Contract end date (for fixed-term contracts).

Additional contract terms in Austria

Employees may include terms and conditions in their contracts that deviate from collective agreements or labour laws. However, they must be at least equally favourable to the employee.

Fixed-term contracts in Austria

When employers want the services of an employee for only a set period, they can engage them on a fixed-term contract. In Austria, there’s no specific limit on the length of a fixed-term contract or the number of fixed-term contracts that can be entered into. There’s no notice period for fixed-term contracts — they simply end when the term is reached.

However, while it’s legally possible to conclude a chain of fixed-term contracts, this is only permissible in certain narrow circumstances. If these are not met, the engagement may be considered to be an open-ended contract beginning on the first day of the original contract. This type of contract is actually easier to terminate than a fixed-term contract since fixed-term contracts can only be terminated before their expiration in a few limited circumstances.

Contract extensions in Austria

It’s possible to extend or renew a fixed-term contract if there are objective and material reasons for doing so. If these reasons are not given the contract could be considered to be indefinite employment. Unlike in some other countries, there’s no specific maximum length or number of fixed-term contracts that employers must abide by. Whether or not the use of a fixed-term contract is justified depends on the needs and circumstances of the business.

Working hours in Austria

There are set rules that employers must abide by when it comes to their employees’ working hours in Austria. These are set by the Working Hours Act, the Working Hours Rest Act, and collective bargaining agreements.

Typical working hours in Austria

Normal work hours in Austria are typically eight hours per day and 40 hours per week. However, many industries have collective bargaining agreements that limit working hours to 38 per week. Some also extend daily working hours to 10 hours per day.

Some companies grant employees a shorter working day on a Friday, for example, 9am–12pm. In this case, it’s permissible to work nine hours per day Monday–Thursday to make up this time. Other companies take this even further and allow employees to work their normal hours over four days (4×10 hours).

Another consideration is bridge days, which is when a working day falls between a holiday and a weekend. Many employees don’t work on these days, with the hours they would have worked being reassigned to other days. To facilitate this, maximum working hours are calculated as an average over a 13-week period. Employees can’t work more than 10 hours per day over this time on average, but individual days can be longer.

Overtime in Austria

In Austria, work above 40 hours per week is considered overtime. An employee’s total hours can’t exceed 12 hours per day or 60 hours per week including overtime. Employees also can’t work more than an average of 48 hours per week over a 17-week reference period. There are exceptions for certain jobs and industries.

Overtime is compensated at 150% of the employee’s regular hourly rate. This is increased to 200% for work completed at night or on weekends. Alternatively, employees can be given time off at the rate of 1.5 days per day worked (or two days for night and weekend work). Some collective bargaining agreements stipulate higher rates of overtime. Employees have the right to refuse overtime if it would bring their total hours above 50 hours in a given week or 10 hours in a day.

Breaks and rest periods in Austria

Employees in Austria are entitled to at least a 30-minute break if they work more than six hours a day. Breaks are not considered part of an employee’s working hours in Austria and are typically not paid. They can be split into several breaks of at least 10 minutes each.

Employees in Austria are entitled to at least 11 hours of rest between shifts. Some collective bargaining agreements provide exceptions to this rule. For example, this can be shortened to 11 hours in the hospitality and catering industry.

Employees also have the right to a weekly uninterrupted rest period of at least 36 hours, beginning at 1pm on Saturday and including Sunday. This rule does not apply to employees performing shift work. However, if an employee works on weekends, they must have an uninterrupted rest period of 36 hours including a full day during the week.

Student working hours in Austria

Students from third countries who are studying in Austria on a student visa may work up to 20 hours per week alongside their studies. There are no limitations for students from EU or EEA countries (or Switzerland).

Remote work in Austria

As in many countries, remote work in Austria has become more and more common over the past decade. In 2023, 10.9% of people in Austria said they ‘usually’ worked from home compared to 8.9% across the EU. Because of this, the Austrian government recently introduced new rules on remote work in Austria, which employers should be aware of.

Remote work legislation in Austria

Austria’s remote work law was introduced in 2021. It provides a definition of remote work and sets out the terms and conditions that employers must abide by. By law, remote work must be carried out either from home or from the home of a close family member. Work performed in another space, such as a cafe or coworking space, is not covered by the legislation.

Remote work arrangements must be in writing and agreed between the employer and employee. Employers of remote workers must provide them with equipment including an internet connection or pay them a lump sum to account for the costs of working from home. Office equipment provided by the employer must meet certain ergonomic requirements. Either party can terminate a remote work agreement with one month’s notice if they have a valid reason.

Austria remote work visa

Following the global rise in remote work, many countries around the world have introduced remote work visas that allow employees to live and work in a new environment for a limited period, without being subject to the usual tax and immigration requirements. As yet, Austria doesn’t have such a visa. However, remote employees from the EU, EEA, or Switzerland can work remotely in the country for up to three months.

Tailored employment contracts in 100+ countries

Like all countries, Austria has its own rules and regulations when it comes to employment contracts — and non-compliance could land your company in hot water.

Thankfully, our team is experienced in drawing up tailored, compliant contracts in Austria (and more than 100 countries worldwide). That means that, when you work with us, you won’t need to waste time worrying about whether you’ve got it right. Instead, you can focus on what matters: your business.

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