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Employment contracts and policies in Austria

Contract terms in Austria

Fixed-term contracts in Austria

Contract extensions in Austria

Working hours in Austria

Remote work in Austria

Tailored employment contracts in 100+ countries

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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FAQ's

How do employment contracts work in Austria?

An employment agreement may be made in writing, orally or through conduct, but putting the terms in writing gives both sides a clear record. A typical employment contract in Austria explains the role, pay, working time, place of work, leave and notice arrangements. It also needs to fit the law and any collective agreement that covers the job.

If there is no complete written agreement, the employer will usually need to provide a Dienstzettel (written statement of terms) immediately after the employment relationship begins. This records the main rights and obligations but does not replace the agreement itself. The employee can choose whether to receive it on paper or electronically.

The applicable collective agreement is important because it may set minimum pay, normal working hours, special payments and other conditions. Individual terms can be more favourable to the employee but cannot undercut mandatory legal or collectively agreed standards. That makes a short, role-specific written agreement the clearest foundation for the relationship.

Are written employment contracts required in Austria?

No, employment contracts in Austria do not generally have to be in writing. An employment relationship can be agreed orally or arise from the parties’ conduct. Written agreements are still strongly recommended because they make the role, pay and other conditions easier to prove if a question or dispute arises.

Where there is no written contract, or the contract does not contain all required information, the employer must usually give the employee a Dienstzettel (written statement of terms) immediately after employment begins. The official contract guidance lists the information it must cover. For employment relationships entered on or after 28 March 2024, a Dienstzettel is required even if the employment lasts no more than one month, unless a written contract already contains all the required information.

Some arrangements do require writing, including apprenticeship contracts and certain individual clauses. A complete written contract that includes all the mandatory details will normally remove the need for a separate statement. Failing to issue a required Dienstzettel does not make the employment relationship invalid, but it can expose the employer to administrative penalties.

What types of employment contracts are there in Austria?

The main choices are indefinite and fixed-term employment, with work performed on a full-time, part-time or marginal basis. An indefinite labour contract in Austria continues until one side ends it, while a fixed-term agreement normally finishes on the date or event agreed in advance.

The working pattern does not change the basic employment status. Full-time and part-time employees receive labour-law protection, and part-time staff must not be treated less favourably simply because they work fewer hours. Marginal employment is regular employment below the current social insurance earnings threshold, although its contribution treatment differs. Marginal employees remain covered by employment law and are automatically insured against workplace accidents, although broader social insurance coverage depends on the applicable rules and earnings.

Businesses may also engage people under a freier Dienstvertrag (free service contract) or a Werkvertrag (contract for work). These are not ordinary employment contracts and provide different protections. The label alone is not decisive. Authorities look at how the work is organised, including control, independence and whether the person owes ongoing services or a defined result.

What must a Dienstzettel include in Austria?

A Dienstzettel (written statement of terms) must record the main facts of the employment relationship in a clear written form. It is required when a complete written employment contract in Austria has not already provided the necessary information.

The statement covers the parties’ names and addresses, start date, workplace, role or intended use, classification, basic pay, other pay components and payment date. It also records normal daily and weekly hours, annual leave, notice rules and any probation period. For fixed-term work, it must state the end date. It must also describe the procedure the parties must follow when terminating the employment relationship.

It must also identify the applicable collective or works agreement and say where it can be inspected. Details of the social insurance institution and company employee-provident fund a and any employer-funded training entitlement are included where relevant. Extra information is required for an overseas posting lasting more than one month. The employer should provide the statement immediately after employment begins and notify the employee in writing of relevant changes immediately and no later than the date on which they take effect. A separate notification is generally unnecessary where the change results from legislation or a collective agreement already referred to in the Dienstzettel.

When can employers use a fixed-term contract in Austria?

Employers can use a fixed-term contract in Austria when the relationship is meant to last for an agreed period or until a clearly defined event. The contract normally ends automatically at that point, without ordinary notice. If either side should be able to end it earlier, the agreement needs an appropriate termination clause. Early termination may also be possible by mutual agreement or for a sufficiently serious legal reason.

There is no general statutory maximum term. The risk arises when several fixed-term agreements are renewed one after another. According to the Business Service Portal, repeated contracts may be treated as indefinite employment when there is no objective reason for the chain. The justification for each renewal should therefore be documented rather than relying solely on the parties’ agreement.

The end date must appear in the Dienstzettel (written statement of terms), and fixed-term staff must be told about available permanent roles. This information may be provided through a general workplace announcement that the employees can access. If the employee continues working after the fixed term expires and no further fixed term is agreed, the relationship will generally continue indefinitely.

The applicable collective agreement may add further rules, so the proposed term, renewal reason and early-exit wording should be checked before the contract is issued.

Can an employer change the terms of an employment contract in Austria?

Not unilaterally in most cases. An employer generally cannot make a significant contractual change without the employee’s agreement. Changes to pay, working hours, duties or the regular workplace should be discussed, agreed and recorded in writing so the updated employment contract in Austria is clear to both sides.

Some contracts contain limited flexibility clauses, but these do not create an unlimited right to rewrite the job. Any instruction must stay within the agreed role and comply with legislation, the applicable collective agreement and any works agreement. A change that leaves the employee worse off than a mandatory standard will not be valid simply because it appears in a contract amendment.

When the employee agrees, the employer should issue a signed addendum or updated agreement and revise the Dienstzettel (written statement of terms) where needed. The required written notification should normally be provided no later than the date on which the change takes effect.

If agreement is not possible, imposing the change can create pay claims or a dispute. Material changes are best reviewed before implementation, particularly where a works council is involved. For example, a transfer expected to last at least 13 weeks that worsens the employee’s pay or other working conditions may require the works council’s consent.

What is a Kollektivvertrag and how does it affect employment contracts in Austria?

A Kollektivvertrag (collective agreement) sets binding employment standards for the businesses and employees within its scope. Most sectors are covered, so employment contracts in Austria are often shaped as much by the relevant collective agreement as by the individual wording.

Coverage usually follows the employer’s industry and Economic Chamber membership, although the employee’s role and the agreement’s scope rules also matter. The agreement may set minimum salary bands, job classifications, normal working hours, overtime premiums, annual increases, special payments, leave rights and notice provisions.

An individual contract can normally offer better terms, but it cannot reduce a right that the collective agreement makes mandatory. Employers need to identify the correct agreement and classification before setting pay or drafting the contract.

They should also keep track of annual revisions and make the current text available at the workplace. Getting the classification wrong can lead to back pay and related contribution adjustments.

What are employers’ obligations when managing employment contracts in Austria?

Employers must keep contract terms clear, apply the correct collective agreement and maintain accurate written records throughout employment. Good management of an employment contract in Austria begins before the start date and continues whenever pay, duties, hours or other terms change.

The employer must provide a complete written agreement or, where required, a Dienstzettel (written statement of terms). The employee also needs to be registered for social insurance before starting work. Pay, working time, leave, health and safety, equal treatment and data protection rules must then be followed in day-to-day practice.

Contract wording should match the employee’s real working arrangement. This is especially important when distinguishing employment from a free service or work contract. Employers should document agreed amendments, monitor collective agreement updates and retain payroll and employment records for the required periods. At the end of the relationship, the correct notice, final pay and deregistration steps must also be completed. Social insurance deregistration must generally be filed within seven days after compulsory insurance ends.

What is the difference between a freier Dienstvertrag and a Werkvertrag in Austria?

A freier Dienstvertrag (free service contract) covers ongoing personal services with substantial freedom over how the work is done. A Werkvertrag (contract for work) is tied to delivering a defined result. Neither is an ordinary labour contract in Austria, and the distinction changes the worker’s protection and tax position.

Under a free service arrangement, payment commonly relates to time worked, the person is only partly dependent on the client, and the client may provide key resources. Labour-law rights are limited unless expressly agreed or covered by a specific collective agreement, although social insurance can apply. Where the applicable earnings and statutory conditions are met, the client must register the free service contractor for social insurance. The contractor is generally responsible for their own income-tax obligations.

Since 1 January 2026, statutory termination rules also apply to indefinite free service contracts unless a more favourable arrangement applies. They generally allow termination on the 15th or final day of a month with four weeks’ notice, increasing to six weeks after two years of service. Collective agreements and minimum-pay rules can also expressly cover free service contractors from that date.

With a work contract, the contractor controls the method, usually uses their own resources, carries the risk of defects and completes the engagement by delivering the promised result. Employment rights such as paid leave and collectively agreed minimum pay do not normally apply. Authorities look beyond the title to the real facts, so a contract cannot safely disguise dependent employment.

Why do global businesses use CXC for employment contract management in Austria?

Global businesses use CXC to manage compliant employment contracts in Austria without having to manage local contract requirements themselves.

CXC prepares employment contracts based on the employee’s role, working arrangement and applicable collective agreement. This is particularly important in Austria, where collective agreements can determine minimum salary, job classification, working hours, allowances and other employment terms.

We also support contract changes, renewals and offboarding, helping your HR team manage Austrian employees alongside teams in other countries.

With more than 30 years of workforce management experience and coverage across 100+ countries, CXC can support both individual hires and larger international workforces.

Speak to our team to learn more about employment contract management in Austria with CXC.

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