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Expand Your Employer of Record Services In Austria
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Expand Your Employer of Record Services In Austria
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Expand Your Employer of Record Services In Austria
Expand Your Employer of Record Services In Austria
Expand Your Employer of Record Services In Austria
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Austria At a Glance
Austria At a Glance
Austria At a Glance
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Country Information
Easily navigate Austria’s Employment Landscape
Easily navigate Austria’s Employment Landscape
Easily navigate Austria’s Employment Landscape
Discover everything you need to know about working in Austria with our in-depth resources. From employment regulations and work permits to employee rights and tax obligations, we provide clear, reliable guidance to help you confidently navigate every step of your career journey in Austria.
Weekly Working Hours
National Holidays
Leave
Types of Employment
Employment Costs
IC Class Factors
Labor Leasing
Minimum Wage
Medical Benefits
Probationary Periods
Termination Notice
Severance
Understanding Weekly Working Hours in Austria
Explore Work hours Employee rights in Austria
Explore Work hours Employee rights in Austria
Explore Work hours Employee rights in Austria
In Austria, the standard workweek is capped at 40 hours, ensuring a balanced approach to employee well-being and productivity. Any hours worked beyond this limit qualify as overtime, compensated with a minimum 50% pay premium during regular daytime hours. In many sectors, collective agreements provide even higher rates — often up to 100% for overtime performed at night, on weekends, or on public holidays. These regulations ensure fair compensation and a healthy work-life balance for all employees in Austria.
Public Holidays and Employee Leave in Austria
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Overview of Public Holidays & Employee leave
Austria recognizes several national holidays, giving employees paid time off to rest and celebrate. In addition, workers are entitled to various forms of leave, including annual, sick, maternity, and parental leave. Special leave may also be granted for occasions such as marriage, childbirth, bereavement, or relocation, ensuring a healthy balance between professional and personal life.
Understanding Weekly Working Hours in Austria
Explore Employment Contracts & Costs in Austria
Explore Employment Contracts & Costs in Austria
Explore Employment Contracts & Costs in Austria
In Austria, employers must issue written employment contracts that clearly define job duties, compensation, benefits, and workplace policies in accordance with national labor regulations. The Austrian labor system recognizes several
Types of employment
It including permanent employees, temporary agency workers, service contracts, and independent contractors.
Employers also bear an average employment cost of around 29.61%, covering mandatory contributions such as health, pension, unemployment, and accident insurance. Additional surcharges may apply for blue-collar workers, while certain insurance costs are capped for higher salary brackets, ensuring fairness and compliance across all employment arrangements.
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ICC classifications, labor leasing, and wage rules in Austria
Labor Regulations & Independent Contractor Classification in Austria
Labor Regulations & Independent Contractor Classification in Austria
Labor Regulations & Independent Contractor Classification in Austria
The key difference between a Freelance Service Contract and a Service Contract lies in work independence. Freelancers operate freely, managing their own schedule, workflow, and substitutes without fixed attendance. In contrast, a Service Contract focuses on achieving a defined result, with clearly outlined terms and limited flexibility, though the contractor still works independently.
Labor Leasing
Assigning temporary or contract workers to perform duties at a third-party location in Austria is only permitted with a valid labor leasing license, ensuring compliance with national employment regulations.
Minimum Wage Requirements
Austria does not enforce a single statutory minimum wage. Instead, pay levels are determined through collective bargaining agreements and industry-specific wage scales, which set the minimum salary standards for different sectors and occupations.
How pay and health coverage apply during employee illness in Austria
Medical Benefits in Austria
Medical Benefits in Austria
Medical Benefits in Austria
In Austria, employees are protected by strong medical and sick pay benefits. When an employee becomes unable to work due to illness, the employer must continue paying remuneration, which includes not only base salary but also average overtime and bonuses.
Initially, the full salary is paid by the employer, followed by a half-pay period, during which the employee also receives half of the sick pay from the health insurance fund. Once this phase ends, the health insurance fund covers the full payment.
The length of continued full remuneration depends on the employee’s tenure:
1st year: 6 weeks full pay + 4 weeks half pay
2–15 years: 8 weeks full pay + 4 weeks half pay
16–25 years: 10 weeks full pay + 4 weeks half pay
26+ years: 12 weeks full pay + 4 weeks half pay
These provisions ensure financial stability for employees during illness while balancing employer obligations under Austrian labor law.
Key rules governing probation duration and employer notice requirements.
Probationary Periods & Termination Notice in Austria
Probationary Periods & Termination Notice in Austria
Probationary Periods & Termination Notice in Austria
In Austria, the probationary period for both blue-collar and white-collar employees lasts up to one month, allowing either party to end the employment relationship at any time without notice. While collective agreements may shorten this period, they cannot extend it beyond the one-month limit.
After the probationary period, termination notice periods increase with the length of employment:
1–2 years: 6 weeks
3–5 years: 2 months
6–15 years: 3 months
16–25 years: 4 months
26+ years: 5 months
Collective agreements may further define or adjust these notice terms, ensuring fair treatment and clarity for both employers and employees.
How termination compensation and background screening are regulated under Austrian labor law
Severance Pay & Pre-Hire Checks in Austria
Severance Pay & Pre-Hire Checks in Austria
Severance Pay & Pre-Hire Checks in Austria
In Austria, severance pay is determined by the total compensation an employee would have earned during the applicable notice period. Starting from the second month of employment, employers must contribute 1.53% of the employee’s gross salary each month to the severance pay fund via the health insurance system. Upon termination, employees may claim these accumulated funds if specific eligibility conditions are met.
Employers may also conduct background and online checks during the hiring process, including social media research. However, the use of such information is restricted to what is relevant and necessary for establishing or maintaining the employment relationship, ensuring compliance with Austria’s data protection and privacy laws.
