Background Checks

Employers can conduct criminal and credit reference checks only for specific roles (e.g., finance positions) and must adhere to proportionality requirements. Reference and education checks are common but require applicant consent.

Verification and New Hire Reporting

• Employment verification laws regulate background checks and reference verification, ensuring compliance with privacy laws.
• Employers must report new hires to relevant authorities to maintain transparency and legal compliance

Onboarding Process & Documentation

Collecting Required Documentation

• Employers must verify an employee’s identity and work authorization within three business days of their start date.
• The I-9 form is essential for compliance, ensuring proper documentation of employment eligibility.
• Employers must maintain secure records to avoid penalties for non-compliance

Providing Employee Rights and Obligations

• Employees must receive a written summary of their rights, including salary, working hours, and job responsibilities.
• Collective Bargaining Agreements (CBAs) may apply, setting industry-specific employment conditions.
• Employers must comply with anti-discrimination laws, ensuring fair treatment in hiring and employment

Healthcare

Mandatory Health Insurance

• Upon starting employment, employees are automatically registered with the relevant health insurance fund (e.g., Österreichische Gesundheitskasse – ÖGK or other specific funds).
• This insurance covers a wide range of medical services, including doctor visits, hospital care, medication, and rehabilitation.

Supplementary Private Health Insurance

• While the statutory system offers comprehensive coverage, many individuals opt for additional private health insurance.
• Employers may provide group plans at preferential rates, covering part or all of the premium.
• Although not legally required, private insurance enhances employee benefits, offering expanded services and greater flexibility, making it an attractive option for recruitment and retention.

Employer Compliance

• Employers must accurately calculate and remit health insurance contributions as part of overall social security payments.
• They must ensure timely registration and de-registration of employees with the designated health insurance fund.

Retirement

Austria operates a mandatory state pension system, funded through social security contributions from both employers and employees. The pension amount is determined by the employee’s years of contributions and earnings history. In addition to the state pension, Austria offers two main types of supplementary pension schemes:

1. Occupational Pension Schemes (Betriebliche Altersvorsorge)

These voluntary employer-sponsored pension plans come in various forms, including:

• Direct insurance policies
• Pension funds
• Provident funds

Employers often contribute to these plans, and employees may also have the option to make voluntary contributions. As retirement planning evolves, these schemes are becoming an important supplement to the state pension.

2. Private Pension Schemes (Private Altersvorsorge)

Individuals can independently invest in private pension insurance policies to enhance their retirement savings. While employers may encourage these plans, they are generally not involved unless they provide financial advice or offer salary sacrifice options.

Employer Considerations

Offering an occupational pension scheme can be an effective way for employers to improve their benefits package, demonstrating a commitment to employees’ long-term financial security.

Proper compliance requires:

• Adhering to the specific regulations governing occupational pension schemes.
• Ensuring accurate contributions and tax handling.

Social Security

Austria’s social security system is funded through mandatory contributions from both employers and employees, covering health, pension, unemployment, and accident insurance.

Contribution Rates (Approximate)

• Employers contribute 20.33%, while employees contribute 16.92% of the gross salary.
• Accident insurance is fully covered by employers, with no employee contribution.
• Rates may fluctuate based on income thresholds and legislative changes.

Employer Responsibilities

• Calculate and deduct the employee’s share.
• Remit total contributions to the designated social security institutions.

Employment Contract Details

While verbal agreements are legally valid, employers must provide a written summary of essential terms, including salary, working hours, and job responsibilities.

• Collective Bargaining Agreements (CBAs): Many industries follow CBAs, which set minimum employment conditions, including wages and benefits.

Probation Period

Employment contracts often include probation periods, typically lasting one to six months, during which termination is easier for both parties.

Visas

• Short-Term: Schengen Visa (Type C), Transit Visa.
• Long-Term: National Visa (Type D), Job-Seeker, Red-White-Red Card, Work, Student.
• Documents: Passport, application, photos, financial proof, insurance, accommodation.
• Processing: 15–30 days (Schengen); longer for National Visas.
• Family Reunification: Requires marriage/birth certificates and basic German skills.

Independent Contractors

Independent contractors (freelancers) have limited protection under labor laws but receive almost full social insurance coverage.

• Independent contractors are covered by unemployment insurance.
• Freelancers do not receive statutory benefits like paid leave or severance pay, unless explicitly agreed upon in their contract

Paid Time Off

Leave accrues from the start of employment, and unused leave can be carried over to the following year. Some collective bargaining agreements may offer different terms.

• Employees who have completed six months of service are entitled to five weeks (25 working days) of paid annual leave per year.
• Employees with less than six months of service leave is accrued at a rate of two working days per month.
• After 25 years with the same employer, annual leave increases to six weeks (30 working days).
• Up to 12 years of prior employment or education may be credited, reducing the required service time to 13 years.

Public Holidays

• New Year’s Day
• Epiphany
• Easter Monday
• Labor Day
• Ascension Day
• Whit Monday
• Corpus Christi
• Assumption Day
• National Day
• All Saints’ Day
• Immaculate Conception
• Christmas Eve (Half Day)
• Christmas Day
• Saint Stephen’s Day
• New Year’s Eve

Bereavement

Employees are entitled to 1- 3 days of leave for the loss of a family member.

Maternity Leave

Expectant mothers are prohibited from working during:

• 8 weeks before the due date.
• 8 weeks after birth (extended to 12 weeks for Caesarean sections or high-risk deliveries).

Maternity leave is paid via a weekly allowance from social security, calculated based on average earnings from the last three months before leave.
After 16 weeks, mothers can take unpaid leave until the child turns two years old. During this period, they receive childcare pay under the Child Care Payment Act.

Paternity Leave

Fathers can take one month of unpaid paternity leave (commonly called “Daddy Month”), any time before the child’s second birthday.

• To qualify, employers must be notified at least three months before the estimated birth date.

Parental Leave

Parental leave begins after maternity leave and lasts until the child turns 24 months old.

• Parents receive childcare pay from social security during parental leave.
• Fathers can share maternity leave with mothers but can only switch leave periods twice, with at least two months between changes.
• Both parents cannot take parental leave at the same time.

Sick Leave

Sick leave entitlement depends on length of employment:

• 1 year of service: 6 weeks full pay, 4 weeks half pay (covered by employer).
• 2–15 years of service: 8 weeks full pay, 4 weeks half pay.
• 16–25 years of service: 10 weeks full pay, 4 weeks half pay.
• 26+ years of service: 12 weeks full pay, 4 weeks half pay.

Additional sick leave beyond these entitlements is covered by social security. A medical certificate is required to validate sick leave.

Termination Requirements

At this time, Vensure does not have termination requirement details available.

Notice Period

The required notice period depends on an employee’s length of service:

• Up to 2 years: 6 weeks’ notice
• 2–5 years: 2 months’ notice
• 5–15 years: 3 months’ notice
• 15–25 years: 4 months’ notice
• 25+ years: 5 months’ notice

Employers and employees may agree to extend the notice period by up to six months through a contractual agreement or collective bargaining agreement.

Severance Pay

Austria has two statutory severance pay systems, based on the employee’s start date:

Old Severance Pay (Before January 1, 2003)

• Employees have a direct severance claim against the employer, except in cases of voluntary resignation or dismissal for cause.

New Severance Pay (After December 31, 2002)

• Employers must pay 1.53% of the gross salary monthly into an external company pension fund (Betriebliche Vorsorgekasse).
• Employees do not receive severance pay directly from the employer—instead, they have a claim against the fund.
• Severance pay is available regardless of how the employment relationship ends, though exceptions and waiting periods apply.

Unemployment Insurance

Austria provides unemployment benefits to individuals who meet specific eligibility criteria. Here’s an overview:

Eligibility Requirements

• First-time claimants must have been insured of unemployment for at least 52 weeks within the last 24 months.
• If an individual has previously received unemployment benefits, they must have been insured for at least 28 weeks within the last 12 months.
• Applicants must register with the Austrian Public Employment Service (AMS) to receive benefits.

Unemployment Allowance

• The amount and duration of benefits depend on prior earnings and employment history.
• Young workers under 25 years old may qualify with only 26 weeks of insured employment.
• If unemployment benefits are exhausted, individuals may be eligible for emergency assistance, subject to specific conditions.

Anti-Discrimination Practices

The Equal Treatment Act (GlBG) prohibits workplace discrimination and harassment based on gender, ethnicity, religion, age, sexual orientation, or disability.

Employers are legally obligated to prevent and address harassment, including sexual harassment.

Employees who experience harassment can seek compensation and challenge unfair dismissals in court.

Workplace Safety Standards

Employers must assess risks, provide safety training, and ensure a healthy work environment.

Regulations cover workplaces, equipment, hazardous substances, and health surveillance

Workers’ Compensation

Employers must provide compulsory insurance for workplace accidents and occupational illnesses.

• The Social Insurance Institutions oversee compensation for medical treatment, rehabilitation, and lost wages.
• Employees injured at work receive financial support and medical care through Austria’s social security system.

Labor Law Sanctions

Labor Constitution Act (Arbeitsverfassungsgesetz): This act regulates collective bargaining, works councils, and employee representation.

Employment Contract Law (Dienstvertragsrecht): This law imposes that employers who do not adhere to contract terms or violate employee rights can face fines and legal consequences.

Working Hours Act (Arbeitszeitgesetz): This act regulates working hours, overtime, and rest periods can lead to fines and penalties.

Occupational Health and Safety Act (ArbeitnehmerInnenschutzgesetz): This law imposes that employers who do not adhere to health and safety standards can face significant fines and orders to rectify unsafe conditions.

Anti-Discrimination Laws: Discrimination based on gender, age, disability, or other nprotected characteristics can result in fines and legal action.