Hire in Austria

EOR in Austria

If a lack of speed or local expertise are among your top concerns when expanding to or employing workers in Austria, an employer of record may be the best option for achieving your global growth objectives.

An employer of record, sometimes known as an international PEO, enables you to quickly hire and onboard workers in Austria ―often in as little as two weeks―without having to take on the cost and risk of establishing a local entity.

Learn about the hiring, employment, payroll and benefits requirements for workers in Austria and how our employer of record service, EOR, and local HR experts can help you manage your international employment needs.

Hiring in Austria

Several federal statutes govern employment relations, including the Employees Act, Contract Law Adjustment Act, and Labor Constitution Act. Labor regulations are found in the General Civil Code. Austrian collective bargaining agreements, which often provide greater employee benefits than the minimum required by law, are another important source of labor law and cover most Austrian workers.

While written employment contracts are not required, the employer must provide a new employee with a written statement detailing the duties and terms of the job.

Employment contracts in Austria

As you look to hire employees in Austria, here are some standard regulations you’ll need to know to create a compliant contract, as well as how an employer of record and PEO can provide support for your unique HR needs.

Working hours

The Working Time Act sets standard working hours at eight a day and 40 a week.

Nursing mothers, pregnant women, and individuals under 18 are not required to perform night work (work done between 10 pm and 5 am).

Flexible work schedules generally consist of nonconsecutive days (e.g., Monday, Tuesday, Thursday, and Friday) that do not exceed nine hours each. However, collective bargaining agreements may raise the maximum to 12 hours.

Employers must provide employees with 11 hours of rest between work shifts. Additionally, employers must provide employees with a weekly uninterrupted resting period of 36 hours, starting on Saturday at 1 p.m. at the latest and including Sunday.

Work beyond 8 hours per day or 40 hours per week is considered overtime. Total hours worked including overtime is generally limited to 12 hours per day and 60 hours per week.

Compensation

As you consider the appropriate salary to offer new employees, keep in mind:

• The minimum wage is set by collective agreement rather than by law and at the industry rather than the individual enterprise level.
• Employees who work overtime must be given an equivalent amount of leave or a 50% surplus for the overtime hours, whichever they prefer.
• Overtime on Sundays, public holidays, or between 12:00 a.m. and 7:00 a.m. must be compensated at 200% of the employee’s regular rate.
• Remuneration is paid 14 times a year: 12 monthly salary payments plus two months’ pay in the form of a bonus.

As your employer of record in Austria, we can provide you with resources and insights about employee compensation, so you are better equipped to make a competitive employment offer.

Bonuses

There are no legally required bonuses under Austrian labor law, but most Austrian employers give their employees one month’s pay in the form of a Christmas bonus and another month for a holiday bonus.

Probationary period

The probationary period in Austria usually cannot exceed one month.

Termination and severance

Per the Austrian Labor Code, the length of the notice period that an employer must follow before dismissing an employee is usually proportional to the tenure of employment.

Employers must give white-collar employees at least six weeks to five months' notice to terminate them without cause.

Blue-collar employees must be given at least two weeks’ notice before termination.

An employee is generally entitled to severance pay unless the employee resigns without justification or is terminated by the employer for good cause.

Employee benefits and paid leave in Austria

When negotiating terms of an employment contract with a candidate in Austria, here are some of the statutory benefits and paid leave requirements to keep in mind, as well as how an employer of record can support your company’s benefits strategy.

Maternity leave

Per the Maternity Protection Act, typically, maternity leave lasts 16 weeks, with 8 weeks used before birth and 8 weeks after.

During maternity leave, the employee receives maternity pay from the social insurance system. Maternity pay is equal to 100% of the employee’s average earnings based on the last 13 weeks of employment.

Vacation

Under the Holidays Act, all employees are entitled to uninterrupted paid vacation of at least five weeks annually.

A proportional share of vacation time accrues during the first six months of employment (approximately two days per month); after the first six months of the first year of employment, the entire amount is given to the employee.

With the start of the second (and any subsequent) year of service, the employee continues to receive a salary while on vacation.

Employees with 25 years of service or more receive six weeks of paid leave.

Holidays

The following are the paid public holidays in Austria:

• New Year’s Day
• Epiphany
• Easter Monday
• International Workers’ Day
• Ascension
• Whit Monday
• Corpus Christi
• Assumption
• Austrian National Holiday
• All Saints’ Day
• Immaculate Conception
• Christmas
• St. Stephen’s Day

Holidays are always observed on the day on which they fall, even if they fall on a weekend. Holidays are not moved to the nearest Monday, nor do workers get a free day in compensation for a holiday falling on a non-work day.

Sick leave

Employees who are ill or injured may take paid sick leave for up to 12 weeks depending on their length of service. If the employee remains ill after the 12 weeks, they may take an additional 4 weeks of half-paid leave.

When paid sick leave from the employer is exhausted, the Health Insurance System provides partial pay for a maximum of 52 weeks.

Health coverage

Full old-age pensions may be collected by men at 65 and women at 60 (rising gradually to 65 between 2024 and 2033) with at least 180 months of coverage. Early retirement can be taken at 62 with reduced benefits.

The employee and the employer both contribute to social insurance to finance sickness, accident, unemployment and pension funds.

Additional benefits

In addition to healthcare benefits, employees in Austria are entitled to pension, which is funded by government tax revenues, as well as workers compensation, which is covered through mandated employer insurance.

Employer social costs will cover a large portion of employee benefits in Austria, but we can consult with you about supplemental coverage options, such as additional pension contributions or life insurance if needed.

Updated: January 18, 2024

Employee onboarding with an employer of record in Austria

We write and validate all local employment contracts, streamlining the onboarding process for you and your Austria employees—all you have to do is provide relevant information and review and approve the employment agreement. As your employer of record in Austria, we will:

• Schedule a welcome call to discuss HR and employment information for Austria, as well as answer any questions
• Prepare a customized employment contract in English or other local language
• Share the employment contract and benefits information with the new employee for signature and review
• Gather tax and banking information from the employee to set up payroll
• Provide a local point of contact to the employee to answer any questions regarding their employment, local HR or payroll

The entire onboarding process for the employee is often completed in as little as two weeks.

Partner with Safeguard Global as your Austria employer of record and PEO

With over a decade of service, we are the longest-serving employer of record and PEO provider in the international market. Organizations around the world rely on EOR, our employer of record solution, to expand and hire in 170+ countries around the world, quickly and compliantly.

We’ve seen just about every global employment circumstance imaginable—and with our extensive knowledge of local law and culture, we know what it takes to get employment right in Austria. We provide written contracts in the local language, salaries in the local currency and HR support in your employees’ time zone.

Additionally, as a global payroll provider we support payroll administration—including payments, filings and other calculations— all around the world and can accommodate the payroll outsourcing needs of any size organization.

Whether you’re looking to hire as part of a strategic expansion or to meet specific talent needs, our global solutions advisors can walk you through your international hiring options so you can make the right choice for your organization. Contact us today.

Disclaimer

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.