- Overview: Austria
- Global HR Compliance
- Global PEO and payroll
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Are you looking to engage and pay offshore IT developers in Austria?
Find out how you can make an informed decision on whether you should engage and pay employees or independent contractors using our free ‘Employee vs. Independent Contractor’ Checklist.
Designed to be used by companies engaging remote workforce in Austria, the checklist is the best way to define why and in what cases companies should onboard new hires or convert existing contractors/freelancers into employees without missing any crucial aspects.
For a company, engaging top-of-the-line foreign talent is like having a superpower
How to engage and pay Austria-based developers without opening or while liquidating your own legal entity company in Austria?
- How to attract high-caliber global IT talent to augment your in-house team while saving costs compared to hiring inside the home country?
- How to onboard key IT minds immediately without delaying a hire date?
- How to retain the best people and become an enticing employer even that you are not Google?
The Sources of Employment law in Austria
Austrian labor law has not yielded many changes during the last decade. Still, industry professionals strongly recommend getting to know the law and its regulations before doing any business in the country. Law and taxation breaches may lead to a set of very strong penalties and further activity limitations for the company. Thanks to strong Austrian employment law that strictly protects full-time employees, there are little to no court cases happening.
Employment Regulations in Austria
There are three kinds of employment contracts in the country:
- regular employment contracts
- service employment contracts
- freelance employment contracts.
Traditional employment contracts all share similar criteria:
- stable place of work
- control over working hours and presence
- equipment provided by the company
- strict ban for additional work
- employer supervision and instructions
- company policies obedience.
Unfortunately for freelancers and other temps in Austria, Employment law is not called to protect their interest. The majority of proceedings follow case law practices.[/vc_column_text][vc_column_text]At Acumen International, we help you handle all of these challenges. We can onboard and pay your foreign IT staff on your behalf in 190+ countries with 100% legal compliance. When competing in the war for sought-after IT talent, you often wonder…
- Is it prudent to engage and pay international IT staff on my own entities in Austria? Is it realistic for my current goals and future opportunities?
- Or is engaging freelancers a good fit for my company?
Finding the answers doesn’t have to be complicated or time consuming.
What Our Clients Are Saying?
I’d like to share my experience dealing with Acumen International company.
Speed & responsiveness: Very prompt in response from my first enquiry about converting contractors into employees to follow up questions.
Completeness of information: I like how detailed the estimates and the transparency makes us feel more confident in knowing where the money goes to.
Overall experience: I am pleased and impressed with how fast they respond to my enquiries. We can trust the company to employ the contractors we want to keep.
Quah Shen Dee,
People Success Officer
I always found Acumen International very supportive, professional and helpful. They pay salary on time and are always ready to sort out any issues that arise.
I must admit I truly enjoy my time as an Acumen International employee and feel like they care about me as an individual. I have my own dedicated manager that provides me with detailed explanations when it’s needed. Payments are always prompt and the entire team does its best to respond to any of my questions.
I highly recommend Acumen International to anyone that requires their services.
The Top 5 Reasons to Convert Austrian
FREELANCERS into FULL-TIME EMPLOYEES
We’ve recently noticed an uptick in IT companies’ desire to hire the brightest minds and eliminate the risks of independent contractor misclassification in Austria and all over the world. But with more and more companies competing for these contractors, the more they are shying away from converting their existing freelancers & independent contractors into full-time employees.
You don’t have to be one of those companies
Here’s Out a Litigation You Definitely Would Want to Avoid…
One American company was working on a full-time basis with a Slovakian IT freelancer for approximately three years. The American HR director decided to contact Acumen International to employ this freelancer to eliminate the risk of employee / independent IT contractor misclassification in the future.
The US finance department did not approve of our offer to employ the Slovakian freelancer as it seemed higher than what they were currently paying the freelancer. An employee misclassification case did not seem imminent, so they decided not to act.
Half a year later the same company contacted us to employ the Slovakian freelancer. Our offer got approved but the freelancer refused to sign our employment agreement. In this half year, the relationship between the freelancer and the US company went sour. The freelancer decided to go to the labor authorities instead. We never heard the ultimate verdict but from communication with the HR director we understood that they risked paying the due social security taxes, vacation, severance payment and additional fines. The total claimed amount was approximately 70.000 EUR.
Together with 100% compliance, official PEO employment of a foreign person in Austria ensures:
- NO business risks: secured customer base and intellectual property
- On-site customer support and in-depth knowledge of local business culture
- Local managers speak your language
- Your time and money saved
- Less time spent on recruitment, evaluation, onboarding of globally distributed teams of professionals, or a learning curve
To make it easy for you to choose between the two options, we have designed our ‘Employee vs Independent Contractor’ Checklist
Hidden benefits of hiring and payrolling foreign employees vs independent contractors in Austria:
- Engaging and paying foreign talent via a global PEO solution is about 30% cheaper than engaging in-house
- Saves around 50% costs compared to working and paying through your own entity
- With the help of employment, employee loyalty grows by 47%, which is why you can retain the top minds long-term
- Official foreign employment eliminates 95% of legal, financial, and business risks. Also, using this service you can get the flexibility and take up more projects of different duration. You can start a bare-bones operation in Austria with just one or a couple of employees and easily add any headcount as you move along.