- 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?
Global HR Compliance in Austria
If you hire an international workforce, or plan to hire, then Hiring and Firing Workforce in Austria Guide below will help you understand the nuances of labor legislation in the country.
When the company is planning to enter a new foreign market of Austria and has a need to employ a local national there, the first question to answer is how it is going to make local hires.
We have designed a Global Employer of Record service to help you outsource global employment of your foreign workforce to companies like ours.
This solution helps you employ your global sales force in Austria as well as in other 180+ countries of the world, and provide pay and benefits to your employees, as well as administer any business expenses with our help.
Our solution is different from other hiring modes in that it helps you engage your foreign workforce in full compliance with the local labor legislation. This means you are protected from any non-compliance and employee misclassification risks while we bear all employment risks, not you.
So, it looks very much like hiring your in-house sales force in your home country. However, you focus on only on your global business development while we admin your global HR. In addition, you don’t need to open your own entities in the foreign countries and can leverage our infrastructure in Austria instead. With our service, you can become a global company with reduced costs and minimized time and effort on your end.
Your employed foreign sales force will devote 100% of their time to your company product and may stay with you longer than foreign independent sales reps.
Global Employer of Record solution is 100% compliant solution that guarantees you and your employees fully compliance with local legislation in Austria .
We are experts in global workforce employment in Austria, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Austria.
Hiring and Firing Workforce in Austria Guide
You certainly cannot mention the top well-heeled countries in Europe without mentioning Austria. Austria has a very stable economy, is located in the center of Europe and thus is a focal point for East and West relations, has a well-developed transport infrastructure and a highly skilled workforce, to name but a few. Notwithstanding the foregoing, there are still some challenges that must be risen to so as to successfully penetrate and do business in Austria. The need for one to grasp and comply with the country’s employment regulatory framework is a case in point and failure to do that always poses a serious threat to one’s enterprise.
The good news is that there is an alternative way to go about this situation. All you need to do is employ the services of a locally sourced provider who knows the ins and outs of the employment law in Austria. Global employer of Record is all you need to do that.
Here are a few facts to be aware of concerning employment in Austria:
Contract of employment can be concluded explicitly in writing/orally or implicitly. In the event of an employer’s failure to provide a contract to his new employee, he will be required to give a written statement of the terms and conditions of the employment (service note) at the beginning of the employment relationship. The statement of the terms of employment must include name and address of the employer (and the employee), employment start date, place of work, job description and employee’s responsibilities, working hours, remuneration package and payment due date, annual leave rights, terms of notice, employment end date (for fixed-term contract) and features of collective/work agreement (if applicable).
Minimum statutory rights
Hours of work
Austrians generally work an eight-hour day and a 40-hour week although many industries have collective agreements which set the work week at 38 hours.
An employer and the employee can arrange to have probationary period, which by law must not take more than 1 month period, at the outset of the employment. In that case the employer will be required to include the agreed period of probation in the employee’s contract/service note. The employer or the employee has the right to cancel the contract of employment during the probation period without a statutory obligation to provide prior notice of termination.
All employees are entitled to a day off during each of the following public holidays which include New Year’s Day, Epiphany, Easter Monday, National Holiday, Ascension Day, Whit Monday, Corpus Christi, Assumption of the Virgin Mary, National Holiday, All Saint’s Day, Immaculate Conception, Christmas and St. Stephen’s Day/ Boxing Day.
Employees are entitled to a 5-week of paid annual leave after they have worked for more than 6 continuous months with the employer. Employees who are within their first 6 months of employment will be given their leave entitlement on a pro rata basis. Employers must increase the paid leave by one week for employees who have worked for 25 years. Employees have the right to discuss the actual days to take their leave with the employer who is required to consent to their choices. Annual leave does not include the days on which an employee fails sick whilst on leave.
Pregnant employees are entitled to 16 weeks of paid maternity leave, starting from the 2nd week of pregnancy till the 8th week after child delivery. An employee on maternity leave is paid by the relevant insurance provider with an amount that equals her average pay over the last 13 weeks before the leave. Parents are entitled to a minimum of 2 months of parental leave till the child reaches 2 years old.
In order to be entitled to a sickness cash benefit your physician has to certify your incapacity for work. There is a three day waiting period after the beginning of incapacity. Sickness cash benefit is usually paid from the fourth day onwards. If you do not report your incapacity for work within one week, the sickness cash benefit will only be paid from the date of notification.
Sickness benefit is not payable while you continue to receive your salary on the grounds of labour legislation. Full salary may be paid from six to 12 weeks, according to the length of service. After this period half of the salary is paid for another four weeks, and then half of the sickness cash benefit may be provided.
The standard time spent at work may be exceeded. In the case of overtime, employees are to be generally reimbursed with 50 percent extra pay, or 100 percent when the work is carried out at night, on Sundays or on holidays.
State minimum salary
An employee’s basic wage and the time of payment should be agreed upon and included in the contract/service note. National collective bargaining agreements set minimum wages by job classification for each industry and provide for a minimum wage of €1,200 ($1,289) per month.
Contract of employment can be ended by mutual consent without the requirement on any of the parties to provide a notice period. However, the employee’s right to receive a severance pay will remain untouched. Also, an employee may be dismissed with a cause without the need for notice from the employer.
Apart from these reasons, it is mandatory for an employer or an employee to terminate a contract with a statutory notice period or that agreed in the contract. An employee wishing to discontinue an employment relationship must give his employer a prior notice of one month period before doing that. On the contrary, an employer will have to give a minimum of 6 weeks’ notice to his employee before terminating his contract. The notice period to an employee can vary depending on his year of service to the company. An employee with more than 2 years of service must be given 2 months’ notice, employees with more than 5 years of service are entitled to 3 months’ notice, those with more than 15 years of service are entitled to 4 months’ notice and those with over 20 years must be given a 5-month notice.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Austria by providing you with an Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any requirement to set up a legal entity first or thereafter.