Austria: Implementation of EU Directive on transparent and predictable working conditions leads to new employer obligations

Employment contracts must include further information

Employees and freelancers already had the right to be informed by the employer of certain working conditions in writing, such as the duration of the employment and notice periods, the place and time of work, remuneration and others.[1] Now, as of 28 March 2024, employment contracts must contain the following additional information:

• termination notice procedure to be observed;
• registered office of the company;
• brief description of the work to be performed;
• remuneration for overtime;
• method of remuneration payment;
• conditions for changing shift schedules (Schichtpläne);
• name and address of the competent social insurance institution;
• duration and conditions of an agreed probationary period;
• entitlement to further training (Fortbildung) provided by the employer.

Employees working abroad outside Austria also need to be provided with further information, such as any higher minimum wage in accordance with foreign law, reimbursement of expenses, and the national website regarding the working conditions of the state in which the work is to be performed.

Alternatively, employers must hand over a service sheet (Dienstzettel) containing the above information to the employee or freelancer.

The new regulations only apply to employment or freelance contracts concluded on or after 28 March 2024. However, it is recommended that the employment or freelance agreement templates that will be used for future employment or freelance relationships be reviewed.

If employers do not comply with their obligation to inform employees accordingly, administrative penalties of between EUR 100 and EUR 436 may be imposed. These rise to EUR 500 to EUR 2,000 if more than five employees are concerned or in case of repeated violations.

Multiple employment is legally permitted

The newly implemented regulations now expressly stipulate that employees are entitled to enter into employment relationships with other employers, regardless of an existing employment relationship.[2]

Subject to the individual circumstances, the employer may still demand that the employee refrain from being employed by another employer if this is incompatible with working time regulations or "detrimental" to the existing employment relationship.

Special regulations for employee trainings

The new regulations also clarify employee rights regarding further training and qualification.[3] If the work requires specific education, training or further qualification, attendance at any applicable training will qualify as working time and the employer must bear the related costs.

[1] Sec 2 Labour Contract Law Adjustment Act – Arbeitsvertragsrechtsanpassungsgesetz AVRAG, Sec 1164a General Civil Code – Allgemeines bürgerliches Gesetzbuch.

[2] Sec 2i AVRAG.

[3] Sec 11b AVRAG.

authors: Sebastian Müller, Hanna Kirschner