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Austria

How to Hire Workers in Austria | Employer of Record (EOR) in Austria

Expanding into Austria? Our EOR services provide comprehensive support tailored to the Austrian market. We help you navigate local labor laws and cultural nuances, ensuring compliance and smooth operations. From Vienna to Salzburg, our expertise in Austrian employment regulations allows you to establish your business with ease, knowing that you have a reliable partner managing your international employment needs.

Why You're Here!

Austria, a country renowned for its picturesque landscapes, rich history, and strong economy, offers a wealth of opportunities for businesses. TCWGlobal simplifies the process of hiring in Austria, offering personalized services tailored to your specific needs.

With a population of over 9 million people, Austria boasts a highly skilled and educated workforce. From the historic streets of Vienna to the stunning mountains of the Alps, Austria offers a unique blend of culture, history, and natural beauty.

When it comes to expanding your business into Austria, TCWGlobal understands the importance of compliance and local regulations. Our team of experts ensures that your workforce is fully compliant, allowing you to focus on growing your business.

In addition to compliance, TCWGlobal also offers customized benefits and services for your workforce. Whether you need assistance with payrolling management, benefits administration, or any other aspect of HR, our team is here to help.

By partnering with TCWGlobal, you can rest assured that your expansion into Austria will be seamless and successful. Our comprehensive services, combined with our local expertise, make us the ideal partner for businesses looking to expand into this dynamic market.
Fixed-Term Contracts

In Austria, fixed-term contracts are permitted. There are no minimum or maximum limits on a single fixed term contract, renewals do require objective economic and social justification, or they will be reclassified as an indefinite contract. Fixed term contracts can only be terminated before the agreed expiration for cause or by mutual agreement.

Holidays

In Austria, Workers recognize 13 paid public holidays. Unless otherwise dictated by CBA, work performed on a public holiday should be compensated at double pay.

Vacation

Workers on a five-day workweek are entitled to 25 days of paid vacation annually (30 for Workers on a six-day workweek). Entitlement increases after 25 years of service to 30 days for a 5-day work week and 36 days for 6-day work week. Accrued but unused leave carries over year to year for a maximum of two years. Upon termination, unused vacation shall be paid as an allowance in lieu of taking annual leave. 

Worker Classifications

Senior managers are occasionally exempt from certain labor laws and CBAs.

Probationary Periods

Except as it relates to apprentices, probationary periods cannot be longer than one month. During a probationary period, either party can terminate the agreement without a reason and without observing notice periods or termination entitlements. During the probationary period, Workers receive all benefits except for annual leave, which is available after 6 months of service.

Sick Leave

Workers are entitled to full salary for up to six weeks during a period of injury or illness. The entitlement increases to eight weeks after one year of service. After that period is exhausted, Workers are entitled to an additional four weeks of half-pay.

Working Hours

A regular workweek is Monday through Friday, eight hours per day, 40 hours per week. Workers are entitled to 36 consecutive hours of rest weekly, including Sunday. Rest breaks are unpaid unless stipulated to in a collective bargaining agreement.

Overtime

Unless otherwise stipulated or dictated by collective agreement, work in excess of normal working hours should be compensated at 150% of wages (200% in cases of night work or Sunday work). Working hours, including overtime, must not exceed 12 hours per day or 60 hours per week. Workers may refuse overtime in some instances.

Mandatory Bonuses

Workers receive 13th and 14th month bonuses, each equal to one month's wages. The former is generally issued in June and the latter in December. 

Termination

Except in cases of misconduct, dismissals require adequate notice based on length of service as outlined below or the equivalent pay in lieu: Up to 2 years of service: 6 weeks 2 years to 5 years: 2 months 5 years to 15 years: 3 months 15 years to 25 years: 4 months 25+ years: 5 months The default termination date is the end of the quarter. However, the 15th or end of the month can be agreed to within the employment contract.

Resignation

Workers must give at leave one months' notice of resignation regardless of their length of service. The parties can contract to increase the notice period up to six months. 

Other End of Employment Rules

Employers must notify the labor brand of the public employment services (AMS) if they intend to dismiss a group of Workers if their total employee count meets a certain threshold. Failure to inform the AMS no later than 30 days in advance could result in the dismissal being deemed unlawful.

Mandatory Employer Costs

Generally, Workers are entitled a contribution to their social insurance (appx. 21%), a pension fund (appx. 1.5%), and a family equalization fund (appx. 4%). Municipal tax (3%) must also be paid as a contribution. 

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.