Austria implements EU Transparency Directive

The move comes after some delay, as implementation by the EU member states was required by 1 August 2022. The new legislation amends several existing labour laws. It officially came into force on 28 March 2024 and is to be applied to employment relationships entered into after that date.

Existing labour legislation contains a list of information that employers must provide to their employees in the form of a written notice of employment. These include the name and address of the employer and the employee, the start and duration of the employment relationship, notice periods/dates, usual place of work, classification in the relevant collective bargaining agreement, intended use, amount of basic salary, and the agreed daily or weekly normal working hours of the employee.

This list of necessary information has now been supplemented by a number of additional points, namely:

• a reference to the dismissal procedure to be observed;
• the name and address of the social insurance institution;
• the registered office of the employer;
• a brief description of the work to be performed;
• the remuneration granted for overtime;
• duration and conditions of any agreed probationary period; and
• if applicable, the entitlement to further training provided by the employer.

Including the required information in the written employment contract is equivalent to issuing a notice of employment; in practice, this information is regularly provided in the employment contract itself and no separate notice of employment is issued. The correct (formal) drafting of the employment contract is all the more important now, since this latest amendment for the first time introduces a sanction for violating the information obligations. Administrative penalties of EUR 100 to EUR 436 or, in the event of a repeat offence, of EUR 500 to EUR 2,000 can be assessed.

The new law also states that the written notice or employment contract of employees working abroad for more than one month must contain further information, including:

• any higher minimum wage in accordance with the law of the country in which the work will be performed;
• the reimbursement of expenses according to Austrian and foreign law; and
• a mention of the national website regarding the working conditions of the country in which the work will be performed.

The new law grants employees the right to enter into employment relationships with more than one employer at the same time. Previously, this was regularly made dependent on the employer’s consent in the employment contract. The original employer can now only prohibit employees from entering into additional employment relationships when they are either (i) incompatible with working time regulations (in which case the employer is potentially liable for exceeding the maximum working time limits if the working hours of all employments are added together) or (ii) if the second employment is detrimental to the existing employment relationship.

The new amendments stipulate that participation in training, further education and advanced training is to be regarded as working time. The costs must be borne by the employer (unless reimbursed by a third party) if the completion of the training, further education or advanced training is a prerequisite for the employee’s job. The previously customary agreement on (partial) reimbursement of training costs is therefore not enforceable, even if the training can also be used beyond the current job and thus increases the employee’s future value in the labour market.

The new amendments include a general prohibition on dismissal, summary dismissal or other retaliatory measures against employees due to the assertion of the rights discussed above.

The legislation requiring a notice of employment (‘Dienstzettel’) for freelance relationships has been expanded to include the new information requirements discussed above.

Similarly, the requirements for assignments in the personnel leasing legislation have also been adapted to reflect the changes to the information requirements. In the case of a lease to a foreign user undertaking, the legislation now also includes an obligation to provide the employee with information regarding the reimbursement of expenses and regarding the national website on the posting of workers of the host country. The corresponding Austrian website is the platform for posting.

Finally, the legislation covering white-collar employees, which imposes a non-competition duty for employees during the employment, has been amended to include a reference to the new rules allowing multiple employment.

It is not necessary for employers to revise existing employment contracts, because the new legal situation expressly only applies to employment contracts entered into after 28 March 2024. For new contracts, however, these legal requirements apply with immediate effect. Previously used employment contract templates should therefore be adapted to the requirements of the amendments as soon as possible.

*Schima Mayer Starlinger