Employment 2025

AUSTRIA Law and Practice Contributed by: Johannes Edthaler and Christina Hödlmayr, Edthaler Leitner-Bommer Schmieder & Partner Rechtsanwälte GmbH

1. Employment Terms 1.1 Employee Status Labour law protects different types of workers. The different groups of workers are outlined below. White-Collar and Blue-Collar Workers A distinction is made between white-collar work - ers (“employees”) and blue-collar workers. The term “employee” is defined in the Employees Act ( Anges- telltengesetz ). A person’s white-collar status is contin - gent upon the nature of their employer and the duties they undertake. Employees are predominantly employed in the com - mercial sector, the higher, non-commercial services sector or the office sector. The term blue-collar worker is not defined by law. However, based on case law, any worker not identi - fied as a white-collar employee typically falls under the category of “worker”. Different rules apply to blue- and white-collar workers, especially in the following areas: • reasons for early termination of the employment relationship; • in works constitution law (separate works councils for blue- and white-collar workers); • the eligibility criteria for invalidity/occupational dis - ability pensions; and • separate collective agreements in many sectors. Apprentices Apprentices are persons who, on the basis of an apprenticeship contract, receive technical training in an apprenticeship company to learn an apprentice - ship occupation included in the list of apprenticeship occupations and who work within the framework of this training. The Austrian Vocational Training Act ( Berufsausbildungsgesetz ) regulates, among other things, training, the rights and duties of apprentices and persons entitled to apprenticeship, apprentice - ship income and entitlements in the event of work incapacity. Unless otherwise stipulated by this law, the provisions of general labour law (eg, leave entitlement) apply to apprentices.

Marginal Employees A person is considered to be in marginal employment if he or she earns no more than a certain amount per month in regular employment (employment for one month or for an indefinite period). In 2025, the mar - ginal earnings threshold is EUR551.10 per month. Employees in marginal employment are covered by accident insurance but not insured against unemploy - ment. The same labour law provisions apply to marginally employed employees as to all other employees. It may be that collective agreements contain special provi - sions. 1.2 Employment Contracts The employment relationship is a continuing obliga - tion between employer and employee. A contract of employment is regularly concluded for an indefinite period. A contract of employment may also be lim - ited in time until the expiry of a certain date or until the occurrence of a certain event. The succession of several fixed-term employment contracts is inadmis - sible unless each fixed-term is justified by an objective reason. Formal Requirements for Employment Contracts The conclusion of an employment contract is not bound to any particular form. It can be in writing, ver - bally or implied. An exception exists only in certain cases. The employer is obliged by law to issue a service note irrespective of the duration of the employment rela - tionship. The service note must contain certain infor - mation specified in the law as follows: • name and address of the employer; • name and address of the employee; • the start of the employment relationship; • the end date of the employment relationship (in case of fixed-term employment); • duration of the notice period and date of termina - tion – reference to the termination procedure to be followed; • usual place of employment – if necessary, refer - ence to changing places of employment – regis - tered office of the company;

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