AUSTRIA Law and Practice Contributed by: Johannes Edthaler and Christina Hödlmayr, Edthaler Leitner-Bommer Schmieder & Partner Rechtsanwälte GmbH
( Allgemeines bürgerliches Gesetzbuch ) and the same regulations as above apply. The notice period to be observed by the employer is extended according to the length of service of the employee. The employer’s statutory notice periods are as follows: • in the 1st and 2nd year of service – six weeks; • from the 3rd year of service – two months; • from the 6th year of service – three months; • from the 16th year of service – four months; and • from the 26th year of service – five months Notice periods for both employers and employees can be extended to up to six months by agreement. Termination Date The termination date is the last day of the employment relationship. The statutory termination date for white- collar workers is generally the end of the respective quarter (31 March, 30 June, 30 September and 31 December of each calendar year). It may be agreed in an individual employment contract that the employer may also terminate the employment of white-collar workers on the 15th or last day of a calendar month. However, such agreements are only valid if there are no restrictive special rules under collective agree - ments. Claims of the Employee Upon Termination of the Employment Relationship If the employment relationship is terminated by the employer, a final settlement must be drawn up. This shall in any case include: • remuneration up to the end of the employment relationship; • pro rata special payments according to the collec - tive agreement or employment contract until the
Employees who have been with the company for an uninterrupted three years, and whose employment has not been terminated under conditions affecting severance benefits, are eligible for a specified sever - ance amount, equivalent to several months’ salaries, upon ending their employment. Since 1 January 2003 there has been a new company pension scheme, which applies to all employees in Austria who have started an employment relationship from that date onwards. Employers contribute by set - ting aside 1.53% of the gross monthly salary into a personal severance pay account for each employee. To qualify for this severance pay, an employee must generally have contributions spanning three years, considering all prior contribution durations, and their employment must not have been terminated under conditions affecting severance benefits. Upon termi - nation, the employee is either entitled to payment of the severance amount or can dispose of the saved amount in another way. 7.3 Dismissal for (Serious) Cause The grounds for dismissal for white-collar workers are listed by way of example in the Employees Act ( Angestelltengesetz ), and for blue-collar workers in full in the Industrial Code 1859 ( Gewerbeordnung ). There are special grounds for dismissal for employees pro - tected by law. A blue-collar worker may, for example, be dismissed immediately if he or she: • is found to be incapable of the agreed work; • is guilty of theft, embezzlement or any other crimi - nal offence which renders him or her unworthy of the employer’s trust; or • betrays a trade or business secret. An employee may, for example, be dismissed imme - diately if he or she: • is guilty of an act which renders him or her unwor - thy of trust; • is incapable of performing the services promised or appropriate under the circumstances; or
end of the employment relationship; • compensation for unused leave; and • severance pay (old severance pay). Severance Pay
The old severance pay applies to all employment rela - tionships that began before 1 January 2003, unless a transfer to the new severance pay has been agreed.
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