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Austria: The so-called Transparency Directive finally transposed into national law

  • On 27 March 2024, Austria published legislation transposing the European Transparency Directive into national law after some delay from the original EU deadline of 1 August 2022.
  • This new legislation came into force on 28 March 2024 and applies to employment relationships established after that date.
  • It introduces changes to existing labour laws to enhance transparency and employee rights.

What additional information must be included in written employment notices?

The new legislation mandates that employers provide additional information in written employment notices and contracts, including:

-       Dismissal procedures

-       Name and address of the social insurance institution

-       Employer’s registered office

-       Job description

-       Overtime remuneration

-       Duration and conditions of any probationary period

-       Entitlement to further training provided by the employer.

What are the penalties for non-compliance?

Employers who fail to comply with these information obligations can face administrative penalties ranging from EUR 100 to EUR 436. In cases of repeat offences, fines can go up to EUR 2,000.

What must be included in employment contracts for employees working abroad?

For employees working abroad for more than one month, the written notice or employment contract must also include the following:

-       Any higher minimum wage according to the host country’s law

-       Reimbursement of expenses as per Austrian and foreign law

-       Information about the national website regarding working conditions in the host country.

Can employees have multiple employment relationships under the new law?

Yes, the new law grants employees the right to enter into employment relationships with multiple employers. However, the original employer can prohibit additional employment if it conflicts with working time regulations or harms the primary employment relationship.

How does the new law address training costs?

The new amendments state that participation in training, further education, and advanced training is considered working time. If such training is a prerequisite for the employee’s job, the employer must bear the costs. Any previous agreements on reimbursement of training costs are no longer enforceable.

Are there protections against retaliation for employees?

Yes, the new amendments include a general prohibition on dismissal, summary dismissal, or any retaliatory measures against employees who assert their rights under these new regulations. This ensures that employees can exercise their rights without fear of adverse actions from their employers.

What other changes have been introduced?

The requirement for a notice of employment (Dienstzettel) has been expanded to include the new information requirements. Additionally, similar requirements have been applied to freelance relationships and personnel leasing arrangements. Employers must also provide information regarding reimbursement of expenses and relevant national websites when assigning employees to foreign entities.

Do employers need to revise existing employment contracts?

No, employers do not need to revise existing employment contracts for employees hired before 28 March 2024. However, all new contracts must comply with the updated legal requirements. Employers should update their contract templates to meet these new standards as soon as possible.

What is the overall impact of these changes?

These legislative changes represent a significant shift towards greater transparency and employee rights in Austria’s labour market. They align national regulations with European standards, ensuring employees receive comprehensive information and protections in their employment relationships.

You can find previous articles here on different European countries implementing the directive.