New rules on employment contracts, multiple employment and training costs

The Austrian National Council has passed a new legislation implementing the EU Directive on Transparent Working Conditions (Directive EU 2019/1152). The legislation is expected to come into force by the end of March 2024. The new law provides for changes to the minimum content of service notes and employment contracts, the right to multiple employment and training costs.

We have summarized the highlights of the new rules below:

Employment contracts

• The mandatory minimum content of service notes and employment contracts has been extended. In future, the following information must also be provided therein:
  • Seat of the company
  • Description of the work to be performed
  • Name and address of the Social Security Institution
  • Type of payment of the remuneration
  • The procedure on ordinary terminations which must be observed (e.g. form requirements, the internal procedure to be observed if a works council exists and the procedure for terminating employees with special protection)
  • The duration and conditions of the probationary period (if any)
  • Any arrangements for the compensation of overtime and remuneration of overtime (e.g. an all-in agreement, a flat-rate overtime allowance or general statutory and collective provisions on the compensation of overtime)
  • Any arrangements for shift changes (if any)
  • The training entitlement provided by the employer (if any)

For certain information, a reference to the relevant statutory or collective agreement provisions is sufficient.

• The minimum content of service notes and contracts for freelancers has also been extended to include, for example, a description of the activity, the location of the company, and the type of payment.
• The minimum information required for foreign assignments lasting longer than one month has also been extended (e.g., details of the country of assignment, any higher minimum remuneration in accordance with foreign legislation, any reimbursement of expenses).
• As before, a revised service note must be issued when the content of the service notes changes. This must now be issued no later than the effective date.

Fines

In the future, administrative penalties of up to EUR 2,000 may be imposed in the event of service notes or employment contracts which do not comply with the new rules.

Right to multiple employment

In addition, a new right to multiple employment with different employers was introduced. A prohibition of multiple employment by the employer is only possible in individual cases if the employment is incompatible with the working time regulations or conflicts with the existing employment relationship. Possible reasons would be, for example, exceeding the maximum working hours or the risk of disclosing business secrets.

Training Costs

There are also changes in relation to training costs. If a certain training is required by law, collective bargaining agreement or employment contract to perform the agreed job, the employer must cover the costs and the time spent in training is considered working time.

Protection for employees exercising new rights

The new regulations on service notes, multiple employment, and training costs are combined with a protection against termination for unlawful motives and a prohibition against adverse treatment. Terminations due to the enforcement of these new rights, e.g., the issuing of a service note, the right to multiple employment, and the payment of training costs, may be challenged in court. Employers must also provide written justification for terminations at the employee's request.

Amending of employment contracts and service notes is recommended

The changes to the required minimum content will apply to all employment contracts and service notes issued on or after the effective date of the legislation. The law is expected to come into force at the end of March 2024. Templates for employment contracts and service notes should therefore be adapted as soon as possible.

The right to multiple employment as well as the provisions on training costs apply also to existing employment contracts. Provisions in employment contracts that contradict the new legislation will therefore become invalid. Against this background, an analysis of existing employment contracts is also recommended.

Click here to read the German version.