Austria: Legal situation in the event of industrial action

26 Dec 2023    2 minute read
Strikes Work Council Trade Union Workforce Redesign

In brief

To employers' detriment, industrial action is currently highly relevant in Austria, as trade unions and works councils are currently organizing industrial action. The purpose of this industrial action is to achieve higher wages for employees. Recently, industrial action has mainly occurred in the industrial and retail sectors. However, industrial action is to be expected in other sectors as well.

Contents

What should companies be aware of?

These legal principles are particularly important for companies in the event of industrial action:

  • Employees are not allowed to participate in unlawful industrial action. They may only participate in lawful industrial action.
  • Industrial action organized by trade unions — for example, to achieve higher collectively agreed wages — is generally lawful.
  • Industrial action organized by the works council or by employees (often disguised and referred to as “protest demonstrations”), on the other hand, is generally unlawful.
  • In the event of unlawful industrial action, companies may take the following action:
    • Claim for an injunction against the works council or the employees to stop the strike.
    • Claim against the works council or employees for damages.
    • Dismiss employees who participate in the strike (subject to the individual case).
  • Companies cannot prohibit lawful industrial action. However, in exceptional cases, claims for damages can be enforced (e.g., if work equipment is damaged or business is lost due to a sudden and unreasonable work stoppage).
  • Employees have the right to be exempted from work for the duration of lawful industrial action. However, while taking part in industrial action, employees lose their entitlement to remuneration for this period. The periods without remuneration must be reported to the social security authorities.
  • Employees who do not take part in ongoing industrial action must declare their willingness to work. Otherwise, they will also lose their entitlement to remuneration.
  • If employees make negative and seriously reputationally damaging statements about their employer during industrial action (e.g., on social media or other media), companies should consider taking action (e.g., termination of employment).
  • Companies may prohibit trade union members who are not employed by the company from participating in industrial action at the workplace.
  • During industrial action, leased employees may not be leased to companies that are subject to industrial action. The company employing the leased employees must inform and cooperate with the leasing agency in a timely manner. Violations can trigger high administrative penalties.

Recommendation

Develop a plan on time to ensure that critical business operations can continue the work in the event of industrial action. Employers should inform the works council and the workforce of this plan on time and encourage them to exercise their right to participate in industrial action responsibly.

Click here to read the German version.

Contact Information
Dr. Philipp Maier LL.M
Partner
Vienna
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philipp.maier@bakermckenzie.com
Andrea Haiden LL.M
Associate
Vienna
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andrea.haiden@bakermckenzie.com
Sophie Loidolt LL.M. BSc
Associate
Vienna
sophie.loidolt@bakermckenzie.com

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