What is educational leave?
Educational leave allows an employer and employee to agree to temporarily suspend the employment relationship so the employee can participate in a training program. Employees can take up to 12 months' leave, provided they have been employed for at least six months. During the period, employers are exempt from paying salaries, while employees — if certain conditions are met — receive a further training allowance from the Austrian Labor Market Service (AMS).
Will educational leave be abolished?
To abolish educational leave, the law must first be amended by parliament. Therefore, the communicated end of educational leave does not have an immediate effect. Until the law is changed, the current legal situation remains in force, and employees whose applications have been approved by the AMS can still claim a further training allowance. It should be noted that applications to the AMS can be submitted no earlier than three weeks before the start of the educational leave and no later than the first day of the educational leave. However, it will not be possible to submit applications to the AMS and therefore receive a training allowance after the change in the law or the specified cut-off date. Those already on educational leave at the time of the law change, who are receiving further training allowances or have an approved application from the AMS, will not be affected by the reform. Intervening in an existing legal entitlement would be unconstitutional.
Possible consequences of abolition for companies
- Lower employee turnover, but reduced growth in qualifications and a shortage of skilled worker.
The employee turnover rate in companies may be reduced as employees will not take long periods of time off for further training. However, the growth in qualifications within a company will decrease, potentially leading to a shortage of skilled workers.
- Increase in terminations or unpaid time off
Employees may be forced to quit their jobs or apply for unpaid leave to take advantage of private training opportunities. This can lead to unexpected staff departures and new recruitment challenges.
- Need for in-company training measures
To counter the shortage of skilled workers, companies will need to create internal training opportunities. This will increase the pressure on companies to offer competitive job packages to attract qualified employees.
- Significance of the reimbursement of training cost
The reimbursement of training costs will become more relevant with the abolition of educational leave. Without the possibility of educational leave, companies will increasingly resort to reimbursement clauses for training costs to ensure that employees do not leave the company immediately after receiving financed further training. In the future, companies will need to reach individual agreements with their employees to avoid financial losses from early terminations following further training measures.
How can companies prepare for the end of educational leave?
To prepare for the end of educational leave, companies should consider the following measures.
- Establish company training programs: Companies should offer more internal training courses, e-learning platforms or seminars to maintain employees' qualifications.
- Promote flexible working time models: Companies should implement part-time educational leave, flexi-time work arrangements or targeted leaves of absence, such as sabbaticals for further training, as substitutes for educational leave.
- Offer attractive career prospects: To retain employees in the long term, companies should create targeted opportunities for further development and promotion within the organization.
- Use reimbursement of training costs strategically: Clear regulations on repayment obligations for paid training can be implemented to secure investments and strengthen employee loyalty.
Conclusion
The abolition of educational leave presents companies with new challenges, particularly in the areas of personnel development and further training. A strategic reorientation is necessary to continue training and retaining qualified employees. Therefore, companies should take early measures to compensate for the abolition of educational leave in the best possible way.
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