Here’s where you get started with human resources best practices and hiring in Austria.
Euro (EUR)
Vienna
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Austria is a parliamentary representative democracy with both the federal president (head of state) and the chancellor (head of the federal government) being elected directly. By most indices, Austria ranks among the world’s top 20 countries for wealth by GDP, as well as high standards of living. The capital, Vienna, consistently appears in the global rankings for its high quality of life indicators.
Austria is a landlocked country in the southern part of Central Europe. It is mostly mountainous due to its East Alpine location. With a population of just under 9 million people, it covers an area of approximately 84,000 square km. Austria is bordered by Germany and the Czech Republic to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south and Switzerland and Liechtenstein to the west.
With nearly three-quarters of Austria dominated by the Alps, the Alpine climate is predominant. The eastern regions host a more continental climate with less rain than the Alpine regions. Austria can experience very cold severe winters. The summers can be warm, albeit cooler at higher altitudes in the country’s mountainous regions.
Austria’s past history, particularly the 18th and 19th centuries, is one of an important European power with notable cultural influence. As the birthplace of many famous composers, the country was considered the world’s capital for musical innovation. Austria is also renowned for its winter sports opportunities, with the Alpine tourism sector serving as an important contributor to the economy.
Just under 60% of the population are registered with the Roman Catholic church, according to data collected in 2018. However, less than 10% are regular church attenders. Approximately 12% declare themselves as having no religion.
Standard German is used in formal contexts but Standard Austrian German, which is mostly identical, is used in schools and education. Many local German dialects, most significantly Austro-Bavarian, are widely spoken and understood across much of the Austrian population.
A number of federal statutes govern employment relations, including the Employees Act, Contract Law Adjustment Act and the Labor Constitution Act. Labor regulations are also found in the General Civil Code.
The main sources of employment law are found in a series of statutory regulations. The following govern all features of labor and employment law in Austria:
Employment contracts are also governed by collective bargaining agreements (CBAs), with more than 95% of all employment relationships in Austria bound by a CBA. Employees are not required to be members of a trade union in order to be covered by a CBA and it is not possible to opt out of such agreements. While all dependent workers in Austria are protected by employment law, some regulations do not apply to the management personnel of an organization.
A contract of employment may be furnished in writing, orally or implicitly. Implicit contract can be concluded through the commencement of the work activity with subsequent payment.
If no written contract of employment is furnished, employers are required by statutory law to provide workers with a written statement of the terms and conditions (Dienstzettel) of their employment. This must happen immediately upon commencement of the employment relationship. A Dienstzettel does not need to be signed by the employee but it must contain the following details:
Only abstract terms are implied in employment contracts, such as the employer’s duty of care to the employee and the employee’s duty to be faithful to the employer.
Any adjustment to a contract of employment must not be less favorable to employees than the provisions of existing legislation, collective agreements or works agreements.
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