Remuneration

Information on base salary and greater transparency for “all-in” agreements: With effect from January 1, 2016:
(a) The monthly base salary for all employees must be included in the employment contract. A reference to the rules in the collective bargaining agreement is not sufficient.
(b) Non-compliance with the new rule in the case of all-in agreements entitles the employee to a reasonable actual base salary comparable to the industry and the region.
An “all in” compensation means that the agreed salary also covers any overtime and extra hours. In this case, any extra hours/overtime is covered as long as the overpayment compared to the minimum salary under the applicable collective bargaining agreement (CBA) sufficiently covers the actual work provided (including any premiums) within a period of one year. This means that the respective overpayment does not have to cover the overtime entitlements in every month. In some months the employee may perform no overtime work at all, while in other months’ work longer than would be covered by the All-in salary. For the purposes of the “all-in” clause the monthly variations will be balanced over one year.
Action required
(a) This applies to all contracts after December 31, 2015. “Old” employees can demand an amended contract.
(b) New all-in agreements must be adapted accordingly.

Restrictive covenants

Restrictions on post contractual non-compete clauses: With effect from January 1, 2016 the salary threshold for the permitted penalty for breaches of non-compete clauses has risen from 17 to 20 times the ASVG – maximum assessment base (for 2016 EUR 3,240).
Action required: The new limit applies to all post contractual non-compete obligations agreed after December 31, 2015.

Restrictions on post contractual non-compete clauses: With effect from January 1, 2016 the salary threshold for the permitted penalty for breaches of non-compete clauses has risen from 17 to 20 times the ASVG – maximum assessment base (for 2016 EUR 3,240).
Action required : The new limit applies to all post contractual non-compete obligations agreed after December 31, 2015.

Training

Limitation on the recovery of training costs: With effect from January 1, 2016, the recovery of training costs after an employee resignation in appropriate circumstances must occur within 4 years instead of 5 and must be recovered in monthly pro rata sums.
Action required: This should be taken into account for in all employment contracts entered into after December 31, 2015.

Part-time employees

Disclosure requirements for part-time employees: With effect from January 1, 2016, part-time employees must be informed about any vacancies that could provide them with more working time.
Action required: Bulletins posted in suitable locations will be sufficient.

Working time

Greater flexibility for business travel: With effect from January 1, 2016 the maximum daily permitted working time can be increased from 10 to 12 hours in the case of actual travel time (for example driving a car)