iGlobal Law

Core Facts

• Population:  8.6M
• GDP:  USD 377 billion
• GDP per head:  USD 47,750
• Workforce:  3.6M
• Unemployment (2017):  8.6%
• High skilled monthly wages (2017):  USD 3,990

Regulatory

• Government debt:  84.6% of GDP
• Personal income tax:  55%
• Corporation tax:  25%
• World corruption ranking 2016:  17th Transparency International
• Ease of doing business ranking:  19th  Business Freedom Index
• Labour law:  ILO Conventions ratified
• Data protection:  Member of the EU and so recognised as having adequate protection

While Austrian labour law is similar in many ways to that of Germany’s labour law there are some important differences, particularly in relation to the termination of employment contracts. Any failure to respect this could have potentially costly consequences for a global company.

Austrian law still makes a distinction between waged (“Arbeiter”) and salaried (“Angestellte”) employees.  A further distinction is made (as in German law) for senior executives for whom some labour protection laws do not apply.

Austria has a large number of statutes governing its labour market and its labour relations.  The statutes tend to apply more to Angestellte employees. In addition many employment contract terms and conditions derive from collective bargaining agreements negotiated on a nationwide sector basis. They are almost equivalent to statute in their enforceability and tend to be more relevant for Arbeiter employees.

Where a Works Councils is established it has proved important for employers to maintain good relationships with them as this can lead to increased productivity, whereas poor relations have often proved hugely damaging to employers.