Austrian employment law and labor rights

Fortunately for expats relocating to Austria for work, the country’s employment law is extremely well structured and easy to understand. Importantly, Austria is a nation that prides itself on a solid work-life balance. And with a high proportion of public holidays and generous holiday schemes, the country is a great place to live, work, and raise a family.

Whether you are in the process of applying for jobs in Austria or have just begun exploring the job market there, you will likely want to familiarize yourself with Austrian employment law. Luckily, this helpful guide provides all the essential information you need, including the following:

Austrian employment law

Like most members of the European Union, Austria’s employment policy provides broad protection and rights for employees. Significantly, the approach is a complex mix of EU and Austrian legislation. This includes a combination of collective bargaining agreements, shop-floor agreements, and employment contracts.

There are still written distinctions between white and blue-collar employees, however, these are losing their significance as the laws are becoming more unified. That said, employers are still resisting these changes as they will incur increased costs.

Foreign workers: your right to work in Austria

A foreign national (i.e., someone who is not an EEA-national) must have an employment permit, a work permit, or a Red-White-Red Card.

The primary system is the Red-White-Red Card, which combines residence and employment rights and is granted based on criteria such as qualifications, work experience, and salary. In some cases, labour market considerations are assessed by the Austrian Public Employment Service (AMS).

The application process may involve both the employer and the employee, and permit validity periods vary depending on the type of authorization.

Foreign employees who are posted by their employer to work temporarily in Austria are covered by various provisions of Austrian employment law. This includes the condition that they must be paid at least the minimum remuneration that is to be paid to comparable workers by comparable employers in Austria.

Employment contracts in Austria

Interestingly, a written employment contract or statement of employment terms between the employer and employee is not necessary to secure a job in Austria. On the contrary, an oral agreement is acceptable between two parties. In Austria, collective agreements are legally binding contracts that represent both the employer and the employee. They create a balance of interests between employees and employers by establishing minimum working conditions that must be satisfied.

As per Austrian employment law, an employer cannot unilaterally change the terms and conditions of employment, unless explicitly stated and agreed upon in the contract in advance. Furthermore, if an employer wishes to change the employment conditions but the two parties cannot agree, dismissal with the option of altered conditions is a possibility.

Essentially, this means that the employment contract is terminated. However, the employee will receive a new contract that includes the changed conditions, and if the employee does not accept, the termination stands.

Austrian wages and salaries

Interestingly, Austria has no national minimum wage. Instead, the minimum salary for employees is set out in the respective collective agreements. Typically, the applicable collective agreement depends on the industry. If no collective agreement applies, the salary is based on the employment contract.

The median annual gross salary in Austria was €55,678 in 2025. According to a survey of skilled employees, conducted by the online job platform Stepstone, people working in finance, management, law, and IT earn the highest average salaries in Austria. Banking, energy, water supply, and chemical and oil processing jobs were also among the highest-paid sectors in the country. Notably, under Austrian employment law, the monthly salary in Austria is paid fourteen times per year. You can read more about this in our guide to salaries and wages in Austria.

Austrian work hours

Typically, office hours in Austria tend to be from 09:00 to 17:00. However, Austrians often start earlier, with many sitting at their desks by 08:00. An eight-hour workday is standard, and lunch breaks are given by law. Provisions for overtime, holiday, and weekend pay vary depending upon each contract. Ordinarily, federal regulations limit the working week to a maximum of 48 hours. That said, collective bargaining agreements may supersede these.

Paid and unpaid leave under Austrian employment law

Holiday pay in Austria

Under Austrian employment law, employees get the benefit of one of the most generous annual leave entitlements in the world. Workers get 25 days’ paid holiday per year, which rises to 30 days after 25 years of service. Additionally, there are 13 paid public holidays every year to take advantage of. Furthermore, employers must pay employees their holiday pay before the holiday period begins. Employees who perform “heavy” night work are also entitled to additional days of annual leave.

Maternity and paternity pay in Austria

In Austria, new mothers are usually entitled to maternity pay (Wochengeld) – even if they are receiving unemployment benefits. The payment is linked to the social insurance system (i.e., mandatory vs self-insurance).

The amount of maternity pay depends on your situation:

• Employed workers: three months’ net salary. A supplement is payable in respect of any one-off payments, such as holiday or Christmas bonuses.
• Self-employed contractors: depends on your income
• Self-insured low-income residents: a fixed rate of €12.19 per day (as of 2026)
• Unemployment benefit recipients: 180% of the last benefits payment

If you’re receiving childcare benefits (Kinderbetreuungsgeld), you’re only entitled to maternity pay if you also got it when you had your previous child (i.e., the one(s) you’re receiving childcare benefits for). You must also be entitled to a maternity allowance when your period of maternity leave begins. In that case, the maternity pay will typically amount to your last childcare benefit payment.

Fathers and second mothers are also entitled to Familienzeit (family time), which is two months of unpaid leave. However, they must live in the same household as the mother. For more information, see our guides to social security in Austria and having a baby in Austria.

Sick pay in Austria

By law, employees who are absent from work due to sickness or injury have a statutory entitlement to sick pay from their employer. Sick pay covers a minimum of six weeks of full pay plus four weeks of half pay, increasing with length of service. Additionally, after the statutory sick pay period is up, employees are entitled to sickness benefit from the statutory social insurance system. This benefit is equal to 50–60% of the employee’s previous pay. However, if the employee has dependents, the amount may increase to up to 75% of their previous pay.

Unpaid leave in Austria

Austrian law does not provide a general statutory entitlement to unpaid leave; however, unpaid leave can be agreed between the employer and employee. In addition, specific statutory schemes exist. For example, fathers are entitled to take a one-month leave (known as the “Papamonat”) following the birth of a child, subject to certain notice requirements, and may receive a state benefit during this period.

Employees may also take leave to care for close relatives. Short-term care leave (Pflegefreistellung) is typically paid and does not require long-term arrangements. Longer-term care leave or part-time care arrangements (Pflegekarenz or Pflegeteilzeit) are possible, but generally require agreement with the employer. During such periods, employees may be eligible for a state-funded care leave benefit (Pflegekarenzgeld), subject to statutory conditions.

Parental rights under Austrian employment law

Interestingly, in Austria, women are not allowed to work during the eight weeks leading up to their due date or for eight weeks after giving birth. In cases of multiple births, caesareans, and premature births, this post-birth period rises to 12 weeks. Austrian employment law also prohibits employers from dismissing workers when they learn of pregnancy and during the two-year parental leave period. This protection ends four weeks after the end of parental leave.

Generally, employees who are breastfeeding must not work between 18:00 and 08:00, although exceptions exist in some sectors. Furthermore, expectant mothers cannot be made to do heavy work or health risk-associated jobs, graveyard shifts, weekends, or public holidays.

There are two choices for cash benefits. Parents can opt for a flat-rate scheme for mothers without their own income, or choose an income-dependent scheme where they receive benefits for up to one year after the birth of their child. For both of these, parents must be residents in Austria. Additionally, they must live in the same household. This is the same for both EU and non-EU foreigners living in Austria.

Social security and tax in Austria

Beneficially, Austria offers a high-level social security system that is contribution-based. The Federal Ministry of Labor, Social Affairs, and Protection oversees this system. Importantly, the system supports everyone who is gainfully employed, as well as their dependents.

In Austria, social security covers the following areas:

• unemployment
• health
• pensions
• education
• maternity/paternity/parental benefits
• disability/work accident/survivors benefits

As of 2026, employees pay 18.12% of their gross salary, while employers pay 21.32% of the gross salary as the employer contribution. To find out more, you can read our guide to getting insurance in Austria.

Protection from discrimination at work

Notably, Austria has adopted anti-discrimination legislation to ensure equality as a cornerstone of its constitution. Additionally, criminal protection against hate crimes has become stronger over the past decade. Austria adopts the 1965 UN Convention on the Elimination of All Forms of Racial Discrimination. Essentially, the agreement put the onus on states to take concrete measures to combat discrimination based on color or ethnic origin. 

Austrian efforts have been particularly lauded in the area of detecting online hate and support to victims of cyber mobbing. Additionally, Austria’s 2017 Roma Strategy has made strong efforts to combat antiziganism. Austria’s Integration Act also came into play that year. This includes resources to integrate newcomers into the nation and assist with integration into the labor market.

Despite these government strategies, discrimination can happen anywhere. Whether it’s race, gender, age, religion, or ethnicity, Austrian citizens have the right to lodge a complaint. If you feel you have been discriminated against, you can contact the Austrian Ombudsman Board and fill in the online complaint form.

Joining a union in Austria

Essentially, under Austrian employment law, employees have the right to form trade unions and the right to strike. However, Austria has no ingrained strike culture, and strike action is usually initiated by the trade union. Austria has one single trade union confederation, the ÖGB, which was founded in 1945 to overcome political divisions among unions. Notably, 27% of all employees in Austria belong to the trade union.

Importantly, participation in a lawful strike also amounts to a breach of contract under Austrian law. This is because any employee who goes on strike fails to fulfill his or her work obligations. Consequently, strike participation may entail legal consequences for the striking worker. Additionally, strikers cannot access unemployment or any other social security benefits while participating in collective action. However, the employer may not replace workers on strike, including temporary agency workers.

Health and safety at work in Austria

As per the ArbeitnehmerInnenschutzgesetz (Safety and Protection of Health at Work Act) employers are responsible for preventative measures for health and safety in the workplace. When necessary, an employer should consult a health and safety expert or occupational physician. The Labour Inspectorate oversees compliance.

Importantly, under Austrian employment law, in a workplace with more than 10 employees, a company must appoint a health and safety representative. In workplaces with more than 50 employees, a health and safety committee should also be set up.

Training and development in Austria

Notably, Austria rates highly in Europe for employer-sponsored training. Additionally, the country is known for its extensive systems of collective vocational skill formation with a strong tradition of full-time vocational schooling and apprenticeship training. Significantly, VET colleges in Austria enjoy an excellent reputation both with young people and Austrian employers. From a hiring perspective, the view on qualifications from VET colleges is often on par with university degrees in Austria.

Terminating an Austrian employment relationship

Dismissal

Under Austrian employment law, an employer may terminate an employment relationship by giving notice (Kündigung) without stating a reason, provided statutory or contractual notice periods are observed. Such notice can generally be given verbally or in writing, although written form is recommended. In contrast, summary dismissal (Entlassung) terminates the employment relationship with immediate effect and is only permitted in cases of serious misconduct.

Employees may challenge a dismissal before the Labour and Social Court if it is socially unjustified or based on prohibited grounds, such as discrimination. Standard notice periods for employers are at least six weeks and increase with length of service, applying broadly to both blue-collar and white-collar workers.

Special protection applies to pregnant employees and those on maternity or parental leave, during which dismissal is generally prohibited and remains restricted for a short period after these protections end.

Leaving a job voluntarily

Under Austrian employment law, an employee who resigns must give notice to their employer. The statutory notice period for employees is generally one month, although longer periods may be agreed in the employment contract or collective agreement.

Upon termination of employment, the employer must provide the employee with relevant documentation, including a certificate of employment (Dienstzeugnis), final payslips, and confirmation of deregistration from the social insurance system. Any outstanding remuneration, including unused annual leave, must also be paid.

Redundancy

Under Austria’s “new” severance pay system (Abfertigung neu), employers make ongoing contributions to an employee provision fund on behalf of the employee. Employees become entitled to a payout after three years of contributions. Unlike the previous system, entitlement is generally preserved regardless of how the employment relationship ends, including in cases of resignation.

Upon termination, employees may choose to withdraw the accumulated amount, transfer it to a new employer’s fund, or leave it invested. The severance amount is calculated by the employee provision fund based on the contributions made and any investment returns.

The notice period for termination by an employer depends on the length of service. Generally, employers must observe a six-week notice period. This increases to five months after the employee has served for 25 years.

For mass redundancies, employers must notify their local branch of public employment service (AMS) 30 days before termination. The employer must file this notice if they plan to terminate:

• five employees in business units which usually have between 20 and 100 employees;
• 5% of employees in business units which usually have between 100 and 600 employees;
• 30 employees of business units which usually have more than 600 employees; or
• five employees who have reached the age of 50 in establishments with over 20 employees

Retirement

Currently, under Austrian employment law, the retirement age is 65 years for men and 60 years for women. In the next decade, this age will eventually equal out. In Austria, early retirement is common, although this stipulates a monetary penalty in the overall pension.

Conversely, people who work beyond the standard retirement age receive a bonus. To get a pension, the minimum contribution is 15 years. To find out more, have a peek at our guide to retiring in Austria.

Company mergers and insolvencies in Austria

If the reorganization of a company includes a transfer of a business to another legal entity, then the Austrian Labour Contract Law Amendment Act applies. This requires existing employment relationships of the acquired business with all rights and obligations of pre-existing terms. This includes length of service. Accordingly, terminations on the grounds of the transfer of the business are unlawful under Austrian employment law.

Typically, employees can only object to the transfer of their employment in exceptional cases; for example, if the acquiring entity refuses to take over the company pension commitment. The seller has to inform the works council of the business transfer beforehand. The seller must also include in this disclosure, the time of the transfer, the reason for the transfer, the new employer, employees impact of the transfer, and any intended measures for employees. Generally, in Austria, corporate reorganizations have minimal impact on pensions or other benefits.

In the case of insolvencies, employees, freelancers, home workers, and apprentices can claim from the insolvency fund. This comes from the state-owned Insolvenz-Entgelt-Fonds-Service GmbH (IEF) which was specifically established for this purpose. The fund receives finance from the employers’ contributions and public funds.

Temporary, part-time, agency, and informal workers in Austria

In Austria, if your average weekly working hours fall below 40, this is officially Teilzeitarbeit (part-time work). By law, part-time employees have the same protection as full-time employees in Austria. Additionally, Mehrarbeit (extra work) is above that which is set out in the work contract and must be paid with the legal bonus of 25%. However, there are exceptions, such as if the extra hours balance out with agreed time in lieu. Additionally, part-time workers don’t have to work overtime if it conflicts with their own schedule; for instance, the employee’s childcare arrangements.

Under recent changes to Austrian employment law, shifts of up to twelve hours are possible. If any total working time exceeds six hours, it must be broken up by a rest period of at least half an hour. This break is unpaid and not part of the working time. At the end of any working time, the employee should have an uninterrupted rest period of at least eleven hours. For agency workers, the binding rules of the company for which they provide their services apply.

Making an employment law complaint as an Austrian worker

Arbeiterkammer (AK) or the Chamber of Labour represents the interests of three million employees in Austria. You can either file a complaint with the Labor and Social Court or submit an application to the Equal Treatment Commission. It is up to you, but you can also choose to submit a complaint to both simultaneously. Additionally, you can file an application for legal protection at the Chamber of Labor or the trade union.

Ordinarily, the works council will initially try to employ alternative procedures to court in the first instance. Your complaint may first go through an Alternative Dispute Resolution (ADR) between yourself and your previous employer. During the ADR, you may be accompanied by a trade union, works council member, or AK official (in the case of younger apprentices). Both informal and formal ADR practices are free for the employee, and the employer usually pays for the costs.

If you live in Vienna and your grievance needs to be dealt with in court, this will go through the Labour and Social Court. In every other federal state in Austria, labor issues go to the general regional courts.

Useful resources

• Migration.gv.at – a government site detailing all employee rights in Austria
• Arbeiterkammer – represents employees in Austria and provides extensive information on labor laws in Austria