What should an employment contract in Austria include?
An employment contract in Austria should include the following information:
- Employer’s name and registered address.
- Employee’s name and place of residence.
- Employment start date.
- Job title, role, and responsibilities.
- Designated workplace location.
- Agreed working hours and schedule.
- Monthly gross salary, bonuses, and additional compensation.
- Salary payment deadlines and methods.
- Holiday entitlement details
- Notice periods and termination conditions.
- Applicable collective bargaining agreement, if relevant.
- Confidentiality, non-compete, and other mutual obligations where applicable.
Under Austrian law, employment contracts can be concluded verbally, in writing, or electronically. However, written contracts are the most commonly used and strongly recommended to ensure legal clarity and compliance.
If no written employment contract is signed, the employer must provide the employee with a written statement of terms and conditions (Dienstzettel) at the start of employment.
Both the employer and employee should carefully review the employment terms before signing the agreement.
What types of employment contracts exist in Austria?
Austria’s employment contracts can be classified into several different categories.
1. Employee contract
Employee contracts are the most common type of employment agreement in Austria. The two primary forms are:
- Indefinite-term contract (unbefristeter Arbeitsvertrag):
An indefinite-term contract establishes an ongoing employment relationship without a fixed end date. It defines the employee’s duties, working hours, salary, benefits, and other employment conditions. Termination of this contract must comply with Austrian labour law, including statutory notice periods and dismissal regulations. - Fixed-term contract (befristeter Arbeitsvertrag):
A fixed-term contract is agreed for a specific duration and automatically ends on the predetermined date without requiring notice. These contracts are commonly used for temporary or project-based work. Austrian law allows fixed-term employment only under certain legal conditions, including compliance with duration limits and valid justification for the fixed term.
Repeated use of consecutive fixed-term contracts with the same employee may, under Austrian law, be considered an indefinite-term employment relationship if there is no valid economic or social justification.
2. Part-time contract
A part-time contract (Teilzeitvertrag) applies when an employee works fewer hours than a full-time employee. The agreement outlines working hours, compensation on a pro-rata basis, and entitlement to benefits. Part-time contracts may be either indefinite or fixed-term and are protected under Austrian labour law.
3. Temporary agency work contract
A temporary agency work contract (Arbeitskräfteüberlassungsvertrag) is used when a temporary work agency assigns an employee to work for a client company for a defined period. The agreement specifies the assignment duration, job duties, compensation, and obligations of all involved parties. Austrian law provides equal treatment protections and regulates assignment duration for temporary agency workers.
4. Apprenticeship contract
An apprenticeship contract (Lehrvertrag) governs vocational training arrangements between an employer and an apprentice. It includes details regarding training duration, working conditions, remuneration, and the rights and responsibilities of both parties. Austrian law imposes specific requirements to protect apprentices and ensure compliance with vocational training standards.
5. Freelance contract
A freelance contract (Freier Dienstvertrag) regulates the relationship between a freelancer and a client for the provision of services. Unlike employee contracts, freelance agreements do not establish an employer-employee relationship. Freelancers are generally responsible for managing their own taxes and social security contributions.
How to hire employees in Austria?
Typically, hiring employees in Austria requires establishing a legal entity and registering your business with the relevant Austrian authorities. Employers must comply with Austrian labour laws, payroll obligations, social security requirements, working time regulations, and applicable collective bargaining agreements.
However, with Native Teams’ employer of record services, businesses can hire employees in Austria without setting up a local entity. We help companies manage compliant hiring, payroll, employment contracts, and HR administration while ensuring full compliance with Austrian employment regulations.
