Employment contracts Austria

What should an employment contract in Austria include?

Employment contracts in Austria typically incorporate the following information:

• The employer and employee should provide their names and contact details.
• The job title and duties of the employee.
• The designated working hours and days.
• The agreed-upon salary, extra perks, and bonuses.
• Termination rules with notice periods for both parties.
• Mutual agreements for non-disclosure and confidentiality.

The employer and employee must carefully review the employment contract’s terms before signing it.

What types of employment contracts exist in Austria?

Austria’s employment contracts can be classified into several different categories.

1. Employee contract

In Austria’s labor market, there are two distinct types of employee contracts. 

• Indefinite employment contracts: This type of contract has no fixed end date and continues until terminated by either the employer or the employee with the appropriate notice period. To terminate an indefinite employment contract, both the employer and the employee are required to provide notice. The notice period duration depends on Austrian labor law, the length of service, and applicable collective agreements.
• Fixed-term Employment Contract: Fixed-term contracts have a specified duration or are linked to the completion of a specific task or project. When the agreed-upon period ends, or the task/project is finished, the contract terminates automatically, and a termination notice isn’t required. 

2. Freelance contract

This type of agreement is between a self-employed individual (the freelancer) and a company or individual (the client) that needs specific services or expertise. Unlike employment contracts, where the individual has the status and benefits of an employee, a freelance contract establishes a business-to-business connection between the freelancer and the client.

3. Marginal Employment Contract

In Austria, a marginal employment contract is also known as a “mini-job.” In this type of part-time employment, the employee’s income must be lower than a certain threshold. Part-time employees also receive reduced social security contributions compared to full-time employees. Marginal employment contracts can be either fixed-term or indefinite, depending on the employer’s needs and the agreement between the parties.

How to hire employees in Austria? 

Business owners who want to hire international talent from Austria will be required to establish a legal entity in the country. This necessitates registering the business with Austrian authorities and opening a bank account. On top of this, you’ll need to follow the labor laws and regulations in Austria. 

Partnering up with an employer record of service provider is another alternative. Native Teams will ensure the compliant hiring of new employees in Austria and other countries around the world.