Weekly Tip 9 #Location Austria: Labor Laws - notice period

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As an employer in Austria you should be aware of the key attributes of Austrian labor law. Austria boasts a considerable degree of flexibility when it comes to terminating employment relationships.

As an employer in Austria you can terminate employment without stipulating the reasons for the decision. The notice period for the employer generally depends on the length of the employment relationship, and is regulated in different ways for salaried employees and workers. The notice period for salaried employees can be anywhere from six weeks and five months. The notice periods for workers are regulated in the individual collective bargaining agreements according to the duration of the respective employment.

The notice period for an employee is one month if he or she gives notice, independent of the duration of employment. This can be extended to half a year upon agreement, however. 

If applicable, the employer and prospective employee can agree on a trial month. During this time both contractual partners can terminate the employment relationship at any time without providing any reasons.

Flexibility reduces obstacles to hire and thus time of unemployment

“Flexibility in terminating employment contracts reduces obstacles to hiring new employees. In Austria, this is accompanied by the relatively short length of time in which people remain unemployed in a European comparison“, explains Friedrich Schmidl, Director Northern Germany at ABA-Invest in Austria. Austria boasts the fifth lowest proportion of long-term unemployed people in the EU.