Working Conditions

Host Country Rules:

Directive 96/71/EC obliges employers posting workers to Austria to guarantee a limited “hard core” of mandatory terms and conditions. These core conditions must be applied to posted workers regardless of which law governs their employment contract.

According to Article 3 of Directive 96/71/EC, posted workers must be guaranteed the following rights in Austria as host Member State:

• Remuneration, including overtime rates
• Maximum work periods and minimum rest periods
• Minimum paid annual leave
• Conditions of hiring-out of workers, particularly agency work conditions
• Health and safety at work and related protective measures, especially for vulnerable groups such as young workers or pregnant employees
• Equal treatment and non-discrimination (e.g., gender equality)
• Conditions of accommodation where employers provide housing for workers
• Reimbursement of travel, board, and lodging costs, if applicable under host-country rules

These minimum standards apply regardless of which law governs the employment contract, ensuring that workers temporarily posted to Austria enjoy the essential working conditions of the Austrian labour market when these are more favourable than those of the home country.

12-Month Threshold:

After 12 months of posting, Austrian labour law regulations and collective bargaining provisions apply to the employment relationship with the posted worker, except for rules on conclusion and termination of employment contracts, non-competition clauses, and supplementary occupational retirement pension schemes, which remain subject to the employer’s home country law.

Extension to 18 Months:

The 12-month period may be extended up to 18 months if the service provider submits a motivated notification to Austrian authorities.

Replacement Rule:

If one posted worker is replaced by another performing the same task at the same location, the durations are cumulative for calculating the 12-month or 18-month threshold. This anti-rotation mechanism prevents circumvention of the extended compliance requirements.

Non-Compliance Penalties:

Failure to comply with prescribed mandatory working conditions results in financial and non-financial penalties under the Austrian Anti-Wage and Social Dumping Act (LSD-BG).