Austria updates

Employment & Benefits

Contributed by Graf & Pitkowitz Rechtsanwälte GmbH
Blue-collar and white-collar employees – sweetening the deal
  • Austria
  • December 06 2017

In its final session before the general election, Parliament passed a bill which serves as a first step in harmonising the different legal regimes covering blue-collar and white-collar employees. However, not everyone is happy with this half-hearted harmonisation project – most notably, employer organisations – as they believe that the extended notice period for blue-collar workers will cost employers dearly.

Up in smoke: new law favours non-smokers in pub over workplace
  • Austria
  • October 04 2017

As of May 1 2018 smoking in restaurants and bars will be prohibited. The restrictions on smoking in the workplace will also be tightened as of this date. However, the new provisions still afford some leeway to employers in that they can organise smoking breakrooms. As a consequence, the workplace may be more smoker friendly than pubs – who would have imagined that.

Vocational reintegration through novel part-time model
  • Austria
  • July 26 2017

New legislation recently came into effect that aims to ease the process of reintegration into the workplace for employees who have been on extended sick leave and who would benefit from a reduced workload in order to aid rehabilitation and reconnect with the workplace. Although it is a well-meant initiative to curb the increase in long-term sickness, the legal framework reveals some major flaws.

2017 brings improvements for works councils and older employees
  • Austria
  • April 26 2017

Two recent amendments to the Labour Relations Act benefit the legal status of works councils and are geared towards increasing older employees' job prospects. In particular, the term of office for members of a works council has been extended from four to five years. Works council members' entitlement to educational leave has also been extended. Further, the special treatment of employees who start employment at age 50 or older has been abolished.

Supreme Court rules on scope of German minimum wage legislation
  • Austria
  • February 08 2017

The Supreme Court recently ruled on the thin line between the freedoms to provide services afforded under EU law and member states' legislation to contain social dumping, which can be extended to employers of other member states when they perform their services abroad. The decision clarifies that foreign minimum wage legislation will be avoided where its application poses an undue burden on employers and where it can be guaranteed that the purpose of minimum wage legislation is not undermined.


Energy & Natural Resources

Contributed by Schoenherr Attorneys at Law
New rules for mismatched unbundled capacities at interconnection points
  • Austria
  • August 21 2017

E-Control recently published a draft of the amendment of the Gas Market Model Ordinance 2017. The envisaged amendment – and especially the newly implemented capacity conversion service – resolves the capacity mismatch issue by compensating network users for the economic disadvantages that arise from having to buy double capacity due to the bundling regime at interconnection points.

Renewable energy: amendment to Green Electricity Act doubles funding
  • Austria
  • July 24 2017

After four months of negotiations, the Austrian National Council has finally reached an agreement on the amendment of the Green Electricity Act. The required two-thirds majority was reached by a last-minute agreement between the coalition parties and the Green Party. The aim of the new legislation is to increase the percentage of green electricity and expand renewable energy in Austria.

Update on Austrian-German single electricity market
  • Austria
  • July 10 2017

Following an Agency for the Cooperation of Energy Regulators decision which foresees a split of the Austrian-German electricity market, the Austrian National Regulatory Authority, E-Control and the Austrian transmission system operators have announced that they plan to exhaust all legal possibilities in order to appeal the decision.

Government bill introduced to amend promotion scheme for green electricity
  • Austria
  • February 20 2017

Although the long-awaited proposal to amend the Green Electricity Act was recently published, those who expected it to expand renewable energy in Austria will be disappointed and must patiently await the envisaged expansive amendment to the act. That said, the amendment package has brought some hope for new investments.

E-Control approves new cost and tariff methodology for gas TSOs
  • Austria
  • February 06 2017

E-Control recently announced the next methodology for determining costs for gas transmission system operators (TSOs), which will apply until December 31 2020. The methodology is based on the incentives stipulated for the second regulation period for gas. It applies the calculation of TSOs' allowed costs and their volume production and comprises framework conditions for all entry and exit points, as well as interconnection points of the TSOs transmission lines.


Environment & Climate Change

Contributed by Schoenherr Attorneys at Law
New outlines for water management and planning
  • Austria
  • October 02 2017

The first update and review of Austria's national water management planning instrument has revealed that the objectives of the EU Water Framework Directive will be achieved neither to their full extent nor in a timely manner. Nonetheless, the National Water Management Plan 2015 is a useful and comprehensive document that contains extensive information for all stakeholders and sets out the next steps to achieve the ultimate goal of restoring Austria's water bodies.

Constitutional Court raises hope for third runway at Vienna International Airport
  • Austria
  • July 17 2017

The Constitutional Court recently reached a landmark decision and overturned the Federal Administrative Court decision which had rejected the permit for a third runway at Vienna International Airport on the grounds of climate protection and land use. This decision is significant in that it has far-reaching consequences for many other projects beyond the scope of the third runway. It is also relevant to Austria as a business hub.

Climate impact: game changer for third runway at Vienna Airport
  • Austria
  • May 08 2017

The Federal Administrative Court recently hindered the plans for a third runway to be built at Vienna Airport, explaining that the positive aspects of the project could not justify the extra carbon dioxide pollution. The decision was reached despite the court conceding to the fact that air traffic will increase in the future and thus a third runway is necessary. This may be the first time that any court worldwide has rejected a project due to climate protection.

Court rules on rights in environmental impact assessment
  • Austria
  • January 16 2017

The Federal Administrative Court recently addressed whether the party to a winning project in a conflict procedure was entitled to claim rights in the environmental impact assessment for the inferior project. The court ruled that, on the one hand, the legal standing of a party in a conflict procedure is not strictly restricted to that procedure. On the other hand, the court found that being party to a conflict procedure does not guarantee unlimited legal standing in the approval procedure of the other project.

No party status for neighbours in declaratory proceedings
  • Austria
  • July 11 2016

The Federal Administrative Court recently confirmed that neighbours in earlier cases can enforce an environmental impact assessment only in subsequent approval proceedings. Further, the court has clarified that neighbours do not have party status in declaratory decision proceedings. As the legislature had failed to regulate earlier cases, this decision is a valuable contribution to procedural law.


Healthcare & Life Sciences

Contributed by Preslmayr Attorneys at Law
Assessing demand for public pharmacies – a never-ending story
  • Austria
  • October 04 2017

Public pharmacies are heavily regulated in Austria. The opening of new (or the relocation of existing) pharmacies is subject to approval by the district authority. Approval will be granted only if there exists a viable need for the new public pharmacy. In a recent case, two courts ignored a 2016 amendment to Section 10 of the Pharmacies Act, which allowed a deviation from the strict 5,500 person limit set out therein.

New price cap for medicinal products
  • Austria
  • July 19 2017

After 14 months of negotiations between the Federation of Austrian Social Security Institutions and the pharmaceutical industry, and lengthy discussions within the government coalition, Parliament recently adopted a new price cap for expensive medicinal products and a new price regime for generics and biosimilars. The government, social security institutions and the legislature hope that these amendments will create further savings in relation to expenses for medicinal products.

Nepafenac – no SPC for composition medicines
  • Austria
  • April 12 2017

The Vienna Higher Regional Court recently provided valuable conclusions about the interpretation of Article 3(a) of the Supplementary Protection Certificate Regulation – specifically, whether a functional identification of an active ingredient in a basic patent is sufficient to assess whether a product can be considered as "protected by a basic patent in force".

Medicinal products by presentation
  • Austria
  • January 25 2017

The Supreme Court recently ruled on the line between dietetic foods and medicinal products by presentation. The defendant was ultimately ordered to cease and desist from distributing its product OMNi-BiOTiC MIGRAene as a medicinal product without marketing authorisation and using the product's name. This decision is important as it keeps a close watch on the thin line between dietetic foods and medicinal products.

Recommendations: line between providing information and advertising
  • Austria
  • November 16 2016

The Supreme Court recently ruled in a case involving a request for an ophthalmologist to cease and desist from providing recommendations for opticians to his clients. According to the court, the prohibition against advertising can be interpreted as allowing physicians to recommend a specific service provider to patients on request. Recommendations will be considered illegal only where they are based on inappropriate motives (eg, to gain a financial advantage).


IT & Internet

Contributed by Schoenherr Attorneys at Law
Draft Data Protection Amendment Act 2018 in appraisal
  • Austria
  • May 30 2017

Approximately one year before the General Data Protection Regulation will come fully into force, the Austrian legislature has officially started a six-week consultation process for the national Data Protection Amendment Act 2018. If and to what extent the legislature will make use of the competencies provided for by the 'opening clauses' in the General Data Protection Regulation is highly relevant to companies, and the amendment act has answered this question.

Ban on most-favoured nation clauses in online travel sector – end of online booking services?
  • Austria
  • November 01 2016

A draft law amending the Federal Act against Unfair Competition 1984 and the Price Labelling Act was recently published for public consultation. The draft law intends to introduce a ban on most-favoured nation clauses in contracts between online travel agencies and hotel operators. Commercially, the draft law puts online travel agencies' business model at risk and may even deter innovation and investments beyond this niche industry.

One and two-character domain names available under ccTLD '.at'
  • Austria
  • September 06 2016

The Austrian registry operator recently initiated the launch process for approximately 5,000 one and two-character domain names under the top-level domain (TLD) '.at'. Owners of trademarks consisting of one or two characters should consider requesting delegation of their short trademarks as domains under the '.at' TLD in order to use them or at least prevent unauthorised third parties from taking advantage of their marks.

BYOD and data protection – incompatible or manageable?
  • Austria
  • March 04 2014

Employers are increasingly keen to introduce a 'bring your own device' (BYOD) policy, which allows them to assign company device management to employees and, by doing so, save manpower and costs on device support and maintenance. However, there is a downside: BYOD involves allowing employees to access (sometimes sensitive) company data through their private devices.

Under pressure: data breach notification must be made within 24 hours
  • Austria
  • August 20 2013

The European Commission recently published a new regulation on the measures applicable to the notification of personal data breaches under the EU Directive on Privacy and Electronic Communications. When the regulation enters into force, national rules that are in contradiction to European law must cease to apply. This raises some substantial questions with regard to the application of the Austrian Telecommunications Act.