Employment & Benefits, Austria updates

Can a Share Deal Constitute a Transfer of Business?
  • Austria
  • January 12 2005

A recent Supreme Court decision has confirmed the opinion that a share deal in regard to an entity is not a transfer of business as the employer does not change. A change of all or parts of an entity's shareholders does not qualify as a transfer of business.

Domestic Legislation Catches Up with EU Policies
  • Austria
  • October 06 2004

The Act on Equal Treatment has been amended in light of the EU directives which implement the principle of equal treatment between persons, irrespective of racial or ethnic origin, and establish a general framework for equal treatment in employment and occupation.

Supreme Court Throws Termination of Employment Contracts into Spin
  • Austria
  • July 28 2004

A recent Supreme Court ruling indicates that a termination of employment by mutual agreement which coincides with a transfer of business is null and void unless concluded solely in the employee's interests (ie, to allow him or her to find another job).

Supreme Court Rules on Employer Liability in Business Transfers
  • Austria
  • June 23 2004

The Supreme Court recently considered the issue of whether an employer that takes over a company is entitled to indemnification from the former employer in relation to employees' severance pay, holiday pay and compensation for leave not taken.

Draft Bill Governs Part-Time Leave
  • Austria
  • February 04 2004

The Federal Ministry of Economics and Employment has issued a new draft bill governing part-time parental leave. The specific procedures in connection with the right of employees to work part time may well prove disadvantageous to employers since the onus is on them to file a complaint if they disagree.

Supreme Court Rules on Waiting Period for Exercise of Stock Options
  • Austria
  • December 10 2003

Stock option plans commonly contain provisions which stipulate that the options will be forfeited if employment is terminated prior to the exercise date/vesting of the option. Prior to a recent Supreme Court decision, it was unclear whether such provisions are enforceable.

Act Amends 'Older-Age' Employment Agreements
  • Austria
  • October 29 2003

A government programme provides for reductions in an employee's working hours by virtue of a so-called ‘older-age’ part-time employment agreement. The Budget Accompaniment Act amends the programme, but in view of its demanding requirements regarding state funding, the programme is likely to be less popular in the future.

Supreme Court Rules on Notice of Termination in Business Transfers
  • Austria
  • October 01 2003

A recent Supreme Court decision expressly rules for the first time that any notice of termination given by the transferee (buyer) of a business as a result of a business transfer is null and void. The court did not comment on how much time must lapse between termination and transfer. Thus, future court rulings can be expected on the issue.

Employers Caught by Closure of Works Council Loophole
  • Austria
  • April 02 2003

The Act on the Implementation of European Employment Legislation into Austrian Law was recently amended with regard to the employer's obligation to inform its workers of a proposed business transfer. Where no works council is in place, the employer must inform all transferring employees in writing about the proposed transfer.

Overview (October 2002)
  • Austria
  • October 23 2002

Including: Categories of Employee; Discrimination; Individual Employment Contracts; Remuneration; Working Hours; Overtime; Holidays; Parental Leave; Sick Leave; Employee Representation; Termination; Severance Pay; Collective Redundancy.

New Act Reforms Employee Severance Pay
  • Austria
  • October 09 2002

The new Act on Statutory Corporate Employee Retirement Schemes introduces a new severance pay scheme for all employment contracts concluded after December 31 2002. The scheme combines elements of the previous Austrian severance pay system, under which lump-sum severance payments had to be made following certain forms of termination of the employment contract, with elements of a corporate pension plan.

Legitimately Restricting Freedom of Movement
  • Austria
  • July 06 2000

Non-competition clauses may violate the EC Treaty if they constitute an excessive obstacle to the freedom of movement of workers. A recent Supreme Court case sets out the criteria for non-competition clauses to be valid and enforceable in Austria.

Mass Layoffs under the Labour Market Improvement Act
  • Austria
  • September 29 1999

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