Important Updates
Important Updates
July 16, 2025 | United StatesAAML: Navigating U.S. Passport Applications for Minors Under 16: A Guide for Family Law Attorneys
July 17, 2025 | CanadaCanada: Permanent Residence Sponsorship Applications Under the Parents and Grandparents Program Pause Update
July 17, 2025 | 🌐Minimum Salary Changes Announced
July 17, 2025 | PolandPoland: New Employment Permit Restrictions for Reduced Work Hours and Early-Operation Employers
July 17, 2025 | SurinameSuriname: Fast-Track Service Now in Effect for Immigration Filings
July 16, 2025 | United StatesAAML: Navigating U.S. Passport Applications for Minors Under 16: A Guide for Family Law Attorneys
July 17, 2025 | CanadaCanada: Permanent Residence Sponsorship Applications Under the Parents and Grandparents Program Pause Update
July 17, 2025 | 🌐Minimum Salary Changes Announced
July 17, 2025 | PolandPoland: New Employment Permit Restrictions for Reduced Work Hours and Early-Operation Employers
July 17, 2025 | SurinameSuriname: Fast-Track Service Now in Effect for Immigration Filings
July 16, 2025 | United StatesAAML: Navigating U.S. Passport Applications for Minors Under 16: A Guide for Family Law Attorneys
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
Search Fragomen.com
  • Our Services
    For EmployersFor IndividualsBy IndustryCase Studies
  • Our Tech & Innovation
  • Our People
  • Our Insights
    Worldwide Immigration Trends ReportsMagellan SeriesImmigration AlertsEventsMedia MentionsFragomen NewsBlogsPodcasts & Videos
  • Spotlights
    Navigating Immigration Under the Second Trump AdministrationTravel & Mobility Considerations: Situation in the Middle EastImmigration Matters: Your U.S. Compliance RoadmapHumanitarian and Evolving Legal Pathways (HELP)Vietnamese ImmigrationAustralian Immigration: New Skills in Demand Visa
  • About Us
    About FragomenOfficesResponsible Business PracticesFirm GovernanceRecognition

Our Services

  • For Employers
  • For Individuals
  • By Industry
  • Case Studies

Our Tech & Innovation

  • Our Approach

Our People

  • Overview / Directory

Our Insights

  • Worldwide Immigration Trends Reports
  • Magellan Series
  • Immigration Alerts
  • Events
  • Media Mentions
  • Fragomen News
  • Blogs
  • Podcasts & Videos

Spotlights

  • Navigating Immigration Under the Second Trump Administration
  • Travel & Mobility Considerations: Situation in the Middle East
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Humanitarian and Evolving Legal Pathways (HELP)
  • Vietnamese Immigration
  • Australian Immigration: New Skills in Demand Visa

About Us

  • About Fragomen
  • Offices
  • Responsible Business Practices
  • Firm Governance
  • Recognition
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMedia
  • Insights

New Posted Workers’ Fine Arrangement Forthcoming

October 7, 2019

insight-news-default

Country / Territory

  • AustriaAustria

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

At a Glance

  • According to a recent European Court of Justice holding, sanctions imposed in Austria on sending and receiving employers for posted worker record keeping violations are not proportionate and are therefore in violation of European Union law.  As a result, the Austrian government must revise its related sanctions.
  • Due to the decision, Austrian authorities can no longer apply the disproportionate sanctions for record maintenance violations, and employers who paid fines under the current sanction regime may be able to claim monetary damages from the Austrian government.  

The situation

A recent European Court of Justice (EUCJ) holding will require the Austrian government to implement a new penalty scheme for employers hiring posted workers in Austria who violate record keeping requirements since the current fine and penalty scheme was found to violate the principle of proportionality under European Union law.

A closer look

The facts of the case before the EUCJ included the following:

  • Calculation of sanctions. The Austrian system imposed a fine for each violation; for example, by not keeping payroll records for 100 employees, a company would have had 100 violations with 100 fines imposed. Furthermore, the Austrian government did not impose a maximum limit on the total amount of fines that could be incurred and each violation had a minimum penalty of EUR 2,000 to 50,000. In the case before the EUCJ, the company was found to have committed 400 individual offenses which resulted in the extreme penalties.
  • EUCJ decision. The EUCJ held that the combination of the Austrian law punishing each violation separately; the fact that there was no maximum penalty for all violations; and that the fines could not be lower than a pre-determined minimum resulted in a violation of the EU principle of proportionality. Additionally, the EUCJ found that the law could be enforced effectively with less restrictive measures, such as imposing lower penalties or adding a maximum limit for penalties.
  • Result. Due to the holding, the Austrian government will have to revise its national law to comply with the EUCJ ruling.

 

Impact

  • Previously sanctioned employers. Employers who paid fines under the current sanction regime may be able to claim monetary damages from the Austrian government.  
  • Future sanctions. Due to the EUCJ decision, Austrian authorities can no longer apply the disproportionate sanctions for record maintenance violations. However, it is not yet clear whether Austrian authorities will impose alternative fines or other sanctions.

 

Background

  • Fine system in European Union generally. Employers in EU Member States who hire workers from other EU countries for temporary assignments (posted workers) are subject to fines and penalties imposed by each Member State’s government for violating national rules that require the employer to maintain certain records about such workers. Generally, posted workers are subject to the same rules for work (such as working hour limits, work conditions, etc.) as local workers, and the record maintenance requirements are the government’s way to ensure compliance with such rules.
  • Austria-to-EU comparison. The Austrian fine and penalty system generally imposes higher fines for such violations than many other EU Member States with no maximum amount. Austria also has a rigorous compliance system with inspections frequently carried out by the financial police. 

 

Looking ahead

Revisions to the sanctions will largely depend on the newly-formed government administration following the September 29 national election. Fragomen will report on further relevant developments regarding this holding.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected]. 

Country / Territory

  • AustriaAustria

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Share

  • Twitter
  • Facebook
  • LinkedIn

Explore more at Fragomen

Blog post

UK Creative Industries & Immigration: What the 2025 Policy Changes Mean

Senior Manager Sean Rhodes, Associate Jennifer Gray and Paralegal Mariel Arquero outlines how the United Kingdom's 2025 immigration policy changes will impact the creative industries.

Learn more

Media mentions

AAML: Navigating U.S. Passport Applications for Minors Under 16: A Guide for Family Law Attorneys

Senior Associate Carolyn Alvarez outlines US passport rules for minors to guide family law attorneys on immigration requirements.

Learn more

Blog post

Fast-track Visa Options for Technical Workers: Türkiye’s AMS Visa and Greece’s Installation Visa

Senior Manager Ben Morgan and Manager Mariana Da Encarnacao outline Türkiye’s AMS visa and Greece’s Installation visa as streamlined immigration options aimed at attracting technical talent to support national innovation and economic growth.

Learn more

Video

Regional Immigration Overviews 2025 | #MobilityMinute

Director Raj Mann shares an overview of Fragomen's newly released 2025  Regional Immigration Overviews, a supplement to the firm's Worldwide Immigration Trends Report.

Learn more

Video

A Guide to EU Visa Categories for Non-EU Nationals

Explore EU visa options for non-EU nationals, including Schengen, long-stay and work visas like the EU Blue Card. Find the right visa for your needs.

Learn more

Blog post

UK Partner Visa 2025: Is Cohabitation Still Required for Unmarried Couples?

Private Client Associate Amelia Haynes and Intern Zuha Malik explore whether living together remains a requirement for unmarried couples applying for a UK partner visa under the 2025 rules.

Learn more

Media mentions

Business Standard: 11 Million US Visa Backlog Crushes Indian H-1B, Green Card Dreams: Decoded

Partner Blake Miller discussed how US immigration processing delays may create challenges for work authorization, travel and workforce planning.

Learn more

Blog post

EES and ETIAS: Automation Meets Immigration Complexity

Immigration Manager Andreia Ghimis discusses how the EES and ETIAS systems aim to streamline immigration processes while addressing the complexities of automation.

Learn more

Fragomen news

Partner Marius Tollenaere Elected to the Executive Committee of the German Bar Association's Migration Law Working Group

Partner Marius Tollenaere is elected to the Executive Committee of the German Bar Association's Migration Law Working Group.

Learn more

Blog post

Policy Reform Proposal: Granting Automatic Employment Authorization to Spouses of Work Visa Holders in South Africa

Director Johannes Tiba explores the proposal to grant automatic employment authorization to spouses of work visa holders in South Africa.

Learn more

Media mentions

The National: UAE Golden Visa Explained: From Nomination to Investment and Who is Eligible

UK: Partner Haider Hussain clarifies that UAE Golden Visa applications must go through official government channels, warning against unauthorised fees and misinformation.

Learn more

Media mentions

Games Industry: What the UK Government’s Industrial Strategy and Immigration White Paper Mean for the UK Games Industry

Director Laurence Keir-Thomas outlines how recent changes to UK immigration and industrial policy may affect talent planning and hiring across the games sector.

Learn more

Blog post

UK Creative Industries & Immigration: What the 2025 Policy Changes Mean

Senior Manager Sean Rhodes, Associate Jennifer Gray and Paralegal Mariel Arquero outlines how the United Kingdom's 2025 immigration policy changes will impact the creative industries.

Learn more

Media mentions

AAML: Navigating U.S. Passport Applications for Minors Under 16: A Guide for Family Law Attorneys

Senior Associate Carolyn Alvarez outlines US passport rules for minors to guide family law attorneys on immigration requirements.

Learn more

Blog post

Fast-track Visa Options for Technical Workers: Türkiye’s AMS Visa and Greece’s Installation Visa

Senior Manager Ben Morgan and Manager Mariana Da Encarnacao outline Türkiye’s AMS visa and Greece’s Installation visa as streamlined immigration options aimed at attracting technical talent to support national innovation and economic growth.

Learn more

Video

Regional Immigration Overviews 2025 | #MobilityMinute

Director Raj Mann shares an overview of Fragomen's newly released 2025  Regional Immigration Overviews, a supplement to the firm's Worldwide Immigration Trends Report.

Learn more

Video

A Guide to EU Visa Categories for Non-EU Nationals

Explore EU visa options for non-EU nationals, including Schengen, long-stay and work visas like the EU Blue Card. Find the right visa for your needs.

Learn more

Blog post

UK Partner Visa 2025: Is Cohabitation Still Required for Unmarried Couples?

Private Client Associate Amelia Haynes and Intern Zuha Malik explore whether living together remains a requirement for unmarried couples applying for a UK partner visa under the 2025 rules.

Learn more

Media mentions

Business Standard: 11 Million US Visa Backlog Crushes Indian H-1B, Green Card Dreams: Decoded

Partner Blake Miller discussed how US immigration processing delays may create challenges for work authorization, travel and workforce planning.

Learn more

Blog post

EES and ETIAS: Automation Meets Immigration Complexity

Immigration Manager Andreia Ghimis discusses how the EES and ETIAS systems aim to streamline immigration processes while addressing the complexities of automation.

Learn more

Fragomen news

Partner Marius Tollenaere Elected to the Executive Committee of the German Bar Association's Migration Law Working Group

Partner Marius Tollenaere is elected to the Executive Committee of the German Bar Association's Migration Law Working Group.

Learn more

Blog post

Policy Reform Proposal: Granting Automatic Employment Authorization to Spouses of Work Visa Holders in South Africa

Director Johannes Tiba explores the proposal to grant automatic employment authorization to spouses of work visa holders in South Africa.

Learn more

Media mentions

The National: UAE Golden Visa Explained: From Nomination to Investment and Who is Eligible

UK: Partner Haider Hussain clarifies that UAE Golden Visa applications must go through official government channels, warning against unauthorised fees and misinformation.

Learn more

Media mentions

Games Industry: What the UK Government’s Industrial Strategy and Immigration White Paper Mean for the UK Games Industry

Director Laurence Keir-Thomas outlines how recent changes to UK immigration and industrial policy may affect talent planning and hiring across the games sector.

Learn more

Stay in touch

Subscribe to receive our latest immigration alerts

Subscribe

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Our firm

  • About
  • Careers
  • Firm Governance
  • Media Inquiries
  • Recognition

Information

  • Attorney Advertising
  • Legal Notices
  • Privacy Policies
  • UK Regulatory Requirements

Have a question?

Contact Us
  • LinkedIn
  • Youtube
  • Instagram
  • Facebook
  • Twitter

© 2025 Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates. All Rights Reserved.

Please note that the content made available on this site is not intended for visitors / customers located in the province of Quebec, and the information provided is not applicable to the Quebec market. To access relevant information that applies to the Quebec market, please click here.