Austria: Reforms Relax Rules on Employer Changes and Unemployment

More relaxed change-of-employer rules. 

• Single permit holders may now change employers, subject to receiving approval from authorities.  

• If change-of-employer applicants receive no decision on their application within 45 days of submission, they may start working for the new employer.  

• This policy change does not apply to ICT permit holders.  

• Existing change-of-employer rules for EU Blue Cards remain unchanged.  

• Foreign nationals may be more willing to remain in Austria if they can transition between employers more easily, supporting labor market competitiveness and long-term retention of foreign talent.   

• Easier employer changes may increase competition for foreign talent within Austria, potentially improving negotiating leverage for foreign workers.   

Possibility to remain temporarily unemployed. 

• Foreign nationals now retain their work permit after becoming unemployed for up to six months; whereas previously such an option was available only to EU Blue Card holders.  

• Affected individuals must notify authorities about the end of the employment. 

• In limited circumstances, this period may be further extended.  

• This grace period does not apply to certain permit holders, including intracompany transferees and posted workers, among others. 

• By granting employees a transition period to secure a new role rather than requiring them to depart Austria immediately, this policy may boost talent retention in Austria.   

• Relatedly, more flexible unemployment retention rules may make Austria a more appealing destination for foreign workers who value stability and reduced immigration risk during career transitions.  

Shorter processing times. 

• With exceptions, applications must now be processed within 90 days from submission of a complete application.  

• Existing shorter deadlines (for instance, for Red-White-Red Cards, EU Blue Cards among others) remain unchanged.  

• Some residence permits (for instance, posted workers and self-employed applicants) continue to be subject to longer processing periods. 

The quicker processing times will reduce start-date delays for employers and foreign workers, better ensuring onboarding schedules can match project timelines and business demand.