Important Updates
Important Updates
August 22, 2025 | United StatesThe Advocate: Navigating the Complexities of Business Immigration Law
August 25, 2025 | BelgiumBelgium: Family Reunification Pathway Restrictions
August 22, 2025 | JordanJordan: Vietnamese Nationals Can Now Obtain E-Visas, Visas-on-Arrival
August 22, 2025 | New ZealandNew Zealand: New Parent Boost Visitor Visa Forthcoming
August 22, 2025 | United StatesPartners Molly Carey and Catherine Macris Named 2025 New England Legal Awards Finalists
August 22, 2025 | United StatesThe Advocate: Navigating the Complexities of Business Immigration Law
August 25, 2025 | BelgiumBelgium: Family Reunification Pathway Restrictions
August 22, 2025 | JordanJordan: Vietnamese Nationals Can Now Obtain E-Visas, Visas-on-Arrival
August 22, 2025 | New ZealandNew Zealand: New Parent Boost Visitor Visa Forthcoming
August 22, 2025 | United StatesPartners Molly Carey and Catherine Macris Named 2025 New England Legal Awards Finalists
August 22, 2025 | United StatesThe Advocate: Navigating the Complexities of Business Immigration Law
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

Video

Dubai Introduces a ‘One Free Zone Passport’ – What It Is & How It’s Used | #MobilityMinute

Senior Corporate Services Manager Zak Hynes explores Dubai’s launch of the “One Freezone Passport."

Learn more

Video

Navigating Business Travel in Germany: Essential Insights | #MobilityMinute

Senior Associate Isabel Schnitzler discusses how to navigate business travel in Germany.

Learn more

Awards

Partners Molly Carey and Catherine Macris Named 2025 New England Legal Awards Finalists

Partners Molly Carey and Catherine Macris are finalists for the 2025 New England Legal Awards in the Partner of the Year and Regional Managing Partner of the Year categories.

Learn more

Media mentions

The Advocate: Navigating the Complexities of Business Immigration Law

Matawan Managing Partner Rahul Shah reflects on his path in immigration law and shares his perspective on global mobility.

Learn more

Awards

Fragomen Attorneys Recognized in the 2026 Edition of The Best Lawyers in America™

The 2026 edition of The Best Lawyers in America™ honors numerous Fragomen attorneys for excellence in immigration law, including Partner Sarah K. Peterson, who received the distinguished “Lawyer of the Year” award.

Learn more

Video

Greek Citizenship by Descent: Are You Eligible?

In this video, Senior Manager Ben Morgan offers a comprehensive overview of Greek citizenship by descent—a key pathway for individuals with Greek ancestry to obtain citizenship.

Learn more

Blog post

Start Smart: Visa Pathways for Educational Opportunities in Thailand

Partner Aim-on Larpisal and Senior Knowledge Management Specialist outline key visa options available to international students seeking to study in Thailand, emphasizing strategic planning for a smooth application process.

Learn more

Fragomen news

Partner Charles Johanes contributes to Global Mobility Lawyer’s Guide to Global Immigration

Partner Charles Johanes contributed insights to the Australia section of a global immigration and mobility guide.

Learn more

Media mentions

Pittsburgh Business Times: Viewpoint: Immigration Compliance: A Strategic Imperative for Today’s Employers

Pittsburgh Managing Partner Alex Castrodale and Associate Adam Teets highlight the need for US employers to prepare for unannounced immigration compliance checks.

Learn more

Blog post

From Ground Staff to Game Day: UK Skilled Worker Visa Changes in 2025 and the Impact on the Hidden Workforce in Sports Sector

Associates Stephanie Fitton and Halil Kaya and Paralegal Marcus Alexander Lang-Rawlings discuss how UK changes to the Skilled Worker visa in 2025 are reshaping sports sector employment.

Learn more

Blog post

Talent & Policy: Navigating Career Beginnings and Hiring Challenges in Singapore

Assistant Business Immigration Managers Jeszel Panistante-Cabral, Elsie Lim and Nellanie Quimson explore the complexities young professionals face entering the workforce and the evolving hiring landscape in Singapore.

Learn more

Blog post

Global Mobility Support and Visa Services: Fragomen’s Outbound Solutions from Germany

Director David Iannella discusses Fragomen Germany’s approach to outbound immigration solutions and how the office supports global mobility through visa services and compliance expertise.

Learn more

Video

Dubai Introduces a ‘One Free Zone Passport’ – What It Is & How It’s Used | #MobilityMinute

Senior Corporate Services Manager Zak Hynes explores Dubai’s launch of the “One Freezone Passport."

Learn more

Video

Navigating Business Travel in Germany: Essential Insights | #MobilityMinute

Senior Associate Isabel Schnitzler discusses how to navigate business travel in Germany.

Learn more

Awards

Partners Molly Carey and Catherine Macris Named 2025 New England Legal Awards Finalists

Partners Molly Carey and Catherine Macris are finalists for the 2025 New England Legal Awards in the Partner of the Year and Regional Managing Partner of the Year categories.

Learn more

Media mentions

The Advocate: Navigating the Complexities of Business Immigration Law

Matawan Managing Partner Rahul Shah reflects on his path in immigration law and shares his perspective on global mobility.

Learn more

Awards

Fragomen Attorneys Recognized in the 2026 Edition of The Best Lawyers in America™

The 2026 edition of The Best Lawyers in America™ honors numerous Fragomen attorneys for excellence in immigration law, including Partner Sarah K. Peterson, who received the distinguished “Lawyer of the Year” award.

Learn more

Video

Greek Citizenship by Descent: Are You Eligible?

In this video, Senior Manager Ben Morgan offers a comprehensive overview of Greek citizenship by descent—a key pathway for individuals with Greek ancestry to obtain citizenship.

Learn more

Blog post

Start Smart: Visa Pathways for Educational Opportunities in Thailand

Partner Aim-on Larpisal and Senior Knowledge Management Specialist outline key visa options available to international students seeking to study in Thailand, emphasizing strategic planning for a smooth application process.

Learn more

Fragomen news

Partner Charles Johanes contributes to Global Mobility Lawyer’s Guide to Global Immigration

Partner Charles Johanes contributed insights to the Australia section of a global immigration and mobility guide.

Learn more

Media mentions

Pittsburgh Business Times: Viewpoint: Immigration Compliance: A Strategic Imperative for Today’s Employers

Pittsburgh Managing Partner Alex Castrodale and Associate Adam Teets highlight the need for US employers to prepare for unannounced immigration compliance checks.

Learn more

Blog post

From Ground Staff to Game Day: UK Skilled Worker Visa Changes in 2025 and the Impact on the Hidden Workforce in Sports Sector

Associates Stephanie Fitton and Halil Kaya and Paralegal Marcus Alexander Lang-Rawlings discuss how UK changes to the Skilled Worker visa in 2025 are reshaping sports sector employment.

Learn more

Blog post

Talent & Policy: Navigating Career Beginnings and Hiring Challenges in Singapore

Assistant Business Immigration Managers Jeszel Panistante-Cabral, Elsie Lim and Nellanie Quimson explore the complexities young professionals face entering the workforce and the evolving hiring landscape in Singapore.

Learn more

Blog post

Global Mobility Support and Visa Services: Fragomen’s Outbound Solutions from Germany

Director David Iannella discusses Fragomen Germany’s approach to outbound immigration solutions and how the office supports global mobility through visa services and compliance expertise.

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.