Important Updates
Important Updates
October 30, 2025 | United KingdomUnited Kingdom: Consultation Open Regarding Right to Work Scheme Extension to Gig Workers
October 30, 2025 | ChinaChina: Physical Social Security Card to Continue to Be Issued
October 30, 2025 | ChinaMainland China: Work Permit and Social Security Cards Integrated Under New Enhanced System
October 30, 2025 | 🌐Minimum Salary Changes Announced
October 30, 2025 | PanamaPanama: Government Reporting Requirement Enforced; Strict Penalties May Apply
October 30, 2025 | United KingdomUnited Kingdom: Consultation Open Regarding Right to Work Scheme Extension to Gig Workers
October 30, 2025 | ChinaChina: Physical Social Security Card to Continue to Be Issued
October 30, 2025 | ChinaMainland China: Work Permit and Social Security Cards Integrated Under New Enhanced System
October 30, 2025 | 🌐Minimum Salary Changes Announced
October 30, 2025 | PanamaPanama: Government Reporting Requirement Enforced; Strict Penalties May Apply
October 30, 2025 | United KingdomUnited Kingdom: Consultation Open Regarding Right to Work Scheme Extension to Gig Workers
Subscribe
Fragomen.com home
Select Language
  • English
  • French
  • French - Canadian
  • German

Select Language

  • English
  • French
  • French - Canadian
  • German
ContactCareersMediaClient Portal
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 AdministrationFragomen Consulting EuropeImmigration Matters: Your U.S. Compliance RoadmapCenter for Strategy and Applied InsightsVietnamese ImmigrationView More
  • 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
  • Fragomen Consulting Europe
  • Immigration Matters: Your U.S. Compliance Roadmap
  • Center for Strategy and Applied Insights
  • Vietnamese Immigration
  • View More

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
ContactCareersMediaClient Portal
  • 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

Media mentions

Games Industry: US H-1B Visas: Alternatives to a $100,000 Fee

Senior Manager William Diaz outlines the US visa options available to the games industry for bringing international talent to the United States, including O-1, L-1 and E-2.

Learn more

Media mentions

People Management: How Will EU Travel Rule Changes Impact Employers?

Partner Jo Antoons and Manager Andreia Ghimis explain how businesses can navigate Europe’s new ETIAS pre-travel authorisation and avoid disruptions.

Learn more

Media mentions

Arts Professional: How Easy Is It for Overseas Creatives to Work in the UK?

Partner Louise Haycock and Associate Jennifer Gray analyse the barriers and opportunities for overseas creatives navigating the UK’s immigration system.

Learn more

Blog post

Claiming British Citizenship Through Ancestral Lineage: Who Is Eligible?

Associate Chloe Evans outlines eligibility criteria for individuals seeking British citizenship based on ancestral ties.

Learn more

Fragomen news

Fragomen Semiconductors Presents: "Voice of the Industry" October 2025 Q&A with Shari Liss

Fragomen’s Semiconductor Industry Group publishes the next installment of its “Voice of the Industry” Q&A series, featuring Shari Liss, Vice President of Global Workforce Development and Initiatives at SEMI.

Learn more

Media mentions

Gazeta Prawna: Legalny napływ cudzoziemców do pracy powstrzymany

Partner Karolina Schiffter highlights how Poland’s tightened visa system affects foreign hiring and the challenges companies face in navigating it.

Learn more

Media mentions

Bloomberg Law: US Chamber Turns Trump Foe in Rare Split Over $100,000 H-1B Fee

Partner Carl Hampe provides insight on the impact of the $100,000 H-1B fee and the US Chamber of Commerce’s related lawsuit.

Learn more

Awards

Fragomen Wins 2025 FEM EMEA “Best Partnership” EMMA for Collaboration with TBB

Fragomen was honoured with the “Best Partnership Between a Corporate Organization and a Service Provider” EMMA at FEM's 2025 EMEA Summit.

Learn more

Media mentions

Global Mobility Lawyer: DOL Flags Immigration Crackdown as Risk to Food Supply

Partner Rachel Beardsley highlights how H-2A visa strategies can help sustain a skilled US agricultural workforce.

Learn more

Blog post

Intra-African Mobility: Unlocking the Continent’s Promise Through Free Movement

Director Willys Mac’Olale discusses how intra-African mobility can unlock the continent’s economic and social potential by promoting free movement, fostering integration and development.

Learn more

Blog post

Costa Rica Family Relocation: Understanding Residency for Dependents

Immigration Director Adriana Martínez Garro explains the residency process in Costa Rica for families relocating with dependents, outlining key legal considerations and steps for securing status.

Learn more

Media mentions

Financial Times: Scientists Charged Too Much to Come to Work in UK, Says Royal Society

Fragomen contributed data showing how UK visa and health surcharge costs compare with other leading research nations.

Learn more

Media mentions

Games Industry: US H-1B Visas: Alternatives to a $100,000 Fee

Senior Manager William Diaz outlines the US visa options available to the games industry for bringing international talent to the United States, including O-1, L-1 and E-2.

Learn more

Media mentions

People Management: How Will EU Travel Rule Changes Impact Employers?

Partner Jo Antoons and Manager Andreia Ghimis explain how businesses can navigate Europe’s new ETIAS pre-travel authorisation and avoid disruptions.

Learn more

Media mentions

Arts Professional: How Easy Is It for Overseas Creatives to Work in the UK?

Partner Louise Haycock and Associate Jennifer Gray analyse the barriers and opportunities for overseas creatives navigating the UK’s immigration system.

Learn more

Blog post

Claiming British Citizenship Through Ancestral Lineage: Who Is Eligible?

Associate Chloe Evans outlines eligibility criteria for individuals seeking British citizenship based on ancestral ties.

Learn more

Fragomen news

Fragomen Semiconductors Presents: "Voice of the Industry" October 2025 Q&A with Shari Liss

Fragomen’s Semiconductor Industry Group publishes the next installment of its “Voice of the Industry” Q&A series, featuring Shari Liss, Vice President of Global Workforce Development and Initiatives at SEMI.

Learn more

Media mentions

Gazeta Prawna: Legalny napływ cudzoziemców do pracy powstrzymany

Partner Karolina Schiffter highlights how Poland’s tightened visa system affects foreign hiring and the challenges companies face in navigating it.

Learn more

Media mentions

Bloomberg Law: US Chamber Turns Trump Foe in Rare Split Over $100,000 H-1B Fee

Partner Carl Hampe provides insight on the impact of the $100,000 H-1B fee and the US Chamber of Commerce’s related lawsuit.

Learn more

Awards

Fragomen Wins 2025 FEM EMEA “Best Partnership” EMMA for Collaboration with TBB

Fragomen was honoured with the “Best Partnership Between a Corporate Organization and a Service Provider” EMMA at FEM's 2025 EMEA Summit.

Learn more

Media mentions

Global Mobility Lawyer: DOL Flags Immigration Crackdown as Risk to Food Supply

Partner Rachel Beardsley highlights how H-2A visa strategies can help sustain a skilled US agricultural workforce.

Learn more

Blog post

Intra-African Mobility: Unlocking the Continent’s Promise Through Free Movement

Director Willys Mac’Olale discusses how intra-African mobility can unlock the continent’s economic and social potential by promoting free movement, fostering integration and development.

Learn more

Blog post

Costa Rica Family Relocation: Understanding Residency for Dependents

Immigration Director Adriana Martínez Garro explains the residency process in Costa Rica for families relocating with dependents, outlining key legal considerations and steps for securing status.

Learn more

Media mentions

Financial Times: Scientists Charged Too Much to Come to Work in UK, Says Royal Society

Fragomen contributed data showing how UK visa and health surcharge costs compare with other leading research nations.

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.