Austria: Posted Worker Notification Rules Relaxed

New definition for posted workers for direct client assignments. A service contract between an employer based in the European Union/EEA/Switzerland and an Austrian company is now a pre-requisite for posted worker rules to apply. 

A service contract was not required, so a wider pool of employees were subject to posted worker rules in Austria.

Meetings or tasks to be performed without a service contract do not fall under posted worker rules and therefore do not trigger posted worker notification and document maintenance requirements, unless another type of posting applies (i.e. intra-company postings or postings of employees employed by a third party).

New exemptions from posted worker rules. The following employees were added to the list of those exempt from posted worker rules in Austria:

• Employees who earn at least EUR 6,660 gross monthly (to be increased in 2022);
• Intra-company transferees performing delivery and commissioning, maintenance, and service work (intra-group activities only);
• Intra-company transferees performing repairs of plants, machines, or computer systems (intra-group activities only); and
• Employees of certain vendors or lessors of those supplying/collecting goods.

These categories of workers were subject to posted worker notification and document maintenance rules.

A wider pool of posted workers can work with fewer administrative burdens in Austria.

Despite the new exemptions, third country nationals may be subject to work visa and residence permit requirements.

Stays for less than one week. Posted workers staying in Austria for less than one week only need to file one posted worker notification (even for more than one service contract) if the employee remains in Austria for a maximum of one week.

Multiple engagements could be filed in each notification, even if the engagements lasted more than one week.

Shorter-term posted workers face fewer administrative hurdles, even if they are involved in multiple service contracts.

Social insurance proof. In case the employer cannot obtain an A1-Certificate before the posted worker’s start date, they can now prove social security registration through an alternative document in German or English.

Employers who could not obtain the A-1 Certificate before the posted worker’s start date needed to obtain a coverage certificate from the social insurance provider. 

Employers of posted workers now have more avenues to prove social security registration.

Language for remuneration-related documents. Documents on the posted worker’s remunerated can now be in German or English.

These documents had to be in German.

Fewer administrative hurdles for employers of posted workers.

Reduced penalties. Penalties for underpayment are now assessed based on the underpayment amount, minimum penalties were removed and maximum penalties were introduced. 

Penalties could previously be accumulated with no maximum, potentially causing exorbitant penalties. 

This update addresses long-standing jurisprudence which barred unrestricted accumulation of fines for cross-border intra-EU secondments.

Affected companies should benefit from more transparent sanctions for posted worker violations.