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Austria: Posted Worker Notification Rules Relaxed

October 4, 2021

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Country / Territory

  • AustriaAustria

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At a Glance

Rules for posted worker notifications in Austria have been amended, with key changes including:

  • A new requirement for a service contract between an employer based in the European Union/European Economic Area/Switzerland and an Austrian company for posted worker rules to apply for direct client assignments;
  • The addition of new exemptions from posted worker rules, including for employees who earn at least EUR 6,660 gross monthly; and
  • More transparent sanctions for employers violating posted worker rules.

The situation

Austria has amended the rules for posted worker notifications and document maintenance to make it easier for workers temporarily working in Austria for an employer based in the European Union/European Economic Area(EEA)/Switzerland to start work.

A closer look

Change Previous rule Impact

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.

 

Background

  • Posted worker definition. According to the Posted Worker Directive, posted workers are individuals employed with a company in the EU/EEA/Switzerland sent to work temporarily on an assignment to Austria where either (i) the sending entity has a service contract with the Austrian receiving entity; (ii) the sending and the receiving entity are part of the same group of companies (intra-company posting); or (iii) the posting is carried out by a third party.
  • Reason for relaxed rules. These relaxed rules followed from the European Commission calling for better protection of worker rights and streamlined notification options for employers.
  • Immigration requirements still apply. Individuals exempt from posted worker requirements may still be required to obtain a work visa and/or residence permit depending on their nationality and purpose of stay. Employees posted from a country outside the EU/EEA/Switzerland still require work permits and a work visa. 

 

Looking ahead

As Austria’s posted worker notification rules continue to be complex, further changes may be required to address the European Commission’s enforcement action. This will depend on whether the Commission continues or drops their enforcement against Austria in the next enforcement update.

Fragomen will report on related developments.

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]. 

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  • AustriaAustria

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