Contracts in Austria

Overview by

The Active Population in Figures

Main Indicators 2007200620052004
Labor Force 4032.93928.33824.43744.0
Labor Force (Annual Growth, %) 1.101.600.80-1.10
Rate of Activity (%) 71.370.268.667.8
Unemployment Rate (%)

Source: Austrian Statistics

For Further Statistics
Austrian Statistics
For Further Information About the Labor Market
Federal ministry of Economics and Labour

Management of Human Resources



Recruitment Websites

The Contract

Type of Contract
The employment contracts in Austria are regulated by the Employment Contract Law. However terms & types of such contracts are governed by the collective bargaining agreements ("Kollektivvertrag"). A non-EU person needs to obtain a work-permit before entering into an employment contract.
Breach of Contracts
  • Retirement
Here the employment contract may be terminated by mutual agreement by giving a notice to the employee.
  • Dismissals
Labour regulations prohibit termination without notice except in some extreme conditions like theft, assault, harassment.
  • Other Possible Methods
Collective dismissal: In this case the employer has to notify the employment centre.
Labor Laws
Employment contract law

Dispute Settlement


Conciliation Process

Cases of Dispute
Dismissal, harassment, conflict over retirement, etc.
  • Legal Framework
Mediation is generally used in Austria; governed by ‘Act on Mediation – 2004’.
  • Procedure
The concerned parties engage a mediator (a trained and neutral intermediary) to enable the parties to solve their conflict on their own account. Such services could be provided only by registered mediators, listed with Ministry of Justice.

The Act on Mediation also establishes an Advisory Board for Mediation at the Ministry of Justice, which consists of about 25 members.


Judicial Structures

  • Legal Framework
Act on the Procedure in Labor Law and Social Law Matters (Arbeits – und Sozialgerichtsgesetz).
  • Competent Legal Body
Employment Courts An appeal from the Employment Court may be made to the Regional Court of Appeals (Oberlandesgericht). By way of exception, an appeal can made to the Supreme Court (Oberster Gerichtshof) against a decision made on appeal by the Regional Court of Appeals.

Social Partners

Social Dialogue and Involvement of Social Partners
The law allows the workers to form and join unions. Collective bargaining is protected in law and is freely practiced. Nearly 80% percent of the labor force worked under a collective bargaining agreement. There are nearly 9 national unions which are part of the Austrian Trade Union Federation (OGB)
Unionization Rate
36% in the year 2007.
Austrian Trade Union Federation (OGB)
Regulation Bodies
Federal Ministry of Labour & Economic Affairs

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