Hot Topics Tightenings in Austrian Employment Law The Employment Market Summit 2015 held by the federal government and the social partners will lead to several tightenings in Austrian employment law. Only one relief is planned, namely regarding travel time. Draft bills of the measures passed are already under legislative assessment. The new rules will presumably come into force as of January 1, 2016. Overview of the most important reforms: All-In Agreements In future, the base salary has to be expressly mentioned in the employment contract or the employment letter. The base salary is the salary for the normal working time, e.g. 40 hours/week. In case the employer does not mention the base salary, a reasonable “actual salary” is deemed to be agreed. Such actual salary is the salary which an employee with a certain education and professional experience would normally earn in a certain business sector in a certain region. New employment contracts: In future, employment contracts should mention the minimum salary under the collective bargaining agreement. Otherwise, there is a risk of a statutory salary increase. The employee should be regularly informed about amendments to such minimum salary. New time management: The new law will probably lead to an increased willingness of employees to actively claim a separate overtime compensation, even in case of all-in-clauses. In order to prevent increased personnel costs existing working time models should be reviewed. Limitation of Non-Compete Clauses Post-contractual non-compete clauses shall only be legally permissible if the employee earns at least 20 times the daily maximum assessment basis for social security purposes (to date, the remuneration limit was 17-times such assessment basis). Thus, in future, post-contractual non-compete obligations are only permissible from a remuneration of EUR 3,240 (amount for 2016). Special payments must not be taken into account when calculating the required remuneration. Further, the amount of the contractual penalty which may be agreed in the context of a non-compete clause is limited with six net monthly remunerations (calculated without special payments). Reclaiming of Educational Costs The time limit for the reclaiming of educational costs shall be reduced from five to four years. Also, the amount that may be reclaimed shall be calculated per month Employment Law Austria November 2015 Our Expertise Employment Law 2 Hot Topics on a pro-rata basis, whereby such calculation shall commence upon successful completion of the education. A calculation using greater intervals (eg years) will be forbidden. Employment Letter In future, the employment letter shall mention the exact amount of the monthly base salary. A plain reference to the statutory salary provisions or the collective bargaining agreement will be forbidden. Salary Documentation Employees shall have a right to get handed out the salary documentation each month. Further, employees shall have right to get handed out a copy of the registration with the social insurance from the employer. Information Right for Part-Time Employees If the employer plans to advertise a position with increased working hours, also the existing part-time employees have to be informed about such position. By such information, part-time employees shall be enabled to switch to a full-time employment or an increased working time within the same company. Such information does not have to be provided to the employees personally. Instead, a general announcement (e.g. on the black board) is possible. In case of violations administrative fines may be imposed. Higher flexibility in case of Business Travels and Assembling In case of active travel time the daily maximum working time shall be increased to twelve hours and in case of apprentices over 16 years of age to ten hours. Examples: 1. A salaried employee holds a seminar in Linz which lasts ten hours. Due to the new law it will be possible to travel home from Linz to Vienna after such ten hours with the car instead of staying overnight in Linz. 2. An apprentice is taken from Linz to Vienna to an assembling and exceeds due to the travel time the current time limit of eight hours. Due to the new law an extension to ten hours is possible. We will inform you as soon as the described legislation amendment comes into force. 3 Hot Topics For further information, please contact: Dr. Philipp Maier, LL.M. E-Mail: firstname.lastname@example.org Mag. Simone Liebmann-Slatin, MSc E-Mail: email@example.com Mag. Elisabeth Wasinger, LL.M. E-Mail: firstname.lastname@example.org Diwok Hermann Petsche Rechtsanwälte LLP & Co KG is a Member of Baker & McKenzie International Vienna Schottenring 25 1010 Vienna Tel.: + 43 (0) 1 24 250 Fax: + 43 (0) 1 24 250 600 www.bakermckenzie.com Get Connected: This client newsletter is prepared for information purposes only. The information contained therein should not be relied on as legal advice and should, therefore, not be regarded as a substitute for detailed legal advice in the individual case. The advice of a qualified lawyer should always be sought in such cases. In the publishing of this Newsletter, we do not accept any liability in individual cases. Diwok Hermann Petsche Rechtsanwälte LLP & Co KG is a Member of Baker & McKenzie International, a Verein organized under the laws of Switzerland with member law firms around the world. 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