Austria has introduced several key labor market and employment law changes during the last year.
1) The “blocked partial retirement” model will be eliminated by 2029 due to decreased employer interest and state subsidies; “continuous partial retirement” remains an option.
2) Teleworking Implementation: Starting January 1, 2025, a “teleworking” regime will allow remote work in other locations than the home office with employer agreement, though it is discretionary and not a legal right. Already existing home office agreements remain valid but can be revised to include broader teleworking activities.
3) Reduced Employer Contributions: Contributions to the Family Burdens Equalization Fund (FLAF) will decrease from 3.9% to 3.7% of wages from January 1, 2025, with an option for early application in 2024 under certain conditions.
4) Restructured Parental Leave: Since January 1, 2024, non-single parents must share parental leave, with each taking at least two months to qualify for the full 24-month entitlement.
5) Extended Carers’ Leave: Since 2024 carers’ leave covers all household members and close relatives, with enhanced dismissal protections and legal rights for employees to care for sick relatives.
6) Whistleblower Protection Laws: These laws will require companies with over 50 employees to set up internal reporting systems and protect whistleblowers from retaliation.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Olivia Stiedl
Partner
Valentina Arnez
Partner, Attorney at Law (Arnez Rechtsanwalts GmbH*)
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