Austria PEO Services

Global PEO Services (GPS) helps companies hire employees in Austria without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.

When hiring employees in Austria, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.

Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Austria labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Austria. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.

Written employment contracts are not mandatory, but employers are required to provide a written statement specifying the job duties and terms.

In most cases, the probationary period is not more than 1 month. Temporary agency workers are entitled to the same rights as permanent employees, both during and between work assignments.

Holidays

Austria has 13 statutory public holidays. Employees who work on holidays are entitled to a 100% premium over their regular wages. The holidays are:

• January 1 – New Year’s Day
• January 6 – Epiphany
• Easter Monday
• International Workers’ Day (May 1)
• Ascension Day
• Whit Monday
• Corpus Christi
• Assumption (Aug. 15)
• Austrian National Holiday (Oct. 26)
• All Saints’ Day (Nov. 1)
• Immaculate Conception (Dec. 8)
• Christmas (Dec. 25)
• St. Stephen’s Day (Dec. 26)

Employers should provide 5 weeks of paid leave to employees for every 6 consecutive months of employment. Employees who have worked for 25 years, receive an additional week, i.e., 6 weeks of paid leave for every 6 consecutive months of employment. Days on which employees fall sick while on leave are not factored in the annual paid leave allowance.

Sick Leave

Employers must provide 6 weeks’ sick leave at full pay and 4 weeks’ leave at half pay. After exhausting their sick leave, employees receive extra sick leave paid for by the health insurance provider.

If the sick leave is taken due to a work-related illness or accident, employers should provide 8 weeks’ sick leave at full pay. After 15 years of employment, employers should provide 10 weeks’ sick leave.

Compassionate Leave

Employers must permit employees to take unpaid compassionate leave to care for terminally ill children or close relatives.

Maternity Leave

Pregnant employees can take paid maternity leave, beginning 8 weeks before birth and ending 8 weeks after child birth. For multiple births or cesarean, the work restrictions post-delivery are extended to a minimum 12 weeks. In case the maternity leave was reduced before delivery, the paid leave is extended accordingly after delivery to a maximum 16 weeks. Maternity pay is 100% of employees’ average wages in the last 13 weeks of employment. Following maternity leave, employees can also take parental leave.