What is an Employer of Record

How to hire globally with an EOR

What is a Global PEO

An alternative to EOR

What is a PEO

Hire locally with a PEO

Our Methodology

Why you can trust our guides

Hire Globally

Find international talents

Outsource Recruitment

How to outsource recruitment

Work Visas

How to get a work visa

Digital Nomad Visas

Get a digital nomad visa

Best Employer of Record (EOR)

Hire globally with the best EOR companies

Best Contractor Management

Hire and pay contractors and freelancers

Best Global PEO

Discover the best international co-employers

Best PEO Companies

Save on payroll and HR costs

Best Background Check Companies

Screen employees before hire

Best Global Payroll Providers

Outsource international payroll

Best Relocation Services

Relocate employees internationally

International Company Registration

Get help to incorporate overseas

All Reviews

Compare all providers

1. Horizons

Best Global EOR

2. Remote

Best EOR for Compliance

3. Deel

Best EOR Platform

4. Papaya Global

Best EOR for Payments

All EOR Reviews

Compare all providers

Where do you need a service provider?

All Countries

Explore our detailed guides for professional advice on international growth, recruitment, compensations strategies, and a curated list of top service providers.

Austria EOR (Employer of Record)

Employer of Record (EOR) is a popular solution for companies looking to expand their operations into foreign markets without establishing a legal entity. An Austria EOR is the official employer for a company’s employees, handling all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. This allows companies to focus on their core business activities while ensuring compliance with local employment laws and regulations.

Using an EOR in Austria has several benefits for companies expanding their operations into the country. It eliminates the need to establish a legal entity, which can be time-consuming and costly. An EOR also reduces the administrative burden of managing payroll, tax compliance, and HR, allowing companies to focus on their core business activities. Additionally, an EOR ensures compliance with local employment laws and regulations, reducing the risk of penalties and legal disputes.

Key Takeaways

  • Employer of Record is a popular solution for companies expanding their operations into foreign markets.
  • Using an EOR in Austria eliminates the need to establish a legal entity and reduces the administrative burden associated with managing payroll, tax compliance, and HR.
  • An EOR ensures compliance with local employment laws and regulations, reducing the risk of penalties and legal disputes.

Understanding Employer of Record in Austria

Employer of Record (EOR) is a service provider that acts as an official employer and handles all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. EOR service providers allow companies to expand their operations without establishing a legal entity in a foreign country.

In Austria, an employer of record (EOR) is a third-party provider of employment outsourcing services that acts as an employer for tax and HR administrative purposes. The EOR takes care of all legal and administrative tasks related to employment, allowing companies to focus on their core business activities.

By partnering with an EOR in Austria, companies can hire employees and run payroll without first establishing a branch office or subsidiary in the country. This can save companies time and money, as they do not need to worry about setting up a local entity or complying with local labor laws.

One of the benefits of using an EOR in Austria is that it allows companies to hire local talent without having to navigate the complexities of the local labor market. The EOR can provide guidance on local employment laws and regulations, ensuring that companies are compliant with all legal requirements.

An EOR in Austria provides a comprehensive solution for companies looking to expand their operations without establishing a legal entity. The EOR acts as the official employer and handles all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. By partnering with an EOR, companies can hire local talent and run payroll without first establishing a branch office or subsidiary in the country.

Benefits of Using an Employer of Record

Employers of Record (EOR) in Austria offer a range of benefits to companies looking to expand their team in the country. By partnering with an EOR, companies can tap into the local talent pool while minimizing administrative burdens and compliance risks.

One of the key benefits of using an EOR is compliance. An EOR in Austria acts as the official employer, handling all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. This ensures that the company is compliant with all local laws and regulations, reducing the risk of fines, penalties, and legal disputes.

Another benefit of using an EOR in Austria is payroll management. An EOR can manage payroll on behalf of the company, ensuring that all employees are paid accurately and on time. This can be especially useful for companies that are new to Austria and are not familiar with the local payroll regulations.

In addition to compliance and payroll management, an EOR in Austria can also provide HR services. This includes onboarding employees, managing benefits, and handling employee relations. This can be particularly useful for companies that do not have a dedicated HR team in Austria.

By using an EOR in Austria, companies can also benefit from local expertise. An EOR will have a team in Austria that is familiar with the local labor laws and regulations, as well as the cultural nuances of doing business in the country. This can help companies navigate the local business environment and avoid any potential misunderstandings or miscommunications.

Finally, using an EOR in Austria can help companies achieve their growth goals. By partnering with an EOR, companies can expand their team in Austria quickly and compliantly, without having to set up a separate legal entity. This can help companies save time and money, while also allowing them to focus on their core business activities.

Using an EOR in Austria can offer a range of benefits to companies looking to expand their team in the country. From compliance and payroll management to HR services and local expertise, an EOR can help companies navigate the local business environment and achieve their growth goals.

Employment Contracts and Regulations

The employment contract in Austria can be concluded for an indefinite period or for a fixed-term. In the case of a fixed-term contract, the duration of the contract must be specified in the contract. The contract can be renewed, but the total duration of the fixed-term contract cannot exceed five years.

During the probationary period, which cannot exceed three months, the employer can terminate the employment contract without notice and without giving any reason. After the probationary period, the employer must give notice to terminate the employment contract. The notice period depends on the duration of the employment and ranges from six weeks to five months.

In Austria, the employment contract is usually accompanied by a Dienstzettel, which is a document that specifies the essential terms and conditions of the employment relationship. The Dienstzettel must be provided to the employee within one month of the start of the employment.

Termination of an employment contract in Austria can be initiated by the employee or the employer. The employer can terminate the employment contract for a valid reason, such as misconduct or redundancy. The employee can terminate the employment contract by giving notice or by mutual agreement with the employer.

The employment contract in Austria is regulated by the Austrian Labour Constitution Act and the Austrian Civil Code. The contract must be in writing and include essential information such as job title, salary, working hours, and notice periods. The contract can be concluded for an indefinite period or for a fixed-term, and termination can be initiated by either the employer or the employee.

Working Hours and Overtime

In Austria, the standard working hours per week are 40 hours, with a maximum of 10 hours per day. Part-time employees are entitled to work fewer hours, and employers must ensure that they receive the same benefits and protections as full-time employees. The Working Hours Act in Austria contains a large number of provisions for different types of work arrangements.

According to the law, up to 20 hours of overtime per week are allowed in the case of an emergency or unforeseeable circumstances. Any overtime worked beyond this limit must be compensated with additional pay or time off in lieu. Employers must keep accurate records of overtime worked by their employees.

It is important to note that certain industries and professions have specific rules regarding working hours and overtime. For example, employees in the healthcare sector have a maximum weekly working time of 48 hours, while those in the transportation industry have a maximum of 60 hours per week.

In addition, collective bargaining agreements may also set out specific rules regarding working hours and overtime for certain industries and professions. Employers should ensure that they are familiar with any relevant regulations and agreements that apply to their business.

Employers in Austria must comply with the Working Hours Act and any other relevant regulations and agreements regarding working hours and overtime. Failure to do so can result in penalties and legal action.

Leave and Severance Policies

Austria has a well-developed framework for employee leave entitlements and severance policies. Employers are required to provide their employees with a minimum level of paid leave and sick leave. Additionally, Austria has strict regulations regarding termination of employment and severance pay.

Leave Policies

Employees in Austria are entitled to a minimum of 25 days of paid leave per year. This entitlement increases to 30 days after 25 years of service. Employers may offer more than the minimum amount of leave, but they cannot offer less.

In addition to paid leave, employees are entitled to sick leave. During the first year of employment, employees are entitled to six weeks of paid sick leave. After the first year, this entitlement increases to eight weeks. Employers are required to pay employees their full salary during sick leave.

Austria also has specific leave entitlements for new parents. Mothers are entitled to 16 weeks of maternity leave, while fathers are entitled to one week of paternity leave. Additionally, parents are entitled to a total of two years of unpaid parental leave, which can be taken in blocks of time.

Severance Policies

Austria has strict regulations regarding termination of employment and severance pay. Employers must have a valid reason for terminating an employee, such as redundancy or misconduct. If an employer terminates an employee without a valid reason, the employee may be entitled to compensation.

Employees who have been employed for at least six months are entitled to severance pay if they are terminated without a valid reason. The amount of severance pay is calculated based on the employee’s length of service and monthly salary. Employees who have been employed for 25 years or more are entitled to 12 monthly salaries as severance pay.

Employers must also provide employees with notice of termination. The length of the notice period depends on the length of service of the employee. For example, employees who have been employed for less than two years are entitled to one month’s notice, while employees who have been employed for more than 20 years are entitled to six months’ notice.

Maternity Leave in Austria

maternity allowance austria

Mothers in Austria are entitled to 16 weeks of maternity leave. During this time, they are entitled to full pay from their employer. In addition, mothers may be eligible for a maternity allowance from the government.

Maternity allowance amount austria

Paternity Leave in Austria

Fathers in Austria are entitled to one week of paternity leave. During this time, they are entitled to full pay from their employer.

Payroll and Taxation

When it comes to hiring employees in Austria, it is important to understand the payroll and taxation requirements. Employers must comply with both federal and local regulations, and failure to do so can result in significant penalties.

Payroll

Employers must ensure that their employees are paid at least once per month, and payment must be made in euros. Additionally, employers must withhold and remit payroll taxes, which include social security contributions, health insurance contributions, and income tax.

Taxation

Austria has a progressive income tax system, which means that higher earners are subject to a higher tax rate. The current top income tax rate is 55%, and employees must also pay a payroll tax of 18.12%. Employers are also responsible for paying corporate tax, which is currently set at 25%. You can read the detailed explanation for tax deductions here.

Tax deductions austria

Compensation

Employers must provide their employees with a written employment contract that outlines their compensation package. This should include their salary, any bonuses or commissions, and any benefits they are entitled to, such as vacation time or health insurance.

Monthly Payroll

Employers must submit monthly payroll reports to the tax authorities, which detail the salaries and benefits paid to each employee, as well as the payroll taxes withheld and remitted. These reports must be submitted electronically.

Employers in Austria must comply with a range of payroll and taxation requirements, and failure to do so can result in significant penalties. It is important to work with an experienced employer of record (EOR) to ensure compliance with all regulations.

Social Security and Insurance

Austria has a robust social security program that covers various aspects of an employee’s life, including health, accident, and pension insurance. Employers and employees both contribute to these programs, which are managed by the Austrian social security system.

Contributions

Employers and employees both contribute to the social security system in Austria. The contributions are based on the employee’s gross salary, and they cover various aspects of an employee’s life, including health, accident, and pension insurance. The employer is responsible for withholding the employee’s portion of the contributions from their salary and submitting it to the social security system.

Health Insurance

All residents of Austria are required to have health insurance, which is provided by the Austrian social security system. The health insurance covers various aspects of an employee’s health, including doctor visits, hospital stays, and prescription drugs. The employer and the employee both contribute to the health insurance program.

Accident Insurance

Employers are required to provide accident insurance for their employees in Austria. The accident insurance covers employees in case of an accident that occurs during work hours or while commuting to or from work. The employer is responsible for paying the premiums for the accident insurance.

Social Security

The Austrian social security system provides coverage for various aspects of an employee’s life, including health, accident, and pension insurance. The system is funded by contributions from both employers and employees. The social security system also provides support for unemployed individuals and those who are unable to work due to disability.

Pension Insurance

Employers and employees both contribute to the pension insurance program in Austria. The pension insurance provides retirement benefits to employees who have worked in Austria for a certain number of years. The amount of the retirement benefit is based on the employee’s contributions to the pension insurance program.

Health Coverage

Austrian residents are required to have health coverage, which is provided by the Austrian social security system. The health coverage includes various aspects of an employee’s health, including doctor visits, hospital stays, and prescription drugs. The employer and the employee both contribute to the health coverage program.

The social security system in Austria provides comprehensive coverage for employees, including health, accident, and pension insurance. Employers and employees both contribute to the system, which is managed by the Austrian social security system.

Minimum Wage and Compensation

Austria does not have a statutory minimum wage. However, national collective bargaining agreements set minimum wages by job classification and years of service for each industry. This provides for an effective minimum wage of €1,700 per month based on a 40-hour work week. Austrians typically work an 8-hour day and a 40-hour week.

minimum wage index austria
Growth of Index of Agreed Minimum Wages and Consumer Price Index, Statistic Austria

Employers in Austria are required to provide their employees with a written statement of their salary and the method of payment. The statement should include the gross salary, any deductions, and the net salary. The payment of salaries should be made at least once a month.

In addition to the salary, employers in Austria may offer bonuses or other forms of compensation to their employees. These may include performance-based bonuses, profit-sharing schemes, or other incentives. These payments should be clearly defined in the employment contract or collective bargaining agreement.

It is important for employers to ensure that they are in compliance with all relevant employment laws and regulations in Austria. This includes ensuring that they are providing their employees with the appropriate minimum wage and compensation, as well as complying with all tax and social security requirements. Employers may consider working with an Employer of Record (EOR) in Austria to ensure compliance with all legal requirements.

Hiring and Onboarding Process

When hiring employees in Austria, it is important to understand the local employment laws and regulations. This includes compliance with the Austrian Labor Law, which governs the country’s employment practices.

To hire talent in Austria, companies can choose to set up a legal entity or work with an Employer of Record (EOR). An EOR can help companies hire employees in Austria without the need to establish a separate legal entity. This can help streamline the hiring process and reduce administrative burdens.

Once a company has identified a suitable candidate, they can make an offer of employment. The offer should include details such as the job title, salary, benefits, and start date. It is important to ensure that the offer complies with local employment laws and regulations.

After the candidate has accepted the offer, the onboarding process can begin. This involves a range of activities, including introducing the new employee to the company, providing them with relevant information about their role and responsibilities, and helping them to get set up with the necessary tools and resources.

International PEO services can help companies with the onboarding process by providing support and guidance on local employment laws and regulations. This can help ensure that the new employee is properly onboarded and integrated into the company.

Overall, the hiring and onboarding process in Austria can be complex and time-consuming. However, by working with an EOR or international PEO service, companies can streamline the process and ensure compliance with local employment laws and regulations.

Employment Laws and Labor Support

Employment laws and labor support in Austria are designed to protect the rights of both employers and employees. All employees in Austria can freely access the government and labor support whenever they claim to have been maltreated.

When hiring in Austria, it is strongly recommended that employers provide all employees with a written contract of employment. Each contract needs to have any relevant details of the employment arrangement, such as salary, vacation leave, and termination terms.

Austrian labor laws are quite strict, and employers must comply with a variety of regulations. For example, employers must provide employees with at least 25 days of paid leave per year. Additionally, employers must provide employees with a minimum of 11 hours of rest between shifts.

In Austria, there is a labor tribunal system that handles disputes between employers and employees. The tribunal system is designed to be impartial and fair to both parties. If an employee feels that they have been unfairly treated, they can take their case to the labor tribunal.

Austria also has a work council system that allows employees to have a say in the decision-making process of their employer. The work council is made up of employee representatives and is responsible for ensuring that the employer complies with labor laws and regulations.

Austria has a robust system of employment laws and labor support that is designed to protect the rights of all parties involved. Employers and employees alike can benefit from the protections and support provided by the Austrian labor system.

Intellectual Property and Data Protection

When expanding a business to Austria, it is important to consider the protection of intellectual property and data. Companies should follow general principles for effective protection of their intellectual property, especially in a foreign market.

The Austrian Copyright Act recognizes the original author as the owner of the copyright, and it is possible to license the exploitation rights. Therefore, companies should take measures to protect their intellectual property, such as registering trademarks and patents.

In addition to intellectual property, companies should also consider data protection laws in Austria. The Austrian Data Protection Authority is the national supervisory authority for data protection in the country. The authority has the power to enforce data protection laws and investigate any breaches.

Companies should ensure that they comply with the Austrian data protection regulations, such as obtaining consent from individuals before collecting their personal data. The regulations also require companies to implement appropriate technical and organizational measures to protect personal data from unauthorized access, alteration, or destruction.

Companies should be aware of the importance of protecting their intellectual property and data when expanding to Austria. By following the relevant regulations and guidelines, businesses can ensure the safety and security of their assets and information.

Remote Work and International PEO

As remote work becomes more common, companies are increasingly interested in hiring employees from different countries. However, hiring international employees can be complicated, especially when it comes to compliance with local labor laws and regulations. This is where an Employer of Record (EOR) or International Professional Employer Organization (PEO) can be helpful.

An EOR or PEO is a third-party provider of employment outsourcing services that acts as an employer for tax and HR administrative purposes. They typically handle a range of duties related to the hiring and management of remote workers, including registering the employee with the local government for tax, health insurance, and social security purposes, handling payroll administration, including taxes and other deductions, and processing employee benefits such as vacation.

Remote is a company that provides EOR services in countries all over the world. They handle local payroll, taxes, benefits, and compliance so your employees feel as safe and secure as your business does. Remote’s EOR services are similar to international PEOs, but the actual services provided all fall under the same banner of EOR.

An EOR or PEO can be particularly useful for companies that are expanding into new markets or hiring employees in countries where they do not have a legal entity. By using an EOR or PEO, companies can avoid the costs and administrative burden of setting up a legal entity in a foreign country.

Using an EOR or PEO can be a cost-effective and efficient way to manage international employees and ensure compliance with local labor laws and regulations.

Conclusion

In conclusion, expanding a business to Austria can be a complex process, but with the right Employer of Record (EOR) solution, it can be made much simpler. EORs act as the official employer and handle all employment-related tasks, including payroll, tax compliance, benefits administration, and HR management. This allows companies to focus on their core business activities without worrying about legal compliance issues.

Skuad’s Employer of Record Austria (EOR) solutions make business expansion to Austria easy and hassle-free. Their unique HR platform allows companies to hire exceptionally talented employees in Austria without having to set up a separate legal entity.

Neeyamo also provides payroll and EOR services for companies looking to expand their operations in Austria. Their global payroll and HR solutions can help companies manage their international payroll and hire new talent in Austria.

Globalization Partners is another company that provides EOR services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Austria. This can be a great option for companies looking to expand quickly and efficiently.

Choosing the right EOR solution is critical for companies looking to expand to Austria. By partnering with a reputable EOR provider, companies can ensure they are compliant with all local laws and regulations while focusing on their core business activities.

Frequently Asked Questions

An employer of record (EOR) is a third-party company that acts as the legal employer of a company's workers. The EOR is responsible for payroll, benefits, and compliance with local labor laws. In Austria, an EOR can be particularly useful for foreign companies that want to expand their operations in the country without setting up a legal entity.

To act as an EOR in Austria, a company must be registered with the Austrian Commercial Register and be in good standing with local labor laws. The EOR must also have a physical presence in Austria and be able to provide payroll and HR services to its clients.

Using an EOR in Austria can help companies reduce their administrative burden, as the EOR is responsible for payroll, benefits, and compliance with local labor laws. This can be particularly useful for companies that are expanding into Austria for the first time and may not have a deep understanding of local labor laws.

To hire an EOR in Austria, a company should research potential providers and choose one that has a strong reputation and experience working with companies similar to their own. The company should then negotiate a contract with the EOR that outlines the scope of services, fees, and other important details.

The costs associated with using an EOR in Austria will vary depending on the provider and the scope of services required. Generally, companies can expect to pay a monthly fee for the EOR's services, as well as additional fees for any additional services required.

When choosing an EOR in Austria, companies should consider the provider's reputation, experience, and track record of success. They should also consider the provider's ability to provide the specific services required, as well as their fees and any additional costs associated with their services.

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.

Search

Search