As of 01 January 2023, several changes came into effect in employment law and social law. In some respects, these changes come with legal implications for employment and the labour market, in others they also concern families and social security. Here is a first overview of some important changes:
The Whistleblower Protection Act
Arguably one of the biggest changes as of 2023 relates to the implementation of the 2019 European Union ("EU") Directive on the Protection of Persons Reporting Breaches of Union Law [Directive (EU) 2019/1937] - also known as the "Whistleblower Directive".
The new act is not expected to take effect before April 2023. The directive aims at ensuring Union-wide minimum standards for whistleblowing as well as the protection of whistleblowers in order to achieve a higher detection rate regarding certain violations of Union law. All legal entities in the public sector as well as all companies in the private sector with at least 50 employees are to be obliged to set up a functioning internal reporting channel.
In Austria, the first draft bill of the act to implement the Directive was published in the summer of 2022. However, part of it did not meet the minimum requirements of the Directive. In mid-December 2022, the motion for the Whistleblower Protection Act was introduced in the National Council and assigned to the Committee for Labour and Social Affairs. The committee in charge has not yet started deliberating the bill. The act is expected to enter into force in the first quarter of 2023. A transitional period of 6 months from the effective date is foreseen for the implementation of the act in enterprises.
Directive on transparent and predictable working conditions
The primary objective of the Directive on Transparent and Predictable Working Conditions in the European Union [Directive (EU) 2019/1152] as adopted by the EU is to standardise the minimum rules on working conditions throughout the EU. Primarily, this is to be achieved by promoting predictable and transparent employment and ensuring labour market adaptability. Many of the measures contained in the Directive are already enshrined in law in Austria. No draft legislation for the implementation of the Directive exists in Austria as yet. It remains to be seen how the Directive will be implemented domestically.
Due to the non-implementation of the Directive, the EU initiated infringement proceedings against Austria.
Compensation for unused leave upon resignation
So far, Sec. 10 par. 2 of the Act on Paid Annual Leave (UrlG) stipulated that, in case of unsubstantiated premature resignation, employees in Austria were not entitled to compensation for unused leave for the last year of employment ongoing at the time of resignation. The European Court of Justice has ruled that this provision is contrary to Union law as employees are no longer able to use the annual paid leave upon termination of their employment. As of 01 November 2022, in the event of an unsubstantiated premature resignation, employees are now entitled to compensation for unused leave equivalent to four weeks for the year considered ongoing for the purpose of calculating leave entitlement.
Short-time work and special care leave
Due to the persistence of the Covid-19 pandemic, numerous provisions adopted in this context will continue to apply until the end of June 2023. Among other things this will affect the entitlement to short-time work grants. Some changes regarding short-time work apply as of 01 January 2023; for example, it is no longer obligatory to use paid leave during short-time work and it is no longer necessary to furnish confirmation of the economic justification for the entitlement to short-time work issued by a tax advisor or the like. The entitlement of persons belonging to groups at higher risk from Covid to be given leave of absence has also been extended to the end of June 2023.
Parents are entitled to special care leave subject to continued pay between 01 January 2023 and 07 July 2023. This can in particular be applied for if children for whom parents have caregiving duties are banned from entering childcare facilities or educational institutions due to a positive Covid-19 test. During the period from 05 September 2022 to 07 July 2023, the potential maximum entitlement to special care leave totals of 3 weeks per employee.
Partial retirement and childcare allowance
Other changes concern partial retirement and childcare allowance. Women born on or after 02 December 1965 may start partial retirement at the age of 57 years and six months at the earliest, i.e. on 02 June 2023 at the earliest. As of 2023, the additional earnings limit for childcare allowance is € 7,800.00 per year for the income-dependent regime and € 18,000.00 per year under the lump-sum regime.
If you have any questions, the KWR employment law team will be happy to help.