On 31 January 2024, a motion was submitted for the adoption of a federal act to implement Directive (EU) 2019/1152 (“Directive on transparent and predictable working conditions”). The main goal of the directive is to provide (freelance) workers with more predictability in terms of work assignments, working hours and information on key aspects of the employment relationship, the place of work and remuneration.
The act has not been adopted yet. The draft is currently being discussed in the Committee for Labour and Social Affairs. It will remain to be seen if the proposed bill is actually going to be implemented and in what form.
What changes does the draft legislation envisage?
Amendments to the Employment Contract Law Adaptation Act (AVRAG), the Civil Code (ABGB) and the Temporary Agency Work Act (AKÜ) are planned. Apart from extended minimum information in employment contracts, the bill also includes for a right to multiple employment as well as provisions on training and continuing education. Administrative penalties and other sanctions are envisaged to enforce these new pieces of legislation. Moreover, employees who invoke the new rules are to benefit from protection against termination of employment for a prohibited reason.
Here is an overview of some important changes planned in this context:
1. Additional information in the statement of terms and conditions of employment
Among other things, statements of terms and conditions of employment (“Dienstzettel”) should contain the following additional information: a brief job description, remuneration for overtime, duration and conditions of the trial period, reference to the termination procedure. What this means for implementation is not yet clear in detail.
Moreover, the statement of terms and conditions of employment is to be handed over immediately after the start of the employment relationship in the future. Employees should be able to choose whether they wish to receive the statement in “analogue” or “digital” form. Such a statement will also have to be issued for employment relationships lasting less than one month.
Failure to comply with these provisions could result in a fine of up to EUR 2,000.00.
2. The “right” to multiple employment
Furthermore, a right to multiple employment is to be introduced. Employers should not be able to prohibit employees from entering into further employment relationships. Likewise, employees who work in another employment relationship should not be disadvantaged compared to other workers. However, employers should also have the option of prohibiting secondary employment, e.g. if it is detrimental to work performance or if the secondary employment is with a competitor.
3. Training and continuing education
In the future, training and continuing education required by law as a prerequisite for employees to do the work agreed upon will be regarded as working time and paid for by the employer.
Planned entry into force
It is still uncertain when the new act will be adopted and promulgated. However, the new rules will only apply to employment relationships entered into after the law has come into force.
We will keep you updated!
Our Employment Law Team will be happy to answer any questions you may have regarding the implementation of new legislation.