Significant employment law changes concerning service sheets, multiple employment and trainings

As part of the implementation of the EU Directive on transparent and predictable working conditions in the European Union, the Austrian National Council adopted significant changes to employment law in its plenary session on 28 February 2024, which came into force on 28 March 2024. 

1. Design of service sheets and sanctions 

The minimum information that a service sheet / employment contract must contain in future will be extended for both "genuine" employees and freelancers. Amongst others, the activity to be performed, the social security institution, the duration and conditions of an agreed probationary period and, if applicable, the entitlement to further training provided by the employer will have to be stated. Additional information for work abroad will also become mandatory.

In future, employees will generally have the right to choose whether to receive their service sheet in paper or in electronic form.

Unlike in the past, employees whose employment lasts one month or less must also be issued with a service sheet containing all minimum information.

However, the exemption rule according to which there is no obligation to hand over a service sheet, if a written employment contract containing all the necessary information is handed over, remains in place.

What are the consequences of not handing over the service sheet?

A fine of EUR 100 up to EUR 436 may be imposed for failure to hand over a service sheet. If more than five employees are affected or if there is a new violation within three years of the legally binding punishment, the penalty range increases to EUR 500 to EUR 2,000.

2. Right to multiple employment 

The new regulation regarding the right to multiple employment enshrines existing Supreme Court rulings in law. As a result, employees have the expressly defined right to pursue secondary employment, provided this is compatible with the provisions of the Working Hours Act and does not conflict with their existing employment relationship. In this context, particular attention must be paid to the maximum working time limits stipulated in the Working Hours Act, which may not be exceeded even in the case of multiple employment. 

Note: Employers may object to this right to multiple employment if the new employment has a detrimental, unreasonable impact on the employer's business. However, this must be examined in detail for each individual case.

The newly introduced right to multiple employment does not interfere with the existing non-competition clause pursuant to the Austrian Salaried Employees Act (“Angestelltengesetz”). Accordingly, employees may still not operate an independent commercial enterprise or engage in commercial transactions in the employer's line of business for their own account or for the account of a third party without the employer's consent.

3. New regulations with regards to trainings

In addition to the continued possibility of the employer voluntarily assuming the costs of training and further education measures for employees, a mandatory assumption of the costs is standardized under certain conditions. Further, the training times count as working time. 

These regulations apply if the training measures are a prerequisite for the performance of the activity agreed in the employment contract in accordance with statutory regulations, ordinances, collective standards or on the basis of the employment contract. Furthermore, the costs may not be borne by a third party (e.g. the Austrian labour market service “AMS”).

4. Need for action, effects in practice and justification of terminations

Due to the imminent entry into force of the new regulations, companies already need to take concrete action now in order to have legally compliant documents ready for new hires. The amendments will apply to all newly concluded employment contracts immediately on the day following the proclamation of the law.  The effects in practice are also reflected in an extended ban on discrimination and new protection against dismissal for cause. 

In addition, employees will, in future, be able to request a written justification for the termination of the employment relationship within five calendar days of receiving notice of termination from the employer. If requested, the employer must issue the written justification within five calendar days of the request.