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Working life in Austria

Austria

This profile describes the key characteristics of working life in Austria. It aims to provide the relevant background information on the structures, institutions, actors and relevant regulations regarding working life.

This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are systematically updated every two years.

 

 

2012

2022

Percentage (point) change 2012–2022

Austria

EU27

Austria

EU27

Austria

EU27

GDP per capita

36,390

25,110

38,080

28,950

4.64%

15.29%

Unemployment rate – total

5.2

11.1

4.8

6.2

-0.4

-4.9

Unemployment rate – women

5.0

11.2

4.5

6.5

-0.5

-4.7

Unemployment rate – men

5.4

11.0

4.9

5.9

-0.5

-5.1

Unemployment rate – youth

10.0

24.4

9.5

14.5

-0.5

-9.9

Employment rate – total

75.4

70.4

77.8

74.5

2.4

4.1

Employment rate – women

70.2

64.5

73.4

69.5

3.2

5.0

Employment rate – men

80.6

76.4

82.1

79.4

1.5

3.0

Employment rate – youth

59.6

40.1

57.4

40.7

-2.2

0.6

Notes : Values for real GDP per capita are chain-linked volumes (based on 2010 data; €). The unemployment rate for men and women is the annual average as a percentage of the active population aged 15–74 years, and the youth unemployment rate is the annual average as a percentage of people aged 15–24 years. The employment rate for men and women is the annual average as a percentage of the active population aged 15–64 years, and the youth employment rate is the annual average as a percentage of people aged 15–24 years. GDP, gross domestic product.

Sources: Eurostat [sdg_08_10], for real GDP per capita and percentage change 2012–2022; [une_rt_a], for unemployment rate by sex and age; [lfsi_emp_a], for employment rate by sex and age.

Economic and labour market context

Following the pandemic-induced economic downturn in 2020, when gross domestic product (GDP) decreased by 6.5% (in real terms), the economy has recovered. GDP increased by 4.6% in 2021 and 4.7% in 2022 – with a substantial increase in the first half of 2022 and a decline in the second half, in line with the international trend. A small increase in GDP of 0.3% was forecast for 2023. The labour market situation was very satisfactory throughout 2022: the number of employed people increased by 109,000 compared with 2021 (a change of 2.9%), and the number of unemployed people decreased by over 69,000, or 17.3%, compared with 2021. In 2022, unemployment was at its lowest since 2012, with 332,645 people unemployed (AMS, 2023). The unemployment rate declined significantly to 4.8% in 2022 (Eurostat [une_rt_m]). In line with the global situation, inflation was high in Austria, at 8.5%, and was expected to decrease in 2023. The most recent peak was reached in January 2023, at 11.2%.

Legal context

There is an abundance of legislation in Austria dealing with different aspects of labour law. However, the central legislative enactment in Austrian labour law is the Labour Constitution Act (Arbeitsverfassungsgesetz , ArbVG). This law regulates the collective interest representation on the two sides of industry at and above company level; it also regulates collective bargaining. No major changes to the labour code have been made in recent years.

Industrial relations context

For historical reasons (bitter class struggles in the First Republic, experiences of Austrofascism and the Nazi regime), the characteristic feature of the Second Republic is a strong commitment to the principle of harmonious cooperation. In the industrial relations system, this principle has found expression organisationally in the creation of collective interest organisations representing employers and employees that are widely inclusive, extend across party-political lines and are free from rivalry. The basic structure of this commitment to harmonious cooperation in Austria is its system of social partnership. In terms of societal values, this denotes readiness on the part of government and the collective organisations to make all social and economic issues the subject of negotiations as a means of arriving at consensual solutions. Institutionally, social partnership is a complex system built on co-determination within the establishment at micro level, the collective bargaining system at meso level, and tripartite and bipartite forms of concertation at macro level. Whereas the government invites an exclusive circle of social partner organisations to participate in all decisions on economic and social policy, the regulation of the terms and conditions of employment remains the autonomous province of the labour market parties, within the framework laid down by the ArbVG. The core area of industrial relations remains free from substantive state intervention.

Although the Austrian system of social partnership was overtly challenged during the period of the conservative–populist coalition government from 2000 to 2006, Austrian corporatism has largely recovered since the mid-2000s. The country’s system of collective bargaining, which takes place almost exclusively at branch/sectoral level, has continued to work, despite the fact that in the wake of the Great Recession (which occurred in 2007–2009) wage accords and collective agreements could in some cases be settled only after the threat of industrial action, which is unusual in Austria. With the reinstatement of a conservative–populist coalition government in late 2017, the social partners’ influence on overall policymaking was limited once more. When drafting new legislation in the area of social and employment policies, the government regularly overlooked the stances and views of organised labour, while the positions of organised business often proved to be congruent with the government’s intentions. The government lost power abruptly in 2019 due to a political scandal involving the far-right junior coalition partner, and a conservative–green coalition government was installed in early 2020. This resulted – especially in the context of the pandemic and the associated need to quickly adjust employment and social policies – in greater consideration of employees’ stances. However, this did not occur to the same extent as it did during periods when the Social Democratic Party, which is the most important political ally of organised labour, participated in government.

In the face of the COVID-19 crisis, the maintenance of social peace was an important factor for the government. Therefore, the social partners were again meaningfully involved in policymaking, albeit to varying degrees. With the participation of the more labour-friendly Greens in government, organised labour was cautiously brought back to the policymaking process and could exert some influence again. However, the trade unions were somewhat less successful in enforcing their demands than organised business. The employer organisations (which had close ties to the Chancellor’s party) participated in decision-making on most of the major measures concerning their members. The social partners themselves prepared an agreement on the very generous short-time work scheme implemented during the COVID-19 pandemic, which allowed for a temporary reduction in working hours to zero. The agreement was extended several times and was still in effect in mid-2023 (with the possibility of a further extension). It, along with an agreement on the regulation of working from home, was enshrined in law and implemented by the government in spring 2021. The involvement of the social partners in policymaking also had a positive effect on social dialogue and collective bargaining. Facing the most difficult economic situation in decades, with a severe economic recession, very high unemployment and a high incidence of short-time work, collective bargaining was – with few exceptions – peaceful and unusually quick in the first two years of the pandemic. In many sectors (for instance, in the pattern-setting metalworking sector), agreements were found in the first round of negotiations, as there was not much room for wage bargaining, with agreements mostly just compensating for inflation. The social partners also agreed on the first general collective agreement (applying to virtually the whole economy) in decades, on COVID-19 testing in the workplace, in tandem with federal legislation. The well-established social partnership performs at its best in times of crisis, it seems. In 2022, collective bargaining became somewhat more conflictual again in the face of the extremely unusual economic situation, with record inflation rates. In some sectors, discussions were prolonged and negotiations were difficult. However, wage agreements that were acceptable to both sides were mostly concluded quite quickly. The social partners were involved in a tripartite meeting with the government in spring 2022 in which they proposed several measures targeted towards alleviating the impact of rising prices, and they were also involved in the expert group for the observation and analysis of trends in inflation that was set up by the government in spring 2022. Thus, they were at least indirectly involved in the design of measures that were implemented by the government in the form of several relief packages.

Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the key players and institutions and their role in Austria.

Public authorities involved in regulating working life

With regard to industrial relations and working conditions, the two most important public authorities are the Federal Ministry of Social Affairs, Health, Care and Consumer Protection (Bundesministerium für Soziales, Gesundheit, Pflege und Konsumentenschutz , BMSGPK) and, in particular, the Federal Ministry of Labour and Economy (Bundesministerium für Arbeit und Wirtschaft,BMAW). The merging of the agendas for labour and the economy in the latter took place in May 2022, and was triggered by the resignation of a minister and the reorganisation of the distribution of responsibilities of the ministries. The merger was strongly criticised by organised labour, fearing that the interests of employees would be neglected (the agendas for labour and the economy had been merged in a single ministry before, by the conservative–populist government between 2000 and 2006). The BMAW’s range of activities include, among others, implementing economic policy and parts of employment policy. It is also responsible for supervising the Public Employment Service (Arbeitsmarktservice , AMS), and hence unemployment insurance, and for organising the Labour Inspectorate (Arbeitsinspektorat); it is also responsible for labour law. The Federal Arbitration Board (Bundeseinigungsamt , BEA), a joint body established within the BMAW, has a decisive role in Austria’s industrial relations system in that it has the right to recognise voluntary collective interest organisations as collective bargaining parties (or to revoke this recognition). This body thus facilitates social dialogue. The BMSGPK is responsible for general social policy and for policy relating to people with disabilities, care provision and welfare benefits. The AMS, which is a public service agency with a separate legal personality, is responsible for job placement and the provision of advisory services to jobseekers and employers regarding supply and demand in the labour market. The Labour Inspectorate forms part of the BMAW and monitors employment conditions, including health and safety at work. The AMS, the BEA and the Labour Inspectorate are all under the responsibility of the BMAW and can likewise be considered public authorities of importance for Austria’s industrial relations system. With regard to individual labour disputes, labour and social security courts (at three instances) are competent to rule on all disputes arising from labour law and all benefit claims arising from social security law, whereas disputes concerning social insurance are referred to administrative authorities under the aegis of the BMSGPK.

Representativeness

There is no explicit concept of representativeness applying to collective interest organisations representing workers and businesses in Austria. However, in relation to the capacity of voluntary organisations to conclude collective agreements, the ArbVG identifies some general preconditions a voluntary collective interest organisation has to meet: (financial) independence (in particular, it must be independent of the other side of industry); extensive occupational and territorial coverage in terms of membership domain, which means that it must be operative above company level at least; and major economic importance in terms of the absolute number of members and business activities in order to be in a position to wield effective bargaining power. Representativeness is linked to the capacity of collective interest organisations to conclude collective agreements (the right to conclude collective agreements is conferred by the BEA) and hence to their recognition as relevant social partner organisations.

Trade unions

About trade union representation

Austrian constitutional law protects the right to organise in the context of general freedom of association (Vereinsfreiheit), guaranteed to all citizens by Article 12 of the 1867 Basic Law (Staatsgrundgesetz). Constitutional law also guarantees the right to form associations for the protection of employment-related interests in accordance with the Associations Act (Vereinsgesetz), which gives practical effect to the principle of freedom of association. Moreover, the right to organise is guaranteed as an independent basic right in Article 11(1) of the 1950 European Convention on Human Rights, which forms part of constitutional law in Austria. As a consequence, individuals in Austria have the right to join trade unions and engage in their activities. No category of workers or sectors is excluded from this right.

Trade union density has been declining since the 1960s in Austria. This trend is mainly due to the long-term structural transformation of the economy and employment. In the strongholds of unionisation – namely in manufacturing and the public sector – employment has declined, to the benefit of the private sector, which tends to record low union density rates, especially among women, white-collar workers and atypical workers. In the 2000s, this trend accelerated, especially in the wake of the revelation of the involvement of the Austrian Trade Union Federation ( Österreichischer Gewerkschaftsbund, ÖGB) in a financial debacle concerning its former bank BAWAG PSK. Between 2016 and 2019, however, an increase in membership was recorded, which could be attributed to a comparatively large increase in membership of the Public Services Union (Gewerkschaft Öffentlicher Dienst, GÖD). This trend was reversed again with the onset of the COVID-19 pandemic, with the union losing around 20,000 members between 2019 and 2021. The involvement of trade unions in public policymaking is highly institutionalised in Austria in that the ÖGB and its seven affiliates participate in a number of bodies and committees, albeit on an informal rather than a formal (legal) basis. Thus, they do not perform sovereign tasks such as the administration of pensions or unemployment schemes. ‘Yellow unions’ (unions that have been established by a government or employer, or are dominated or heavily influenced by an employer) are not an issue at all in Austria, due to the strict procedure governing recognition of interest organisations as social partners possessing the capacity to conclude collective agreements.

Trade union membership and trade union density, 2011–2019

 

2011

2012

2013

2014

2015

2016

2017

2018

2019

Trade union density in terms of active employees (%) *

28.3

28.0

27.8

27.7

27.4

26.9

26.7

26.3

26.3

Trade union membership (thousands)**

995

993

989

988

987

991

995

999

1,004

Notes : * Proportion of employees who are members of a trade union. ** Trade (labour) union membership of employees derived from the total union membership and adjusted, if necessary, for trade union members outside the active, dependent and employed labour force (i.e. retired workers, self-employed workers, students, unemployed people).

Source : Organisation for Economic Co-operation and Development/Amsterdam Institute for Advanced Labour Studies Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts database 2021 (OECD/AIAS ICTWSS database)

Main trade union confederations and federations

In Austria, there is only one trade union federation: the ÖGB.

Main trade union federation

Name

Abbreviation

Number of members as of 31 December 2022

Involved in collective bargaining?

Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund)

ÖGB

1,199,856

Yes (in general through its affiliated unions)

In the 2000s, the Austrian trade unions were increasingly confronted by the need to merge due to a combination of factors – in particular, membership decline and financial weakness, especially in the wake of the revelation of the ÖGB’s involvement in the financial debacle concerning BAWAG PSK. As a consequence of the BAWAG crisis, the ÖGB was forced to sell all of its shares in the bank in 2006. Since then, the only source of revenue for the ÖGB and its member unions has been the dues paid by union members. With the latest restructuring and merging processes, Austria’s trade union structure under the umbrella of the ÖGB was significantly streamlined, compared with the late 1990s. Within a 10-year period, the number of trade unions affiliated to the ÖGB was reduced from 14 to 7. Since 2009, no notable developments have occurred.

Employer organisations

About employer representation

There are two main cross-industry employer organisations in Austria: the Austrian Federal Economic Chamber (Wirtschaftskammer Österreich, WKÖ), membership of which is mandatory, and the Federation of Austrian Industries (Industriellenvereinigung, IV), membership of which is voluntary. The IV organises large enterprises mostly in the manufacturing industry. All companies and entrepreneurs holding a business licence must register with the WKÖ (and its corresponding subunits), which is organised into geographical subdivisions (provinces, known as Länder) and sectoral sections, which are further subdivided into sectoral subunits. Companies holding more than one business licence are to register with all corresponding WKÖ sectoral groups. As many employers hold more than one business licence, there are more members than companies associated with the WKÖ.

For the IV and all other (sectoral) employer organisations for which membership is voluntary, the principle of general freedom of association, as outlined in the section ‘About trade union representation’ in the context of trade unions, applies.

As membership of the WKÖ and its subunits is compulsory for all of Austria’s companies (except those in agriculture, the liberal professions and the non-trading public sector), the density of the WKÖ in terms of both companies and employees is 100%. No information is available on the IV’s membership density.

Employer organisations – membership and density, 2012–2019

 

2012

2013

2014

2015

2016

2017

2018

2019

Source

Employer organisation density in terms of active employees*

100%

100%

100%

100%

100%

100%

100%

100%

Economic Chamber Act (Wirtschaftskammergesetz)

Employer organisation density in the private sector**

n.a.

68%

n.a.

n.a.

n.a.

n.a.

n.a.

59%

European Company Survey 2019

Notes: *Values are 100% because all enterprises in the private sector (exceptin agriculture and the liberal professions)must be members of the WKÖ. **Percentage of employees working in an establishmentthat is a member of any employer organisation that is involved in collective bargaining.n.a., not available.

Main employer organisations

Apart from the WKÖ, the IV is the most important employer organisation in Austria. Its membership domain encompasses manufacturing, managerial staff in the manufacturing industry and enterprises associated with the manufacturing industry.

Main employer organisations and federations

Name

Abbreviation

Members as of 31 December 2022

Involved in collective bargaining?

Austrian Federal Economic Chamber (Wirtschaftskammer Österreich)

WKÖ

698,671 total members (active and passive)

576,063 active members

Yes (in general through its subunits)

Industriellenvereinigung (Federation of Austrian Industries)

IV

More than 4,500

No (waives its right to conclude agreements)

 

Tripartite and bipartite bodies and concertation

As far as general economic and social matters are concerned, national tripartite policy concertation is most strongly formally institutionalised in the Parity Commission (Paritätische Kommission). This commission originally consisted of high-level representatives of the government and the four major social partner organisations. The commission ran four subcommittees: the Advisory Council for Economic and Social Affairs (Beirat für Wirtschafts- und Sozialfragen), the Subcommittee on International Issues (Unterausschuss für Internationale Fragen), the Subcommittee on Wages (Lohnunterausschuss) and the Subcommittee on Competition and Prices (Wettbewerbs- und Preisunterausschuss). Since the Bad Ischl Declaration was signed by the social partners in 2006, the Parity Commission has had only one subcommittee: the Advisory Council for Economic and Social Affairs. The Parity Commission was the focal point for tripartite social dialogue, where matters of particular significance, common strategies and concerted action, and emerging conflicts were discussed and the recommendations of the advisory council were considered. However, the commission’s role has diminished since Austria’s accession to the European Union in 1995, and it last convened in 1998.

Social partner consultation in Austria is based on a practice of permanent, but informal, cooperation, rather than on legal regulations. The tripartite dialogue is extensive, and deals with a variety of issues across all economic sectors. Social dialogue is strongly developed and highly influential on policymaking.

Apart from the Parity Commission, a series of national and regional employment pacts (referred to as Territorial Employment Pacts (TEPs)) have been set up by the (regional) government(s) in close cooperation with the national and regional social partners to implement tailor-made employment policies at national and regional levels. The social partners’ participation in government employment policies is most strongly institutionalised in the AMS (whose supervisory board has representatives of both the government and social partners); the AMS is the core instrument for realising labour market goals at national and regional levels. Moreover, the social partners are represented in the social insurance institutions, the BEA and numerous other bodies.

In terms of bipartite concertation, there is a long tradition of voluntary, informal cooperation and bargaining between the social partners at both national and sectoral levels, rather than formalised bipartite bodies.

Main tripartite and bipartite bodies

Name

Type

Level

Issues covered

Public Employment Service (Arbeitsmarktservice Österreich, AMS)

Tripartite

National

Job placement, provision of advisory services to jobseekers and employers, realisation of labour market goals

Umbrella Association of Social Security Institutions (Dachverband der Sozialversicherungs-träger)

Tripartite

National

Representation and coordination of the five social insurance institutions, covering health, accident and pensions insurance

 

Workplace-level employee representation

Works councils (Betriebsräte) are the only bodies in the private sector representing employees at workplace level. In legal terms, a works council is a body that can be set up within establishments consistently employing five or more workers. It exercises workplace-level consultation and co-determination rights conferred by law on the workforce as a whole. Works councils can either be established separately for blue-collar workers and white-collar workers, or represent both categories. A works council is elected by the workforce – essentially by all employees within the establishment aged 16 years or over (the minimum age decreased from 18 to 16 years in 2021) – for a term of five years. This applies to all works councils established from 2017 onwards; the former term of four years applies to works councils existing before that date. The works council is elected on the basis of proportional representation, with the number of council members determined by the size of the workforce. With regard to the works council’s information, consultation and co-determination rights, the employer is required to hold regular discussions with the council and keep it informed on matters that are relevant to the workforce. The most important instrument for the works council’s expression of its co-determination rights over a specific range of social matters is the conclusion of a works agreement (Betriebsvereinbarung) between management and the works council.

In the public sector, a series of special rules exist regarding employee representation bodies (Personalvertretung) for each of the major employers – that is, the federal government, provincial governments (Länder), local governments and public enterprises. The rules are set by particular legal provisions. These bodies broadly correspond to works councils in the private sector.

Regulation, composition and competences of the representative body

Body

Regulation

Composition

Competences

Thresholds for/rules on when the body needs to be/can be set up

Works council (Betriebsrat)

Codified in the ArbVG

Representatives of the establishment’s workforce (number is contingent on the size of the workforce)

Consultation and co-determination; conclusion of a works agreement with management on social matters (not on pay issues)

Workforce must have at least five employees

The central concern of employment relations is collective governance regarding work and employment. This section looks at collective bargaining in Austria.

Bargaining system

In Austria, the conclusion of collective agreements is essentially confined to the private sector. These agreements are negotiated, almost without exception, at multi-employer sectoral level. The unions for blue-collar workers and for white-collar workers usually form a bargaining community, so that the wage increases agreed on are, in most cases, the same for both categories of employees. Most of the sectoral collective agreements cover the whole national territory and, in some cases, are also concluded at provincial (Land) level. Collective agreements are legally binding. Since the late 1980s, a tendency towards ‘organised decentralisation’ of collective bargaining has been observed. As a consequence, the works agreement concluded between the two sides of industry at company level has been gaining importance as an instrument for the regulation of terms and conditions of employment. This is a result of the general tendency towards greater flexibility, in particular in terms of working hours and – to a certain degree – pay.

Austria’s collective bargaining coverage rate adjusted for public employees is estimated to be over 95%. The coverage rate is extremely high – by international standards – because almost all agreements are concluded by subunits of the WKÖ, membership of which is obligatory.

Wage bargaining coverage

In Austria, collective agreements in general and collective wage agreements in particular are negotiated – almost without exception – at multi-employer sectoral level. This is because Austrian labour law confers the right to collective bargaining – with only very few exceptions – on the parties above company level. Collective agreements concluded at company level cover, at most, between 1% and 2% of all employees covered by any agreement (estimate by national correspondent). National cross-sectoral agreements are very rare and almost never regulate pay. Currently, no employee in Austria is covered by a national general pay agreement. Within the last few years, there have been no changes with regard to bargaining coverage.

Collective wage bargaining coverage of employees

Level

% (year)

Source

All levels

98 (2019)

OECD/AIAS ICTWSS database 2021

All levels

96 (2013)

European Company Survey 2013

All levels

94 (2019)

European Company Survey 2019

All levels

92 (2010)*

Structure of Earnings Survey 2010

All levels

94 (2014)*

Structure of Earnings Survey 2014

All levels

94 (2018)*

Structure of Earnings Survey 2018

All levels

> 95 (2022)

National correspondent’s estimate for 2022 (private sector employees)**

Notes : * Percentage of employees working in local units where more than 50% of employees are covered by a collective pay agreement against the total number of employees who participated in the survey. OECD/AIAS ICTWSS, Organisation for Economic Co-operation and Development/Amsterdam Institute for Advanced Labour Studies Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts.

Sources: Eurofound, European Company Survey 2013 and 2019 (including private sector companies with establishments with more than 10 employees (NACE codes B–S); the question in the survey was a multiple choice question and multiple responses were possible); Eurostat [earn_ses10_01], [earn_ses14_01], [earn_ses18_01] (including companies with more than 10 employees (NACE codes B–S, excluding O), with a single response for each local unit); OECD/AIAS ICTWSS database 2021. ** See also Bönisch, 2008; OECD, 2012, p. 136.

Bargaining levels

In Austria, the most important level of collective wage bargaining by far is multi-employer sectoral bargaining. Only very few company-level agreements are negotiated. The peak social partner organisations have the capacity to conclude intersectoral general collective agreements (Generalkollektivvertrag), but they are extremely rare and of hardly any practical relevance. For example, a general collective agreement on the step-by-step implementation of the 40-hour working week was signed in September 1969, and is formally valid, but came into force with the implementation of the Working Time Act (Arbeitszeitgesetz,AZG) soon thereafter. In the face of the COVID-19 pandemic, a general collective agreement on COVID-19 testing in the workplace was concluded, which remained in effect until 31 August 2021.

Levels of collective bargaining, 2022

 National levelSectoral levelCompany level
 WagesWorking timeWagesWorking timeWagesWorking time
Principal or dominant level  xx  
Important but not dominant level      
Existing levelxx  xx

Articulation

In Austria, there is a clear division of responsibility between the parties to collective agreements concluded at sectoral level and works agreements concluded at company level. Whereas the core task of fixing the rates of pay and maximum working hours is essentially the remit of the parties to collective agreements, the regulatory competence of the parties to works agreements is almost invariably confined to social matters. These include introducing computerised personnel information systems, fixing the starting and finishing times for daily working hours and scheduling breaks. The only pay-related matters that may fall within the regulatory scope of works agreements are pay entitlements for time spent attending works meetings (Betriebsversammlungen), profit-sharing schemes, occupational pension schemes and the like. This restriction is intended to ensure the precedence of the parties to collective agreements in the system of employment regulation as a whole. In the case of delegation clauses set out in collective agreements, some negotiation capacities in terms of working time and – to a certain extent – pay are delegated to the company-level parties concerned, but solely within the framework set by the sectoral collective agreements.

Timing of the bargaining rounds

The major bargaining rounds take place in the autumn. Traditionally, the pattern-setting metalworking sector starts the autumn bargaining round in October. For several years, more and more collective agreements have been negotiated in the spring, for example in the electronics, chemical, textile and paper industries. In addition, more sectoral collective agreements are negotiated between the spring and autumn rounds, giving rise to year-round negotiations.

Coordination

Wage bargaining in Austria is strongly coordinated across the economy. This is because a practice of ‘pattern bargaining’ prevails, in which the metalworking sector takes on a leading role as the first major sector conducting wage negotiations in the annual bargaining process. The results of these negotiations have a considerable signalling effect for other sectors and are taken as a model. In practice, however, they often agree on some of the highest wages of all sectors, due to the strength of the metalworkers’ trade unions. Despite this high degree of bargaining coordination, centralised wage-setting is not a feature of Austria’s collective bargaining system.

Extension mechanisms

The legislature provides for an official procedure called an extension order (Satzungserklärung), whereby a collective agreement (or part of it) can be extended to include employment relationships of essentially the same nature that are not covered by an agreement. An extension order is issued by the BEA on receipt of an application from an employer or employee organisation with the capacity to conclude agreements. In practice, such a procedure is relatively unusual, as there are only a few areas of employment that are not covered by a collective agreement. A prominent example of a collective agreement for which an extension order has been issued annually since 2006 is the agreement for the private health and social care sector. As a result of the extension order, over 120,000 employees are covered by the agreement.

Derogation mechanisms

In Austria, it is not possible to derogate from collective wage agreements in order to pay wages below the collectively agreed level. The collective agreement sets the framework for concluding work agreements on company-specific regulations. The ‘distribution option’ entitles the two sides of industry to agree on the redistribution of a certain amount of the total wage bill at company level. This may be distributed flexibly by the employer to certain groups of employees, in line with certain criteria. Such criteria could include, for example: to provide compensation for workers with very low incomes, to reward workers for high performance or to diminish the gender wage gap. With regard to this distribution option, a derogation clause is included in collective agreements stating that, in economically difficult times, the volume to be distributed may be reduced or set to zero.

Expiration of collective contracts

In Austria, the ArbVG stipulates that a collective agreement remains in force even after it has expired, until a new collective agreement has been concluded (and therefore applies to the employment relationships that were covered by the agreement before its expiration). However, the majority of collective agreements provide for a date on which the agreement becomes valid but not an expiration date, and are valid as long as they have not been cancelled by any of the negotiating parties or replaced by an updated version through the collective bargaining process. Usually, collective bargaining takes place annually and thus the majority of agreements are updated once a year. In principle, it is possible to cancel a collective agreement one year after the conclusion of the agreement, but in practice this rarely happens.

Peace clauses

According to the ArbVG (Section 2(2)), collective agreements have two parts, one consisting of provisions regulating the legal relationship between the parties to the agreement (schuldrechtlicher Teil) and the other consisting of provisions regulating the rights and obligations of individual employers and employees arising from the employment contract (normativer Teil). The provisions of the first part relate solely to mutual rights and obligations and implied duties, and include a peace clause. This peace clause states that during the period of validity of a collective agreement no industrial action is to be taken or supported by the signatory parties, if it is targeted towards changing working conditions as set out in the collective agreement.

Other aspects of working life addressed in collective agreements

A change in seniority-based wage schemes was an important issue for employers, as it provided them with the opportunity to reduce the wage gaps between older and younger employees. So far, settlements on this issue have been reached in the banking and insurance sector and in several industrial sectors, but also in the social sector.

One relatively new topic concerns the attention paid to work–life balance in collective agreements in recent years. The most common examples are the recognition of parental leave periods in wage increases (that is, increments within the pay scheme) and the implementation of benefits that are dependent on employees’ length of service (such as holiday claims or service anniversary bonuses) up to two years. In several collective agreements, unpaid ‘subsequent care leave’ is provided for. This allows parents to stay on leave until their child’s third birthday (as this coincides with the maximum period for which childcare benefits can be claimed).

Furthermore, in collective agreements in the social care sector, provisions related to nursing care leave (for example, to take care of older relatives) of a minimum of 2 months and a maximum of 12 months are included because the legislation provides for a maximum duration of leave of 2 weeks (implemented in 2020).

A ‘free time option’ is based on a trade union initiative first implemented in the electronics sector and then in the mining and steel industries, with the explicit aim of improving the work–life balance of workers. It allows them to reduce their working time instead of taking pay increases. Its extent depends directly on the outcomes of the annual wage bargaining process at sectoral level and needs to be negotiated annually.

Legal aspects

In legal terms, no clear principles are laid down for assessing the lawfulness and consequences of disputes, and there is no Supreme Court case law on the subject. The legitimacy of strikes as a form of industrial action (Kampfmittel) by employees is to be inferred from, not least, the legal provisions that ensure the impartiality of the state. Nevertheless, this legitimacy applies only to strikes perceived as action taken collectively (Gesamtaktion) by employees. In general, this includes any form of adversarial confrontation over pay or other terms and conditions of employment between individual employers or employer organisations, on the one hand, and trade unions or groups of employees, on the other. Forms of industrial action used in such disputes include strikes, lockouts and boycotts. In the case of strike action, a distinction is made in legal theory between an economic strike (wirtschaftlicher Streik), a political strike (politischer Streik), an unofficial strike (wilder Streik), a selective strike (Schwerpunktstreik), a token strike used as a warning (Warnstreik) and a partial strike (Teilstreik). In the case of lockouts, a distinction is made between an offensive lockout initiating a dispute (Angriffsaussperrung) and a defensive lockout in response to a strike (Abwehraussperrung). However, it should be noted that, because so few industrial disputes occur in Austria, even the expert approach is essentially theoretical.

Between 2011 and 2014, minor strikes occurred (of which the biggest occurred in 2011), while from 2015 to 2017 there were no strikes (as was also the case between 2005 and 2010). Since 2018, strikes have occurred annually. The largest took place in 2018, with 37,923 participating employees and 71,468 hours lost. In 2021, 5,032 people were involved in strikes, contributing to the 11,368 hours lost due to industrial action.

Industrial action developments, 2011–2021

 

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Total number of working days lost

56,670

563

3,277

3,309

0

0

0

8,934

1,973

3,687

1,421

Strike minutes per employee

7.9

0.1

0.5

0.5

0

0

0

1.1

0.2

0.5

0.2

Sources : WKÖ, 2023; ÖGB, undated

Dispute resolution mechanisms

Collective dispute resolution mechanisms

At company level, within the framework of its co-determination rights in social matters, the works council must participate in the regulation of all social matters within the establishment; for some matters, the council possesses a right to ‘parity’ – that is, co-decision-making with employers – and for others it can call on a mediation and arbitration board (Schlichtungsstelle) if agreement cannot be reached with the employer. This board, composed of equal numbers of representatives from both sides of industry, with a judge providing neutral oversight, is set up by the competent labour and social security court. The board is tasked with establishing an agreement between the parties on the matter in question and, if unsuccessful, deciding on the case itself.

Individual dispute resolution mechanisms

In Austria, individual labour law and employment disputes fall under the purview of ordinary courts. Compared with these specific jurisdictional mechanisms, alternative dispute resolution methods are not a prominent feature of the country’s legal system for individual dispute resolution. To a certain extent, this may be due to the country’s markedly ‘corporatist’ industrial relations structure. In the case of an individual labour/employment dispute, the employee concerned will – in particular if there is no works council in their company – normally contact either the relevant trade union (if they are a member) or the Chamber of Labour (Arbeiterkammer, AK) (membership of which is compulsory for all private sector employees) to obtain information, advice and assistance in legal procedures. In most individual employment disputes, either the AK or the trade union tries to intervene (by contacting the employer) in order to bypass formal litigation before the courts.

Use of alternative dispute resolution mechanisms

No official data on the use of alternative dispute resolution mechanisms (see the previous section) are available. The AK publishes an annual performance report, in which it reports on the number and types of consultations that it has conducted for its members, and on the finances it could reclaim for its members in judicial and extrajudicial proceedings.

‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Austria.

Start and termination of the employment relationship

Requirements regarding an employment contract

The employment of children (minors who are under the age of 15 or, if older, have not completed their compulsory schooling) is in principle prohibited (under certain provisions, children aged 12 and over who work at home or in a close relative’s business are exempt from this rule). Therefore, 15 years is the minimum working age in Austria. In general, there are no formal requirements for concluding an employment contract. If both parties provide declarations of their willingness to establish a continuing contractual relationship, an employment contract is concluded. Freedom of form is a basic element of employment contracts in Austria, which means they may be established in oral or written form. Even in the absence of explicitly defined terms, statutory law and collective agreements guarantee minimum standards of employment conditions and therefore must be considered in every employment relationship.

Dismissal and termination procedures

The unilateral termination of employment (Kündigung) does not need to be justified in Austria. An employee or employer can withdraw from an employment contract that has been concluded for an unspecified duration without giving reasons. A period of notice, which is related to job tenure, needs to be observed (as set out by law or a collective agreement). It ranges from 6 weeks (for employees with up to 2 years of service) to 5 months (for employees with 26 years of service or more).

Entitlements and obligations

Parental, maternity and paternity leave

In Austria, maternity leave is obligatory and accessible only to mothers. A variety of options exist for parental leave that fathers can benefit from. New regulations regarding parental leave and a ‘family time bonus’ (essentially paternity leave for fathers, to be taken within two months of the birth of their child) were implemented in 2017, and a legal right to the leave was established in September 2019 (before, agreement between the employee and employer was needed). The share of fathers taking parental leave has stagnated at a very low level in the past decade: men account for only 4.5% of approved days of childcare allowance in 2018, the same share as in 2009.

Statutory leave arrangements

Maternity leave

Maximum duration

16 weeks: 8 weeks prenatal and 8 weeks postnatal maternity leave. It is obligatory and cannot be taken by fathers.

Postnatal leave is extended to 12 weeks in the event of premature birth, multiple births or a caesarean section.

Reimbursement

100% of average income in the last three months of employment before being on maternity leave, plus a supplement for bonus payments (essentially, a share of the 13th and 14th monthly payments).

Who pays?

FLAF (70%), financed by contributions from employers (3.9% of the employee’s salary) and from general taxes; and public health insurance (30%).

Legal basis

Maternity Protection Act (Mutterschutzgesetz) (1979).

Parental leave

Maximum duration

According to labour law, the maximum duration of parental leave (family entitlement) extends up to the child’s second birthday. There are no mandatory periods for fathers.

Reimbursement

Parents can choose between a flat-rate childcare benefit and an income-related benefit.

Flat-rate benefit

The period for which the benefit can be claimed can vary by choice from between 12 months and 28 months for one parent (365 to 851 days). If the second parent also claims the benefit, the maximum period for both parents increases to between 15 and 35 months (456 to 1,063 days).

Depending on the period of leave or the period for which the benefit is claimed, the daily rate in 2023 was between €15.38 and €35.85 (this corresponds to about €1,090 a month for 12 (or 15) months for the shortest period and €467 a month for 28 (or 35) months for the longest period).

Twenty per cent of the total drawing period is reserved for each parent; this is non-transferable. This means that if both partners draw the benefit, at least 20% must be drawn by the second partner. For the shortest period, the minimum duration for each parent is 91 days and, for the longest period, the minimum share for each parent is 212 days (around 7 months).

If the parents share the period for which the benefit is claimed (at a ratio of at least 40:60), an additional partner bonus of €1,000 (€500 for each parent) is granted.

Income-related benefit

This benefit equates to 80% of the net income for 12 months (if only one partner claims it) or 14 months (if both partners claim it), with an upper threshold of €69.83 per day in 2023 (around €2,095 per month).

The partner bonus (€500 each if they share the leave at a ratio of at least 40:60) is also granted.

Both partners may claim both the flat-rate benefit and the income-related benefit at the same time for up to 31 days.

Who pays?

FLAF

Legal basis

Maternity Protection Act (1979), Paternity Leave Act (Väter-Karenzgesetz) (1989), Childcare Benefit Act (Kinderbetreuungsgeldgesetz) (2001).

Paternity leave

Maximum duration

A ‘family time bonus’ (Familienzeitbonus) for fathers was introduced on 1 March 2017.

Adoptive or foster fathers are also eligible, as are same-sex partners (adoptive or foster parents). On 1 September 2019, a legal right to four weeks’ unpaid leave on the birth of a child was implemented for fathers; during this time, the family bonus can be claimed (before, this ‘Papamonat’ had to be agreed with the employer).

The duration of family time is between 28 and 31 days, within 91 days of the birth of a child; the earliest day on which it can start is the day of birth.

Reimbursement

Daily rate of €23.91 (maximum of around €740 for 31 days).

The monetary allowance received during family time is deducted from the father’s daily rate of childcare benefit if he later takes parental leave for births up until 31 December 2022. For births from 2023 onwards, this has been abolished.

Who pays?

FLAF

Legal basis

Family Time Bonus Act ( Familienzeitbonusgesetz) (2017).

Note : FLAF, Family Burdens Equalisation Fund (Familienlastenausgleichsfond).

Sick leave

If workers are unable to work due to illness or accident and are therefore on sick leave (Krankenstand), they are entitled to the continued payment of their full wages by their employers for a certain period (depending on their job tenure, up to 12 weeks). Once this period of full payment by the employer ends, employees are entitled to receive half of their pay from the employer for another four weeks. During these four weeks and up to one year after the beginning of the sick leave, they are provided with sickness benefits through health insurance. The amount is set at 60% of the employee’s former monthly wage; during the four weeks when they are granted half their pay by their employer, half of the sick benefits (30% of their former monthly wage) are granted as a top-up.

Retirement age

In Austria, the current statutory retirement age is 65 years for men and 60 years for women. According to the current legal framework, between 2024 and 2033 the pensionable age for women will gradually be increased by 0.5 years per year until it is equal to the pensionable age for men. For all pre-retirement schemes there is a deduction of 4.2% per pre-retirement year. In addition, a bonus of 4.2% per year is granted to those retiring after age 60 (for women) or 65 (for men).

For workers, pay is a reward for their work and their main source of income; for employers, it is a cost of production and a focus of bargaining and legislation. This section looks at minimum wage setting in Austria and guides the reader to further material on collective wage bargaining.

The median annual income for full-time, full-season (year-round) workers increased from €41,510 in 2017 to €45,595 in 2021 (see the table below). This group of employees had an average real increase in gross annual income of 9% between 2004 and 2021, after accounting for inflation (see Austrian Court of Audit, 2022, p. 51). According to these data, there is still a significant income gap between men and women, even though it has slowly decreased over the years: while in 2017 the median income for women (full-time, full-season workers) was 84% of that for men, it increased to 87% in 2021 (see Austrian Court of Audit, 2018, 2022). There are large differences depending on the sector: in the mining and quarrying sector (NACE B), the median wages of full-time, year-round female workers were 116% of those of male workers in 2021, whereas in the other services sector (NACE S) the median for women was only 70% of that for men. The sector paying the highest wages in total (for both sexes in aggregate) is electricity, gas, steam and air conditioning (NACE D). Whereas female workers earned the highest wages in the mining and quarrying sector (NACE B) in 2021, male workers did so in financial and insurance services (NACE K) in the same year (see Austrian Court of Audit, 2022, p. 115). The lowest wages paid in 2021 were found in the accommodation and food services sector (NACE I), for both male and female full-time, year-round workers.

Median annual basic wages and salaries per full-time, year-round dependent employed worker (excluding apprentices), 2017 and 2021 (€, gross)

NACE code

2017

2021

Men*

Women*

Total**

Men***

Women***

Total****

B

48,326

50,843

48,553

51,278

59,439

51,767

C

45,350

34,082

43,327

49,848

38,521

47,875

D

65,842

49,653

63,760

70,971

54,917

68,523

E

36,369

34,204

36,135

40,575

38,394

40,386

F

37,867

35,444

37,708

42,136

40,000

42,001

G

38,978

31,258

35,820

42,271

34,703

39,348

H

39,071

35,172

38,540

41,629

37,798

41,124

I

26,340

23,891

25,056

26,999

25,070

26,023

J

60,151

46,139

56,516

65,549

51,429

62,219

K

68,614

50,875

61,488

73,188

56,241

66,435

L

48,851

36,444

41,420

52,435

41,689

46,221

M

55,725

39,098

47,431

58,659

43,823

51,633

N

33,360

28,387

31,830

36,110

30,723

34,674

O

50,611

45,715

48,117

54,481

50,271

52,295

P

52,060

38,311

44,333

56,434

43,337

49,313

Q

42,086

36,668

38,383

47,315

41,929

43,639

R

40,702

33,421

37,668

41,370

35,643

39,082

S

43,571

28,884

36,176

47,487

33,123

40,612

Total (including NACE A, T and U)

43,838

36,985

41,510

47,569

41,617

45,595

Notes: The annual wage is based on 14 monthly payments,but there may be exceptions. The Court of Audit publishes its income reports every two years, usually in December. The latest report was published in December 2022, including very detailed data (as provided here) on 2021; the next report is due in December 2024, including data from 2023. The data used in the reports are provided by Statistics Austria, based on income tax data and data provided by the Umbrella Association of Social Security Institutions.

Sources*Austrian Court of Audit, 2018, Table 43, p. 109; ** Austrian Court of Audit, 2018, Table 41, p. 105; *** Austrian Court of Audit, 2022, Table 46, p. 115**** Austrian Court of Audit, 2022, Table 44, p. 111

Minimum wages

There is no statutory minimum wage in Austria. Minimum rates of pay are not fixed by law but are set out in sectoral/branch-level collective agreements. The wage set for the least skilled group of workers determines the de facto minimum wage for the industry covered by the applicable collective agreement. A monthly minimum wage of €1,500 (gross) has been established by collective agreements in virtually all branches of the economy since 2020. This is due to a social partner agreement from mid-2017 (triggered by the federal government), through which a new minimum wage of €1,500 was to be implemented through sectoral collective agreements by 2020 (in all those sectors where the minimum wage was lower). The ÖGB called for a minimum wage of €2,000 (from September 2022).

Working time refers to ‘any period during which the worker is working, at the employer’s disposal and carrying out his activity or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises the regulation of and issues regarding working time, overtime, part-time work and working time flexibility in Austria.

Working time regulation

The legal framework for the regulation of working time in Austria is set out in the AZG and the Act on Rest Periods (Arbeitsruhegesetz, ARG). According to these laws, deviations from the legal standards at sectoral and company levels are possible but require the establishment of a sectoral collective agreement and, based on this, a works agreement between the works council and management. Hence, working time remains an issue in collective bargaining. This issue has been particularly prevalent since the most recent amendments to the AZG. These have increased the options available for flexible working arrangements, stating that their implementation should be regulated by collective agreements. The most recent amendments (introduced in 2018) extended the maximum working hours from 10 to 12 hours a day and from 50 to 60 hours a week.

Overtime regulation

The legislation in Austria restricts the working day to a maximum of 8 hours (excluding breaks) and the working week to a maximum of 40 hours. However, weekly working hours may reach up to 12 hours per day and up to 60 hours a week over a reference period (between 13 and 52 weeks) by agreement, as long as an average 40-hour week is maintained. The thresholds marking the beginning of overtime are set by legislation for both daily and weekly working hours. In Austria, the thresholds are 8 hours per day and 40 hours per week. An amendment to the AZG in September 2018 extended the daily maximum working hours to 12 hours and the weekly hours to 60 hours. The amendment also extended the maximum working day under flexitime arrangements to 12 hours.

In addition to specifying the maximum working time, legislation in Austria also sets the number of overtime hours that can be worked as required in a set period, often a year, in compliance with the upper limits set for daily and weekly working time. The purpose of this regulation is to limit the concentration of workable hours into too short a period. The specific maximum overtime limit is five hours per week, with an additional 60 hours per year. There are no conditions for the use of overtime (procedures and justifications) and enhanced pay and time off in lieu are awarded at a rate of 50%.

Part-time work

Part-time work in Austria is defined by law (in the AZG) as any employment where the agreed weekly working time on average is below the normal working time fixed by law, by collective agreement or by works agreement. According to the favourability principle, collective and works agreements can only agree a shorter normal working time than that set by law. In 2007 (through an amendment to the AZG), an enhanced pay rate of 25% for extra work (even within normal working time) was implemented. Extra work can only be performed up to the limit of normal working time (40 hours a week); overtime pay rates normally begin beyond the 40-hour limit. Therefore, the amendment implemented an enhanced pay rate for part-time work below the 40-hour limit.

Night work

According to the AZG (Section 12a), night work is defined as work carried out between 22:00 and 5:00.

Shift work

Regulations on shift work (Schichtarbeit) are found in the AZG (Sections 4a, 11 and 12), in the ARG (Sections 3, 5 and 7) and in sectoral collective agreements. The Labour Inspectorate classifies work as shift work if work is carried out by one or more alternating workers on a working day or when work groups replace one another successively in certain departments of a company. Overlapping working hours can still be considered shift work if the overlaps are minimal. However, the fundamental characteristic that several workers alternate in a workplace needs to be met.

Weekend work

All employees are entitled to an uninterrupted weekly rest period of 36 hours, which must include Sunday (in which case, it is referred to as a ‘weekend rest period’). However, exceptions to the weekend rest period are regulated by the ARG (Sections 10 to 22). For example, employees may be employed in cleaning and maintenance work, nursing and care activities or supervisory and security duties. In addition, by ministerial decree, the following types of work are exempt from the ban on Sunday work: work that is necessary to meet essential needs or manage transport and communications, requires continuous operation for technological reasons, cannot be postponed owing to the risk that raw materials will deteriorate, or is necessary to meet leisure, recreational or tourism requirements. Special regulations govern weekend work, for example work conducted by employees at fairs and markets, transport workers, hospital staff and the drivers of certain vehicles. Further exemptions from the ban on Sunday work can be established by collective agreements where the work is necessary to avoid placing a business at a disadvantage and to preserve jobs. Saturday work in the retail sector is regulated in collective agreements; in principle, employees may work every Saturday, but in exchange they receive five ‘extra-long weekends’ (Friday to Sunday or Saturday to Monday) per half year.

Rest and breaks

Provisions for breaks (Ruhepausen) and rest periods (Ruhezeiten) are stipulated in the AZG (Sections 11 and 12).

A scheduled break (Ruhepause) of at least 30 minutes is granted when the daily working time exceeds six hours. Under certain circumstances (if it is in the interest of the employee or necessary for a company), the rest break may be divided into two parts, of 15 minutes each, or into three parts, of 10 minutes each. The break can be divided differently if the parts are stipulated in a works agreement. In companies with no works council, the Labour Inspectorate may allow breaks to be divided differently on request; however, each part of the break must have a duration of at least 10 minutes. Manual labourers working at night are entitled to an additional 10-minute break per night. This break is counted in their working hours (paid), whereas the 30-minute break for six hours of work is not counted (unpaid). Special regulations apply to shift workers. Employees engaged in work activities that require the uninterrupted performance of work are to be granted ‘short breaks of appropriate duration’ instead of the abovementioned rest breaks. Such short breaks are counted in the employees’ working hours (paid).

Special regulations also apply to employees who work with display screens (such as computers) for more than two hours a day: according to the Regulation on Display Work ( Bildschirmarbeitsverordnung, Section 10), an employee is eligible for a 10-minute break after every 50 minutes of display work. These breaks are paid. Instead of breaks, employees can change their work activity, to compensate for the burden of display work.

At the end of employees’ daily working hours, they are entitled in principle to an uninterrupted break of at least 11 hours before the start of their next day’s work (a rest period (Ruhezeit)). However, for hotel, restaurant and tourism workers, a 2018 amendment to the ARG allowed for the reduction of the daily rest period from 11 to 8 hours for employees working split shifts. In addition, all employees are entitled to an uninterrupted weekly rest period of 36 hours, which must include Sunday (in which case it is referred to as a weekend rest period(Wochenendruhe)). Where employees work at weekends, they are granted an uninterrupted rest period of 36 hours in lieu that does not fall at the weekend and includes one entire weekday (in which case, it is referred to as a weekly rest period (Wochenruhe) in lieu). For exceptions from weekend rest periods, see the section entitled ‘Weekend work’.

Working time flexibility

The AZG provides options for flexible working arrangements, which can only be regulated by collective agreement. Most sectoral collective agreements in Austria have provisions on flexible working arrangements. This refers in particular to bandwidth models and flexitime. Bandwidth models allow employees to exceed the normal working time up to a certain limit, for instance 44 hours a week, if they work their normal time within a certain reference period. Moreover, due to derogation clauses in collective agreements, specific flexible working time schemes (such as bandwidth models and flexitime) can be agreed at company level by works councils and management in works agreements.

Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill health of their workers. This section looks at psychosocial risks and health and safety at work in Austria.

Health and safety at work

The main instrument protecting the health and well-being of workers in Austria is the Health and Safety at Work Act (ArbeitnehmerInnenschutzgesetz). The total number of work accidents and the number of accidents per thousand employees have both fallen steadily in the last 15 years The decline in work accidents follows a long-term trend. Between 1998 and 2008, the number of accidents decreased by 37%. The prevention strategy of the Austrian Workers’ Compensation Board (AUVA) may be partly responsible for the long-term decline. During the pandemic, in 2020 and 2021, there was – not surprisingly due to the increased prevalence of telework – a large decrease in accidents at work.

Total number of work accidents*

YearNumber of accidents
2001120,000
2002115,000
2003121,000
2004121,000
2005122,000
2006126,000
2007117,000
2008136,000
2009119,000
2010113,000
2011111,000
2012109,000
2013107,000
2014106,000
2015103,000
2016104,000
2017105,000
2018108,000
2019105,000
202076,000
202189,000

Note: * Includes accidents on the way to and from work, rounded to the nearest thousand.

Sources : AUVA, 2020; AUVA, 2021, p. 15

Psychosocial risks

Since the 2013 amendment of the Health and Safety at Work Act, the legislation has explicitly referred to psychological strain as a risk factor in workplaces that needs to be avoided. Psychological strain includes psychosocial, psycho-emotional and mental strain. According to law, employers are required to evaluate workplaces to determine psychological strain that can cause health problems and find and implement adequate remedies. The evaluation and measures implemented have to be documented, stored and made available to the Labour Inspectorate on request. In practice, the Labour Inspectorate recommends regular surveys among employees including questions on psychological strain (the law does not specify how often the evaluations have to take place). The Labour Inspectorate provides interview guidelines that cover psychosocial risks such as physical, mental and emotional strain; problems related to qualification, cooperation, lack of information and lack of autonomy; climatic, acoustic and visual strain; lack of space and resources; inadequately designed work processes; lack of proper orientation for new employees; disturbances and interruptions; and burdensome working hours and workloads.

Skills are the passport to employment; the more highly skilled an individual, the more employable they are. People with good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Austrian system for ensuring skills and employability and looks at training provision.

National system for ensuring skills and employability

The Austrian system of vocational education has two major pathways: on the one hand, there are specific vocational education and training schools (for diverse subjects such as general technical education, information technology, business administration and tourism), some of which provide students with a university entrance diploma (Matura); on the other hand, there is an elaborate apprenticeship system that combines on-the-job learning with limited school attendance (this is also known as a dual system of education). While the vocational education and training schools are the responsibility of the Federal Ministry of Education, Science and Research and are regulated by the School Education Act (Schulunterrichtsgesetz), the apprenticeship system, including some 200 apprenticeships, is overseen by the BMAW and is based on the Vocational Education Act (Berufsausbildungsgesetz). It is in the apprenticeship system that the social partners can exert some influence. The BMAW maintains an advisory board for vocational education; the social partners have a seat on this board. When a new apprenticeship is being developed, proposals are discussed by the advisory board and the social partners have the opportunity to submit an official statement about any draft regulation put forward by the ministry. Draft regulations can also be developed by the social partners themselves.

An obligation to provide education or training up to the age of 18 was implemented in the 2017/2018 school year. This stipulates that every young person must participate in further schooling or training following their compulsory education (after nine years of school). The focus is on individual support, taking into account the interests, skills and needs of the young people. Various education and training opportunities and measures are coordinated through the programme. For example, support is provided to disadvantaged young people to enable them to choose an education/training programme, prevent them from dropping out and prepare them for further education. ‘Supra-company apprenticeships’ (a scheme for those adolescents who have not been able to find a suitable apprenticeship post or who have dropped out of a company-based apprenticeship training relationship, whereby the apprenticeship training is provided by a training institution) are also provided.

Training

Further training is not regulated in Austria. There are hundreds of institutions that supply further training courses on a wide range of topics. Because of the lack of general standards, the quality of the courses differs considerably. The social partners operate their own training institutions. The Institute for Economic Promotion (Wirtschaftsförderungsinstitut) has strong links to the Federal Economic Chamber, while the Berufsförderungsinstitutis supported by the ÖGB and the AK. Both institutions are among the largest providers of further training in Austria.

The principle of equal treatment requires that all people – and, in the context of the workplace, all workers – have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, sex, disability, nationality, race and religion.

The main legal basis for equality at work is the Equal Treatment Act (Gleichbehandlungsgesetz). Initially adopted in 1979 to stop discrimination against women in the world of work, a 2004 amendment expanded its coverage to ban discrimination based on ethnicity, religion and ideology. For public sector workers, specific legislation – the Federal Equal Treatment Act (Bundesgleichbehandlungsgesetz) – pursues the same objectives. There is also specific legislation for the equal treatment of people with disabilities, namely the Disability Equality Act(Behindertengleichstellungsrecht).

The main institution that deals with infringements of equal treatment principles is the Commission for Equal Treatment (Gleichbehandlungskommission). Workers who feel discriminated against can file complaints with the commission. In addition, complainants receive legal support through the Ombud for Equal Treatment (Gleichbehandlungsanwaltschaft).

Equal pay and gender pay gap

The Equal Treatment Act (Gleichbehandlungsgesetz) and the Federal Equal Treatment Act (Bundesgleichbehandlungsgesetz) both explicitly prohibit gender-based discrimination in relation to pay. Since 2011, large companies have been required to produce an income report (Einkommensbericht) every two years; in 2014, this was extended to companies with more than 150 employees. The report must include the number of men and women assigned to each wage group and the average salary of men and women. Works councils or employees in companies without a works council have the right to be informed about the content of the report, and they can file a legal complaint up to three years after its publication.

Furthermore, since 2011 it has been mandatory for job vacancies to be advertised in a gender-neutral way, and for the advertisement to include the collectively agreed minimum wage for the position and a statement on the willingness of the employer to pay more than the minimum wage (Überzahlung). In 2016, an obligation to inform part-time workers about forthcoming full-time jobs was introduced. When an employer plans to announce a full-time position or a position with a higher number of hours, the employer’s part-time employees are to be informed beforehand. In this way, internal employees wanting to increase their working hours can apply first. This applies mainly to female workers, due to the high prevalence of part-time work among women in Austria. Although, in 2011 Austria’s largest union, the Union of Salaried Employees, Graphical Workers and Journalists, suggested regularly holding specific wage bargaining rounds for women in order to increase their salaries and reduce Austria’s large gender pay gap, this was never implemented. Thus, there are no regularly occurring social partner initiatives targeted at closing the gender pay gap. At the same time, the recognition of leave (parental, nursing care, hospice) in wage increases has been addressed in many collective agreements within the past few years. This mostly benefits female workers, as they usually take longer periods of leave than men.

According to the latest general income report from the Austrian Court of Audit (Rechnungshof), published every two years and most recently in late 2022, women in Austria in 2021 earned less than men in all employment groups. Overall, at €24,309, the median gross annual income of women was at 64% of men’s income (€37,707). In the public sector, women were at less of a disadvantage: contracted employees earned 78%, and civil servants even 99% of the median income of men in the same employment groups. Part of the gender pay gap can be attributed to the high prevalence of part-time work among women. But even among full-time, year-round employees the median gross annual income of women reached €41,617, only 87% of the median income for men (€47,569) (see also the ‘Pay’ section). There were huge differences between employee groups (the median income for women was 72% that of men among blue-collar workers, 70% among white-collar workers, 95% among public contract workers and 105% among public servants) (Austrian Court of Audit, 2022, p. 84). According to Eurostat data, Austria’s unadjusted gender pay gap (defined as the relative difference between the average gross hourly earnings of women and men in the private sector) was 18.9% in 2020, and has therefore decreased steadily since 2010 (when it was 24%). Austria is among the three Member States with the highest gender-related wage differential, and the gap was above the EU27 average of 13% in 2020.

Statistics Austria conducts analyses on the influence of various factors on the gender pay gap. Its calculations are based on the Structure of Earnings Survey, which is conducted every four years. The latest analysis from 2021 (based on data from 2018, when Austria had a gender pay gap of 20.4%) shows that only around a third (6.4 percentage points) can be explained by characteristics such as sector, occupation, age, length of service with the company and working hours. Therefore, 14 percentage points cannot be explained statistically by these characteristics (Geisberger and Glaser, 2021).

Quota regulations

The Disability Employment Act (Behinderteneinstellungsgesetz) requires that companies with 25 or more employees employ one person with disabilities for every 25 workers. In some sectors, the threshold is 40 employees. However, the legislation also allows companies to pay a special monthly tax if they do not employ people with disabilities.

In 2011, the government adopted quotas for supervisory boards of corporations in which the state had a stake of 50% or more. In total, these applied to 55 companies. At least 25% of the board members that are delegated by the BMAW should be women, and the proportion was required to reach 35% by 2018. In 2016, according to the Ministry of Education and Women’s Affairs, the proportion of women on the supervisory boards of state-controlled companies had already reached 38%; the target was therefore reached prematurely. In 2018, quota regulations for women in management positions on supervisory boards in privately owned companies were implemented through the Equal Opportunities Act for Women and Men on the Supervisory Board (Gleichstellungsgesetz von Frauen und Männern im Aufsichtsrat): a quota of 30% for women on supervisory boards in listed companies and companies with more than 1,000 employees was to be reached. If a company fails to comply with the quota, the vote is void and the relevant seat remains vacant. Data show that the regulation has been adhered to widely: according to the Frauen.Management.Report.2023, published by the AK (2023), the proportion of women on supervisory boards of listed companies, as a result of the legal quota of 30%, increased from 16.1% in 2017 to 35% in January 2023. The proportion of women on supervisory boards of listed companies not covered by the Equal Opportunities Act for Women and Men on the Supervisory Board increased much more slowly over the same period, to 21.4%. In 2023, only 25.5% of supervisory board positions in the 200 companies with the highest turnover were held by women, and women accounted for 10.5% of management boards, showing that progress without binding quotas is remarkably slow.

AMS (Public Employment Service) (2023), Spezialthema zum Arbeitsmarkt: Jahr 2022 , Vienna.

Austrian Court of Audit (2018), Allgemeiner Einkommensbericht 2018 , Vienna.

Austrian Court of Audit (2022), Allgemeiner Einkommensbericht 2022 , Vienna.

AUVA (Austrian Workers’ Compensation Board) (2020), Erwerbstätige, web page, accessed 17 January 2023.

AUVA (2021), Auszug aus der Statistik 2020, Vienna.

Bönisch, M. (2008), ‘Kollektivvertragliche Abdeckung in Österreich’, Statistische Nachrichten , No. 3, pp. 207–211.

AK (Chamber of Labour) (2023), Frauen.Management.Report.2023: Etappensieg EU-Richtlinie , Vienna.

Eurofound (2018), Pay transparency in Europe: First experiences with gender pay reports and audits in four Member States , Publications Office of the European Union, Luxembourg.

Eurofound (2020a), Industrial relations: Developments 2015–2019, Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg.

Eurofound (2020b), Minimum wages in 2020: Annual review, Publications Office of the European Union, Luxembourg.

Eurofound (2020c), Collective agreements and bargaining coverage in the EU: A mapping of types, regulations and first findings from the European Company Survey 2019 , Eurofound working paper, Dublin.

Eurofound (2020d), Employee representation at establishment or company level: A mapping report ahead of the 4th European Company Survey , Eurofound working paper, Dublin.

Eurofound (2021), Working conditions and sustainable work: An analysis using the job quality framework , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg.

Eurofound (2023), Minimum wages in 2023: Annual review, Publications Office of the European Union, Luxembourg.

Eurofound and Cedefop (European Centre for the Development of Vocational Training) (2020), European Company Survey 2019: Workplace practices unlocking employee potential, European Company Survey 2019 series, Publications Office of the European Union, Luxembourg.

Geisberger, T. and Glaser, T. (2021), ‘Gender Pay Gap: Analysen zum geschlechtsspezifischen Lohnunterschied’, Statistische Nachrichten, No. 6/2021, pp. 443–447.

OECD (Organisation for Economic Co-operation and Development) (2012), OECD employmentoutlook 2012, OECD Publishing, Paris.

OECD (2021), OECD/AIAS ICTWSS database, version 1, Paris.

ÖGB (Austrian Trade Union Federation) (undated), Österreichische Streikstatistik seit 1945.

WKÖ (Austrian Economic Chamber) (2023), WKÖ Streiks in Österreich.

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