Labour Law

Anyone working or employing someone in Austria will have to comply with the applicable labour legislation. Whether you take up work as a self-employed contractor or an employee will depend on the specific conditions under which the work is performed and not on what was agreed between the parties.

However, in practice things are often tricky. Many people who should qualify as blue-collar workers or employees work on a contract-for-services basis or as self-employed persons. In the case of self-employed work the principal's risk is reduced, on the one hand, because all entitlements an employee has, such as annual leave, sickness benefit, etc., do not apply to the contract for services. On the other hand, for some employers it is sheer impossible - particularly in the artistic industry - to employ someone, because an employment contract in Austria would be economically prohibitive for many establishments owing to high non-wage labour costs or also minimum wages under collective-bargaining agreements.

No solution has been found for this problem area to date by policymakers.