Employment Law

Where the employer gives notice, the period under § 20 AngG is at least six weeks and increases with the length of service to up to five months (after 25 years of service). Notice can generally be given with effect from the end of a quarter, unless the 15th or the last day of the month has been agreed. Since 1 October 2021 the same rules have applied to blue-collar workers. Employees can generally give one month's notice to the end of a month. Collective bargaining agreements may deviate – it is always worth checking the applicable one.

In businesses with a works council and after six months of service, a challenge on grounds of social unfairness, a prohibited motive or unlawful interference with representation of interests may be available. The deadlines are short: an action to challenge the termination must be brought within two weeks of receiving notice. Anyone who receives notice should therefore seek legal advice immediately – once the deadline has passed, the termination is effective even if it could have been challenged on the merits.

In principle yes: overtime must be paid with a surcharge of at least 50 per cent or compensated with time off in lieu at a ratio of 1:1.5. Lump-sum arrangements are permissible, but they must actually cover what is worked – if a coverage check shows a shortfall, the difference must be paid. Any claim depends on records of working time being kept; that duty falls on the employer.

A non-compete clause restricts activity after the employment relationship ends. It is only valid where remuneration exceeds the statutory threshold, for no more than one year, limited to the employer's line of business, and where it does not unreasonably impede the employee's career. Where the employer gives notice without fault on the employee's part, it generally does not apply. We review the clause before signature and in the event of a dispute.

Jurisdiction lies with the Labour and Social Court – in Salzburg the Regional Court of Salzburg sitting as the Labour and Social Court. Proceedings usually begin with a written pleading, followed by an oral hearing; a settlement is often reached. A particular feature: legal representation is not mandatory at first instance, but it is strongly advisable given the short deadlines and questions of burden of proof.

Yes – contrary to a widespread assumption, sick leave does not protect against termination. However, the employer must continue to pay remuneration for the duration of the statutory continued-payment period, even beyond the end of the employment relationship, if notice is given during sick leave. A termination issued precisely because of an illness may in an individual case be challengeable as socially unfair or discriminatory. Neither side should handle this situation without advice.

That depends on the scheme. Under severance pay under the new scheme – for employment relationships from 2003 onward – the employer pays 1.53 per cent of remuneration into an occupational provident fund on an ongoing basis; the claim exists against the fund and is not lost on resignation but travels with the employee. Under severance pay under the old scheme, the entitlement grows with years of service up to twelve months' pay, but generally lapses on resignation. Which rules apply and what a change of employer or a mutually agreed termination means, we work out in advance.

What matters is when the employment relationship began. Anyone who joined on or after 1 January 2003 falls under severance pay under the new scheme: the employer pays 1.53 per cent of remuneration into an occupational provident fund on an ongoing basis, the balance is retained on a change of job and does not depend on how the relationship ends. For relationships established earlier, severance pay under the old scheme may continue to apply, which is linked to years of service and to the manner of termination – it generally lapses on resignation by the employee. A switch was only possible by mutual agreement, which is why both systems exist side by side in longer-established businesses.