HR Services in Austria
HR support for US, UK and international companies hiring in Austria: Austrian contracts and policies, payroll coordination, compliance and recruitment. Build your Austrian team without building an HR department first.
Last reviewed October 2026. Collective agreements can set other terms.
Expand Into Austria With an HR Partner Who Knows Austrian Labor Law
Austria is the EU’s tenth-largest economy and spends 3.34% of GDP on R&D, the second-highest share in the EU. It also brings detailed employment rules: no statutory minimum wage, so pay floors and extra payments come from sector collective agreements, a written statement of the main terms when someone starts, notice periods that grow with service, and works councils from five employees.
Europe HR Solutions is your HR partner for Austria. We prepare Austrian contracts, policies and handbooks, put payroll foundations in place and coordinate your payroll provider, support hiring and reward, and review your HR practices as Austrian law changes.
Expanding beyond Austria? The same team covers 27+ European countries, so you manage one relationship instead of a provider in every market.
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Tell us about your plans for Austria. We’ll tell you honestly what we see.
Book a Free Consultation Free, no commitment.HR Outsourcing in Austria With Europe HR Solutions
One senior Europe HR Solutions team coordinates your HR in Austria, working with independent in-country HR professionals from our European network who understand Austrian employment practice.
Everyday HR, handled
Payroll coordination, recruitment, compliance and employee relations for your team in Austria, handled as one service, so you can focus on growing the business.
Compliance with Austrian labor law
We make sure your HR operations comply with Austrian law, and review your contracts and policies as statutory rules and collective agreements change.
Cost-effective HR
Outsourcing means you don’t need your own HR team in Austria, which reduces cost and frees resources for growth.
Flexible engagement
We work ad hoc, on an interim basis, by project or on a retainer, from a few weeks to several years.
HR Services We Provide in Austria
Each of our services is available for Austria.
Compliant contracts, payroll registration and statutory foundations in place before your first Austrian hire.
Employment Documentation Package→Austrian contracts, policies and handbooks aligned with Austrian labor law.
Systems & Payroll Coordination→Your HR systems and payroll providers aligned, with consistent data and full visibility for leadership.
Compensation & Benefits Strategy→A structured reward framework aligned with Austrian law, market data and internal equity.
Recruitment Support→Roles calibrated, salaries benchmarked and hiring aligned with Austrian employment law.
HR Compliance Audit→A structured review of your HR compliance risk in Austria, with a clear action plan.
Retained HR Services→Ongoing senior HR oversight on a monthly retainer, including manager coaching and support with works council interactions.
M&A HR Support→HR due diligence, employee transfer and post-deal integration for deals in Austria.
Key Employment Regulations in Austria
Federal law sets the baseline. The collective agreement for your sector adds to it, so check both before you hire.
Show all 12 regulationsHide the regulations
Contracts and written terms (Dienstzettel)
A contract can be oral, but the employer must give a written statement of the main terms without delay after the start, unless a written contract already covers them all. A missing statement can be fined €100 to €436, or €500 to €2,000 if more than five employees are affected or it happens again within three years.
Working hours and overtime
As a rule, normal hours are up to 8 a day and 40 a week (fewer by collective agreement); with overtime, up to 12 a day and 60 a week, but at most 48 on average over 17 weeks (longer by collective agreement). Overtime earns a 50% premium or time off including it; staff can refuse it beyond 10 hours a day or 50 a week.
Minimum pay and 13th and 14th salaries
Austria has no statutory minimum wage. For most sectors, the collective agreement sets minimum pay by job group, and where no agreement can be made, the Federal Arbitration Office can set a minimum wage rate. Extra payments, usually called the 13th and 14th salaries, aren’t required by law; collective agreements and contracts set them.
Paid leave and public holidays
5 weeks a year: 25 working days on a five-day week, or 30 on a six-day week, rising to 6 weeks after 25 years of service. In the first year, leave builds up in proportion over the first six months, then in full. There are 13 paid public holidays.
Sick pay (Entgeltfortzahlung)
The employer pays full pay for up to 6 weeks of sickness a working year, rising to 8 weeks after 1 year of service, 10 after 15 and 12 after 25, then half pay for 4 more weeks. Health insurance pays sickness benefit once employer pay drops to half or ends.
Maternity, paternity and parental leave
Mothers may not work 8 weeks before and 8 weeks after the birth (12 after premature, multiple or cesarean births); health insurance pays maternity benefit. Fathers can take 1 month off after the birth, as a rule announced 3 months before the due date, unpaid by law but with a family time bonus from health insurance. Parental leave (Karenz), unpaid by the employer, runs until the child is 22 months old, or 2 years if parents share it or for single parents.
Probation (Probemonat)
A probation period of up to 1 month can be agreed; for apprentices, the first 3 months work the same way. During probation, either side can end the employment at any time, without notice. After it, the normal notice rules apply.
Notice and dismissal (Kündigung)
Employer notice: 6 weeks, then 2 months after 2 years, 3 after 5, 4 after 15 and 5 after 25, ending at a quarter’s end unless a collective agreement or the contract sets other dates, such as the 15th or month-end. Collective agreements that set shorter blue-collar notice between 2018 and June 2025 keep it (at least one week). In establishments with five or more permanent employees, staff other than senior managers with 6 months’ service can challenge a socially unjustified dismissal, unless the works council expressly agreed to it.
Employee representatives (Betriebsrat)
In any establishment with at least five permanent employees, the law provides for a works council, elected by the employees for five years. Where one exists, the employer must inform it before giving any employee notice and give it a week to comment; notice given earlier is void, unless it has already commented.
Collective agreements (Kollektivverträge)
On the employer side, collective agreements are concluded mainly by the Economic Chamber (WKO), whose membership is compulsory for businesses in trade, industry, commerce, finance, transport, tourism and other services. So, in practice, the agreement for your sector or trade, where one exists, applies from your first hire. It binds you for every employee in its scope, union member or not, and its terms apply directly: a contract or works agreement can improve on them but not cut them back, unless the agreement itself allows. Identify yours before you make an offer.
Social security
Non-wage costs, such as employer social contributions, are 27% of total labor costs, or about 37% on top of gross wages (Eurostat, 2025). Employees must be registered with the health insurance fund (ÖGK) before they start work. For contracts since 2003, severance comes from a staff provision fund: the employer pays 1.53% of pay, as a rule from the second month.
Pay transparency
Austria missed the June 2026 deadline for the EU Pay Transparency Directive; no federal law for private employers was in force as of October 2026. Already, job ads must state the job’s collective agreement minimum pay and any willingness to pay more, and employers with more than 150 employees must produce an income report every two years.
The Benefits of Expanding to Austria
What Austria offers companies that set up properly.
A major EU economy
Austria’s GDP was €518.2 billion in 2025, the tenth largest in the EU (Eurostat).
Exports
Austrian goods exports reached €189.7 billion in 2025, 68.1% of them to other EU countries (Statistik Austria).
R&D investment
Austria spent 3.34% of GDP on R&D in 2024, second in the EU and above the EU’s 2.26% (Eurostat estimates).
Research talent
Austria has 6,751 full-time equivalent researchers per million people, 8th of 139 economies (Global Innovation Index 2026).
Logistics
Austria ranks 7th of 139 economies for logistics performance (Global Innovation Index 2026).
Rule of law
Austria ranks 8th of 139 economies for rule of law (Global Innovation Index 2026).
The Challenges of Expanding to Austria
Six things to plan for before your first hire.
Collective agreements, not a minimum wage
Minimum pay comes from the collective agreement for your sector, by job group, so the agreement you apply shapes pay and extra payments.
Employment costs
Non-wage costs add about 37% to gross wages (Eurostat, 2025); budget for 14 salary payments a year where agreements or contracts set them.
Notice that grows with service
Employer notice rises from 6 weeks to 5 months after 25 years, ending at quarter’s end unless a collective agreement or contract says otherwise.
Works councils from five employees
From five permanent employees, staff can elect a works council, which must be informed before any employee is given notice.
Working time limits and records
Employers must keep records of hours worked, and work beyond the maximum hours or without the rest periods is fined €72 to €1,815.
Pay in job ads
Job ads must state the minimum pay for the job under the collective agreement and any willingness to pay more.
Key HR Compliance Risks in Austria
Eight mistakes to avoid in Austria, and what each one leads to.
Employee not registered
Register employees with the health insurance fund before work starts. Late or missing registration can be fined €730 to €2,180 (repeat: €2,180 to €5,000); an inspection can add €400 per person plus €600.
Pay below the collective agreement
Paying less than the law, a decree or the collective agreement sets for the job grade is fined up to €50,000, and up to €400,000 for the largest deliberate underpayments.
Works council skipped
Where a works council exists, notice given before it has been informed and its one-week comment period has passed is void, unless it has already commented.
Pregnant employee dismissed
Notice during pregnancy, within 4 months of the birth or until 4 weeks after parental leave is void without prior court consent, given only in limited cases such as closure. For pregnancy and birth, this applies if you knew or are told within five working days of the notice.
No written statement of terms
Without a written statement of the main terms, or a written contract covering them, the employer can be fined €100 to €436, or €500 to €2,000 if more than five employees are affected.
Hours over the limits
Work beyond 12 hours a day or 60 a week, or without required rest, is fined €72 to €1,815; repeat offenses €145 to €1,815, or €218 to €3,600 if more than 20% over the limit or with under 8 hours’ rest.
Fixed terms chained
Successive fixed-term contracts need an objective reason, such as covering an absence or a seasonal peak; without one, they count as a single open-ended employment.
Job ad without pay
A job ad without the job’s minimum pay brings a warning for a first breach, then fines of up to €360, on a candidate’s or the Equal Treatment Ombud’s application.
Not sure where you stand? Our HR Compliance Audit gives you a structured review of your HR compliance risk in Austria, with a clear action plan.
Key Sectors in Austria
Austria’s leading export sectors in 2025, based on Eurostat trade data.
Free HR Guide for Austria
Understanding Austria’s Employment Laws: A Guide for Employers
Comprehensive insights into labor laws, employee rights, and HR best practices.
Want to read more first? See our article on HR and compliance in Austria.
Hiring in Austria: Your Questions Answered
Questions companies ask before they hire in Austria.
Do we need written employment contracts in Austria?
Not as such. A contract can be oral, but each employee must get a written statement of the main terms (Dienstzettel) without delay after the start, unless a written contract covers them all. A missing statement can be fined €100 to €436, or €500 to €2,000 if more than five employees are affected. You also register each employee with the health insurance fund (ÖGK) before work starts. We draft contracts that comply with Austrian law.
Is there a probation period in Austria?
Yes, if it’s agreed, for up to 1 month; for apprentices, the first 3 months work the same way. During probation, either side can end the employment at any time, without notice. After that, the normal notice rules apply, starting at 6 weeks for the employer. We make sure your contracts set probation correctly.
How much does an employee in Austria cost on top of salary?
Non-wage costs, such as employer social contributions, add about 37% on top of gross wages (Eurostat, 2025). The 13th and 14th salaries come from collective agreements and contracts, not the law, so budget for them where they apply. For contracts since 2003, the employer funds severance by paying 1.53% of pay into a staff provision fund. Our Compensation & Benefits Strategy builds a reward framework aligned with Austrian law, market data and internal equity.
How many hours can staff in Austria work?
As a rule, up to 8 hours a day and 40 a week, or fewer by collective agreement. With overtime, up to 12 a day and 60 a week, but at most 48 a week on average over 17 weeks (longer by collective agreement), with, as a rule, 11 hours’ rest between working days. Overtime earns a 50% premium or time off including it, and staff can refuse it beyond 10 hours a day or 50 a week. We structure work schedules that comply and still leave room for flexibility.
What happens when an employee in Austria is off sick?
The employer pays full pay for up to 6 weeks of sickness a working year, rising to 8 weeks after 1 year of service, 10 after 15 years and 12 after 25, then half pay for 4 more weeks. Health insurance pays sickness benefit once employer pay drops to half or ends. We put clear sick leave policies in place.
How much paid leave do employees in Austria get?
5 weeks a year, which is 25 working days on a five-day week, rising to 6 weeks after 25 years of service, plus 13 paid public holidays. In the first year, leave builds up in proportion over the first six months, then in full. We keep you compliant with leave entitlements and help you offer a competitive benefits package.
Is it really that hard to terminate employees in Austria?
It’s strict, not impossible. Employer notice runs, as a rule, from 6 weeks to 5 months after 25 years, ending at a quarter’s end unless a collective agreement or contract says otherwise. A works council, if there is one, must be told first and gets a week to comment. In establishments with five or more permanent employees, staff other than senior managers with 6 months’ service can challenge a socially unjustified dismissal, unless the works council expressly agreed; if the court agrees, it’s void. We guide you through every step.
Can we put everyone on fixed-term contracts in Austria?
Not indefinitely. A fixed-term contract ends on its agreed date without notice, and, as a rule, it can only be ended earlier by notice if that was agreed in advance. Successive fixed-term contracts need an objective reason, such as covering an absence or a seasonal peak; without one, they count as a single open-ended employment. We make sure every fixed-term contract meets these rules.
Do collective agreements apply to us in Austria?
Usually, yes. Businesses in trade, crafts, industry, commerce, finance, transport, tourism and other services belong to the Economic Chamber (WKO) by law, and its sector agreements bind members for all the employees they cover, union members or not. The agreement sets minimum pay by job group and can set extra payments, and individual contracts can only improve on it. We keep you compliant with the agreement that applies, with as much flexibility as it allows.
Do we need employee representatives in Austria?
It’s up to your employees. In any establishment with at least five permanent employees, the law provides for a works council (Betriebsrat), elected by the employees for five years. Where one exists, you must inform it before giving any employee notice and give it a week to comment. We guide you in working with employee representatives.
What does pay transparency mean for us in Austria?
Austria missed the June 2026 deadline for the EU Pay Transparency Directive; no federal law for private employers was in force as of October 2026. Already, job ads must state the job’s collective agreement minimum pay and any willingness to pay more, and employers with more than 150 employees must produce an income report every two years. Our Compensation & Benefits Strategy covers EU Pay Transparency readiness.
What happens if we fail a labor inspection in Austria?
Usually, the Labor Inspectorate first advises and sets a deadline, then reports a breach for a fine if it isn’t fixed, or at once if it’s serious. Work beyond the maximum hours or without the rest periods, for example, is fined €72 to €1,815. Paying below the collective agreement is fined separately, under the Wage and Social Dumping Act: up to €50,000, and up to €400,000 in the largest deliberate cases. We conduct regular compliance audits so your documentation is ready for inspection.
Plan Your Austrian Expansion With an HR Specialist
Tell us about your plans for Austria, whether it’s your first hire or a growing team. We’ll tell you honestly what we see.
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