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WORKING IN AUSTRIA

Austria extends its short-term work system until the end of 2022

The Kurzarbeit system was limited until June; the Federal Government this Tuesday extended its validity.

Published: 17 May 2022 18:13 CEST
Austria extends its short-term work system until the end of 2022
Austria's Labour Minister during a speech in the country's parliament. (© Parlamentsdirektion / Thomas Topf)

Austria’s short-term works scheme, the Kurzarbeit, which was set to expire by the end of June, was officially extended until the end of the year.

The scheme allows companies particularly affected by the coronavirus pandemic to ask for government assistance as long as they keep their workforce. Employees in Kurzarbeit work fewer hours and receive a fraction of their salary, paid by the scheme – up to 90 per cent, depending on their pay.

Discussions are still ongoing between the trade union and the Chamber of Commerce on the details of the short-time work extension, broadcaster ORF reported.

Employers want the government to increase the percentage of the salary paid to workers, asking all employees receive a 90 per cent net replacement for wages. Workers with higher salaries could receive as little as 70 per cent of their wages from the scheme, leading to a significant loss of income.

READ MORE: EXPLAINED: How to get your €500 Kurzarbeit bonus in Austria

Austria’s Labour Minister Martin Kocher said that the extension was only possible after “significant compromises” and that the system will only exist in very specific cases in the future. He didn’t give further details, though.

One of the reasons for the extension, ORF reports, was to cushion the economic consequences of the Ukraine war.

Kurzarbeit and unemployment rates

April 2020 saw the highest number of people, more than one million, on the scheme. Around 53,000 people were still pre-registered for short-time work at the beginning of the week. From March 2020 to the end of March 2022, government spending on coronavirus short-time labour amounted to € 9.56 billion.

READ ALSO: Six official websites to know if you’re planning to work in Austria

At the same time, the domestic labour market has seen a decrease in unemployment, even with the slowdown due to the war in Ukraine and soaring energy prices.

Compared to just one week ago, 4,216 fewer people were unemployed. Currently, 324,977 people are registered with the Public Employment Service Austria (AMS) as unemployed or in training. 251,633 of them are looking for a job, and 73,344 are in training measures of the AMS.

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WORKING IN AUSTRIA

What you should know about collective agreements if you work in Austria

If you work in Austria - or are searching for a job here - you will most certainly have heard of the "collective agreement or Kollektivvertrag" that rules your profession.

Published: 24 May 2024 16:20 CEST
What you should know about collective agreements if you work in Austria

Foreigners in Austria—a country well-known for its high quality of life—might be surprised to hear that the Alpine Republic does not have minimum wage laws. Instead, salaries and many other labour law provisions are regulated by the so-called “Kollektivverträge,” or collective agreements.

There are over 800 collective agreements in Austria, and the trade unions negotiate over 450 collective agreements every year. These agreements, which cover almost all Austrian employees (approximately 98 percent), provide a reassuring level of protection. They guarantee minimum standards and legal security in employment relationships, ensuring that your rights and conditions are safeguarded. 

What are these agreements?

According to the Labour Relations Act, agreements are made between statutory interest groups of employers and employees. They are independent of their negotiating partners and regulate working conditions. In general, these include the Chambers of Labour, which are public-law corporations representing the interests of employees, and representatives of employees and the Austrian Economic Chamber, which is representative of employers. 

READ ALSO: Is it time Austria introduced a minimum wage?

In addition, the Federal Conciliation Office at the Federal Ministry of Labour and Economy can also officially recognise the capacity to conclude collective agreements of voluntary professional associations of employers and employees and certain other associations, including significant unions such as Vida.

Both employers and employees cannot choose whether or not to join these chambers, as membership is automatic, and a levy (“Kammerumlage”) is collected to finance the interest groups.

Collective agreements generally apply to an entire economic sector, so you’ll see them being negotiated among metal workers and companies, for example. But they can also apply as specific company agreements (or both: your company might have a collective agreement with its workers and also be subject to a sector agreement).  

What else is negotiated in them?

Collective agreements also regulate other essential labour law provisions (such as arrangements regarding pay, flexible working hours, vacation rights, special payments such as vacation and Christmas bonuses) and the termination of the employment relationship), in addition to the minimum wage.

The collective agreement aims to establish appropriate wage and working conditions for the largest possible number of employees and for all sectors and regions. Some things that are regulated by collective agreements (for example, the special payments, known as the 13th and 14th salaries in Austria) are so common among different sectors that they are often mistaken for national laws and policies.

READ ALSO: Six things you need to know about salaries in Austria

How are the agreements negotiated?

Deals are also concluded between the two parties, often when trade unions make demands and call for negotiations—with most sectors, this happens yearly. 

In order to conclude a new collective agreement or amend an existing one, the negotiating partners must reach an agreement on its content. There are often several rounds of negotiation, and workers can use tools such as strike actions in the process.

Where can I find them?

Each profession usually has its own collective agreement, and knowing where to find them is essential. For instance, you’ll often see that job ads in Austria don’t have a salary announced (by law, they have to) but something along the lines of ‘payment according to the collective agreement’. This is true for a wide range of professions, from healthcare workers to construction workers, from teachers to IT professionals.

If you want to find out the minimum wage you’ll get, you can check your collective agreement for your sector or profession HERE.

READ NEXT: When can I take my holidays after starting a new job in Austria?

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