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WORKING IN AUSTRIA

What is the ‘friendship economy’ in Austria and how does it work?

The so-called 'friendship economy' in Austria impacts many aspects of daily life, from getting a job to securing a dream apartment. Here’s how it works and why it might be changing.

Published: 7 December 2022 16:53 CET
What is the 'friendship economy' in Austria and how does it work?
Sometimes in Austria, it's not about what you know, but who you know. (Photo by fauxels / Pexels)

Ever wondered why some people in Austria easily walk into a great job? Or manage to get the sought-after apartment in the right location?

Well, it might be down to the ‘friendship economy’ (Freunderlwirtschaft). Or, as the saying goes, “it’s not about what you know, but who you know”.

Here’s what it means in Austria.

FOR MEMBERS: How much do you need to earn for a good life in Austria?

What is the ‘friendship economy’?

The ‘friendship economy’ involves the use of personal contacts to access opportunities, like a job promotion or a salary increase. 

According to the latest Global Corruption Barometer by Transparency International, 40 percent of people surveyed in Austria admit to using personal networks in this way. Whereas the average among EU states is just 33 percent.

However, the tide might be turning as more people in Austria put a higher value on correct behaviour – especially in the workplace.

A recent study by Austrian job portal Karriere found that half of all those surveyed would not apply to a company if the management did not act with integrity. This came above issues like equal opportunities, diversity and sustainability.

Georg Konjovic, CEO at Karriere, said: “People want to work in companies that take their social responsibility seriously. 

“This applies to the ecological footprint, dealing with minorities and the management culture in the company. Anyone who does not actively address these issues will lose their attractiveness as an employer in the long term.” 

READ ALSO: ‘Bad-tempered locals’: Vienna ranked the world’s ‘unfriendliest city’

How corrupt is Austria?

The Global Corruption Barometer shows 29 percent of people believe corruption has increased in Austria.

The results also show nine percent of public service users in Austria say they paid a bribe in the past 12 months to get what they want. However, across the EU, three in ten people admitted to paying a bribe or using a personal connection to access public services.

Furthermore, business executives are believed to be the most corrupt in Austria (according to 24 percent of respondents), followed by bankers (20 percent) and the leader of the country (15 percent).

This article previously stated the percentage of people paying a bribe in Austria was higher than the EU average. It has now been corrected.

Member comments

  1. Is this correct?
    “Plus, nine percent of public service users in Austria say they paid a bribe in the past 12 months to get what they want. This is above the EU average of three in ten people admitting to paying a bribe or using a personal connection to access public services.”
    3/10 = 30% so less than EU average. Or is it 3% for EU?

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For members

WORKING IN AUSTRIA

FACT CHECK: Can you work in Austria without signing a job contract?

If you are working in Austria, you might have heard of jobs that do not come with a formal "Arbeitsvertrag" (work contract). But is this legal?

Published: 13 June 2024 11:53 CEST
FACT CHECK: Can you work in Austria without signing a job contract?

Austria has long been an attractive destination for immigrants seeking employment opportunities. The country boasts a diverse labour market, with industries ranging from high-tech to traditional crafts and tourism. 

However, navigating the employment landscape can be complex for those considering a move to Austria or even those searching for a job after years of living here. For example, it sometimes occurs that job offers are made and accepted without a formal work contract being signed. In these cases, crucial information, including wage and work hours, is agreed upon only verbally. 

This is more common in entry-level or temporary jobs, and it’s technically legal. Of course, verbal agreements can be dangerous if one party doesn’t follow through with the arrangement. So, in true Austrian fashion, the government protects workers in complicated and bureaucratic ways.

READ ALSO: Can I have a freelance side gig as an employee in Austria?

The difference between a work contract and a service note

One crucial aspect that workers in Austria need to grasp is the distinction between the Arbeitsvertrag (work contract) and the Dienstzettel (service note, or service record)

In Austria, there are no legal requirements for a traditional work contract. If you see a job offer and the company says that they don’t need to send you a contract and that it can all be agreed on via a handshake, that’s true.

However, you are entitled to a so-called “service note”, a Dienstzettel, in German. This should be handed to you “as soon as possible” after the start of the work relationship, according to the Austrian government.

The service note or service record must contain crucial information, including your personal data and information about the company. Additionally, it must state the agreed starting salary and other remuneration components, the due date of the payments, the extent of annual leave, the agreed daily and weekly normal working hours, and more. 

Both Austria’s employment agency AMS and its Chamber of Labour AK have several tips and recommendations about work contracts and service notes in Austria.

READ ALSO: Can I get unemployment benefits in Austria if I’m self-employed?

Firstly, they warn workers that many employment contracts contain different types of non-competition clauses and confidentiality obligations, both of which are legal in Austria. They also mention that additional benefits, such as a company cell phone or car, could be included in the contract. If something was verbally agreed upon, ask to add it to the contract or service note. 

The AK reminds workers to check the contract thoroughly before signing it. If you notice any clauses that need to be clarified, you can reach out to the chamber for a free consultation. If you discover changes between the verbal agreement and the contract or service note, you can ask for the changes to be amended or deleted. 

Finally, ask for or make a copy of the signed contract.

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