Termination

Please Note: It is now an obligation for employers to give fixed-term employees notice of termination, stating the reasons for ending the contract …

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Employment relationships in Austria may be terminated in the following ways: by expiration of a fixed-term employment contract; by mutual agreement between employer and employee; by unilateral ordinary termination of an indefinite employment contract with notice, without cause; by collective dismissal; by summary dismissal; upon the death or retirement of the employee …

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Employers are required to pay a flat-rate ‘dissolution’ supplement (Auflösungsabgabe) on top of social insurance contributions for each employee dismissed …

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Unlike in Germany and Switzerland, employers in Austria are not legally obliged to provide a full reference that is above and beyond a simple employment certificate …

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All salaried employees with at least one month of service are entitled to severance pay upon termination …

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Section 45a of the Labour Market Improvement Act (Arbeitsmarktforderungsgesetz) requires employers to notify the local branch office of the Labour Market Service (AMS) in writing if they intend to make collective terminations by dismissal or mutual agreement (initiated by the employer) …

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The Salaried Employees Act entitles a salaried employee whose employment contract terminates during a financial year to receive any bonus or commission payments due arising from new business concluded or negotiated by them (singly or jointly), even if the final stages of the transaction will not take place until a date after their departure …

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The law contains certain rules on termination dates, according to which a notice given by the employer takes effect at the end of a calendar quarter (e …

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Employment contracts may be terminated at any time by mutual consent …

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Most employees are generally protected against dismissal …

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Several groups of employees enjoy special protection against both ordinary and immediate dismissal …

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Every employment relationship may be terminated immediately by either party if one of the parties cannot reasonably be expected to continue the relationship …

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Notice periuods are now statutorily harmonized for manual and nonmanual workers …

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Generally, employers in Austria may dismiss employees without cause, provided they observe the necessary notice periods …

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