Austria is an attractive destination for many international companies that send employees to the country to carry out international projects, provide cross-border services to local clients or coordinate operations between different entities within the same corporate group established in Austria.
In this context, the intra-EU mobility of workers is one of the main tools for promoting business activity throughout the European Union. However, the EU legal framework governing the cross-border posting of employees is becoming increasingly demanding, and each Member State has transposed European regulations on posted workers into its own national legal system.
In Austria, the Wage and Social Dumping Prevention Act (Lohn- und Sozialdumping-Bekämpfungsgesetz, LSD-BG) governs the posting of workers, establishing specific obligations for European companies wishing to temporarily post employees to the country.
In recent years, the competent Austrian labour authorities have strengthened their enforcement and inspection mechanisms, particularly at construction sites where foreign companies operate. Therefore, to avoid potential penalties or disruptions to business activities abroad, proper project planning is strongly recommended to ensure full compliance with the obligations imposed by Austrian legislation on posted workers.
Main Obligations for Companies Posting Workers to Austria
Companies temporarily posting employees to Austria must ensure compliance with certain employment conditions established under Austrian legislation throughout the entire duration of their stay in the country.
Among other obligations, companies must assess and, where applicable, comply with:
- The applicable minimum remuneration requirements in Austria.
- The collective bargaining agreements that may apply depending on the activities carried out in the country.
- Regulations concerning working hours and rest periods.
- Requirements relating to annual leave, equal treatment and occupational health and safety.
- Administrative formalities and mandatory notifications to the designated Austrian labour authorities.
However, a preliminary assessment of the posting project in Austria is particularly important, as it allows companies to accurately determine the activities that employees will perform in the country and assess whether specific exemptions from the general obligations established under Austrian posted workers legislation may apply.
Specific Requirements Depending on the Business Sector
If the activities carried out by a foreign company in Austria fall within a sector subject to additional obligations, such as the construction industry, a detailed assessment of the specific circumstances of the project is essential to determine whether sector-specific regulations apply.
A preliminary assessment will help establish whether the company is required to comply with the relevant sector-specific obligations, which, in certain cases, may involve significant operational and logistical requirements.
For this reason, strategic planning before posting employees is strongly recommended to ensure regulatory compliance and avoid potential penalties imposed by the competent authorities.
Planning to Post Workers to Austria? How We Can Help
At Feliu N&I, we support national and international companies in the planning and comprehensive management of temporary employee postings within the European Union.
We also have experience providing strategic advice to companies in the construction sector wishing to temporarily provide professional services in Austria. In addition, we collaborate with specialised local partners who assist with the direct management of administrative procedures related to the posting of foreign workers to Austria.
Our multidisciplinary team, specialising in international mobility, corporate immigration and international employment law, advises companies throughout every stage of the process, including:
- Preliminary feasibility assessments.
- Review of applicable employment obligations in Austria.
- Immigration planning.
- Documentation preparation and administrative compliance.
- Analysis of applicable collective bargaining agreements.
- Assessment of tax and social security risks.
Furthermore, we continuously monitor legislative developments and regulatory changes affecting international employee mobility, enabling companies to operate with greater legal certainty and minimise risks during the implementation of international projects.
For further information on temporary employee postings to Austria and the obligations applicable to posted workers, please do not hesitate to contact our team. We will be pleased to assist you.
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