Restructuring legislation

Objective

The amendment to the Austrian Arbeitsvertragsrechts-Anpassungsgesetz (AVRAG) in 2024 aims to strengthen employee protection with regard to training obligations and to align Austrian law with Directive (EU) 2019/1152 on transparent and predictable working conditions. The main goal is to prevent workers from facing financial or working time disadvantages when required to participate in training necessary for performing their agreed duties. This measure reflects the broader European policy goal of fostering fair working conditions and supporting continuous skill development within a predictable and secure framework.

The legislation establishes the following:

• Participation in legally, collectively or contractually required training must be regarded as working time.
• All associated costs must be covered by the employer unless a third party (e.g. a public body) is paying for it.
• Employers are prohibited from recovering training expenses from employees, either directly or through deductions from remuneration.

The rule applies not only to initial qualification but also to the maintenance and renewal of professional licences or certifications necessary for the performance of agreed duties.

This provision does not prevent more favourable arrangements for employees being made through collective or contractual agreements.

Outcomes/expected impact

The reform enhances legal certainty for both parties to the employment relationship. Employees benefit from clear rights to free, employer-funded training that is recognised as working time, while employers gain clarity on their obligations. More broadly, it is expected that the measure will support workforce adaptability, facilitate compliance with legal and professional standards, and promote transparent and predictable working conditions, in line with EU requirements.

The law reforms the current system of training whilst in employment. Previously 1,9% of the yearly wage mass in private companies had to be invested in training. The new law dismisses both this system and the sanctions that accompanied it. Instead a new interprofessional goal of 5 days on average spent on training per FTE has been introduced. The 5 days of training have to be concretised by either a new collective agreement or by extending the previous collective agreement.

The new law foresees in the organisation of training, either on a sectoral or company level by creating individual education accounts. In case no collective agreement has been settled on either the sectoral or company level, the employee is still entitled to 2 training days per year for each FTE.

The law aims at both formal and informal training (that are directly related to the job). The training provided can also be related to health and wellbeing at work.

If the employee isn't able to to use up the training days he/she is entitled to, the unused days will be transferred to the next year, without reducing the number of days in that year. 

The employer is obliged to provide conditions for maintaining and improving the employees’ professional qualifications for the efficient performance of their duties under the employment relationship in compliance with the requirements of the performed work and their future professional development. Plans are developed in cooperation with the national employment agency. The employer is responsible for providing vocational training and upgrading employees' professional skills, especially for those who return to work after a long absence.

For the purpose of development of the professional knowledge and skills of employees, the employer is obliged to provide the employees with training based on the interests of the employer’s enterprise and bear the training expenses and pay average wages during the training. There are no specific conditions.

The employer, in cooperation with employee representatives, must draw up and maintain a work community development plan for the systematic and long-term development of the work community. The drawing up and maintaining of the development plan is part of workplace dialogue around for instance the skills needs and skills development of employees. The plan is subject to changes in the case of redundancies due to economic or production-related reasons. In these cases, necessary amendments should be made in the development plan in connection to the dialogue and after the end of cooperation negotiations.

The work community development plan must include:

• Current situation and foreseeable developments that may impact the skills needs of employees;
• Goals and measures to develop and maintain the skills of employees;
• Monitoring procedures;
• Principles for the use of external workforce.

During the drawing up and maintaining of the work community development plan, attention should be paid, where appropriate, to:

• The impact of technological development, and other possible changes on the work community;
• The specific needs of employees in different life situations, in particular the need to maintain the working ability of older workers and those at risk of invalidity, and the employability of employees at risk of unemployment.

The failure to draw up or maintain a work community development plan can lead to fines for the employer.

Twice a year, the employer must provide information to the employee representative on the employee structure and numbers, and number of employees with temporary or part time contracts.

If an employer announces the dismissals of at least ten employees on production or economic-related grounds, the employer is obliged to draw up an Action Plan during the start of cooperation negotiations. The Action Plan needs to, among other things, include the promotion of the use of unemployment services and education for the dismissed employees. In the case a dismissal concerns less than ten employees, a policy must be presented during the start of cooperation negotiations. The policy shall support the employees’ search for other jobs or training.

According to the Employment Contracts Act, if an employer needs more employees for tasks suitable for employees who are already working part-time for the employer, the employer must offer such employment to the part-time employees. If these part-time employees need further training in order to perform new duties, the employer is obliged, within reasonable limits, to provide such training.

An employer who has dismissed an employee on financial or production-related grounds is obliged to offer the employee training to promote employment. This applies to companies employing 30 people or more, and to employees who have been employed by the employer for an uninterrupted period of five years or more. National employee and employer representatives do however have the right to change this in Collective Agreements.

Furthermore, instead of dismissing or temporarily laying off an employee, the employer must, within reasonable limits, seek to arrange relevant training to the employee so as to allow the employee to stay at the company. However, an employer may furlough employees if such training cannot be reasonably arranged.

Employers are required to finance the vocational training system, and according to the Labour code, the employer is obliged to ensure the adaptation of employees to their workplace. Furthermore, the legislator and the case law required them to be more active through schemes like the personal training account, the obligation to negotiate Anticipatory management of employment and competencies plan or the commitment to organise a career interview for each employee.

Secure voluntary mobility - L. 1222-12 to L. 1222-16: The secure voluntary mobility schemes enable employees to ask their employer to temporarily suspend their contract to work in another company. The objective is to enrich the career of the employee, without the termination of their contract. Eligible employees must be working in companies or groups with at least 300 employees and have at least 24 months of seniority, consecutive or not.

Employers may refuse the request without providing justifications. However, the refusal must not be discriminatory, and if the employee believes the refusal is unlawful, they may contest it before the industrial tribunal. If the employer refuses the request twice, the employee becomes entitled to a specific leave.

If employers accept the request, an amendment to the employment contract must be drawn up. This amendment outlines the terms of the mobility period, including duration, conditions of return, and any other relevant provisions.

Every six months, the employer provides the Social and Economic Committee (CSE) with a list of requests and the action taken on them.

On returning to their original company, employees' personal job classification must be maintained. Employees are either automatically reinstated in their previous job or in a similar job with at least equivalent qualifications and remuneration. Upon returning, employees must be offered a professional interview (Labour Code, article L. 6315-1), devoted to their career development prospects.

If an employee chooses not to return to their original company, it constitutes a resignation, and their employment contract will be terminated.

** Management of jobs and career path - L.2242-20 and L. 2242-21:** Every three years, large companies (300+ employees, or EU-scale groups with at least one 150+ employee site in France) must engage in negotiation with employee representatives. An assessment will be conducted at the end of the agreement. Negotiations focus on employment and skills planning and must cover: * Forward-looking jobs and skills planning (GPEC), especially aligned with ecological transition goals. * Internal mobility conditions, * Three-year guidelines for vocational training and skills development plan * Reduce precarious contracts in favour of permanent contracts. * Information sharing with subcontractors on strategic changes affecting jobs and skills. * Career development of union representatives * Collective dismissal provisions (Articles L.1233-21 and L.1233-22). * Identification of at-risk job categories due to economic or technological changes. * Inclusion of subcontractors in the company's workforce planning. * Participation in regional employment initiatives * Mobility leave policies (Articles L.1237-18 et seq.). * Integration of youth, promotion of knowledge transfer, with specific provisions for improving alternance (apprenticeship/internship) * Employment and improvement of working conditions of older workers Law n°2021-1104 of 22 August 2021, Article 40 emphasised the ecological transition as a core consideration in workforce planning and GPEC.

** Personal Activity Account - L. 5151-1 to L. 5151-6:**

The Personal Activity Account (Compte Personnel d’Activité - CPA) is a system designed to enhance individuals’ autonomy and job security throughout their professional careers by consolidating various rights and entitlements into one digital account. It includes:

• The Compte Personnel de Formation (CPF) – for training rights.
• The Compte Professionnel de Prévention (C2P) – for exposure to occupational risks.
• The Compte d’Engagement Citoyen (CEC) – for recognising voluntary civic involvement.

The CPA is managed by the Caisse des dépôts et consignations via a free online platform. It provides information on social rights, access to digital pay slips, mobility support tools, and coordination with retirement and prevention accounts.

The following individuals are eligible for the CPA: * Individuals aged over age 16, or 15 for apprentices. * Retired individuals. * Inmates engaged in work, volunteering, or civic service. * Individuals not in employment or training but wishing to use the citizen engagement account.

The CPA will close upon the person’s death. The CPF funding stops in certain unemployment situations unless specified otherwise. The CPA provides access to rights simulations, pay slip consultations, and career and geographic mobility services.

These services are available via secure online platforms. The API integration allows third-party service providers to interface with the CPA platform. Personal data usage conditions (including from the Déclaration Sociale Nominative) are defined and subject to CNIL oversight.

** Vocational training - L.6111-1:** Lifelong access to vocational training is a national obligation aimed at enabling every individual—regardless of employment status—to acquire and update skills and qualifications throughout their career. As part of this system, all individuals aged 16 or older (or 15 for apprentices) can open a Compte Personnel de Formation (CPF), which remains valid from their entry into the labour market until retirement. This right is maintained even during periods of unemployment or job transitions.

The CPF is integrated into the broader Compte Personnel d’Activité (CPA), which supports career security by enhancing individual autonomy and removing barriers to professional mobility.

Since 1 January 2019, CPF entitlements have been monetised in euros. From 2020, employees working at least 50% of full-time hours for the entire year receive €500 credited annually, up to a ceiling of €5,000. Part-time employees working less than half the year receive a pro-rated amount.

If the available CPF balance is insufficient to cover a training course, it can be topped up by other actors, including the employer, the individual, sectoral agreements, or public employment services. In cases of unemployment, state or regional employment authorities may provide additional funding. Company-level collective agreements may also establish extra contributions.

To be eligible under the CPF, training programmes must appear on an official list, such as the Répertoire national des certifications professionnelles (RNCP) or Répertoire spécifique.

Professional Interview - L.6315-1 and L6315-2: Article L6315-1 establishes a legal obligation for employers to conduct a biennial professional development interview (entretien professionnel) with each employee, focusing on career prospects, skills development, and training opportunities—not job performance.

A comprehensive career review must also take place every six years, assessing whether the employee has:

1. Completed at least one training course,
2. Gained a qualification or certification (including through VAE),
3. Experienced salary or career progression.

If these conditions aren't met in companies with 50+ employees, the employer must top up the employee’s CPF as a penalty.

The law also allows collective agreements to adapt the interview frequency, content, and CPF contribution rules. A separate interview is available for employees starting an elected public mandate to address work-mandate balance.

Training and vocational obligations - L.6321-1 to L. 6321-6: Article L.6321-1 requires employers to ensure employees adapt to their roles and maintain their employability by offering relevant training, including in digital skills, literacy, and the French language, with possible certification through the skills development plan.

Training required by law, regulations, or international agreements is considered actual working time and must be fully paid by the employer during its duration.

Training actions are generally considered working time and paid, except when they occur outside working hours under a collective agreement or with the employee’s formal consent, within set limits (e.g., 30 hours/year or 2% of annual work time for forfait employees).

Funding vocational training - L.6331-1A to L6333-8: As stated above, training activities generally count as paid working time. However, they may be conducted partly or fully outside of regular working hours if:

• Defined by a company or branch-level agreement with limits (per hour or as a percentage of a work package), and potentially compensated (e.g., child care support).
• In the absence of an agreement, with the employee’s written consent, up to 30 hours per year (or 2% of an annual work package) can be allocated outside working time. This consent can be withdrawn.

Employers penalties - L.6323-13: Article L.6323-13 of the French Labour Code establishes a financial penalty for companies with 50 or more employees that fail to support their employees' professional development over six years.

If an employee has not received the mandatory biennial career interviews and at least one non-mandatory training course, the employer must make a compulsory payment (abondement) to the employee’s personal training account (CPF). The amount is set by decree and capped at six times the annual CPF credit (up to €3,000).

If this obligation is not fulfilled, the company can be forced to pay the missing amount plus a 100% penalty to the French Treasury. This payment is collected and disputed under the same rules as taxes on turnover. The employee threshold is calculated according to the Social Security law.

Under the Works constitution act, both the employer and the works council should promote vocational training and occupational education of employees, in cooperation with the authorities responsible for training and training support. They are, however, not obliged to do so.

On request of the works council, the employer has to investigate the training demand among employees and discuss questions regarding training. The employer and the works council have to consider enabling workers to participate in training, taking into account the company related requirements. The specific needs of older employees, part-time employees and employees with family obligations ought to be considered.

The qualification opportunities act was adopted in December 2018 and entered into force in 2019. The act expanded the subsidies provided by the Federal Employment Agency to train employees whose employment activities can be replaced by technologies, that are otherwise affected by structural change, or seek further vocational training in a bottleneck job. Before the reform, the training was reserved to unqualified workers, older workers in SMEs, and workers at risk of unemployment.

The qualification opportunities act changes the support lines in Social code III. Employees and employers are entitled to guidance for qualification and training measures (Art. 29) and can receive subsidies for training measures (Art. 82) through the Federal Employment Agency. A number of conditions will apply for qualifying to the training (e.g.): Knowledge and skills must go beyond job-related, short-term adaptation training; professional qualification must date back at least four years; duration of the training must be at least 160 hours and training must not be provided by the employer.

In May 2020, the act on promoting further training during in a time of structural change took effect. It eases regulations for the Federal Employment Agency to support employers and workers in their training efforts. Amongst other things, the new rules foresee that local employment agencies can increase subsidies for course costs and wages if at least every fifth employee in the company needs training. Small- and medium-sized companies (defined as those with fewer than 250 employees) can receive higher subsidies even if only ten per cent of their employees undergo continuous training. As before, the training course must meet certain standards but its minimum duration was lowered from 160 to 120 hours. Due to this reduction, employees can choose from a greater number of courses to meet their needs.

Since 1 July 2020, Article 7:611a in Book 7 of the Dutch Civil Code requires employers to provide necessary training for free. This obligation applies when training is needed to perform an employee’s current duties or to continue working if their job ends. It also covers training required by law or by collective labour agreements.

First, employers must enable employees to follow any training necessary for their present role. This can include courses, workshops, or on-the-job instruction. Second, if a position disappears or an employee is no longer able to perform it, the employer must offer retraining or upskilling for redeployment, as far as reasonably possible. Third, all compulsory training must be free of charge: employers cover fees, materials, exam costs, and paid time for training. Fourth, any clause that tries to recover these training costs from the employee is null and void and has no legal effect.

This law aims to keep workers’ skills up to date, remove financial barriers, and promote lifelong learning. It also gives employees a safety net if their role changes or ends, and aligns with the 2022 EU Directive on transparent and predictable employment conditions. Employers benefit by integrating training into workforce planning and by building a flexible, skilled workforce. Employees gain greater job security, improved skills, and clearer rights. Overall, Article 7:611a BW creates a fair framework that encourages continuous development, supports job retention, and helps companies adapt to changing labour needs. This creates clear and enforceable rights for both employers and employees

Employers are not legally required to provide formal skill development plans or training programmes for employees. However, they are obligated to facilitate the improvement of employees' professional qualifications. According to Article 17 of the Polish Labour Code, employers must assist employees in enhancing their professional qualifications. This obligation is general and does not mandate specific development plans.

However, articles 103¹–103⁶ of the Labour Code provide more details regarding the development of professional qualifications, which refer to acquiring or supplementing knowledge and skills either at the employer’s initiative or with the employer’s consent. Under the articles, employees are entitled to training leave and partial exemption from work during class hours. During this time, the employee retains the right to remuneration. Specifically, employees are entitled to: * 6 days of leave for external, secondary school, and vocational examinations; * 21 days in the final year of higher education studies for the preparation of a thesis and final examination.

The employer may grant additional benefits to employees undertaking professional development, particularly covering costs related to education, travel, textbooks, and accommodation.

A written agreement is concluded between the employer and the employee, specifying mutual rights and obligations. This agreement must not be less favourable than the provisions of the Labour Code (Art. 103). An agreement is not required if the employer does not require the employee to remain employed after completing the education.

The employees are obliged to reimburse costs if they fail to commence education without justification, are dismissed for disciplinary reasons, or terminate the employment contract themselves (except in certain circumstances).

If an employee undertakes training outside the conditions described above, they may be granted unpaid leave or time off work without remuneration, under terms defined by the employer.

The employer must create a training plan based on the diagnosis for training needs of the employees. The training plan should be annual or multi-annual. The plan must specify objectives, the training entity, the training actions, the place and schedule of the training. 

The elements not possible to be specified in the training plan will be reported to the workers concerned, to the works council or, in its absence, to the inter-union committee, trade union committee or the trade union delegate.

The regulation does not apply to micro enterprises, defined as enterprises employing fewer than 10 workers.

One of the aims of vocational training must be related to promoting the qualification or retraining of workers who are at risk of becoming unemployed.

In the scope of lifelong learning the employer shall ensure:

• a minimum number of annual training hours for each employee (40 hours per year), either through programmes carried out in-house or allowing time-off to attend training programmes outside on their own initiative. Fixed-term contracts of less than three months are excluded and, in the case of other fixed-term contracts, the number of hours is calculated proportionally to the length of the contract. The same rule applies for temporary workers;
• that continuous training should target at least 10% of employees every year;
• the promotion of the development and improvement of the qualifications of employees in order to improve their performance and increase productivity and competitiveness of the company.

If a company has been declared as facing economic difficulties or is in the recovery process, the employer may temporarily reduce the normal working hours or suspend the employment contracts. The reduction or suspension must have a predefined duration not exceeding six months. Only in the case of a catastrophe or other occurrence which has severely affected the normal activities of the company the reduction or suspension may have the duration of one year.

During the reduction or suspension of the contract, workers are entitled to receive a minimum amount equal to two-thirds of the gross wage (without discounts) that they would receive if they were working normally. Additionally, during the period of reduction or suspension of the contract the training should be oriented to the company's viability and the maintenance of jobs, or the development of the workers' qualification in order to increase their employability. The training plan is drafted by the employer, following the consultation of the workers covered and opinion of the worker representative structure.  

According to the labour code, employers have the obligation to ensure, at their own costs, the participation of all employees in vocational training programmes.

The training period depends on the number of employees; employers shall ensure participation in professional training at least once every two years if they have at least 21 employees, and at least once every three years if they have fewer than 21 employees.

According to the labour code, an employer with more than 20 employees must design and implement annual vocational training plans in consultation with the trade union or, as the case may be, the representatives of the employees. Such training programme becomes an addendum to the company collective agreement.

Under the law, the main objectives of vocational training are to provide for:

• professional readjustment caused by socioeconomic restructuring;
• qualification changes caused by economic restructuring, by social mobility or by changes in the labour capabilities;
• better social integration of individuals in compliance with their professional aspirations and the demand of the labour market;
• training of human resources able to contribute to higher competitiveness of the labour force;
• updating of knowledge and improvement of professional training in the main occupation as well as in related occupations;
• acquisition of advanced knowledge, modern methods and procedures required to fulfil professional tasks;
• updating of specific knowledge and skills needed for the position and the job, and improvement of professional training to enhance employment opportunities;
• acquisition of advanced knowledge, modern methods and procedures needed to carry out professional activities;
• prevention of unemployment risks;
• access to vocational skills;
• career development and advancement.

The employees have the right to be informed about the contents of the vocational training plan. Subsequent, the employee having enjoyed a vocational training course or an internship financed by the employer may not resign for a certain period of time, negotiated by the parties, otherwise he/she would have to pay back all expenses generated by the vocational training.

Regulations encouraging employers to ensure the training of employees can also be found in Government Ordinance 129/2000, republished in the Official Gazette of Romania no. 110 from 13 February 2014 and in the Law no. 76/2002 regarding unemployment benefits and labour force employment stimulation.

Under these regulations, an employer seeking to ensure the professional training of the employees must consult the trade unions or the representatives of the employees when designing professional training plans, in compliance with sectoral development plans and strategies.

The law also provides certain incentives for employers who provide vocational training courses (article 48 (1) of Law no. 76/2002).

The Government decision No. 474/2022 amends and supplements the Methodological Rules for implementing the provisions of Government Ordinance No. 129/2000 on vocational training of adults, approved by Government Decision No. 522/2003.The normative act regulates the implementation of the provisions of Government Ordinance No 129/2000 on adult vocational training, republished, amended and supplemented by Government Emergency Ordinance No 96/2016. The act is amending and supplementing certain normative acts in the fields of education, research, vocational training and health.

Act No. 311/2001 Coll. of the Labour Code provides a 'general background' for skill development and training of employees. It includes:

• increasing/deepening the qualification of employees needed for the employees' work performance agreed in their employment contract, and
• participation in additional education (lifelong learning) particularly required by law.

As these activities limit workers' availability to work, employers may provide employees with time off from work and wage compensation (in amount of the employee's average monthly wage) if the skill development and training is compliant with the needs of the employer. The Labour Code specifies the length of time off provided for individual education and training activities usually by the number of days. For instance, two days for each partial exam, five days for a final exam.

An employer is obliged to retrain an employee who is to be transferred to a new workplace or to a new type of work or manner of working, if such is necessary, particularly with regard to changes in work organisation or to other rationalising measures. The Labour Code only regulates conditions for increasing and development of qualifications regardless of whether it is long-term or short-term training; it does not regulate long-term training directly.

There is no legal regulation that would expressly state employers’ obligations to plan the development of their employees’ skills and competencies whether on a permanent or occasional basis.

An employer is obliged to provide education, training and further training to workers if the needs of the working process require so or if education, training or further training may prevent the cancellation of the employment contract for reasons of incompetence or for business reasons. In accordance with the needs of education, training and further training of workers, the employer has the right to refer the worker for education, training and further training. Education, training and further training are defined as a right and obligation of the employer and the worker alike.

The duration and the course of education and the rights of the contracting parties during and after the education are to be laid down in a contract on education and/or a collective agreement. A worker who is undergoing education, training or further training has the right to absence from work to prepare for or take exams, at least when the worker takes an exam for the first time.

The employer must ensure equal treatment in respect of the personal circumstances regarding access to training, education, and requalification.

A temporary work agency is obliged to provide the worker with education, training and further training as described above. The temporary work agency and the user undertaking must lay down the education, training and further training of the worker during their assignment to the user undertaking.