European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
20 (AngG); 1159, 1159a, 1159b (ABGB); 77 (GewO); 45a (AMFG)
An employer who wants to terminate an employment contract has to inform the affected worker accordingly. There are no legal regulations regarding the form or content, and the employer also does not have to provide a justification for the dismissal. An agreement of the employee is not required for the effectiveness of the termination. As of October 1, 2021, the notice periods for blue-collar workers were aligned with those for white-collar workers.
The provisions of Section 1159 of the Austrian Civil Code (ABGB) in the new version apply to all terminations of employment after September 30, 2021. No distinction is made here between new and existing employees.
The termination provisions for blue-collar workers have been largely adapted to those for white-collar workers. Accordingly, an employer's notice period of 6 weeks now also applies to workers in the 1st and 2nd year of employment, 2 months from the 3rd year of employment, 3 months from the 6th year of employment, 4 months from the 16th year of employment and 5 months from the 26th year of employment.
Not only have the notice periods been adjusted; new termination dates must now also be respected by the employer. According to the statutory provision, notices of termination can only take effect at the end of a quarter. As is the case for salaried employees, however, the 15th and the last day of a calendar month can also be agreed as termination dates. If the applicable collective agreement already contains such a provision, there is no need for action here. Accordingly, numerous collective agreements already contain provisions tailored to the new legal situation, which must be taken into account. However, if this is not the case, a corresponding contractual agreement is urgently recommended for both new and existing employees.
In the future, a one-month notice period to the end of the month will apply to terminations by employees. However, a longer notice period of up to six months may be agreed (as for salaried employees). It is important to note that the notice period to be observed by the employer may not be shorter than the notice period agreed with the employee.
Collective agreements and work agreements can provide more favourable provisions (from the perspective of the employee) than the statutory ones. However, unlike white collar workers, regulations in collective agreements, work agreements and individual contracts of blue collar workers can also be to the disadvantage of the employee.
Eurofound (2015), Austria: Notice period to employees, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/notice-period-to-employees/austria
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