Date
28 July 2025

Tag

Active

Country
Austria Austria
Geographical scope
National
Type
  • Type

    Legislation

    Legal
  • Type

    Working conditions

    Legal

Description

From 1 January 2026, freelancers in Austria will gain significant new labour protections, including access to collective bargaining agreements and stricter rules on contract termination. The reform, announced by the Ministry of Labour and Social Affairs, aims to curb the misuse of freelance contracts by employers and establish fairer minimum standards for pay and working conditions. The new provisions apply only to contracts signed on or after 1 January 2026; existing contracts remain unchanged. The reform aims to improve conditions for around 14,000 self-employed workers who operate much like employees but lack key labour protections. The move responds to mounting pressure to tackle precarious work, especially in the fast-growing platform economy, with high-profile cases, such as Lieferando’s decision to replace around 1,000 employees with freelance riders, prompting public outcry and accelerated political action.

The new legislation enables unions to negotiate collective agreements on pay, holidays, working hours, and sick leave for freelancers. So far, freelancers have had no entitlement to minimum wages, paid leave, or protection in case of illness.

For the first time, “employee-like” freelancers will be covered by collective agreements, ensuring access to regulated minimum pay, improved working conditions, and better protection from arbitrary dismissal.

The ministry stated the reform is intended to make the use of freelance contracts—and the avoidance of standard labour protections—less attractive to employers.

Under the new rules, freelancers must receive a four-week notice period, rising to six weeks from the second year of service. A trial period may be included during the first month, allowing either party to end the contract freely. Terminations can only occur on the 15th or last day of each month, and these rights cannot be waived by contract—though more favourable terms are permitted.

Labour Minister Korinna Schumann (SPÖ) hailed the reform as a breakthrough for fair work. Chamber of Labour President Renate Anderl called it “a major step toward fairer working conditions.” SPÖ officials Klaus Seltenheim and Josef Muchitsch welcomed the move, while Markus Petritsch from the trade union vida cautioned that “what matters most is how the reforms are actually implemented.”

The union vida sees this as a vital milestone in improving conditions in precarious sectors like food delivery. However, Petritsch stressed that real progress depends on employers’ readiness to negotiate collective agreements responsibly.

This reform marks a turning point for Austria’s growing freelance workforce, aligning their rights more closely with those of employees. If implemented effectively, it could reduce precarious employment and strengthen social protections across the platform economy. The challenge now lies in ensuring swift and fair collective bargaining—and in holding employers to the spirit, not just the letter, of the new law.


Additional metadata

Keywords
working conditions, collective bargaining
Actors
Platform, Employee organisation
Sector
No specific sector focus

Sources

Citation

Eurofound (2025), Austria extends stronger labour rights to freelancers (Legislation), Record number 4520, Platform Economy Database, Dublin, https://apps.eurofound.europa.eu/platformeconomydb/austria-extends-stronger-labour-rights-to-freelancers-110269.