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Immigration to Austria

 

Before getting yourself busy with job applications in Austria, perhaps it would be a good idea to gain an understanding of requirements and get some useful tips.

 

Requirements

 

Citizens from EEA countries (EU plus Iceland, Liechtenstein and Norway) do not need a special employment permit to work in Austria. Since Austria's signing of the EEA treaty, those citizens have been recognised on an equal basis with Austrian citizens.

 

Concerning the new Member States which joined the European Union (Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, Bulgaria and Romania) a so-called transition period for a maximum of seven years was agreed upon. A 3 phase model was developed: 2+3+2. During the first two years national and bilateral acts concerning the access to national labour markets, which were agreed before the new Member States joined the EU, persist. This will be followed by a three years phase in which the original Member States must inform the EU Commission whether they still want to use the transitional provisions. The provisional arrangements may be maintained for additional two years if discontinuation would constitute a "serious threat" to the respective national labour markets.

 

Important:

 

After a three days stay in Austria, all residents must register with the relevant authority. In order to do this EU citizens need to have a valid passport or a personal identity card [Personalausweis].

 

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For further information concerning the European Union (EU) please contact Europe Direct. Your questions will be answered by phone (free of charge).

 

Gainful Employment

Overview (Gainful Employment)

 

In regards to employment contract rights, an employee is one who obligates him/herself to work for an employer by a written or oral employment contract.

 

Employees are dependent on their employers for work and are, therefore, subject to the directives of the employer.

 

Employees enjoy the full protection of the labour laws.

 

At the beginning of an employer-employee relationship, a probationary period can be agreed upon, which usually cannot exceed one month according to the law. During this probationary period both the employer and the employee may dissolve the employer-employee relationship at any time and without specifying the reasons. A probationary period is generally only allowed at the beginning of an employer-employee relationship.

 

Please note: Within the probationary period – as contracted and prescribed by law – the employer-employee relationship may be terminated at any time and without specific reason. Beyond the agreed-upon and legally required probationary period, disputes may only be resolved under the general employment law.

 

Social Insurance (Gainful Employment)

 

Prior to the commencement of work, employers are obliged to sign up their employees (including independent contractors exceeding the minimum income limit) for individual or all insurance programmes (health, accident, pension, and unemployment insurance) depending on the nature of the job and the amount of wage/salary paid.

 

The employee then receives an e-card which contains the social insurance number and the date of birth. It is recommended that you always carry this card with you.

 

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Further information is available at the appropriate social insurance institution [Sozialversicherung].

 

Notice of Illness

 

In case of illness, employees must inform the employer immediately about their inability to work (without undue delay).

 

Important:

The employer can require that a physician provides verification of your inability to work. Usually this is required if the absence from work exceeds four days.

 

As a rule, the date of the doctor's diagnosis is usually considered the beginning of the inability to work. Those insured by law and their dependants, as well as those who enrol on their own, have a right to the services of the health insurance institution.

 

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Further information is available at the appropriate social insurance institution [Sozialversicherung].

 

e-card

 

The e-card is an electronic chip card which replaces the formerly used health insurance voucher for visits to the doctor. This chip card is equipped with the name, title and social insurance no. of the card owner and contains information about his/her insurance status (e.g. the responsible health insurance institution).

 

A statutory service fee of 10 euro per year is collected from the employer for the e-card.

 

The following are examples of those who are exempt from this fee:

* Children, who are valid dependants
* Persons drawing a pension under the General Social Insurance Act [Allgemeines Sozialversicherungsgesetz (ASVG)] , and their relatives
* Persons who are exempt from the drug prescription fee

 

Please note: Persons in need of social protection can apply to their insurance institution [Versicherungsträger] for exemption from the service fee.

 

Independent Contractors

 

Overview (Independent Contractors)

 

The following features indicate employment as an independent contractor:

* No obligation for an ongoing relationship
* Not subject to personal dependence or only to a limited extent
* No binding instructions or directives
* Free of restrictions on personal behaviour
* The method of the work can be regulated independently and can be changed at any time
* Resources for carrying out the project are already provided by the employer
* Remuneration is made according to the certain period of time spent on work, rather than based on performance or delivery of a work product
* One who performs the services mostly him/herself

 

Since every activity or project arising from an employee-employer relationship can also be the subject of an independent contractor/employment agreement, the question of whether a true economic relationship is best described as an employment contract or as an independent contractor relationship can only be judged in individual cases and according to the true economic content of that relationship.

 

Please note: Independent contractors have reduced protection under labour law. The regulations of general civil law [Allgemein Bürgerliches Gesetzbuch (ABGB)] take precedence in employer-employee relationships in the case of independent contractors. In the absence of a written contract, employers are obliged to hand out a service agreement [Dienstzettel] to any independent contractor fully insured under the [Allgemeines Sozialversicherungsgesetz (ASVG)].

 

In the absence of a specific agreement between an employer and an independent contractor, the regulations of employee law, the Vacation Act, the Working-Hours Act (in particular concerning added payment for overtime hours), required break time, and rights of continued payment do not apply.

 

Consequently, independent contractors are not protected by laws and regulations on collective bargaining agreement wages, required additional payments [Sonderzahlung] and paid vacation, unless otherwise expressly agreed.

 

Please note: As of 1 January 2008, independent contractors will become members of the Chamber of Labour (AK) [Bundesarbeitskammer], the statutory representative of the interests of employees. They will then have the opportunity to use all services provided by the Chambers of Labour (AK) [Arbeiterkammern der Bundesländer], including legal advice and legal representation.

 

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Further information is available at the Chambers of Labour of the Provinces [Arbeiterkammern der Bundesländer], and the Federal Ministry of Labour, Social Affairs and Consumer Protection [Bundesministerium für Arbeit, Soziales und Konsumentenschutz].

 

Social Insurance (Independent Contractors)

 

Independent contractors who are under the monthly minimum income limit must be enrolled in the client’s accident insurance institution [Unfallversicherung] at the beginning of their activity.

 

Please note: The minimum monthly income limit for 2008 is 349.01 euro and for 2007 was 341.16 euro. In this case, the independent contractor is registered as a minimum income worker.

 

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Independent contractors may additionally register for health and pension insurance on their own. Applications need to be submitted to the responsible district health insurance fund [Gebietskrankenkasse].

 

Independent contractors whose monthly income exceeds the minimum monthly income limit are required to sign up as "independent contractors" with their responsible district health insurance fund [Gebietskrankenkasse]. They are thus insured for health, pension, and against accidents.

 

Please note: No statutory insurance coverage is required in the event that work is performed for private persons (particularly for a private household).

 

As of 1 January 2008, independent contractors whose monthly income from independent employment exceeds the minimum monthly income limit are also required to sign up for unemployment insurance and income support in case of bankruptcy which means that they are entitled to unemployment benefits and compensation in case of bankruptcy under the same conditions as regular employees.

 

Persons holding several marginal jobs are entitled to sick pay and maternity benefits if their total income exceeds the minimum monthly income limit of 349.01 euro (for 2008). Persons holding several marginal jobs are not required to sign up for unemployment insurance and are not entitled to claim unemployment insurance benefits.

 

The insurance obligation ends with the last day of the employment.

 

Minimum Income Work

 

Overview (Minimum Income Work)

 

Minimum income workers are considered those employees whose annual income does not exceed the monthly amount of, at present 349.01 euro (as of 2008).

 

With the exception of the regulation in the Employee Act about giving notice, the same regulations apply to minimum income workers pertaining to labour as for all other employees. Minimum income workers have, for example, the right to five and/or six weeks of paid vacation per work year, as well as the right to stay for a sick child [Pflegefreistellung]. If the employer-employee relationship lasts at least three years, then the minimum income workers are also entitled to severance pay [Abfertigung] under same conditions as all other employees.

 

Please note: Depending on which collective bargaining agreement is applied, minimum income workers have the right to other additional payments such as paid vacation and a Christmas bonus.

 

Social Insurance (Minimum Income Work)

 

Minimum income workers are covered by accident insurance. The employer is required to enrol them with the responsible district health insurance fund [Gebietskrankenkasse].

 

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It is recommended that minimum income workers voluntarily obtain health insurance [Krankenversicherung] and pension insurance [Pensionsversicherung]. The application for optional insurance is must be submitted to the responsible district health insurance fund [Gebietskrankenkasse]. For the year 2008, the worker must deposit a monthly contribution of 49.25 euro. The health insurance coverage begins the day following the filing of an application.

 

Important: If you have more than one job below the monthly minimum limit and earn more than the current (2007) minimum of 349.01 euro per month in all those jobs together, you must be insured for health [Krankenversicherung] and pension insurance [Pensionsversicherung] and have to pay based on the entire sum of your part-time incomes. Thus, a minimum income worker receives full coverage of health insurance.

 

Important: If you have a minimum income job in addition to employment where you are fully insured, you are still obligated to contribute to health insurance [Krankenversicherung] and pension insurance [Pensionsversicherung] in proportion to your additional minimum income.

 

Income Tax Returns

 

Foreign employees working in Austria are subject to taxation, if they have a work permit or employment contract exceeding six months. This means that their habitual residence is in Austria and they are therefore subject to taxation from the moment they take up residence in this country.

 

Those obligated to pay income tax (salaried employees, wage earners, civil servants, and pensioners) will have income tax [Einkommensteuer] withheld directly from their wages and paid to the Tax Office [Finanzamt]. If you expect to get money back, you must file a tax return with the Tax Office [Finanzamt].

 

An income tax credit is normally expected if:

* During the year you received differing amounts and the employer failed to make an adjustment
* During the year you changed employers or weren’t employed for the entire year
* You have reason to apply for "negative income tax" because of minimal earnings
* You have the right to a sole earner/sole educator deduction or to a lump sum for commuters which were not taken into account in the payroll accounting
* You make a deduction for advertising costs, extra charges, or extraordinary expenses which had not yet been accounted for in allowable deductions

 

You have five years to file a tax return (download application form L1). For example, you have until December 2013 to file the return for 2008.

 

Please note: You may send the tax return form by post or submit it personally to your local Tax Office [Finanzamt]. The Tax Office [Finanzamt] will process your return in due course and transfer any tax credits due directly to your bank account.

 

Responsible authority: Your local Tax Office [Finanzamt].

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You can also submit the income tax return [Arbeitnehmerveranlagung] to your Tax Office electronically. The relevant information and the free information brochure [Informationsbroschüre] can be found on the pages of the Federal Ministry of Finance [Bundesministerium für Finanzen].

 

It would do you good to file your taxes as soon as you can, and be sure to have the required documents in place. Knowing what documentation you need from the start enables you to stay organized from the start of your employment.

Source: Help

EU Jobs

 

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