The Austrian Labour Constitution Act (ArbVG) & Introduction to Individual Employment Law

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What is the Austrian Labour Constitution Act (ArbVG) and its purpose?

Constitutional foundation of collective employment law; governs industrial relations, works councils, employee representation, and interaction with employers (industrial democracy).

How is the ArbVG structured and who is covered?

• Part 1 (§§1–32): Collective employment law – CBAs, shop agreements – covers all employees including apprentices and homeworkers.

• Part 2 (§§33–134b): Labour constitution law – internal representation via works councils; excludes senior employees and managing directors.

Who is considered a senior employee under ArbVG?

Employees with significant managerial authority:

• Hire/fire authority, salary/advancement control, work organization, disciplinary power, strategic decision-making.

• Excluded from works council representation.

• Job title irrelevant; actual influence matters.

What is a works council and who can be represented?

Internal employee parliament representing all employees except senior staff and corporate legal representatives; balances managerial authority.

Requirements for establishing a works council and special representatives?

• ≥5 employees (excluding family and senior employees).

• Blue- and white-collar separate councils allowed if thresholds met.

• Specialized reps: Disabled Workers, Youth, Safety Officers.

• Higher-level councils: Central, Group, European Works Councils.

Who votes, candidate eligibility, term, and protections?

Voting: employees ≥16

Candidates: ≥18, ≥6 months employment

Term: 5 years; members scale with company size

Protections: honorary role, independent, anti-discrimination, dismissal only with court approval, temporary work exemption allowed.

What powers does the works council have?

Information/Consultation (§§89–92): economic, social, health info, request corrective measures.

Control (§89): compliance with labour law, CBAs, shop agreements, safety, social security.

Occupational Safety (§92a): select PPE, review accident records.

 How is an employment relationship defined in Austria?

 Key indicators:

• Personal dependence: bound by instructions, organizational integration

• Economic dependence: wages as main income

• No risk assumption: perform work, not guarantee result

• Non-delegable: duties done personally

How do service contracts and work contracts differ from employment?

• Freier Dienstvertrag: independent work, can delegate, bears some risk, not subject to instructions.

• Werkvertrag: owes a result, full business risk, may delegate.

• Employment protections generally do not apply.

What are the main employee categories?

White-collar (Angestellte): intellectual/commercial work

Blue-collar (Arbeiter): manual work

Senior Employees: managerial roles, may have reduced protections

Managing Directors (Handels- & Gewerberechtlich): may still be employees under AngG or contractors (freier Dienstvertrag)

Board Members (Vorstand): typically independent contractors

What are key points on formation and content of employment contracts?

• No written form required; oral or implied valid.

• Adequate pay guaranteed (§1152 ABGB), often via CBA.

• Mandatory written info (§2 AVRAG): parties, start/end, notice, working time, pay, applicable CBAs/shop agreements, vacation, probation, training.

• Written info is declaratory, actual contract terms prevail.