Austria

Employer of Record in Austria

Skuad’s Employer of Record Austria (EOR) solutions make business expansion to Austria easy and hassle-free. Our unique HR platform allows companies to hire exceptionally talented employees in Austria, without having to set up a separate legal entity. It streamlines the process of hiring and onboarding a remote team by handling payroll management, taxation, and other legal compliances. To learn more about Skuad, Book a demo today.

Austria at a Glance

Population:  9 million

Currency: Euro

Capital city: Vienna

Language: German

GDP: USD 470.94 billion 

What You Must Know Before Employing in Austria

All employees in Austria can freely access the government and labor support whenever they claim to have been maltreated. Filing of complaints with the labor tribunal is common here.

The following are some standard benefits you should know before starting to negotiate an employment contract:

To ensure your expansion endeavors are in compliance with the Austrian employment laws, contact Skuad today.

Contractors vs. Full-Time Employees

There are three kinds of employment contracts in the country:

1. Regular employment contracts
2. Service employment contracts
3. Freelance employment contract

Traditional employment contracts all share similar criteria:

• Stable place of work
• Control over their working hours
• Strict ban for additional work or employment
• Employer supervision, rules, and instructions

Freelance contractors are only paid for the duration and as per the completion of their assignment. If there is no specific agreement, they are not entitled to receive any pay per the fixed rates. However, they are entitled to a few terms and conditions (Dienstzettel) without a written contract.

In terms of a contract for a long period, they receive their remuneration monthly. Freelance contractors have to make arrangements for the payment of the taxes for the remuneration. Both freelance contractors and employers pay social insurance contributions. Social insurance contributions of both parties are deducted and then paid over by employers.

In terms of full-time employees, all the entitlements mentioned in Table 1.1 above have to be taken care of. In case of termination of employment, formal notice and a valid reason need to be given.

Both contractual and full-time employees have their pros and cons. Hence, you need to decide which form of employment fits your business requirements. However, Skuad EOR can be helpful in both cases.

Hiring in Austria

Hiring in Austria is done both offline and online. However, online hiring has become prominent in recent times. Both part-time and contracted employees are hired online as per the job requirements and through different platforms. Portals like Monster.com, LinkedIn, Glassdoor, The Local - Jobs, and StepStone have gained genuine popularity among recruiters and job seekers in Austria.

Monster is the most popular portal in terms of applications and job postings in Austria. However, on these platforms, the recruiters can give only limited specifications of the right candidate. So, if you are looking to hire in Austria, you could go through these portals or work with an EOR for a more personalized way of finding the right talents for your company.

Skuad's progressive tech platform helps organizations hire both types of workers with ease and simplicity. Learn more here.

Probation & Termination

Probation Period

The probation period in Austria is one month, generally agreed to in the employment contract. Either party can terminate the employment contract without explanation during the probation period.

Termination of Service

The termination of an employee's services in Austria by an employer requires advance notice. The legal minimum term of notice for salaried employees is calculated as per years of service that the employee has served with the company.

In addition to the notice period, employers have to pay severance pay. If the employment relationship has lasted longer than a month, the employers have to pay 1.53% of the employee's monthly salary as the employee provision fund. If you need more help understanding the compensation laws in Austria, visit Skuad.

EOR Solution in Austria

The Austria Employer of Record (Austria EOR) solution makes it easier and faster for businesses to expand into Austria. Skuad can help you manage monthly payroll, contracts, work permits, taxation, etc., in Austria for your employees.

General Employer of Record Service Terms:

Outsourcing Employment Through an Employer of Record

When you decide to expand into Austria as an organization, you also need to decide the route you want to take; whether you want to build an in-house team or take the services of an EOR to manage payroll and employee lifecycle.

Types of Visas in Austria

Austria allows some foreigners to enter the country without a visa. For example- the citizens of the nations associated with the European Union (EU) or European Economic Area (EEA).

Work Permit

Skuad Austria can sponsor foreign workers for work permits. As an EOR in Austria, Skuad takes care of all the requirements and responsibilities related to employment. On Skuad’s HR platform, the client company can manage its employees’ daily activities and operations.

This information will be helpful if you are looking to hire international personnel to work in Austria. If you need more help, let us know.

Things You Must Know to Set Up Payroll in Austria

You can manage payroll and taxation in Austria - all you need is to be aware of some rules. These rules vary for various categories. The first thing you need to consider is if you want to hire foreign professionals or locals.

If you are looking to take complete control over your payroll- you need to register, hire, and complete the incorporation process. You can set up a bank account in Austria in 4 weeks.

Taxes in Austria

Incorporation: How to Set Up a Subsidiary in Austria

You need to obtain a trade license to pay resident employees as per Austria's subsidiary laws. You may apply for a trade license at the local municipal court or with the district management team. LLCs require an Austrian bank account to pay employees, too — this is typically a four-week step. It can take a few weeks to a few months for the registration. You'll also need to hire human resource management employees for taxation, and employment compliance, among other things. Skuad's team has been practicing it for a long time now and has mastered the process. Connect with Skuad to know how you can leverage its expertise for doing business in Austria.

PEO

A PEO, also known as a Professional Employer Organization, is a firm that outsources services to small and medium-sized businesses (SMBs). These services typically include filing of employer payroll tax, retirement vehicles (401(k)), safety and risk mitigation, human resource consultancy, processing of the payroll, employee medical benefits, workers' compensation insurance, training and development, practice and liability insurance for employees’ (EPLI), and workforce management technology.

The main difference between PEOs and EORs is the longevity and personalization of service. With Skuad’s EOR solutions, you get a more discrete and specialized service, and the EOR will remain with you throughout the process and will help you grow too. On the other hand, with a PEO, the scope is quite restricted and is usually better suited for smaller setups. However, even for the smaller setups, it becomes difficult to shift and change your associations when scaling and growing.

Skuad's EOR solution is a good way to expand your business in Austria without setting up a separate entity. Our solutions help you to stay focused on your business and leave all business compliances, payroll processing, and complete management work to us. Connect with Skuad to know more.

Conclusion

Austria is a potential investment and business hub; Its resources and laws make it a convenient environment for growing businesses. The immigration laws and quality of life also make it a lucrative place to move or start your business.

With expertise and complete knowledge of the country’s laws and regulations, Skuad’s Austria EOR solution can help you set up and grow your business in Austria. Talk to Skuad’s team of experts to know more about its quick and cost-effective solutions designed for your needs.

FAQs for EOR in Austria

What is an Employer of Record in Austria?

An Employer of Record (EOR) in Austria is a solution that legally employs staff for companies, handling payroll, tax, social security, benefits, and compliance with local labor laws. It enables companies to hire in Austria without creating a local entity, simplifying expansion and operations.

What are the benefits of using an EOR in Austria?

‍The benefits of using an EOR in Austria include streamlined market entry, as companies can hire employees without establishing a local branch or subsidiary. EORs ensure compliance with Austrian employment legislation and manage all aspects of HR and payroll, reducing the administrative burden and risk for businesses. This allows companies to focus on their core business functions while the EOR takes care of the legal and administrative details of employment.

What is EOR for international employees?

‍EOR for international employees refers to the use of an Employer of Record to hire and manage talent in a foreign country such as Austria. For businesses looking to expand globally, an EOR manages local labor law compliance, payroll, taxation, and work permits, making it simpler and faster to build a global team without the legal complexities of setting up foreign entities.