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An Employment Agreement is a legal contract between an employer and employee in Austria that sets out the key terms of their working relationship. It covers essential details like salary, working hours, job duties, and notice periods - all following Austrian labor law requirements under the AVRAG (Employment Contract Law Adaptation Act).

The agreement protects both parties by clearly stating their rights and obligations. Austrian law requires specific elements to be included, such as the basic salary, annual leave entitlement, and applicable collective bargaining agreements. Most employment relationships in Austria start with a written agreement, though verbal contracts can be legally binding for shorter-term positions.

Create an Employment Agreement before any new hire starts work in Austria - ideally during the final recruitment stages. This protects both parties by establishing clear expectations and legal boundaries from day one. The agreement becomes especially important when hiring specialized roles, managing remote workers, or bringing on executives with complex compensation packages.

Austrian law requires written documentation of employment terms within one month of starting work. Getting the agreement signed early helps avoid misunderstandings about salary, working hours, and responsibilities. It also ensures compliance with AVRAG requirements and relevant collective bargaining agreements, preventing costly disputes and legal complications later.

• Standard Employment Agreements for regular full-time workers with typical working hours and benefits
• Fixed-term Agreements that specify a clear end date, common for project-based work or seasonal positions
• Part-time Employment Agreements with adjusted hours and proportional benefits under Austrian labor law
• Executive Employment Agreements for management positions, including special provisions for decision-making authority and profit sharing
• Apprenticeship Agreements (Lehrverträge) following specific Austrian regulations for vocational training
• Collective Agreement-based contracts that incorporate industry-specific terms from applicable Kollektivverträge

• Employers: Companies, organizations, or business owners who draft and issue Employment Agreements, ensuring compliance with Austrian labor laws
• Employees: Workers who review and sign the agreement, gaining clear documentation of their rights and obligations
• HR Managers: Coordinate the drafting process and ensure agreements align with company policies and Austrian regulations
• Legal Counsel: Review and customize agreements to protect company interests while maintaining compliance with AVRAG
• Works Councils: Review agreements when required by Austrian law, especially for collective workforce matters
• Labor Unions: Influence agreement terms through collective bargaining agreements (Kollektivverträge)

• Basic Details: Gather employee name, position title, start date, and workplace location
• Compensation Package: Document salary, bonuses, benefits, and payment schedule following Austrian standards
• Working Hours: Specify regular hours, overtime rules, and break periods per Austrian labor law
• Collective Agreement: Identify applicable Kollektivvertrag for your industry and incorporate required terms
• Job Description: Define key responsibilities, reporting structure, and performance expectations
• Notice Periods: Include statutory notice periods and termination conditions under AVRAG
• Template Selection: Use our platform to generate a compliant agreement that includes all mandatory elements

• Party Information: Full legal names and addresses of employer and employee
• Position Details: Job title, duties, workplace location, and reporting structure
• Working Time: Daily/weekly hours, break periods, and overtime arrangements per Austrian law
• Compensation: Base salary, payment schedule, bonuses, and applicable allowances
• Leave Entitlements: Annual leave, sick leave, and special leave provisions
• Notice Periods: Termination conditions following AVRAG requirements
• Collective Agreement Reference: Applicable Kollektivvertrag and its incorporation
• Data Protection: GDPR-compliant clauses on personal data handling
• Probationary Period: Duration and conditions of initial trial period

Let's compare an Employment Agreement with a Consultancy Agreement, as these are frequently confused in Austrian business relationships. While both govern working relationships, they serve distinct purposes and carry different legal implications.

• Employment Status: Employment Agreements create an employer-employee relationship with social security benefits and labor law protections. Consultancy Agreements establish an independent contractor relationship without these protections.
• Control and Integration: Employment Agreements give employers direct control over work hours and methods. Consultants maintain autonomy over how and when they complete projects.
• Legal Framework: Employment Agreements fall under Austrian labor law (AVRAG) and collective agreements. Consultancy Agreements operate under commercial law with fewer statutory protections.
• Tax and Benefits: Employers handle tax and social security contributions for employees. Consultants manage their own tax obligations and insurance as self-employed professionals.