Hiring in Austria

The terms set out role, salary in EUR, the applicable collective agreement and pay grade, working time, leave, notice and any restrictive covenants. The EOR is the counterparty to the employee, which is what removes the need for your own entity.

German is the standard contract language, and bilingual German and English contracts are common for international roles.

Fixed-term contracts are permitted, but chained renewals are restricted and most EORs default to indefinite terms.

Set probation from day one. It cannot be extended, so book a review before the month runs out.

Some EORs use a short fixed-term first contract as a longer trial because they, not you, carry the dismissal risk. Ask before you agree a start date.

Overtime is paid at a 50% premium or as time off at 1.5 times, within caps of 12 hours a day and 60 hours a week.

All-in contracts must state the base salary separately, and the package must still cover the collective agreement minimum plus any overtime actually worked. Put the position in writing either way.

The statutory floor is already generous, so market practice for professional roles rarely goes above it. Budget for five weeks plus public holidays.

Sick pay runs at full salary for 6 weeks, rising to 12 weeks with service, followed by 4 weeks at half pay. Maternity and parental leave are funded by social insurance and the state rather than the employer, but the job is protected throughout, so confirm how the EOR handles cover and the return to work.

Either side may terminate on notice, which by default ends on the last day of a calendar quarter unless the contract allows the 15th or last day of any month. Where a works council exists, it must be told before notice is given, or the dismissal is void.

The EOR runs the process as the legal employer and will want the paperwork in order, including final pay, pro rata 13th and 14th salaries and unused leave. Dismissals can be challenged as socially unjustified, so keep a documented reason.

Supplementary private health cover, meal allowances and public transport tickets are common for professional roles even though they are not mandatory.

EORs often bundle benefits through a group scheme. Ask what is included in the fee and what is billed on top.

Employer contributions add roughly 29% to 31% on top of gross salary, with social insurance capped at EUR 6,930 a month in 2026. That is before the EOR fee.

The 13th and 14th salaries are the trap. They come from collective agreements rather than statute, but almost every employee is covered, so build annual budgets on 14 payments, not 12.

Ask whether the EOR has secured a permit for a leased worker before, and whether it applies directly or through a partner. Austria restricts permits for leased workers, and an EOR arrangement usually counts as labour leasing, so many providers cannot support non-EU hires at all.

Set start dates after approval, not before.

Get the data processing terms in the service agreement, not just the privacy notice. Transfers outside the EEA need a lawful basis, such as an adequacy decision or standard contractual clauses.

Systems that monitor staff need works council approval, or each employee's consent where there is no works council, so check before you plug the hire into your own tools. Ask where payroll data is hosted and who in the partner chain can see it.

Incorporating a GmbH takes a few weeks and EUR 10,000 of share capital, but the running cost is the point: a managing director, Chamber of Commerce membership, accounting, audit thresholds and payroll software set an annual floor.

Permanent establishment risk is about what people do, not where payroll sits. Revenue-generating activity can create exposure regardless of the employment route.