Remote Working Legislation, Laws & Regulations in Austria

Yes, legislation was introduced in April 2021. The legislation only covers working from home, and not mobile work in general. For mobile work, general legal principles apply.

Work from Home (WFH) requires an agreement between the employer and employee, either in the employment contract or in a separate agreement. It is possible to conclude a Work Council Agreement on the framework conditions on WFH, and some (sectorial) Collective Bargaining Agreements contain framework regulations as well. 

No, an agreement is required.

No, an agreement is required.

Yes, the employer is expressly required to provide digital equipment (including internet) or, in cases where employees provide digital equipment, compensate these costs. Flat-rate compensation is expressly permitted, and up to a certain extent, tax free.

Unless the employer provides digital equipment (including internet), the employer is expressly required to reimburse the employee for expenses for digital costs. As for other expenses (e.g. electricity, heating, etc.) general legal principles may require a reimbursement of expenses, but it is generally possible to exclude the payment of such expenses in the agreement on WFH.

No, unless the employer does not provide all necessary digital equipment (including internet). In that case, the employee must be compensated for the costs for digital equipment. Flat-rate compensation is expressly permitted, and up to a certain extent, tax free.

Yes, but neither the employer nor the labour inspectorate is permitted to enter an employee’s home without express consent. The employer is, however, required to inform the employee on how to implement health and safety regulations when establishing a workplace and all equipment provided by the employer must be compliant with health-and-safety regulations.    

No, but it is important to stress that the employer remains responsible for compliance with working-time laws, specifically compliance with maximum working hours and minimum rest periods.

No. No additional insurance is required when working from home in Austria. This may be different when the employee of an Austrian company choses to work from home in another country.

Yes, WFH is expressly covered by statutory occupational health insurance, which covers all work-related accidents and illnesses.

No.

No.

No.

Neither remote work nor remote work abroad is defined under Austrian law.

There are no specific national regulations on remote work/WFH abroad, but general legal principles apply (e.g. Rom-I Regulation on the applicable employment laws, within the EU: Regulation 883/2004 on the Coordination of Social Security, outside the EU: Treaties on Social Security, and Double Taxation Treaties).

This is defined by EU/international law, and depends on the following – the duration of the remote work abroad; whether the remote work abroad takes place because of a posting situation or if the employee permanently works fully or partially abroad; and, on the choice of law.

In absence of a choice of law, in a posting situation Austrian labour law generally continues to apply, but legislation abroad needs to be respected, specifically overriding mandatory provisions of public interest. Within the EU, detailed regulations exist on the extent to which legislation of another member state needs to be complied with. Generally, after 12 months, the complete labour laws of the other member state apply, with the exception of legislation on the conclusion of employment contracts, dismissals, restrictive covenant and company pensions.

This is defined by EU law/international treaties between Austrian and other countries. Outside the EU, the applicable social security system is determined by social security treaties potentially concluded.

Within the EU, this depends on whether the remote work abroad takes place because of a posting situation, or if the employee permanently works fully or partially abroad, and on the duration of work abroad. Employees posted to another EU member state generally remain under Austrian social security coverage for up to 24 months unless they replace a previously posted employee. Cross-border workers, whose employer is situated in Austria but who work remotely from their home country, are covered by the social security legislation of their state of residence if they perform at least 25% of their work in their state of residence. Under the new European Framework Agreement, which came into force on 1 July 2023, and which Austria signed, they may, however, request to remain under Austrian social security if they work no more than 50% remotely in their state of residence.

Austrian tax residents are subject to unlimited tax liability in Austria. Short-term remote work abroad usually does not change tax residency of the concerned employee, and therefore unlimited tax liability remains in Austria. However, the foreign country in which the remote work is performed could claim income tax on the employee’s salary due to limited tax liability (depending on the national tax law of the respective country).

In this case, double taxation of the salary received for short-term remote work abroad could arise. To avoid this, Austria concluded double-tax treaties with numerous countries, which allocate taxation rights according to certain criteria. On the basis of most double tax treaties, there is generally no tax exposure on the employee’s salary in the foreign jurisdiction if the employee physically spends less than 183 days in the foreign jurisdiction during a 12-month period, provided that the employee remains economically attributable to the Austrian employer (and not to a foreign PE of the Austrian employer) and the employer does not have its place of effective management in the work state. In case the employee permanently works in two jurisdictions, a tax-split may be possible.

An employee with a nationality of the European Union (EU), European Economic Area (EEA) or Switzerland (EU National) is allowed to live and work in other EU/EEA countries and Switzerland.

If (1) an EU National wishes to work in a country outside of the EU, EEA and Switzerland or (2) if the employee is a national from outside the EU, EEA or Switzerland and wishes to work in Austria, it is important to check if the employee needs a residence permit and/or work permit to be able to work legally in that country. We would advise to always check such requirements with a local legal counsel.

None.