Employment Law

The world of labour faces great challenges; global competition, demographic shifts, and structural change are driving the current labour market. With the right decisions in designing employment contracts, compliance, and operational structuring, companies can set the stage for competitive and sustainable success in the future. This requires a strong partner in law, no matter whether there is need during periods of growth or economically challenging times.

The SAXINGER team will advise you on the national and international level of individual and collective employment law. We support you in your day-to-day HR work as well as in extensive and long-term projects. We always keep your business goals in mind.

Our Expertise in Employment Law

A strategic approach to employment law is a key competency for the success of a company in the modern economy. In-depth advice on employment law ensures that your HR policy is not only legally compliant, but also designed to be forward-looking and efficient.

But legal advice in employment law not only minimises labour-law risks, it also builds a trusting relationship with your employees. This is achieved through the legally certain design of employment contracts, the correct handling of terminations, termination agreements, as well as compliance with company constitution law and data protection provisions.

Legal advice in employment law is significant in the following areas:

• The creation, amendment, and review of employment contracts to ensure compliance with legal requirements and to protect your company’s interests.
• Consultation for international activities, inbound and outbound (secondments, transfers), on compliance with wage regulations, as well as reporting and record-keeping obligations
• Consultation on the design of works agreements to avoid operational exercises and problems with termination of works agreements
• Employment of foreigners to avoid illegal and thus criminal employment of foreign nationals
• Compliance with health and safety policies to avoid liability risks and to promote a safe work environment.
• Assisting with changes under corporate law such as mergers and acquisitions as well as other forms of business transfer in order to identify and come to terms with employment law challenges at an early stage.
• Guaranteeing privacy and compliance standards to meet regulatory requirements and strengthen employee trust.
• Cooperation with the Works Council while taking into account co-determination rights to ensure a smooth and constructive partnership.
• Consultation in international employment law to guarantee compliance with country-specific employment law requirements.
• Consultation on new work models such as telecommuting, workstation, etc.

Consultancy Needs in Employment Law

Establishment, design, and termination of employment relationships

Legal advice is useful in all phases from the initiation of an employment relationship to its legal termination. Contracts must contain clear provisions on working conditions, salary, working hours, vacation entitlements, notice periods, as well as special clauses on competition and confidentiality obligations.

We help companies make contracts legally compliant and protect the employer’s interests. In addition to that, challenges that involve ending employment (such as by termination, termination agreement, or other measures) can be circumvented. This includes actions for unfair dismissal or discrimination. Exact compliance with all legal requirements protects the company from unjustified demands. SAXINGER can help you with:

• Formulation of employment contracts, managing director contracts, management contracts, and consultancy contracts
• Development of statements and contracts, including in English
• Employee participation, bonus systems
• Employee protection, working hours law
• Reduced working hours systems
• Termination of employment contracts, right of termination, and termination agreements
• Post-contractual processing of contractual relationships
• Legal enforcement of contractual claims or termination measures
• Telecommuting regulations and workstation

Works Constitution Act

The Works Constitution Act ensures structural equality between management and employer and regulates the rights and obligations of employee representatives. This Act applies particularly to the Works Council and the cooperation between the employer and the Works Council. It includes key areas such as:

• Questions about collective employment law, particularly regarding the application of collective agreements
• Works agreements
• The employer and Works Council’s reciprocal rights and duties
• Works Council elections
• Co-determination in personnel measures
• Social matters such as working hours and vacation arrangements
• Questions about working time models, bonuses, bonus systems, and benefits
• Procedure for disagreements between the employer and Works Council

Legal advice on the Works Constitution Act is sensible because works agreements are often complex and they have a far-reaching impact on the company. Companies should aim to establish and maintain a constructive relationship with the Works Council. In principle, you should meet the requirements of your Works Council just like you do for your strategic company goals. We specialise in:

• Drafting and negotiating collective agreements and company agreements as well as advice on their amendment
• Design and negotiation of social benefit plans and working time models, particularly flexitime, home-office rules
• Accompanying Works Council elections
• Representation in company arbitration proceedings

Corporate acquisitions, restructuring, and operational changes

Sales of a business or transfers of a business raise questions about the extent to which rights, obligations, as well as existing employment contracts, and company agreements are taken over. A high level of sensitivity and a constructive negotiation with Works Councils apply here. Operational changes within the meaning of the Works Constitution Act, such as the introduction of new technologies or relocation, require the involvement of the Works Council and, in some circumstances, the creation of a reconciliation of interests and a redundancy plan.

Companies should seek legal advice here because missteps can have serious implications, such as long-lasting litigation, financial settlements, and even disruptions to operations. SAXINGER provides support particularly in:

• Consultation on transfers of a business such as merger, demerger, and company purchases or sales
• Due diligence under employment law
• Advice on disposals of a business, restrictions of a business, closures of a business, and restructuring, including those of an international nature
• Strategic consulting for business transfers
•  Consultation on subsequent post-merger design
• Consultation on negotiations for reconciliation of interests and redundancy plan

Social security law

Social security law regulates provisions on social security, including health insurance, pension insurance, unemployment insurance, and accident insurance, but also the company pension scheme. It determines employers’ obligations to pay contributions for employees and to report employment relationships. It is important for companies properly to design freelancer contracts, consultant contracts, and agreements with workers who are like employees in order to determine the right social-security status and to ensure legal certainty.

For international activities in the form of a transfer or secondment to or from abroad, questions about the applicability of the right social-security law must be clarified.

Incorrect classifications of employees can result in excessive additional demands and penalties under the Austrian Act to Combat Wage and Social Dumping. Moreover, the design and adjustment of company-pension schemes is a complex process that requires a precise knowledge of the basic legal conditions. SAXINGER provides legal support in the following areas:

• Consultation in the determination of the status of freelancers under social-security law or of consultant contracts
• Consultation on issues of applicable social-security law for international assignments or transfers.
• Company-pension scheme
• Advice on the introduction and change of company pensions, employee-pension schemes

Litigation management

Employment can lead to disputes that require legal representation at labour courts and social courts. This often involves lawsuits for terminations, wage claims, or conflicts with the Works Council. Special proceedings, like those before arbitration bodies or committees such as the Disability Committee, should also be conducted with legal guidance in order to best protect company interests.

SAXINGER helps you make these proceedings in an efficient and cost-saving manner while simultaneously minimising the risk of subsequent lawsuits. We will stand by your side with:

• Representation at all labour courts and social courts, e.g., for termination appeal proceedings
• Representation in special proceeding, for instance, in relation to employees with disabilities or other employees protected against termination
• Representation in labour court proceedings, among others, with Works Councils
• Employment law arbitration proceedings 

References

• We provide our clients with expertise, commitment, and a team of renowned employment lawyers. 
• Advising market leaders in the area of employee leasing
• Legal representation of an Upper Austrian industrial company in the restructuring and implementation of wage and salary reductions.
• Full-service consultation of an Austrian real estate developer with foreign direct investments on all questions about the respective employment law on the basis of a one-stop shop for all countries
• Supporting a group operating internationally in the production of compressors during restructuring, including employee layoffs and the design of a redundancy plan.
• Advising an Upper Austrian energy supplier on the design and negotiation of a redundancy plan 
• Advising on international assignments or transfers
• Ongoing judicial representation of a public employer in labour court litigation.

Contact

As attorneys with law firms in Graz, Linz, Salzburg, Wels and Vienna, we observe current developments in employment law, be they in legislative initiatives or in judicial policy decisions. This allows us to know what the focus needs to be in the future and to provide you with proactive advice.

Contact us now! >>