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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Terms found Action for the restoration of ownership Amended dismissal Annuity Appeal against a decision Asset Assignment of Claims (Cession) Austrian Public Employment Service (AMS) Banking secrecy Bankruptcy proceedings BaSAG Book value / carrying amount Branch Brokerage Agreement Building Law Business Business entity Call for Tenders Capitalisation Casual Employment Certification Change in Operations Collective Bargaining Agreement Company Agreement Company Pension Comparison of business assets Compensation Compliance Compulsory enforcement Consumer Protection Act Corporate Reorganisation Act (URG) Corporation Covenants Debt restructuring Debtor Declaration of consent Decree Deferral Discount Dividend Double taxation Double-entry bookkeeping Easement Employee Stock Ownership Equity Equity loan Factoring Fees Act Financial plan Foreclosure sale Foreign-currency loan General partnership General Protection Against Dismissal Global assignment GmbH Group taxation Guarantee Guarantee credit Hidden reserves Hire Purchase Insolvency Insolvency Act Insolvency administrator Insolvency estate Insolvency register Inspection of the Land Register Inventory Land Register Letter of comfort Lien Limited partnership Liquidation Loan Loss Carryforward Maternity leave Merger Natural person Nominal value Option Outsourcing Part-time work Partnership Personal insolvency Pledge principle Preliminary decision on an appeal Progression Prohibition of alienation and encumbrance Prohibition on the repayment of deposits Property income tax Provision Proxy Public Limited Company Reallast Repayment Restriction on Transfer Restructuring proceedings Retention of title Revision Right of first refusal Right of retention Rights in rem Self-consumption Severance Pay Severance Pay new Severance Pay old Shareholder loans Short-time work Silent partnership Skimming procedure Social Plan Sole Proprietorship Standard value Stock Subscription right Superstruction Supervisory Board Tenancy agreement Works Council

Social Plan

What is a social plan?

A social plan is a company agreement setting out measures to prevent, eliminate or mitigate the consequences of a change in operations. According to the Supreme Court, social plans must be specifically tailored to the circumstances; there is no such thing as a preventative social plan. If the operational change entails significant disadvantages for all employees or at least a substantial proportion of the workforce, then a social plan ‘may’ (in view of the possibility of referring the matter to the conciliation board, it actually ‘must’) a social plan be concluded in undertakings which permanently employ at least 20 employees. For this to apply, serious disadvantages must arise for at least a significant proportion of the workforce (a proportion of 10 percent could be taken as a guideline here. A figure of 8 percent of a company’s workforce has not yet been recognised by case law as a significant proportion of the workforce). This disadvantage must be substantial. Trivial inconveniences are not taken into account.

What does a social plan include?

A social plan may include anything that offsets or mitigates the adverse effects of a change in business operations. These include, for example, voluntary severance payments in the event of termination of the employment contract by mutual agreement, retraining measures with continued payment of remuneration, the establishment of or participation in employment foundations, travel allowances in the event of relocation of the business premises, or a commitment not to make further changes within a specified period. Payments made by the employer under social plans are tax-privileged up to certain maximum limits (currently EUR 22,000.00 gross). Compensatory social plans are not permitted; in other words, the social plan must not stipulate measures for specific groups of employees at the expense of others. If the parties at the workplace cannot agree on a uniform social plan, the decision may be referred to a conciliation board. In the employer’s insolvency proceedings, social plans may also be subject to a challenge (under the Insolvency Act). Depending on whether the social plan has already been fulfilled or not, the party against whom the challenge is brought is either the individual employee or the works council.

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