Based on the EU Posting of Workers Directive (96/71/EC) and the Enforcement Directive (2014/67/EU), EU member states can provide for a number of compliance obligations for cross-border employee secondments. The relevant regulations that foreign companies have to comply with in Austria are regulated in the so-called “Wage and Social Dumping Control Act”. The present article gives a brief overview of which types of secondments are covered by this Act, how the reporting obligations in Austria are structured, which documents must be kept available for possible audits during the posting to Austria, and which penalties companies may face in case of compliance violations.
In principle, the “Wage and Social Dumping Control Act” applies to every type of posting of a worker to perform work in Austria from another EU Member State or third country. However, the law itself provides for a comprehensive catalog of exceptions that do not trigger the reporting and documentation requirements described below. These exceptions include, for example:
Postings from other EU member states or Switzerland must be reported via an online portal before starting work in Austria. In the case of hiring out of labour constellations, the form ZKO-4 should be used, for all other types of postings form ZKO-3 has to be filed.
During the period of the posting, the employer must provide the following documents in the event of an audit on-site:
The law provides for severe administrative penalties in the event of a breach of the reporting and documentation obligations set out above:
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