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WORKING IN AUSTRIA

Austria extends its short-term work system until the end of 2022

The Kurzarbeit system was limited until June; the Federal Government this Tuesday extended its validity.

Published: 17 May 2022 18:13 CEST
Austria extends its short-term work system until the end of 2022
Austria's Labour Minister during a speech in the country's parliament. (© Parlamentsdirektion / Thomas Topf)

Austria’s short-term works scheme, the Kurzarbeit, which was set to expire by the end of June, was officially extended until the end of the year.

The scheme allows companies particularly affected by the coronavirus pandemic to ask for government assistance as long as they keep their workforce. Employees in Kurzarbeit work fewer hours and receive a fraction of their salary, paid by the scheme – up to 90 per cent, depending on their pay.

Discussions are still ongoing between the trade union and the Chamber of Commerce on the details of the short-time work extension, broadcaster ORF reported.

Employers want the government to increase the percentage of the salary paid to workers, asking all employees receive a 90 per cent net replacement for wages. Workers with higher salaries could receive as little as 70 per cent of their wages from the scheme, leading to a significant loss of income.

READ MORE: EXPLAINED: How to get your €500 Kurzarbeit bonus in Austria

Austria’s Labour Minister Martin Kocher said that the extension was only possible after “significant compromises” and that the system will only exist in very specific cases in the future. He didn’t give further details, though.

One of the reasons for the extension, ORF reports, was to cushion the economic consequences of the Ukraine war.

Kurzarbeit and unemployment rates

April 2020 saw the highest number of people, more than one million, on the scheme. Around 53,000 people were still pre-registered for short-time work at the beginning of the week. From March 2020 to the end of March 2022, government spending on coronavirus short-time labour amounted to € 9.56 billion.

READ ALSO: Six official websites to know if you’re planning to work in Austria

At the same time, the domestic labour market has seen a decrease in unemployment, even with the slowdown due to the war in Ukraine and soaring energy prices.

Compared to just one week ago, 4,216 fewer people were unemployed. Currently, 324,977 people are registered with the Public Employment Service Austria (AMS) as unemployed or in training. 251,633 of them are looking for a job, and 73,344 are in training measures of the AMS.

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WORKING IN AUSTRIA

Four steps to take immediately after losing your job in Austria

Losing a job can be a nightmare for a foreigner in Austria. Here’s what you need to do to protect yourself and get back on track as soon as possible.

Published: 17 September 2024 16:39 CEST
Four steps to take immediately after losing your job in Austria

Losing a job in Austria can involve significant challenges, especially for foreigners.

You might worry about whether your residence status is at risk, how difficult it will be to find another position, and how you will support yourself while searching for a new job.

However, in Austria, you can take certain steps to protect yourself until you find your next opportunity.

Know your rights and negotiate your terms

If you get laid off, you have rights you should know.

If the contract is ended by mutual agreement (Einvernehmliche Auflösung), which your employer may offer even if the actual reason is dismissal, no notice period is required.

The contract can be terminated verbally or in writing, though written termination is recommended.

This type of termination allows you to negotiate the notice period and conditions with your employer, and you are expected to express your wishes. 

If you instead are dismissed (Kündigung), which refers to your employer terminating your employment without a specific reason, they need to follow certain deadlines and notice periods.

White-collar workers should receive at least six weeks’ notice in Austria. Meanwhile, blue-collar workers are only required to get at least two weeks’ notice, periods that increase the longer you have worked for an employer.

During the notice time, you can either continue working or be placed on what is known as gardening leave, where you do not have to work but are paid as if you were still working.

Your employer can also terminate your contract immediately (Vorzeitige Entlassung) in cases of very serious violations, but this only happens in special circumstances, such as violating company rules.

If this happens, the employer will  need to calculate a final financial settlement, including any wages until the end of the employment relationship, unused holiday days and over-hours, etc.

In general, what is important to also remember is to check on remaining holiday days and unused overtime to make sure you receive appropriate compensation.

Consulting the Chamber of Labour (Arbeiterkammer) or a work council (Betriebsrat) can help you understand your rights. For example, special rules apply to certain workers, such as parents, pregnant women, and those under 18, so it is a good idea to seek advice from your works council or union if this might affect you.

READ MORE: How to find a job in Austria in three months

Get all the important documents from your employer

Once you get laid off, it is essential to ensure that your company gives you all the necessary documents to move forward.

You are entitled to documents such as a Certificate of Employment (Arbeitsbescheinigung) and a Confirmation of Deregistration with the Health Insurance Provider (Bestätigung über die Abmeldung beim Krankenversicherungsträger).

It is also important to obtain a Confirmation of Work and Salary (Arbeits—und Entgeltbestätigung) and an Employment Reference (Arbeitszeugnis) for future job opportunities.

Sign up at AMS and get your unemployment benefits

Austria has strict rules regarding signing up at the Public Employment Service, AMS, after losing your job.

You must register as unemployed with the AMS no later than the first day of your unemployment. If you register later, gaps in your benefits, as well as in your health and pension insurance, may occur.

These gaps can also happen if you do not give AMS all the necessary information for your unemployment registration.

The unemployment benefits are calculated based on your previous income and personal situation.

Usually, you receive about 55 per cent of your previous net income. This amount can be a little bit adjusted based on your personal circumstances, such as if you have children or a spouse financially depending on you, which may entitle you to some extra payments.

Depending on your residence permit, you might not be able to receive long-term unemployment benefits. However, most employees can get unemployment insurance, which covers part of their previous salary while they search for a new job.

It can be a good idea to check in with AMS to get the details about your specific situation.

It is also important to know that if you receive unemployment benefits, you cannot leave the country, even for vacation. If you do need to travel, you must inform AMS in advance, and you will not receive benefits while you are away.

READ ALSO: Should I register with Austria’s unemployment agency AMS if I’m out of work?

Inform the immigration office 

If you are on a residence permit linked to your job, such as a Blue Card or any work visa, you must inform the immigration office, MA 35, about your situation as soon as possible.

Some permits require you to maintain employment to keep your visa valid. Reporting your job loss helps you avoid potential issues with your residence status and allows you to apply for a different type of permit if necessary.

If you, for example, have a Red-White-Red Card for highly qualified workers in shortage occupations and you lose your job within the first two years of residency in Austria, you must inform the immigration office (MA 35 in Vienna or the local Bezirkshauptmannschaft in other parts o the country) and apply for a new residence permit to avoid losing your right to live and work in the country.

In general, it is a good idea to ask the immigration office about your specific options with your current visa.

READ NEXT: What you should do if you lose your residence permit in Austria

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