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Employment relationship and collective agreement

Do you have questions about your employment relationship or collective agreement? We have the answers.

Employment relationship

An employment relationship exists when you (employee) make your labor available and work under the direction of another person (employer or deputy). There is a personal dependency. As an employee, you are bound by time, place and instructions within the framework of your employment relationship.

You may only be a freelancer or contract worker if you are self-employed . You do not have the same rights as employees. For example, neither the minimum wage under the collective agreement nor the right to leave apply.

As a freelancer , you commit to providing a service for a definite or indefinite period of time. You are not bound by instructions and can organize your time freely. The work equipment is usually provided by your client. 

A contract for work and services is a contract for a specific work that you as a contractor have to deliver. You don't have to do it yourself, you can let someone else do the job.

An employment contract is an agreement between the employer and the employee.

As an employee, you undertake to perform work. Your employer undertakes to pay a wage or salary

Verbal employment contracts are also valid. Exceptions are apprenticeship contracts, which must be concluded in writing. In order to be able to better prove claims, a written employment contract is best suited.

As an employee, you are entitled to certain rights according to the law, collective bargaining agreement and also according to works agreements . Works agreements are concluded between the employer and the works council and apply within the company. 

Your rights must not be diminished by the employment contract. 

IMPORTANT: If your employer presents you with an employment contract to sign, read it carefully! If you have any questions, please contact us. We will go through the employment contract with you.

Immediately after the start of the employment relationship, your employer must provide you as an employee with a written record of the essential rights and obligations. The service slip includes your place of work, your working hours, your annual vacation entitlement and your salary, among other things. You must also receive a written payslip every month.

More and more often, employment contracts contain "all-inclusive clauses". In addition to the basic salary, the monthly salary agreed in it also covers overtime and overtime, holiday and Sunday bonuses as well as special payments. The clauses are only valid if, including overtime, additional services and bonuses incurred, at least the minimum wage according to the collective agreement is paid.

However, such employment contracts rarely state how much is paid for normal working hours. For example, it is difficult to understand how many overtime and overtime hours are covered by the remuneration and what additional services would have to be paid additionally. The law stipulates that the amount of the current basic salary or basic salary must be stated in the service slip (or employment contract).

TIP: When concluding such a contract, agree exactly how much the basic wage for normal working hours is. This way you can see how many additional services are covered by the salary. It is best to contact your union before signing.

Collective agreement

The collective agreement is an agreement between the employee representatives and the employer representatives

The Austrian Trade Union Confederation (ÖGB) represents the employees, the trade unions such as vida in combination with the Chamber of Labour (AK). Employers are represented by the Chamber of Commerce, the Federation of Austrian Industries and other employers' associations.  

In addition to the laws, the collective agreement determines the working conditions of the employees. For example, wages and salaries, bonuses, holiday and Christmas bonuses, working hours and time off arrangements, holiday entitlement, notice periods and other working conditions can be determined for certain industries or companies. 

Collective bargaining negotiations usually take place annually.

 

IMPORTANT: If you have any questions about your collective agreement or if you are not sure whether everything is legally correct in your company, contact your trade union vida.

According to the collective agreement of your occupational group, you will be classified in a so-called employment group depending on the work you actually perform . This employment group also determines your salary level. The collective agreements usually contain descriptions of how you are to be classified. 

The classification is based on various criteria such as education, previous service and professional experience, area of responsibility and specific skills.

Crediting of previous periods of service: Previous periods of service include, for example, the same and similar activities with other employers, but periods of schooling can also be counted. Inform your employer about your previous periods of service and also provide proof of them. Some collective agreements provide for a period within which the previous periods of service must be announced. If you're late, your employer may not have to consider them.

 

IMPORTANT: Pay attention to the correct classification before signing the contract. 

If you are wrongly classified, you can demand a correction and claim the higher salary from your employer in accordance with your collective agreement . We will look at the problem with you and discuss the best course of action together . 

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