This provision penalises employers for the underpayment of the wages employees are entitled to under the law, ordinance or collective agreement, and creates and administrative offence of underpayment, subject to a monetary penalty or fine. The fine is to be determined by considering the number of underpaid employees.
In cases where the underpayment affects up to three employees, the employer will be liable to pay a fine ranging between 1,000 Euro and 10,000 Euro per employee. In case of repetition, the fine will increase to between 2,000 and 20,000 Euro. If more than three employees are affected, the fine will be between 2,000 and 20,000 Euro for each employee, and in case of repetition between 4,000 and 50,000 Euro per employee. The employer can be exempted from paying a fine if he pays the amount underpaid, and if the underpayment is considered to be too small to warrant a penalty.
(1) Any employer who employs or has employed an employee without paying the employee at least the remuneration to which the employee is entitled as stipulated in a law, ordinance or collective agreement under consideration of the individual classification criteria, with the exception of the remuneration components laid down in Section 49 Para. 3 ASVG, commits an administrative offence and shall be fined by the District Administration Authority. Underpayments over several continuous remuneration periods shall be considered one single administrative offence. Remuneration payments which exceed the remuneration due as stipulated by a law, ordinance or collective agreement shall be set off against any underpayments in the respective remuneration period. With regard to special payments to employees subject to the ASVG, an administrative offence pursuant to the first sentence is committed only if the employer fails entirely or partly to make special payments by 31 December of the respective calendar year.
If the underpayment affects no more than three employees, the fine is between EUR 1,000 and EUR 10,000 for each employee and in case of repetition between EUR 2,000 and EUR 20,000; if more than three employees are affected, the fine is between EUR 2,000 and EUR 20,000 for each employee and in case of repetition between EUR 4,000 and EUR 50,000. Likewise, anyone who, as an employer as defined by Section 14 Para. 1 no. 3, employs or has employed a homeworker without paying the homeworker at least the remuneration to which the homeworker is entitled as stipulated in a law or ordinance under consideration of the individual classification criteria, with the exception of the remuneration components laid down in Section 49 Para. 3 ASVG, shall be fined.
Law / Federal Law Gazette I Nr. 44/2016 / Austria / Anti Wage and Social Dumping Act
The Anti Wage and Social Dumping Act regulates the monitoring of minimum wages paid to employees in Austria. And introduces the obligations to notify and provide specific documentation for cross border postings and hiring out labour. Under this Act, employers are fined for breach of their obligations to pay employees a minimum wage, including in cross-border employment relations. Furthermore, it includes specific liability rules for the construction sector, which extent liability for the payment of minimum wages by subcontractors to the principal contractor. The Act entered into force on the 1st of January 2017.