Section 29

homepage-img2

flag Austria

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.

Notes

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.

Text

Section 29. 

(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.