National Council adapts labor laws to EU law

2024-02-29 01:11:26

It should be made easier for foreign employees to provide a photo for the e-card, and social insurance contribution surcharges for undeclared work should be reorganized

Vienna (PK) – The National Council has today meeting also decided to adapt various labor laws to a new EU directive on transparent and predictable working conditions. This involves, for example, precise information on the service note and the establishment of a right to multiple employment. In addition, an amendment to the ASVG should make it easier for foreign employees to provide a photo for the e-card in the future. Accordingly, from April onwards, municipal offices will also be able to act as photo registration points – on a voluntary basis.

In the short term, additional provisions were incorporated into the ASVG amendment. On the one hand, this involves a new regulation of the social security contribution surcharges that companies caught during undeclared work checks must pay. On the other hand, the authorization of Health Minister Johannes Rauch to dispose of stocks of COVID-19 medicines owned by the federal government will be extended until the end of May 2025. An amendment to the Family Burden Equalization Act is related to parental support for seriously ill children.

Obligation to issue a service note for all employment relationships

With the Amendment of various labor laws such as the Employment Contract Law Adjustment Act, the Employees Act and the Agricultural Labor Act, a basic obligation is standardized for employers to include the company’s registered office on the service note, a short description of the activity, the remuneration for overtime, the method of payment of wages, the duration and conditions the probationary period as well as a reference to the termination procedure and to hand over the service note immediately after the start of the employment relationship. This also applies to freelance contracts, temporary workers, domestic workers and home workers. There are penalties for not handing over a service note. A right to multiple employment and provisions on necessary training and further education measures are also part of the legal package.

The collective amendment proposed by the coalition parties was passed with the votes of the ÖVP and the Greens. Markus Koza (Greens) emphasized that the EU directive strengthens workers’ rights. In the future, employers will no longer be able to “pass on” training costs to employees. He also referred to the enforceable right to a service note and the right to multiple employment.

According to ÖVP MP Tanja Graf, not much will change. In Austria there are already very transparent service records, she said. All you have to do is provide some additional information. What is also new is the guaranteed right to multiple employment, provided this is compatible with the main job and is not morally reprehensible. When determining the sanctions, attention was paid to SMEs, emphasized Graf, and she didn’t know any companies that wouldn’t issue service notes. In their opinion, it would have been too much bureaucracy to issue all four million employees a new service slip.

SPÖ sees EU directive only implemented “half-heartedly”.

On the part of the SPÖ, Josef Muchitsch and Gabriele Heinisch-Hosek criticized the fact that the EU directive was being implemented one and a half years late and only “half-heartedly”. Muchitsch, for example, regretted that the new regulations will only apply to new employment relationships. He also misses dissuasive sanctions. Heinisch-Hosek also only sees “micro improvements”. However, it is positive that written specifications are now provided; that is important for the employees.

FPÖ and NEOS see too much bureaucracy

FPÖ MP Peter Wurm spoke of a “bureaucracy monster without end”. In his opinion it is an unnecessary law. After all, there is a functioning social partnership in Austria. Small companies in particular with few employees would “suffocate in bureaucracy”. Wurm does not see that the ÖVP and the Greens “always implement EU guidelines without contradiction”.

The criticism from Gerald Loacker (NEOS) was similar. The law creates bureaucracy that does nothing for people, he complained. After all, in Austria you have to issue service notes now. In his opinion, there would be no added value for employees if employers had to justify terminations in the future and then state “operational reasons”. Loacker also questioned the imposition of administrative penalties when civil law regulations are violated.

Parental support for a seriously ill child

One was negotiated with the legislative package Amendment to the Family Burden Equalization Act, which was approved unanimously. Since parents or elective parents have recently been able to take leave to accompany a seriously ill child – with no wages – even if they do not live in the same household as the child, the requirement for financial hardship compensation regulated in the Family Burden Equalization Act should also be met common household no longer applies. This was expressly welcomed by MPs Josef Muchitsch (SPÖ), Norbert Sieber (ÖVP), Bedrana Ribo (Greens) and Michael Bernhard (NEOS).

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During the debate, Bernhard spoke out in favor of financing the majority of the benefits that are currently financed through the family burden equalization fund (FLAF) through the budget in the future and thus reducing non-wage labor costs.

Facilitation of photo registration for the e-card

The one decided with the ÖVP-Greens-NEOS majority ASVG amendment aims to make it easier for non-Austrian citizens to provide a photo for the e-card. Unlike Austrians, foreigners currently usually have to go to a state police department to register their photos, which sometimes means travel times of several hours. From April 1st, mayors will also be able to act as a photo registration point for both Austrian and non-Austrian citizens, albeit on a voluntary basis. According to Bedrana Ribo (Greens) and Rebecca Kirchbaumer (ÖVP), 24-hour carers, seasonal workers and construction workers could particularly benefit from this.

Ribo and her party colleague Barbara Neßler pointed out that e-cards without a photo will soon be invalid. Since photo registration centers are currently “rare,” they say the proposed measure would bring important relief. This will eliminate “unnecessary harassment” for urgently needed personnel and reduce bureaucracy, Neßler noted.

However, the FPÖ showed no understanding of the proposed relief. FPÖ MP Dagmar Belakowitsch is convinced that equipping the e-card with a photo was an important measure to prevent misuse. This will now be “softened”. Her parliamentary group colleague Peter Wurm believes it is reasonable for those affected to go to a location at the state police headquarters. The FPÖ is concerned with immigration police controls, he emphasized.

SPÖ MP Christian Drobits, however, generally questioned the need to include a photo on e-cards. The introduction under “black and blue” was an expensive “non-starter,” he said. There is no evidence that e-cards without photos have been misused in large numbers. According to Drobits, communities are now being overloaded with a task that is not necessary. In addition, there are costs associated with this for the insured.

ÖVP MP Rebecca Kirchbaumer accused the FPÖ of accusing mayors of abusing their authority with their criticism and viewed it as a “strong piece”. She also emphasized that the service is not a must for the communities. In principle, Kirchbaumer believes it is right to add a photo to e-cards.

New regulation of social security contribution surcharges

Based on an amendment proposed by the coalition parties, further provisions were quickly incorporated into the ASVG amendment. Accordingly, companies that were caught during undeclared work inspections will in future only have to pay the full premium surcharge for late registration of employees with social security if the inspection was carried out under the responsibility of the responsible health insurance provider. For example, if another body such as the financial police initiated the checks, only the partial amount for the separate processing of €400 has to be paid. The partial amount for the test use of €600 does not apply. The MPs are reacting to a corresponding decision by the Administrative Court.

At the same time, in accordance with the prevailing enforcement practice of the Austrian Health Insurance Fund (ÖGK), it is made clear that premium surcharges can only be imposed if the reporting violation was discovered as part of an “immediate trespass”. If the company registers an employee late without checking – i.e. only after starting work – there is still no additional contribution to be paid.

On the other hand, the amendment extends the authorization of Health Minister Johannes Rauch to dispose of stocks of COVID-19 medicines owned by the federal government until the end of May 2025.

While Bettina Zopf (ÖVP) was pleased that the current practice would continue with late registrations, Christian Drobits (SPÖ) spoke out in favor of requiring the contribution surcharge for every late registration. (Continuation of the National Council) gs

NOTE: Meetings of the National Council and the Federal Council can also be followed via live stream and are available as video-on-demand in the Parliament’s media library available.

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