New employment in Austria often starts with a probationary period (or Probezeit in German). This trial period allows the employer to decide whether or not they are satisfied with the employee and vice versa. 

Probationary agreements are somewhat more flexible than regular employment contracts. But, it is important to know that although it is flexible, it is still regulated by the law. Any violations of the law or the regulations could result in serious consequences affecting the employer or the employee.

Definition of Probation Period in Austria

In Austria, the probation period is a short trial period at the start of a job. This period allows both the employer and the employee to decide if they are going to continue working with each other.

This is not an informal agreement. It must be stated in the employment contract. If it is not in the contract, then the probation period does not exist, and normal employment protection rules apply from day one.

The main benefit of the probation period is that each party is able to terminate the contract without following lengthy notice periods or other procedures.

Lengths of Probationary Periods in Austria

The Austrian law is clear when it comes to the maximum length of a probation period. It is one month and it begins on the first day of work, and cannot be extended.

The one-month maximum probation period applies to most jobs, full-time and part-time. Some collective agreements may have different conditions, but even they can’t be more than this one-month maximum duration under the law.

In special cases, like apprenticeships and internships, the period may be longer than 1 month and be up to 3 months, but a normal employment contract can only have a probation period of a maximum of 30 days.

Permanent or Indefinite Contracts

If an employee gets a permanent job in Austria, the employer can set a probation period of one month from the start of the employment contract. Both sides can evaluate each other during this period. 

If the employer is satisfied with the employee’s work, the employee doesn’t need to do anything else. The trial contract simply expires, and they continue to have an ordinary employment contract, where all long-term employee rights apply. 

If the employer wants to terminate the contract during the probation period because they are not satisfied with the work, the notice must be given during the probation period. Otherwise, they’ll have to follow standard Austrian termination rules, including notice periods and severance requirements.

Fixed-Term or Definite Contracts

Probation periods can also be included in fixed-term contracts, but they have to be reasonable given the length of the job.

For example, if an employee gets hired on a two-month contract. A one-month probation period won’t be appropriate. Instead, a one or two-week probation would be a more reasonable period.

Just like with permanent contracts, it has to be written into the contract, and if it’s not, the full protections of a fixed-term employment contract under Austrian law apply from the beginning.

Employers in Austria cannot get around this by continuously hiring people on consecutive fixed-term contracts with probation periods to avoid long-term obligations. This behavior can lead to serious consequences and legal issues.

Legal Considerations for Probationary Periods in Austria

Even though there’s more flexibility during a probation period, the employee can’t be discriminated against or treated unfairly because of their probationary status. Austrian labor law and anti-discrimination protection still apply. Companies cannot fire employees for unlawful reasons.

For instance, the contract can’t be terminated because of the employee’s pregnancy or because they are a member of a union. An employee cannot be fired for their religion, nationality, age, etc.; otherwise, the employer can face legal problems. 

So, while employees can quit a probationary job with no reason and employers can fire workers without a reason, they can’t be discriminated against during that period.

Pay and Working Conditions

During this trial period, an employee gets paid the same salary agreed in the employment contract of employment as other employees doing the same job in the same place. 

A probation period doesn’t change an employee’s basic rights under Austrian law. Employers are also required to register staff with the Austrian Health Insurance (ÖGK) before their first day of work, even if the employment is temporary or part-time.

Termination and Notice

A major advantage of the probation period for both sides is that no notice period is necessary to terminate the job. Either the employer or the employee can terminate the contract with no explanation or extra paperwork.

After the probation period, if neither side has terminated the contract, the contract just continues as normal. At this point, the normal Austrian rules for quitting or firing someone apply, including all the notice periods, which typically range from 2 weeks to several months.

Vacation / Holidays

Vacation days start accumulating from the first day of employment in Austria, including during the probationary period. For full-time employees, the statutory vacation entitlement is 25 paid working days per year.

In the first six months of employment, staff earn vacation time and can usually only take the days they’ve earned so far, unless employers agree to give them more vacation time in advance.

Vacation time is not the only holiday-related entitlement given to probationary employees. In Austria, probationers also get paid public holidays. If employment is terminated during this period, employees may get compensation for their unused vacation days.

Probationary employees also get paid sick leave from the first day of their employment. If they get sick during the trial period, they present a doctor’s note and get sick pay, just like other employees.

Benefits of Probationary Period in Austria

The probation period in Austria is very useful for both the employer and the employee. It offers a great opportunity for the employee to decide if the work is suitable for them, and allows the employer to decide if the employee is a good fit.

  • For Employees

A probation period is a trial period for employees that minimizes risks. They have the opportunity to see if the work environment is suitable, get to know their colleagues, and determine whether the job matches their expectations and goals. If not, probationary employees can quit with less hassle and notice compared to if they were fully employed outside of this period. 

Employees are still protected against discrimination and get paid the same amount as a permanent worker in a similar position.

  • For Employers

This period is an opportunity to test the new employee in real working conditions to see if they fit well in the work environment.

If the employer is not satisfied, they can simply terminate the contract without having to go through the complex formalities of a normal termination.

Employers can also use this probation period to train employees and create a timeframe that lays out their progression based on performance.

Conclusion

The probation periods in Austria are useful for both employers and employees. They give both sides a chance to determine whether they are happy with each other without having to deal with formal terminations. Probation periods, although flexible, are still regulated. The Austrian labor law has strict rules about duration, pay, termination, and employee rights during this period.

If you’re managing a remote team or looking to hire talent in Austria without setting up a local legal entity, dealing with probation rules, contracts, and collective agreements can be difficult. Remote People makes the process easier. You can leave the compliance, local labor laws, and onboarding to us and hire top talent in Austria with peace of mind.

Frequently Asked Questions

No, it’s not mandatory. But if it’s included, it must be stated in the employment contract, and it is regulated by Austrian law.

The maximum length of the probation period according to Austrian law is one month from the first working day. However, in special conditions like apprenticeships and internships, it can be longer.

Yes. This is one of the benefits of probation periods. However, the termination can’t be discriminatory or abusive.