1E9Ct5D

iveFreedom to Agree ProvisionsThe employer and employee are free to agree on contractual provisions which are nototherwise regulated or compulsory by statute or by collective agreements. For example,the parties may agree on extended periods of notice, longer vacation, additional travelallowances, enhanced redundancy rights, stricter confidentiality provisions, anticompetitioncovenants, etc.Foreign EmployeesThe legal requirements relating to the form and content of employment contracts apply to allemployment contracts in Austria. No distinction is made in this regard between contracts withforeign national employees and with Austrian employees.Also non-resident employers, e.g. representative offices of foreign companies which employstaff in Austria or relocate staff to Austria are subject to Austrian labour law.III Termination of EmploymentiGeneralaForm of TerminationUnless otherwise provided for in the employment contract or in the applicable collectiveagreement, a notification of termination of employment need not be in writing.However, the notification of termination must be clearly given and the words‘notification of termination’ (‘Kündigung’) or ‘giving notice of termination’ (‘kündigen’)must be used.bLength of NoticeThe length of notice to be given by the employer and the employee will depend onvarious factors:a) Minimum notice periods as fixed by law (see II.iii.a above).b) The minimum notice periods may be provided for in the applicable collectivebargaining agreement and/or the terms of the employment contract.c) The maximum notice period available to be given by an employee is six months.d) The length of notice to be given by the employer may not be less than that given bythe employee. There is no cap on a maximum period.e) In contracts for a definite period the contract may provide that it may not beterminated at all during its period of validity unless grounds for immediate terminationarise.cSalary in Lieu of NoticeExcept in the case of immediate dismissal, both the employer and the employee mustalways give the applicable notice of termination and the employee has the right to bepaid his or her salary until the end of the notice period. However, it is possible for theemployer to release the employee from his or her duties during this period. This mayonly be done at the discretion of the employer and not the employee.dInforming the Workers’ CouncilIn enterprises where a workers’ council has been established, the employer must informthe workers’ council about any proposed termination of an employee at least fiveworking days before giving notice of termination. The workers’ council has the right togive its opinion or request consultation. Notice which is given prior to the workers’- 48 -