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The social partners have agreed to extend short-time work. Phase III of short-time work can be applied for from October 1st.

The Austrian Social Partners have agreed to extend short-time working. As of October 1, 2020, phase 3 of short-time working can be applied for, currently for another 6 months until March 31, 2021. According to the Austrian Social Partners, an extension beyond this for another six months from April 1, 2021 will become necessary and is being planned due to the particular impact on certain sectors.

The Austrian Social Partners have agreed to extend short-time working. As of October 1, 2020, phase 3 of short-time working can be applied for, currently for another 6 months until March 31, 2021. According to the Austrian Social Partners, an extension beyond this for another six months from April 1, 2021 will become necessary and is being planned due to the particular impact on certain sectors.

We are pleased to share an update regarding the application procedure for short-time work as a result of the Corona Virus situation:

We have compiled some questions about payroll and employment law for you.

From 2020, employers who do not have a permanent establishment (PE) for taxes on salary in Austria will also be obliged to pay wage tax on their employees if their employees are subject to unlimited taxation. In particular, employees with domestic residence or habitual abode are affected.

In the case of a posting, workers pursue their activity in another Member State on a temporary basis. If employees are posted abroad on business by their employer, insurance contributions abroad may be payable in addition to social security contributions in Austria. In order to prevent this, posted employees need the so-called A1 form as proof of posting. They can use it to document which social insurance system is responsible for them in an EU/EEA country.

On 12 June 2019, the Hungarian Parliament approved a bill that will see the social contribution tax and the simplified contribution to public revenues decrease from 19.5% to 17.5% from 1 July 2019. For companies with internationally mobile employees, the reduction in social tax cost is a welcome move that reduces overall assignment cost to the business and further limits tax cost for employees.