Tiered structure of labor law
Overview of legal sources under labor law
Austrian employment law is defined by numerous legal sources. In order for HR staff to know which provisions must be observed for employment relationships, it is first important to know the relationship between the various legal sources.
Legal norms can be classified according to their rank, whereby the lower-ranking norm may only be more favorable for employees than the higher-ranking norm. This refers to the principle of favorability.
We have summarized the various stages of employment law to help you better understand the structure of the various stages.
1. union law
At the top of the hierarchy is EU law. This includes, in particular, the Charter of Fundamental Rights of the European Union, which includes the right to freedom to choose an occupation and the right to equality before the law. Social principles are also regulated.
EU directives and regulations must also be observed.
2. federal constitution
The Federal Constitution is the highest-ranking legal source in national law. It does not explicitly contain any specific employment law provisions, but the constitutional principle of equality and freedom of association are important. The division of competencies is also regulated.
3. mandatory laws
In the area of labor law, legislation and enforcement are generally the responsibility of the federal government. Labor law consists mainly of mandatory laws, but this can be taken from the individual laws. Examples of federal laws include the Working Hours Actthat Vacation Act or the Salaried Employees Act.
4. ordinances
Ordinances are binding legal norms issued by individual administrative authorities. Numerous ordinances have been issued, particularly in the area of employee protection law.
5. collective agreement
Collective agreements are concluded between the inter-company interest groups. The collective agreement to be applied in individual cases depends on the employer's affiliation to the chamber.
6. company agreement
At company level, the company owner can conclude a company agreement together with the works council in certain matters.
7. employment contract or individual agreement
The employment contract under private law establishes the employment relationship between employer and employee. The employment contract can only regulate those areas that are not regulated by higher-ranking standards. In the event of a breach of higher-ranking law, the impermissible regulation is replaced by the mandatory standard. In exceptional cases, the breach can also lead to the invalidity of the employment contract.
8. lenient provisions
Unless otherwise agreed between the parties to the contract, flexible or dispositive provisions shall apply.
9. instructions from the employer
The employer's instructions must not violate any higher-ranking standard. If they do, the instruction is inadmissible and employees do not have to follow it.
