New rules against wage and social dumping
New contributions:
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Why is trust-based working time so controversial? In this blog, we will tell you what trust-based working hours really mean, what opportunities and risks they entail and which legal regulations employees and employers must observe.
Trust-based working hours: flexibility or control and transparency through time recording?
Why is trust-based working time so controversial? In this blog, we will tell you what trust-based working hours really mean, what opportunities and risks they entail and which legal regulations employees and employers must observe.
Changed penalty range: From September 2021, the new amendment to the Act to Combat Wage and Social Dumping (LSD-BG) with a modified EU-compliant range of penalties came into force.
The aim of this legislative amendment is to safeguard the income and rights of employees. Accordingly, the current framework conditions have been improved in order to combat unfair competition through wage and social dumping and to restore the necessary EU conformity of the regulations.
We have summarized the most important changes:
- Abolition of the accumulation principle (punishment per employee)
- Adaptation and extension of the range of penalties for formal offenses
- Stricter penalties in connection with underpayment of employees
- Entitlement to compliance with working hours and rest periods (§ 5)
"Without prejudice to the applicable law, the maximum working hours and minimum rest periods, including the working hours and rest periods stipulated in collective agreements, which apply to comparable employees of comparable employers at the place of work, shall apply to posted employees." - Formal obligations for cross-border employment (§ 22)
"Employers must keep all payroll documents, including time records, in German, with the exception of the employment contract, available at the place of work (assignment) for the duration of employment (in Austria) or the period of the employee's assignment, or make them available to the tax authorities or the Construction Workers' Leave and Severance Pay Fund directly on site and in electronic form at the time of collection, even if the individual employee's employment in Austria ended earlier."
The review process of the LSD-BG was approved in the July plenary session with any amendments from the review process and will therefore apply from September 2021. You can find more information in the Legal regulation, version dated 08.09.2021.
