Wage and Social Dumping Act 2015
Wage and Social Dumping Act 2015
In Austria, wage and social dumping is combated with the help of the Wage and Social Dumping Prevention Act (LSDB-G) proceeded. It regulates the legal entitlement of employees to the remuneration to which they are entitled for the work performed. This is intended to enable fair competition between companies.
It applies to all employees who are employed in Austria, in particular also to employees who are posted or hired out to Austria. The regional health insurance fund inspects all companies that employ staff insured under the ASVG.
Employees who are not subject to Austrian compulsory insurance are checked by the LSDB competence center. The LDSB competence center is operated in cooperation between the financial police and the Vienna Regional Health Insurance Fund.
In the construction sector, BUAK (Bauarbeiter-Urlaubs- und Abfertigungskasse) is authorized to check and report.
What has changed since January 1, 2015?
Since 2011, underpayment compared to the basic salary under the collective agreement has been punishable (administrative penalty). From January 1, 2015, not only the basic salary will be considered, but the controlling authorities can also check all remuneration components subject to contributions. This means that special payments (vacation and Christmas bonuses), overtime bonuses and payments on termination of employment can also be checked. Other remuneration components regulated in the employment contract or works agreement are still not checked.
Fault is not required for the employer to be liable to prosecution. In practice, this means that only 100% error-free payroll accounting can prevent criminal liability. According to the new legal situation, an employer is already liable to prosecution if, for example, overtime is not paid with the correct supplement.
In addition, employees must be informed by the regional health insurance fund if there is a penalty notice against the employer. This could in turn prompt employees to assert claims against the employer (overtime, incorrect classification, etc.).
The penalty range has been increased and is now between EUR 1,000 and EUR 10,000 per employee. Penalties of between 2,000 and 20,000 euros are due in the event of a repeat offense. There are various ways to apply for a waiver of the penalty or leniency in cases of particular hardship.
The limitation period for penalties has been extended: from January 1, 2015, the three-year limitation period begins from the due date of the remuneration of the last wage payment period in the case of continuous underpayment of wages, which comprises several wage continuation periods.
In connection with the Changes to employment law in 2015 some experts therefore recommend not to make use of the simplified time recording system, but to record working hours precisely.
With the help of Time personnel cloud In addition to recording working hours, working times can not only be recorded in an audit-proof manner, but also correctly evaluated in accordance with the applicable collective agreement. For all-in contracts and flat-rate employees in particular, it is advisable to check for underpayment despite the flat-rate system. With the help of Time Professional personnel cloud you can define a suitable report for this.
In this context, Personalwolke Time is an ideal tool for implementing the changes listed here. Take advantage of our non-binding consultationto experience the benefits of our system.
