Changes to employment law in 2018

Changes to employment law in 2018

Under the motto “Equality between blue-collar and white-collar workers”, changes to employment law were adopted on October 12 and 25, 2017 (Federal Law Gazette I 2017/153 and 154) on the basis of initiative motions. Below is a brief overview of the most important changes:

1. continued payment of remuneration during sick leave

The following regulation comes into force on 01.07.2018 and applies to absences from work that occur in working years that begin after 30.06.2018. For absences from work that are ongoing on 01.07.2018, the regulation comes into force from the start of the working year that begins after 30.06.2018. The entry into force of the continued payment of remuneration in the event of termination by mutual agreement with effect from 01.07.2018, which result in a termination of the employment relationship by mutual agreement after 30.06.2018.

Employees and salaried employees are entitled to eight (instead of six) weeks of full continued remuneration after one year of service (instead of five). Thereafter, employees are entitled to half of their salary for four weeks.

There was also a harmonization between salaried employees and wage earners in the continued remuneration system. The previous distinction between first and subsequent sick leave for salaried employees and the continued payment of full and then half the basic entitlement for sick leave within 6 months of returning to work after the first period of sick leave no longer applies.

Therefore, the working year is decisive for the continued payment of remuneration. Pursuant to Section 8 (9) AngG, the working year can be changed to the calendar year by collective agreement or works agreement – but not by individual agreement. The crediting provisions pursuant to Section 2 (3) and (3a) EFZG have not been adopted for salaried employees.

After the end of the employment relationship, employees and workers are entitled to continued payment of remuneration if the employment relationship is terminated by mutual agreement during a period of sick leave or with regard to a period of sick leave.
Collective bargaining agreement improvements remain in place for the basic quota; those for the re-sickness quota remain in place until the new regulation.

2. adjustment for reasons of inability to work

The abolition of Section 1154b para. 6 ABGB at the end of 30.06.2018 will put blue-collar workers on an equal footing with white-collar workers in that, from 01.07.2018, the collective agreement for blue-collar workers can no longer restrict statutory entitlements, as was previously the case. As a result, existing restrictions on entitlements will automatically cease to apply from 01.07.2018. Collective agreements for blue-collar workers can therefore only provide for improved provisions compared to the statutory general clause for the period from 01.07.2018.

3. notice periods for part-time employees with employee status

As of 01.01.2018, the short notice period of two weeks for part-time employees will be abolished. This means that from the beginning of 2018, no special notice provisions will apply to employees with low working hours, but the “normal” notice period of at least 6 weeks for employer notices and the end of the quarter as the termination date – unless the 15th of the month or the end of the month has been agreed as the termination date.

4. notice periods and notice dates for employees from 2021

As of 01.01.2021, the notice periods and dates depending on length of service for salaried employees will also apply to all wage earners in accordance with Section 1159 ABGB. As is also the case for salaried employees, it is permissible to agree that notice may be given at the 15th and the end of the month instead of the end of the quarter. The relatively mandatory new regulation makes less favorable collective agreement provisions for blue-collar workers generally ineffective from 01.01.2021, but only for notices of termination given after 31.12.2020. However, there are deviating regulations for industries in which seasonal operations within the meaning of Section 53 (6) ArbVG predominate.

5. new non-smoker protection

Employers have until 30.4.2018 to ensure that non-smokers are better protected from the effects of tobacco smoke in the workplace. As of May 1, 2018, smoking in workplaces in buildings is prohibited for employers and employees if non-smokers are employed there. Smoking rooms can be set up if sufficient space is available in the company. However, these must not be workrooms. It must also be ensured that tobacco smoke does not penetrate into areas where smoking is prohibited. Recreation rooms, standby rooms, first-aid rooms and changing rooms may also not be set up as smoking rooms.

6. further new regulations

  • Change in notice periods for freelance employees from 01.01.2021
  • Elimination of the dissolution levy from 01.01.2020
  • No bonus-malus model from 2018
  • Reimbursement of boarding school costs for apprentices from 01.01.2018
  • New regulations on sick pay for apprentices from 01.012018
  • Extension of the sick pay subsidy for employers from 01.07.2018, provided they do not employ more than 10 employees

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