{"id":7577,"date":"2023-11-01T10:56:21","date_gmt":"2023-11-01T09:56:21","guid":{"rendered":"https:\/\/www.eylaw.at\/?p=7577"},"modified":"2023-12-15T11:00:40","modified_gmt":"2023-12-15T10:00:40","slug":"workforce-transformation-in-austria-labor-law","status":"publish","type":"post","link":"https:\/\/www.eylaw.at\/en\/workforce-transformation-in-austria-labor-law\/","title":{"rendered":"Workforce transformation in Austria | Labor Law"},"content":{"rendered":"\t\t
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In today\u2019s economic climate,\u00a0 pressure is increasing on organizations to optimize the efficiency of their workforce and the costs of their business.
For many organizations, there is now an urgent need to adapt to changes in both global and national markets.<\/p>

Planning a workforce transformation project in Austria<\/h3>

When planning a workforce transformation, an employer must first decide on which of the many options they want to utilize for their project. Such projects will often be carried out via personnel restructuring, transfer of employees or termination of employment relationships.<\/p>

Additional options to consider in workforce transformation projects are matrix reporting structures and remote work.<\/p>

If an employer is planning to terminate a large number of employees to meet certain thresholds in the course of the workforce transformation project, then it must comply with the provisions of the \u201cearly warning system\u201d (Fr\u00fchwarnsystem). The \u201cearly warning system\u201d stipulates that employers must notify (in writing) the regional office of the Austrian Employment Agency (AMS) overseeing the business location in advance of dissolving or terminating employment relationships. Following this advance notice to AMS, the employer must also wait for at least 30 days before issuing notices of termination. If employers do not comply with this system, the subsequent terminations are deemed null and void.<\/p>

Furthermore, if the planned workforce transformation includes the termination of employees, employers should assess whether the respective employees might enjoy special protection from termination (e.g., members of the works council, employees on parental leave or parental part-time arrangements). Before proceeding with terminations for the affected employees, the employer should seek the cooperation of the works council and clearly state the timing for the planned transformation measures.<\/p>

Information and consultation obligations<\/h3>

Depending on the selected workforce transformation methodology, different information and consultation obligations must be followed. Prior to the termination of an employee, the employer must notify the works council, which has one week to provide comment on the matter.<\/p>

The permanent reassignment of one or more employee(s) to another position must be reported to the works council without delay. If the transfer to another position entails a reduction in remuneration or other working conditions, the approval of the works council is required for the transfer to be legally effective.<\/p>

If the works council does not provide its consent, the employer may seek a court order to validate the transfer. The court will consent in cases where the transfer can be \u201cobjectively justified\u201d.<\/p>

If an employee demonstrably requests to consult with the works council prior to signing a mutually agreed termination agreement, the employer must allow two working days to lapse prior to concluding any agreement.<\/p>

Therefore, for most workforce transformation processes, the works council must, at least, be informed. In certain circumstances, the works council\u2019s consent must be obtained prior to the termination.<\/p>

If employers plan to implement a remote working environment, they must do so via written agreements with the concerned employees. It is also possible to conclude a work location-specific agreement with the works council regarding remote work. As there are different options concerning matrix structures, the information and consultation rights of the works council must be reviewed for each case.<\/p>

However, when in doubt, it is strongly recommended that employers inform the works council about planned workforce transformation projects, as this will ensure:\u00a0<\/p>