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How to hire remote employees in
Hiring in Austria? That’s excellent. There are two options: You can hire your talent as employees, or you can hire them as contractors. Because of Austria’s labor law structure, there are benefits and disadvantages to each approach.
If you want to successfully hire in
Austria
, you have two options:
Laws about hiring contractors are significantly more simple in
Austria
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Austria
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Austria
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Austria
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Austria
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Austria than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Austria.
PTO is calculated by the:
There are 13 public holidays.
The duration of sick leave entitlement provided to workers is dependent on how long they have been employed by their employer:
Any sick leave beyond the above entitlement is covered by social security.
Maternity leave is for 16 weeks in Austria and can start from 8 weeks prior to the expected due date. For high-risk births, leave after the birth is extended to 12 weeks.
Maternity leave is paid by social security and is based on the average earnings of the last 3 months before the maternity leave begins.
Fathers are entitled to 1 month of unpaid paternity leave and can be taken until the child reaches the age of 24 months.
There are 2 options that parents can choose:
Parental leave can be taken until the child reaches the age of 24 months. During parental leave, parents are entitled to payment under the Child Care Payment Act from social security.
None.
None.
None.
There are several types of termination in Austria:
The notice period in Austria is based on the length of employment:
The Severance Pay in Austria depends on:
Every month starting from the 2nd month of employment, the employer is obligated to contribute 1.53% towards a provision fund. When the employment relationship is terminated, the employee is entitled to severance pay unless:
If the employee would like to draw the amount from the provision fund, they must submit a letter in writing within 6 months of termination.
Probation period is 1 month.
Full-time employment is considered 8 hours daily, and 40 hours weekly.
Anything over 40 hours per week is paid at a rate of 150% of the regular pay.
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