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Employment Contract
I need a junior employment agreement for a graduate with 1 year of industry experience, who will join a rotational program to identify expertise aligned with their skills. The contract should include statutory leave, exclude stock options, and specify a 6-month probation period with a 1-week notice, transitioning to a 1-month notice period thereafter.
What is an Employment Contract?
An Employment Contract is the legal agreement between you and your employer that forms the foundation of your working relationship in Austria. It outlines your key rights and responsibilities, including your role, working hours, salary, and benefits under Austrian labor law (Arbeitsrecht).
Under Austrian regulations, this contract must cover specific elements like holiday entitlements, notice periods, and applicable collective agreements (Kollektivvertrag). While oral contracts are legally valid, written contracts offer better protection and clarity for both parties. Most Austrian employers use standardized templates that comply with the General Civil Code (ABGB) and the Salaried Employees Act (Angestelltengesetz).
When should you use an Employment Contract?
Create an Employment Contract before any new hire starts working at your organization in Austria. This written agreement needs to be ready when you've selected a candidate and want to formalize the employment relationship - ideally before making any verbal commitments about salary or working conditions.
Austrian law requires specific terms to be documented for all employment relationships, from full-time staff to part-time workers. Using a formal contract protects both parties by clearly defining expectations, prevents misunderstandings about roles and responsibilities, and ensures compliance with Austrian labor regulations. It's particularly important when hiring specialized professionals, managing remote workers, or offering unique compensation packages.
What are the different types of Employment Contract?
- Simple Employment Contract: Basic version for straightforward employment relationships, covering essential terms required by Austrian law
- Employment Contract: Comprehensive agreement with detailed terms for professional positions, including performance metrics and benefits
- Work Contract Agreement: Specialized version for project-based or fixed-term employment arrangements
- Workers Contract Of Employment: Tailored for blue-collar workers under specific collective agreements
- Non Disclosure Agreement For Employees: Supplementary agreement for roles requiring strict confidentiality measures
Who should typically use an Employment Contract?
- Employers: Austrian companies, organizations, and business owners who draft and issue Employment Contracts, ensuring compliance with labor laws and collective agreements
- Employees: Workers who review, negotiate, and sign these contracts, gaining clear documentation of their rights and obligations
- HR Managers: Responsible for preparing contract drafts, managing negotiations, and maintaining employment records
- Legal Counsel: Internal or external lawyers who review and modify contracts to ensure compliance with Austrian employment law
- Works Councils: Employee representatives who may review contracts to ensure alignment with workplace agreements and worker protection standards
How do you write an Employment Contract?
- Basic Details: Gather employee's full name, address, position title, start date, and agreed salary
- Working Hours: Document regular hours, overtime arrangements, and rest periods according to Austrian labor law
- Collective Agreement: Identify which collective agreement applies to your industry and position
- Benefits Package: List all agreed benefits, including vacation days, health insurance, and any special allowances
- Notice Periods: Specify notice periods for termination as per Austrian employment law
- Special Requirements: Note any confidentiality needs, non-compete clauses, or specific work location arrangements
- Document Generation: Use our platform to create a legally compliant contract that includes all mandatory elements
What should be included in an Employment Contract?
- Party Details: Full legal names and addresses of both employer and employee
- Position Description: Job title, duties, responsibilities, and reporting structure
- Compensation Terms: Base salary, payment schedule, bonuses, and applicable collective agreement references
- Working Time: Regular hours, overtime rules, break periods, and vacation entitlements
- Duration & Notice: Contract term (fixed/indefinite), probation period, and termination conditions
- Work Location: Primary workplace and any remote work arrangements
- Data Protection: GDPR-compliant clauses on personal data handling
- Signatures: Dated signatures of both parties, with space for works council approval if required
What's the difference between an Employment Contract and an Employment Offer Letter?
An Employment Contract differs significantly from an Employment Offer Letter in both scope and legal weight under Austrian law. While both documents relate to employment relationships, they serve distinct purposes and are used at different stages of the hiring process.
- Legal Binding: Employment Contracts are comprehensive, legally binding agreements that detail all terms of employment, while offer letters are preliminary documents that outline basic employment terms before formal contract signing
- Timing: Offer letters come first as initial proposals, while Employment Contracts formalize the final, negotiated terms
- Content Depth: Employment Contracts must include all mandatory elements under Austrian labor law, collective agreements, and detailed terms. Offer letters typically contain only basic information about the position and compensation
- Legal Protection: Employment Contracts provide full legal protection under Austrian employment law, while offer letters mainly serve as preliminary documentation of intent
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