The Final Pay Letter To Employee is a mandatory document under Austrian employment law that must be provided to employees upon the termination of their employment relationship. It serves as the formal documentation of the final settlement between the employer and employee, detailing all financial aspects of the employment conclusion. This document is required regardless of the reason for termination (resignation, dismissal, mutual agreement, or retirement) and must comply with various Austrian regulations, including the Salaried Employees Act (Angestelltengesetz) and the Severance Pay Act (BMSVG). The letter should be prepared when an employee's departure is confirmed and must include accurate calculations of all outstanding payments, statutory entitlements, and deductions. It plays a crucial role in ensuring legal compliance and preventing future disputes regarding final settlements.
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1. Letter Header and Date: Company letterhead, date, and employee's contact details
2. Subject Line: Clear indication that this is a Final Pay Letter (Endabrechnung)
3. Confirmation of Employment End: Statement confirming the termination date and type of termination
4. Regular Salary Payment: Final regular salary calculation up to the last working day
5. Vacation Compensation: Calculation of remaining vacation days and corresponding compensation
6. Statutory Notice Period: Confirmation of notice period compliance and any payment in lieu if applicable
7. Mandatory Severance Pay: Details of severance pay (Abfertigung) if applicable under old or new system
8. Tax and Social Security: Information about final tax and social security deductions
9. Payment Details: When and how the final payment will be made
10. Return of Company Property: List of company items to be returned
11. Final Documentation: Reference to enclosed documents like final pay slip and employment certificate
1. Pro-rated Bonus Payment: Include when the employee is entitled to pro-rated bonus or commission payments
2. Overtime Compensation: Include when there is outstanding overtime to be compensated
3. Special Allowances: Include when there are special allowances or benefits to be settled
4. Non-Compete Reminder: Include when the employee is bound by post-employment restrictions
5. Reference Letter Status: Include when addressing the timing and delivery of the reference letter
6. Outstanding Loans/Advances: Include when there are any company loans or salary advances to be settled
7. Health Insurance Transition: Include when specific health insurance transition arrangements need to be addressed
1. Detailed Payment Calculation: Itemized breakdown of all payment components and deductions
2. Vacation Days Calculation: Detailed calculation of pro-rated and remaining vacation days
3. Company Property Checklist: Itemized list of company property to be returned
4. Final Pay Slip: Official pay slip for the final payment
5. Social Insurance Documentation: Required forms for social insurance purposes
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