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Permanent Employment Contract Template for Austria

An Austrian permanent employment contract (unbefristeter Arbeitsvertrag) is a legally binding agreement that establishes an ongoing employment relationship between an employer and employee under Austrian labor law. This document outlines the essential terms and conditions of employment, including position, compensation, working hours, leave entitlements, and termination provisions, while ensuring compliance with Austrian employment legislation, including the Labor Law (Arbeitsrecht), Working Hours Act (Arbeitszeitgesetz), and applicable collective agreements. The contract serves as the primary reference document for the employment relationship and includes mandatory provisions required by Austrian law while protecting both parties' rights and obligations.

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What is a Permanent Employment Contract?

This Permanent Employment Contract template is designed for use in establishing indefinite-term employment relationships under Austrian law. It is the standard form of employment contract in Austria, used when hiring employees for ongoing positions without a specified end date. The document incorporates all legally required elements under Austrian employment law, including the Austrian Labor Law (Arbeitsrecht) and related regulations, while allowing for customization based on specific role requirements and industry standards. It serves as the primary document governing the employer-employee relationship, ensuring clarity on terms such as compensation, working hours, leave entitlements, and termination provisions, while maintaining compliance with both statutory requirements and applicable collective agreements. This contract type is essential for any business operating in Austria that wishes to establish a formal, long-term employment relationship with its staff.

What sections should be included in a Permanent Employment Contract?

1. Parties: Identification of the employer and employee with full legal names and addresses

2. Background: Brief context of the employment relationship and reference to any applicable collective agreements

3. Definitions: Key terms used throughout the contract

4. Position and Duties: Job title, role description, and primary responsibilities

5. Commencement and Duration: Start date and confirmation of permanent nature of employment

6. Probationary Period: Standard one-month probationary period as per Austrian law

7. Place of Work: Primary workplace location and any mobility requirements

8. Working Hours: Regular working hours, break times, and overtime arrangements

9. Remuneration: Base salary, payment intervals, and any guaranteed bonuses

10. Annual Leave: Annual vacation entitlement and public holidays

11. Sick Leave and Continued Remuneration: Sick leave entitlements and notification requirements

12. Social Security and Insurance: Mandatory social security contributions and insurance coverage

13. Termination: Notice periods and termination procedures

14. Confidentiality: Protection of company confidential information

15. Data Protection: GDPR compliance and personal data processing

16. Governing Law: Confirmation of Austrian law application

17. Signatures: Execution block for both parties

What sections are optional to include in a Permanent Employment Contract?

1. Company Car: Terms for provision and use of a company vehicle, included when this benefit is offered

2. Remote Work: Provisions for home office or remote working arrangements, included when relevant

3. Non-Competition: Post-employment competition restrictions, included for senior positions or when dealing with sensitive information

4. Intellectual Property: IP rights assignment, included for creative or technical positions

5. Commission Structure: Details of commission-based compensation, included for sales positions

6. Training Requirements: Mandatory training and professional development obligations, included for regulated professions or specific technical roles

7. Travel Requirements: Business travel expectations and compensation, included when regular travel is part of the role

8. Language Requirements: Required language proficiency and testing, included when language skills are essential

9. Stock Options: Employee share scheme participation, included when applicable

10. Additional Benefits: Any additional company-specific benefits or allowances

What schedules should be included in a Permanent Employment Contract?

1. Schedule 1 - Job Description: Detailed description of role, responsibilities, and reporting structure

2. Schedule 2 - Compensation Details: Breakdown of salary components, bonuses, and benefits

3. Schedule 3 - Company Policies: Reference to or summary of key company policies

4. Schedule 4 - Collective Agreement Provisions: Relevant excerpts from applicable collective agreements

5. Appendix A - Code of Conduct: Company's code of conduct and ethical guidelines

6. Appendix B - IT Usage Policy: Rules for use of company IT systems and equipment

7. Appendix C - Safety Regulations: Workplace safety rules and procedures

8. Appendix D - Travel Policy: Business travel rules and expense guidelines

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Austria

Document Type

Employment Contract

Cost

Free to use

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