10.6092/issn.1561-8048/10787
Austria has shut-down significant parts of the economy as well as public life since mid-March 2020 including schools, universities, shops, services and restaurants. Since May the measures have been relaxed towards a “new normality”. To counter dismissals a rather generous short- time work scheme was introduced that guarantees the employees an income at 80 – 90% of their former net wage. The other measures include special precautions for employees with high risks of serious etiopathology, special care leave and an obligation to use holidays and time credits.
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Martin Risak
Italian Labour Law e-Journal
Paid care leave
COVID-19 and Labour Law: Austria
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National Reports
2020-04-15
2020-04-14
2020-04-15
2020-09-15
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Martin Risak
2020/04/15
10.6092/issn.1561-8048/10787
University of Wien
1561-8048
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Paid care leave
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COVID-19 and Labour Law: Austria
https://illej.unibo.it/article/download/10787/11109
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COVID-19 and Labour Law: Austria                                                   Italian Labour Law e-Journal
Martin Risak                                                                      Special Issue 1, Vol. 13 (2020)
martin.risak@univie.ac.at                                           Covid-19 and Labour Law. A Global Review
                                                                                                ISSN 1561-8048
                                                                 https://doi.org/10.6092/issn.1561-8048/10787




                   COVID-19 and Labour Law: Austria
                           Martin Risak*

                                                 Abstract
     Austria has shut-down significant parts of the economy as well as public life since mid-March
     including schools, universities, shops, services and restaurants. To counter dismissals a rather
     generous short-time work scheme was introduced that guarantees the employees an income at
     80 – 90% of their former net wage. The other measures include special precautions for
     employees with high risks of serious etiopathology, special care leave and an obligation to use
     holidays and time credits.

     Keywords: Covid-19; Labour Law; Short-time work; Health and safety; Paid care leave.




 1. The General situation.

     In Austria on 25th February 2020 the first patient was tested positively for the Covid-19
 disease. It took some weeks though for government to get really active and only on 10th
 March 2020 universities were closed nationwide with the schools following on 16th March
 2020. After first being only asked to stay at home since 16th March 2020 a formal shutdown
 is in place forbidding the entry of public places in general (exceptions for emergency
 reasons, helping others, occupational purposes, buying necessary goods and to “catch some
 air” although the latter is not limited in time and radius). Social distancing (1 meter) has to
 be followed at all times except for persons living in the same household. Also forbidden is
 opening of shops to sell goods and services beyond the necessities of life; gastronomy also
 has to stay closed expect for preparing food for home-delivery and, since 6th March, for
 take-away. The basis of these restrictions are ministerial ordinances foreseen in the Covid-
 19-Measures-Act (COVID-19-Maßnahmengesetz) that entered into force on 16th March
 20201. If businesses are restricted due to such measures no compensation for losses
 resulting from this is granted by the state only a variety of subsidies without any
 entitlement to it.
     As there is no such official status foreseen in Austrian law no health emergency or
 something similar was declared. Parliament has been extremely active though in the last

 *
   Professor of Labour Law, University of Wien, Austria.
 1
  For an extensive description of all measures undertaken by the Austrian government and public authorities,
 see the report commissioned by the European Union Agency for Fundamental Rights (FRA) for the project
 “Coronavirus COVID-19 outbreak in the EU – fundamental rights implications” at
 https://fra.europa.eu/sites/default/files/fra_uploads/austria-report-covid-19-april-2020_en_0.pdf
 Martin Risak                                                           Italian Labour Law e-Journal
                                                                       Special Issue 1, Vol. 13 (2020)
                                                          Covid-19 and Labour Law. A Global Review
                                                                            Section: National Reports




weeks passing five consecutive legislative packages (the so called five ‘Covid-19 Acts’) very
quickly. Most of them include a ‘sunset-clause’ and will cease automatically by the end of
2020 the latest. Usually these laws were informally discussed with the social partners but –
due to the fast track procedure – no formal consultation took place. The last package
includes extensive rights for the respective ministers to regulate the access to schools,
universities, places of business and workplaces as well as to the public sphere. This is now
the basis for a step-by-step return to normality with small shops being able to start their
business after Easter with the larger ones to follow in May. In shops – not in public places
– since 5th March masks have to be worn obligatorily. Schools will resume on 15th May
when also restaurants and hotels may open again. Universities will stay closed though until
the end of the semester.
   Interestingly work itself was never forbidden during this whole period – actually public
transport was continued as well as schools and daycare facilities had to offer services even
during the shutdown to provide for working parents. Working from home was encouraged
but still needs the consent of both parties; the protection for workplace accidents in a
home-office was extended temporarily. When working outside the home precautionary
measures have to be taken, especially keeping distance of at least 1 meter to other workers.


2. Short-time work.

   The Austrian short-time work scheme was introduced during the 2008-crisis and was
amended on 15th March to now explicitly cover the economic difficulties in connection
with Covid-19. It increases the public funding of short-time work to guarantee that
participating employees receive 80-90% of their last net remuneration. The details for the
short-time work scheme and its funding were then agreed between the Social Partners.
Formally the Labour Market Services that administers the funds passed a Federal Directive
on the Short Time Work Subsidy that mirrors this informal Social Partner agreement. The
Social Partners also provided model agreements for establishments with a works council
and without a works council. Once a short-time work agreement has been reached the
social partners on both sides of the industry (mainly, the Chamber of Commerce and the
Trade Union Federation) have to formally agree as well in order for the employer to receive
public funding (the ‘short time work subsidy’) to compensate him/her for continuing to
pay the employees at least 80% - 90% of their last net income (depending on their level of
pay).
   Short-time working can be agreed for a maximum period of three months and be
extended for three further months. The working hours have to be reduced to between 10%
and 90% of those before. Before and during short time work holiday and time credits,
should be used up. During short-time work, the number of employees in a business must
be maintained at the same level and following the end of short time work, a one-month
retention period as to be observed. employees may only be dismissed for economic reasons
after this month.


https://doi.org/10.6092/issn.1561-8048/10787                                                         2
 Martin Risak                                                                Italian Labour Law e-Journal
                                                                            Special Issue 1, Vol. 13 (2020)
                                                               Covid-19 and Labour Law. A Global Review
                                                                                 Section: National Reports




3. Special care leave.

   A special form of leave parents was introduced as a reaction for the closing down of
schools and childcare facilities: Employers may grant a paid special care leave for the
supervision of children under the age of 14 by their employees for a period of up to three
weeks. The same applies for employees who take care of people with special needs. During
this period, employees will continue to draw their pay (or part of it as agreed) and in return,
employers will receive a refund from the federal government of one third of the wage paid
to the employee during this special care period.


4. Entitlement to continued remuneration and obligation to use annual leave.

    Under Austrian contract law, employees have to be paid their remuneration even
though the employer is unable to provide them with work or to make use of their work
force. In case of vis major, i.e. natural catastrophes, civil wars or epidemics, the general
opinion holds that this provision is not to be applied. Now the law expressly stipulates that
all “measures based on the COVID-19 Measures Act which lead to the prohibition or restriction of entry
to establishments shall be deemed to be circumstances” fall within the sphere of the employer,
meaning that he/she is required to continue to pay wages. In return they may oblige
employees to use up holiday and time credits during this period, up to a maximum of eight
weeks (holiday entitlements from the current year: two weeks).


5. Special protection of high-risk persons.

   An expert-group without the involvement of the social partners has been established
that defines which employees are part of a high-risk group. The definition is still
outstanding. They will then be approached by their social security provider on the basis of
the medication taken and they doctor will issue a certificate that they may show to their
employer. They have then either be granted working from home or measures to exclude
the risk of getting infected to the greatest possible degree or being relieved from work. In
the last-mentioned case the wage costs are refunded by the state. This does not apply
though to persons working in core sectors like health, transportation or supermarkets.




Copyright © 2020 Martin Risak. This article is released under a Creative Commons
Attribution 4.0 International License


https://doi.org/10.6092/issn.1561-8048/10787                                                              3
