Employment Law Update - December 2012 (Austria)

Austrian employers will have to pay a dissolution charge in case of certain types of termination of employment (see Section 2b(1) of the Financing Act of the Labour Market ("Arbeitsmarktpolitik-Finanzierungsgesetz"))

- Impact date: 1 January 2013

For employment relationships terminating after 31 December 2012, employers will have to pay a dissolution charge ("Auflösungsabgabe"), provided that none of the exceptions stated by Section 2b, paragraph 2 of the Financing Act of the Labour Market apply.

The dissolution charge is due in the month of the dissolution and payable along with the social insurance contributions.  The charge amounts to EUR 110.00 for each terminated employment relationship, regardless of the prior remuneration of the employee or his/her age or the length of the employment relationship. The generated funds shall be used for labour market policy.