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Temporary agency work

What is cross-border temporary agency work (hiring-out of workers)?

Cross-border temporary agency work exists where

  • an undertaking sends their workers from another country to Austria
  • makes their workers “available” (hires them out) to an undertaking in Austria for the purpose of performing work.

The following features of temporary agency work, while typical, do not all necessarily apply in a given case:

  • The worker is deployed by the user undertaking to perform tasks at that undertaking’s business.
  • While working there, the worker is integrated in the user undertaking’s business and is subject to subject-matter supervision by the undertaking.
  • The worker is obliged to comply with the instructions issued by the user undertaking.
  • The results produced by the worker are not distinguishable from the other products or services originating with the user undertaking.
  • The worker does not perform the majority of the work using tools/equipment and materials belonging to the temporary work agency.
  • The temporary work agency is not liable for successful completion of the work.

What obligations apply to the temporary work agency?

  • To provide information to the hired-out worker:
    • To which business will the employee be hired out?
    • What kind of work will be performed and where?
    • What possible health and safety risks might arise in the work?
    • What are the normal working hours and when will the work have to be performed?
    • What is the pay level and by which collective agreement is the pay governed?
    • When will the assignment begin and how long is it expected to last?
  • Payment of at least the amount of remuneration that is stipulated in the collective agreement for the business in Austria or in the Collective Agreement for Temporary Agency Work
  • Continued remuneration in cases of illness or accident, on public holidays in Austria and when prevented from work for important personal reasons
  • Granting annual leave entitlements pursuant to Austria law, where more favourable for the employee
  • Compliance with Austrian regulations, specifically those related to
    • Working time
    • Termination and dismissal
    • Maternity protection
    • Protection of young employees
    • Safety and health at the workplace

In connection with hiring out workers to Austria, the temporary work agency is also obliged to meet various formal requirements (in particular to notify authorities). The undertaking in Austria using temporary agency workers (user undertaking) also has certain reporting and record-keeping obligations.
A temporary work agency failing to meet these requirements is liable to an administrative penalty or prosecution in court.
In the event of serious breaches of the terms of remuneration, the temporary work agency also risks being prohibited from assigning workers to Austria.
It pays to meet the requirements. Details of the requirements are covered on this website under the sections on specific topics.

What terms are used on this website in the context of “temporary-agency work”?

  • Making workers available to third parties through a specialised business is referred to as “temporary agency work” or “hiring-out of workers” or “assignment”.
  • A temporary work agency is an undertaking that frequently employs workers for the purpose of hiring them out and having them perform work for third parties. Even if the worker is occasionally hired out later, the possibility of which was not considered when the worker was employed, is considered temporary agency work as defined by this website. The temporary work agency is always the employer of the temporary agency workers.
  • The third party for which the temporary agency workers perform work is the user undertaking.
  • The temporary work agency concludes a temporary work contract with the user undertaking.
    The temporary work contract specifies in detail the conditions for hiring out the workers (number of workers, required qualifications, duration of assignment, agreed remuneration to be paid by the user undertaking).
  • The agency remains the employer of the temporary agency workers, even during the assignment.
    The user undertaking is considered their employer during that period only with regard to matters relating to safety and health at work.
  • With cross-border temporary agency work, in many cases the temporary work agency is established outside Austria and in many cases the user undertaking is established in Austria.

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