Amendment to the Austrian Anti-Wage and Social Dumping Act
In July 2021, the lower house of the Austrian Parliament (Nationalrat) passed legislation to amend the Austrian Anti-Wage and Social Dumping Act (LSD-BG), as well as the Austrian Personnel Leasing Act (AÜG). The legislation was not immediately implemented due to lack of approval in the upper house (Bundesrat), but entered the statute book (publication in Austrian Federal Law Gazette) on 9 September 2021, with (most) provisions to be applied from 1 September 2021.
No changes have been made to the legislation since it was passed in the lower house. The main changes in the law arising from the amending legislation are as follows:
- harmonisation or limitation of scope of the LSD-BG in relation to international employee assignments (postings)
- extension of existing exceptions and introduction of new exceptions to the scope of the LSD-BG
- simplifications regarding documentation obligations
- removal of the ‘cumulative principle’ (penalties based on multiple single offences), and introduction of a new penalty framework in the domain of administrative criminal law provisions
- relaxation of requirements regarding the distinction between ZKO 3 and ZKO 4 notifications
- implementation of the directive amending the Posted Workers Directive (Directive (EU) 2018/957).
Further information on the changes can be found in our blog entry dated 12 October 2021.