Austria || New transitory penalty rule applicable to the posting of workers

Cancellation of the accumulation principle.

Recently, the Austrian Supreme Administrative Court has interpreted the ECJ ruling in C-64/18 Maksimovic a.o. as follows:

As a result of the ruling of the ECJ, the applicable fines for the violation of the obligation to keep documents for posted workers available for inspection shall be limited to the maximum amount stated in the legal provision. Such (maximum) amounts can no longer be multiplied with the number of affected workers as it was foreseen in the law (cancellation of the accumulation principle).

The applicable fines are therefore up to

  •  max. EUR 20,000, if more than 3 employees are affected,
  •  max. EUR 50,000, in case of recurrence.

Given this heavy reduction of the applicable penalties resulting from the ECJ ruling, we expect the Government to react soon and to implement a new penalty system. We will keep you posted.

Ewald Oberhammer

Ewald Oberhammer

Rechtsanwalt, Partner