New regulations for freelance workers

On 16 October 2025, the National Council passed comprehensive legislative amendments to the Austrian Civil Code (ABGB) and the Labour Constitution Act (ArbVG) for freelance workers. From 1 January 2026, they can be included in collective agreements and termination regulations will apply that largely put them on an equal footing with employees. The government bill (RV 12 BlgNR 28. GP) was introduced in the National Council at the end of September and amended by the Social Affairs Committee, taking into account some of the comments made during the review phase.

New termination regulations

The new Section 1159(6) of the Austrian Civil Code (ABGB) introduces, for the first time, mandatory statutory notice periods and dates for (permanent) freelance employment relationships within the meaning of Section 4(4) of the Austrian Social Security Act (ASVG). These are as follows:

• 4 weeks in the first and second year of employment
• 6 weeks from the third year of employment

In future, terminations will be permitted on the 15th or the last day of the month, unless a more favourable arrangement has been agreed for freelance employees. In addition, the possibility of a probationary period for the first month of freelance employment has been created. During this period, the freelance employment relationship can then be terminated at any time without reason or notice, as is the case for employees. 

Any deviating agreements made before 1 January 2026 remain valid.

Clarification of the scope of application

Criticism of the original draft focused in particular on the lack of restriction to freelance employees who are similar to employees. This has now been corrected: both Section 1159(6) and Section 1164a of the Austrian Civil Code (ABGB) now expressly refer to Section 4(4) of the Austrian Social Security Act (ASVG). In future, this will therefore cover freelance employees who ‘commit themselves to providing services for a definite or indefinite period of time’ and who ‘receive remuneration for this activity, provide the services essentially personally and do not have any significant operating resources of their own’. This does not include freelance employment relationships of tradespeople, freelancers or artists.

Collective agreements for freelance employees

The provisions of Sections 1 to 3 of Part I of the ArbVG will in future also apply to freelance employment relationships within the meaning of Section 4(4) ASVG. The amendment thus creates the legal basis for freelance employees who are similar to employees within the meaning of Section 4(4) ASVG to not only be included inollective agreements in future, but also for collective agreements to be established for them (Section 18ff ArbVG) and minimum wage rates (Section 22 ArbVG) to be enacted. In future, the parties to collective agreements will therefore have the option of either concluding separate collective agreements for freelance employees or including them in existing collective agreements. 

However, there is still no obligation to include freelance employees in collective agreements. The option of setting minimum wages is limited to minimum wages and minimum amounts for reimbursement of expenses. In this context, it has been clarified that, in the absence of a fixed working time, the minimum wages stipulated in collective agreements only apply to those working hours that are actually required to fulfil the freelance employment relationship.

However, works agreements cannot be concluded for freelance employees in the future either. Likewise, the scope of the works constitution has not been extended to freelance employees. They will therefore continue to have neither active nor passive voting rights in works council elections and will not be represented by a works council.

Information in the service note

In addition, the most recent amendment introduced a supplement with regard to the service note that must already be issued to freelance employees (Section 1164a of the Austrian Civil Code): In future, information must also be provided on which collective bargaining agreements – in particular which collective agreement, which statutes or which minimum wage tariff – apply to the freelance employment relationship. In addition, it must be stated where these documents are available for inspection at the company.

There are therefore a number of changes to be aware of from 1 January 2026. We would be happy to advise you on drafting new agreements with (freelance) employees.