Prohibition of discrimination in minimum wage protection and a further step towards harmonising notice periods for workers and employees (§ 1159 ABGB)

Prohibition of discrimination in minimum wage protection and a further step towards harmonising notice periods for workers and employees (§ 1159 ABGB)

1. Comprehensive prohibition of discrimination in connection with minimum wage protection

The legislator has introduced an explicit and comprehensive prohibition of discrimination for employees who defend themselves against (alleged) underpayment under the LSD-BG – i.e. remuneration that does not meet the minimum standards set out in collective agreements or by law: Deterioration of working conditions, non-consideration for promotion or termination of employment in response to asserting underpayment are now expressly prohibited. Employees in micro-enterprises (fewer than five employees) can also contest terminations if they constitute impermissible retaliatory measures.

For employers, this means that labour law measures taken in connection with the assertion of underpayment must be examined particularly closely to ensure that they are objective and appropriate.

2. A step closer to harmonising notice periods for workers and employees (§ 1159 ABGB)

Since 2018, legislators have been gradually attempting to standardise the notice periods for workers and employees. Initially, the statutory notice periods for workers were aligned with those for employees in Section 1159 of the Austrian Civil Code (ABGB). At the same time, however, there was a statutory opening clause for industries with predominantly seasonal operations: here, shorter notice periods than the statutory periods could be agreed.

The scope of this exemption has occupied the highest courts in recent years and has led to considerable uncertainty in practice. This is now coming to an end: the exemption will be abolished retroactively as of 1 July 2025 without replacement. In future, it will no longer be possible to agree on deviations from the statutory notice periods in collective agreements.

However, the legislator has decided on comprehensive exemptions for existing collective agreements, which largely consolidate the status quo. Shorter notice periods in collective agreements that were legally agreed between 1 January 2018 and 30 June 2025 will remain in place. The only requirement is that the minimum notice period is one week. Temporary provisions in collective agreements may be extended. Changes are only possible in favour of workers: Notice periods in the collective agreements affected by the exception can be extended but not shortened, and the scope of the provisions can also be restricted but not extended. According to legislative materials, 29 collective agreements are affected by this exception.