Global HR
Law Guide
  • Argentina
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Argentina
Australia
John Tuck
John Tuck , Australia
Austria
Bahrain
Samir Kantaria
Samir Kantaria , Bahrain
Belgium
Chris Engels
Chris Engels , Belgium
Brazil
Bulgaria
Borislav Boyanov , Bulgaria
Chile
Enrique Munita , Chile
China
Zheng Xie , China
Colombia
Catalina Santos , Colombia
Croatia
Emir Bahtijarević , Croatia
Cyprus
Czech Republic
Nataša Randlová , Czech Republic
Denmark
Yvonne Frederiksen
Yvonne Frederiksen , Denmark
Estonia
Karina Paatsi , Estonia
Finland
Seppo Havia , Finland
France
Pascal Lagoutte
Pascal Lagoutte , France
Germany
Markus Bohnau , Germany
Greece
Hong Kong
Catherine Leung , Hong Kong
Hungary
Hedi Bozsonyik , Hungary
India
Rohit Kochhar , India
Ireland
Síobhra Rush , Ireland
Israel
Orly Gerbi , Israel
Italy
Kazakhstan
Yuliya G. Chumachenko , Kazakhstan
Latvia
Toms Sulmanis , Latvia
Lithuania
Žilvinas Kvietkus , Lithuania
Luxembourg
Guy Castegnaro , Luxembourg
Mexico
Jorge De Presno , Mexico
Netherlands
Philip Nabben
Philip Nabben , Netherlands
New Zealand
Peter Kiely
Peter Kiely , New Zealand
Norway
Claude A. Lenth , Norway
Papua New Guinea
John Tuck
John Tuck , Papua New Guinea
Peru
Luis Vinatea , Peru
Poland
Portugal
Inês Reis , Portugal
Romania
Roxana Abrasu , Romania
Saudi Arabia
Mohsin Khan , Saudi Arabia
Serbia
Singapore
Desmond Wee
Desmond Wee , Singapore
Slovakia
Dušan Nitschneider , Slovakia
Slovenia
Darja Miklavčič , Slovenia
South Korea
Sang Wook Cho , South Korea
Spain
Roman Gil
Román Gil , Spain
Sweden
Jenny Hellberg , Sweden
Switzerland
Alfred Blesi , Switzerland
Turkey
Erim Bener , Turkey
Ukraine
Oksana Voynarovska , Ukraine
United Arab Emirates
Samir Kantaria
Samir Kantaria , United Arab Emirates
United Kingdom
James Davies , United Kingdom
Venezuela
Victorino Márquez , Venezuela
1. Recruitment
1.1 Do advertisements for jobs require any particular wording or details about the job?
Updated on 31 March 2023

There are no legal requirements for the wording of a job advertisement to contain particular details about the job. However, em...

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1.2 What checks can an employer carry out about the background (including social media checks) and health of job applicants and at what stage in the hiring process? Can employers ask for references?
Updated on 31 March 2023

There are no specific legal restrictions on checks an employer may carry out on job applicants. However, employers must be careful not to discriminate against certain candidates. The employer has the right to check personal, educational and...

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1.3 Can employment be made subject to a probationary period? If so, how long for?
Updated on 31 March 2023

Probationary periods are allowed only for permanent indefinite-term contracts and m...

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1.4 Are there special rules about dismissal during a probationary period?
Updated on 31 March 2023

An employer must not use a probation period more than once with the same employee. The employer must also not fill the same position with a succession of employees on probation, as this is considered abusive. D...

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1.5 Can job applicants bring claims against the prospective employer? What might they claim for?
Updated on 31 March 2023

Job applicants may bring claims for unlawful discrimination against a prospective employer based on pre-contractual liability. If the prospect...

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1.6 What processes should be followed in employing foreign workers?
Updated on 31 March 2023

Foreign nationals cannot travel to Argentina without a visa, and the Immigration Office has authorised the entry of foreign nationals only for working or professional reasons. To obtain such a visa, a local employer registered at the Immigr...

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1.7 What records should an employer keep about the employment of foreign workers?
Updated on 31 March 2023

The following documentation is required from employees: a copy of the employee’s passport; a copy of the Argentinean ID (’Documento Nacional de Identidad’) issued by the Interior Ministry in temporary and permanent residence visas; t...

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1.8 Can employers keep their records about candidates they did not hire?
Updated on 31 March 2023

Yes, employers can keep records of candidates they...

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1.9 What questions can’t employers ask in interviews?
Updated on 31 March 2023

Employers must not ask for any personal or private information that is not relevant to t...

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2. Employment Contracts
2.1 What determines whether an individual is an employee or an independent contractor and what is the practical difference?
Updated on 31 March 2023

Under Argentinean law, the circumstances of the employment relationship determine whether a person is an employee or a self-employed worker. The legal, technical and economic circumstances are key factors in determining the existence of an ...

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2.2 Are there any other key distinctions between types of employees (e.g. blue collar, white collar, or sales representatives) and what practical difference does this make?
Updated on 31 March 2023

There are no legal distinctions between types of employees. However, economic dependence is a key factor used to determine employment status and it is t...

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2.3 Are there any special rules that apply to the employment of company directors?
Updated on 31 March 2023

Contract law governs directors. However, directors may opt out of the social security system. If directors have executive responsibilities, they must be considered as employees. Therefore, many dire...

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2.4 Are there any rules about part-time employment and do employees have a right to request part-time or flexible arrangements?
Updated on 31 March 2023

There is specific law in Argentina relating to part-time contracts. Employers must not treat part-time workers less favourably than full-time, indefinite-term employees. Part-time workers must not work more than two-thirds of the...

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2.5 Are there any rules or restrictions on fixed-term employment?
Updated on 31 March 2023

Under labour law, the employment contract may be for a fixed term. Fixed-term contracts terminate on the expiry of the specific term for which they were agreed, but require between one and two months’ notice. The contract must be formalis...

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2.6 When is a fixed-term employment contract converted into an indefinite-term contract?
Updated on 31 March 2023

If the employer does not give notice or formalise the con...

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2.7 What are the legal and practical implications of engaging temporary workers through an employment agency?
Updated on 31 March 2023

Local law does not prohibit the employment of temporary workers through an employment agency. However, if the employer cannot justify the arrangement or if the contract with the third party agency is illegal, temporary work...

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2.8 Can the employer put its employees at the disposal of another company? If so, what restrictions apply?
Updated on 31 March 2023

There are no specific legal restrictions on whether an employer may put its employees at the disposal of another...

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3. Terms and Conditions
3.1 Is it necessary to provide a written employment contract? If so, what terms must be in the contract and when must the contract be provided?
Updated on 31 March 2023

There are no formal requirements for indefinite-term contracts, therefore, is not necessary for these contracts to be in writing. However, employees must:   be registered with the Social Security Administration; have a social security...

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3.2 Is it common in your country to issue an offer letter in addition to the employment contract?
Updated on 31 March 2023

It is not common practice in Argentina for the employer to issue an offer letter in addition to the contract, but it is...

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3.3 What language should the employment contract be in?
Updated on 31 March 2023

There are no legal restrictions about the language of the employment contract. However it would be appropriate for the contract to be drafted in the local language, so it can be used more effectively as evidence in the case of a dispute. If...

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3.4 Are there any terms that are always implied into an employment contract, even if they are not set out in writing? What are they?
Updated on 31 March 2023

For indefinite-term employment relationships, there is no obligation to execute an employment contract in writing. However, the employment contract must not revoke any other employee rights granted by law or collective bargaining agreements...

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3.5 Does the written contract of employment have to contain all the terms and conditions of employment or is it possible to incorporate terms from other agreements or documents?
Updated on 31 March 2023

It is possible to incorporate, at any time, terms from other agreements or documents, including a collective b...

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3.6 What are the legal considerations when an employer wants to make changes to employees’ terms and conditions?
Updated on 31 March 2023

The employer is only permitted to unilaterally introduce changes to the employee’s terms and conditions if such changes are reasonable, only affect non-essential labour conditions and do not cause moral or financial harm to the employee. ...

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3.7 What documentation is normally made available to the employee in addition to contractual documents? How are non-contractual documents distinguished from contractual ones?
Updated on 31 March 2023

Employers usually provide employees with various policies and rules.  These typically include:   a code of conduct; a confidentiality policy; an IT policy; email and communications policies; a disciplinary policy; an harassment polic...

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4. Compensation and Benefits
4.1 Is there a minimum wage? Does it have to be paid through basic salary only, or can other payments made to the employee (e.g. tips, bonuses, housing allowance etc) be included?
Updated on 31 March 2023

The Committee for the Minimum Wage, composed of representatives from the government, employers and employees, sets national minimum wage rates. Starting from March 2021 full time employees must not earn less than ARS 21,600 per month.�...

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4.2 Are wages automatically adjusted in line with inflation? If so, how does this work?
Updated on 31 March 2023

There is no requirement or system for wages to be adjusted for inflat...

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4.3 In outline, what tax and social security obligations are on the employer and employee and what arrangements must be put in place to ensure these are met?
Updated on 31 March 2023

Tax  Income tax and social security must be withheld by the employer from the employee’s salary, together with the employer’s contribution. Payments of the taxes and other contributions to the tax authorities are made by the employe...

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4.4 What is the rate of income tax and social security for an employee with an income of EUR 100,000, married with two children?
Updated on 31 March 2023

In Argentina, for an employee with an income of EUR 100,000, the rate of income tax is 31% of the employee’s total income. However, if the employee is married with two children, he or she may treat approximately EUR 2,731.87 as non-ta...

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4.5 Are there rules governing the payment of bonuses? What type and size of bonuses are common in practice? If someone leaves, is it possible to claw back bonus already paid out?
Updated on 31 March 2023

Senior executives are usually rewarded with bonuses according to the organisation’s performance and the executives’ individual achievements. There are no rules restricting how much emplo...

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4.6 Are employers required to provide any particular benefits to employees (other than pension contributions)? If so, what are they?
Updated on 31 March 2023

All employees have the right to a 13th month payment, which is paid in two instalments in June and December. During ...

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4.7 In practice, what benefits are usually offered to employees?
Updated on 31 March 2023

Under employment law, certain social benefits are made available to employees. These are social security services that the employer grants the worker directly or through third parties. These benefits are not considered as salary, not paid i...

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5. Working Hours
5.1 Is there a limit on daily and/or weekly working hours?
Updated on 31 March 2023

According to employment law, the working day must not exceed eight hours per day and the working week must not exceed 48 hours, except in the following cases: Directors and managers. Team work, provided that during a three-week period the ...

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5.2 If so, is it possible to exceed this limit through agreement?
Updated on 31 March 2023

The Ministry of Labour may provide for exceptions to the regulations and can authorise working time over the limits prescribed by law. The law establishes a ...

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5.3 Are any employees exempt from the rules about working time?
Updated on 31 March 2023

Argentinean working time regulations are applicable to all employees except for directors and managers of...

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5.4 What time recording obligations are there on employers?
Updated on 31 March 2023

The employer must keep a record of overtime worked....

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5.5 Does the law allow for or encourage agile working (having self-managing interdisciplinary teams with employees switching between them based on company requirements; flexible working time; open-plan offices; increased remote working)? If so, what are the rules?
Updated on 31 March 2023

Argentinean labour law does not prohibit agile working as long as the working time regulations are observed. There are no specific legal rules on agile working, though many companies include provisions regarding agile worki...

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5.6 Are there any limits on overtime work?
Updated on 31 March 2023

The maximum number of overtime hours is restricted to 30 per month a...

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5.7 Do we need to get consent from employees for overtime?
Updated on 31 March 2023

A worker must not be com...

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5.8 Is there a specific rate of pay that applies to overtime? If so, please specify.
Updated on 31 March 2023

A worker paid on a monthly basis and performing duties during the week is not entitled to any additional payment if he or she does not exceed the maximum legal limit of 48 hours week or the ...

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5.9 What rules (if any) are there regarding breaks and rest periods?
Updated on 31 March 2023

An employee must not be made to work between 13:00 on Saturdays and midnight on Sundays except where authorised by the Labour Ministry or by any regulation, in which case the worker must be compensated with a rest period of equa...

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5.10 What are the consequences for an employer of: (a) exceeding the limits on daily/weekly working hours; and (b) breaking the rules on breaks and rest periods?
Updated on 31 March 2023

Infringements for exceeding daily or weekly limits on working hours or the rules on rest periods are governed by specific laws. Infringements could result in a fine to be paid by the employer. Control...

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6. Time Off Work
6.1 What is the minimum entitlement to annual leave?
Updated on 08 August 2023

The statutory minimum annual leave entitlement ranges from 14 days to 35 days. Note that this includes days falling on the weekend....

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6.2 How much are employees entitled to be paid for annual leave?
Updated on 08 August 2023

During annual leave, each employee has the right to a ‘vacation bonus’. This is calculated by dividing the employee’s...

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6.3 Do employees have a right to paid time off work for public holidays?
Updated on 08 August 2023

Employees are not required to work on national holidays. Those who do work are entitled to a 100% increase on their normal rate of pay. There are normally fifteen public holidays each year in Argentina. They are: 1 January, New Year’s Da...

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6.4 What rules apply to employees who are absent from work on account of sickness?
Updated on 08 August 2023

Employees with less than five years’ seniority are entitled to up to three months’ paid leave per year in the case of illness. If the employee has more than five year...

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6.5 What are the arrangements for family-related leave and pay? In practice, do employers provide the minimum only, or might they make more generous arrangements?
Updated on 08 August 2023

As well as the right to double the usual period of paid sick leave, employees who are parents receive a family allowance from the social security administration. The main rights to family-related leave and pay are summarised below. Maternit...

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6.6 What types of leave (other than family or care-related leave) are available?
Updated on 08 August 2023

The law establishes paid leave for: marriage: 10 days; death of spouse, child or parent: 3 days; death of brother or sister: 1 ...

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7. Health and Safety
7.1 Broadly, what are the minimum legal standards that an employer must meet to ensure the safety of employees?
Updated on 08 August 2023

Employers are responsible for protecting employees and their possessions and for guaranteeing a safe and healthy workplace. This includes a safe workplace, safe equipment and work that is safe for physical and mental wellbeing. Therefore, a...

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7.2 How are health and safety rules regulated and enforced in practice?
Updated on 08 August 2023

Health and safety duties are regulated by extensive legislation. The Labour Ministry can take action to penalise any act or omission in breach of the formal requirements or the recording obligations set out in the health and safety at work ...

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7.3 What are the consequences for employers of breaches of health and safety rules?
Updated on 08 August 2023

If an employer breaches health and safety rules, inspectors from the Labour Ministry can issue an ‘improvement notice’ requiring the breach to be remedied, and the company may be penalised with a fine. The employer’s insurance premium...

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7.4 Can an employer be liable for the activities of third-party contractors?
Updated on 08 August 2023

An employer can be liable for harm caused to employees or other visitors by unsafe premises, where t...

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7.5 If there is a serious work accident, is there a requirement to notify the authorities and what does this involve?
Updated on 08 August 2023

The employer must notify the insurance company covering risks relating to work accidents, who has the legal obligati...

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8. Discrimination
8.1 What kinds of characteristics are protected by discrimination law?
Updated on 08 August 2023

Employment law prohibits discrimination based on any of the following grounds: sex; race; national origin; religion; political or union opinion or affiliation; and age. In addition, anti-discrimination law prohibi...

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8.2 Are there circumstances where it is not discriminatory to treat someone differently when they have (or do not have) one of these characteristics?
Updated on 08 August 2023

It is possible to treat people differently without discriminating against them, depending on the circumstances of each case. The law prohibits arbitrary or unfair discriminatory treatment, but not all differences in treatment. Therefore, un...

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8.3 Is there a duty on employers to avoid 'indirect' discrimination (i.e. where a rule applied to all employees disadvantages a protected group)?
Updated on 08 August 2023

The legal system prohibits indirect discrimination. This kind of discrimination may be less easy to spot than direct discrimination, but it is unlawful nevertheless. Sometimes, a policy, r...

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8.4 Is there an obligation to make reasonable adjustments, e.g. for disabled employees or those with religious beliefs?
Updated on 08 August 2023

Under Argentine labour law an employer must provide all reasonable adjustments to allow a disabled employee to perform his or her duties, but this does not include an obligation to create a special position for such a purpose. A...

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8.5 Is there protection against harassment based on a protected characteristic?
Updated on 08 August 2023

In the private sector there is no specific legislation against harassment. However, general rules against discrimination based on sex can be applied to protect employees against sexual harassment. In addition, ‘mobbing’ is considered fa...

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8.6 Is there protection against victimisation or retaliation (i.e. where an employee is badly treated for having complained about discrimination, or helped someone else complain)?
Updated on 08 August 2023

There are no specific provisions to protect people ag...

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8.7 What are the potential consequences for the employer if a claim for discrimination, harassment or victimisation/retaliation is successful?
Updated on 08 August 2023

The potential consequences of successful claims for the employer depend on the specific situation. If discrimination, harassment, victimisation or retaliation is deemed to amount to indirect dismissal, the employee is entitled to claim a se...

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8.8 If there is a claim for discrimination, how is the burden of proof shared and what are the most commons defences?
Updated on 08 August 2023

According to case law, in discrimination claims the burden of the proof...

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8.9 Can an employer be liable for the discriminatory actions of its employees or third parties (e.g. customers or suppliers)?
Updated on 08 August 2023

Employers are liable for the acts of employees that occur in the course of perfo...

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8.10 Are there statutory gender pay gap reporting obligations in your country?
Updated on 08 August 2023

There are no statutory obligations regarding gender pay gap reporting in Argentina. There is a consti...

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8.11 What legal obligations do employers have to protect the mental health of their employees? Are mental health conditions a protected characteristic, in terms of protection against dismissal or from discrimination? What are the legal obligations of employers where a mental health condition is protected by law?
Updated on 08 August 2023

Argentinean law requires employers to take all necessary measures to ensure the mental and physical integrity of their employees, and they are responsible in the event of a breach of this duty. Along with the employer´s duty to guarantee t...

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8.12 In practice, how common are discrimination claims by employees?
Updated on 08 August 2023

Discrimination claims are very common in Argentina, especially cases of discrimination based on union activity, f...

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8.13 What are the typical amounts of awards made in cases of unlawful discrimination?
Updated on 08 August 2023

No statutory provisions exist regarding the amount of compensation for unlawful discrimination, and the amounts ...

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9. Employee Data Privacy
9.1 Are there rules on the protection of employee information?
Updated on 08 August 2023

There are no rules that are specific to the protection of employee information, but general data protection law protects employees’ personal information. The law defines personal data as any information about a living individual or a lega...

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9.2 What are the consequences if an employer breaches these rules?
Updated on 08 August 2023

Under data protection law, if an employer fails to comply with the rules, the National Direction of Personal Data Protection, a statutory regulator, can apply sanctions and impose fines from ARS 1,000 to ARS...

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9.3 In practice, how can an employer collect and process confidential employee information?
Updated on 08 August 2023

The employer must comply with labour, health and safety and social security laws. In order to do so, the following information must be collected at the beginning of any labour relationship: employee personal details; the employee’s famil...

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9.4 What are the restrictions (if any) on the monitoring of employees?
Updated on 08 August 2023

There are no significant restrictions on monitoring as long as the surveillance is not carried out in a discriminatory way, is reasonable and does not constitute an invasion of privacy. The local labour administration (‘Ministerio de Trab...

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9.5 What is the legal position with regard to the use of social media in the workplace and when employees are off duty?
Updated on 08 August 2023

The use of social media either at work or when off duty is not regulated by law. It is therefore advisable for employers to implement policies regarding the use of Facebook, Twitter, MySpace, Bebo and other social media.  The employer shou...

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9.6 Is there any protection for employees who 'blow the whistle' on what they think are unlawful or immoral activities?
Updated on 08 August 2023

There is no special protection for whistle-blowing in...

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10. Employee Competition and Confidentiality
10.1 How can an employer ensure employees keep work-related information confidential?
Updated on 08 August 2023

Argentinian employment law establishes a general duty of fidelity in all contracts of employment. As a result, an employee must keep work-related information confidential. This duty of confidentiality exists in relation to the following typ...

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10.2 How can an employer ensure employees do not act in competition with it?
Updated on 08 August 2023

Under Argentinian law, the employee is bound by a duty of fidelity during the employment relationship and is expected to act in good faith during the relationship. The law states that the employee must observe all the duties of fidelity tha...

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10.3 Once employment has ended, can an employer restrict the use of confidential information by employees?
Updated on 08 August 2023

After the employment contract has ended, employers can protect confidential information by including post-termination restrictions on an employee’s activities in the employment contract. These clauses are called ‘restrictive covenants�...

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10.4 Once employment has ended, can an employer prevent employees from acting in competition with it?
Updated on 08 August 2023

Non-compete clauses are becoming common in Argentinian employment practice, especially for directors and senior employees. In order to be enforceable, these clauses must be reasonable and not excessive an...

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11. Worker Representation
11.1 What is the role of trade unions in your jurisdiction?
Updated on 25 October 2022

Trade unions represent most types of workers in Argentina, sometimes including executives and professionals. The right to represent workers is awarded by the Ministry of Labour by means of a resolution of recognition called a ‘Personeria ...

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11.2 Do workforces tend to be unionised?
Updated on 25 October 2022

According to the most recent studies, as of 2021 27% of the formal workforce is unionised. ...

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11.3 Does an employer have to work with an established trade union? If there is no union, must an employer establish or recognise one?
Updated on 25 October 2022

Only officially recognised trade unions can represent the collective interests of employees. As a...

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11.4 What role do employee representative bodies have in the workplace? Is there an obligation to inform and/or consult? Do they have any decision-making powers? When is an employer required to recognise or set up an employee representative body?
Updated on 25 October 2022

Employees who are represented by a trade union can elect representatives to further their interests. The number of representatives is determined as follows: If an organisation has between 10 and 50 employees, one representative may be elect...

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11.5 What legal restrictions are placed on trade unions in terms of organising strikes and other industrial action?
Updated on 25 October 2022

The right to strike is protected, but only recognised trade unions may call a strike. This legal principle was confirmed in June 2016 by the Supreme Court. Before deciding to go on strike or lockout, the parties must follow a certain proced...

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12. Termination of Employment
12.1 On what grounds can an employer lawfully terminate employment?

In Argentina, based on the Constitution, the employer may terminate an employment contract without cause but must pay mandatory severance pay. If the termination is discriminatory and therefore unlawful, the employee will be entitled to req...

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12.2 What employee protection exists where an employer terminates without lawful grounds?

Employment is presumed to be for an indefinite term and can be terminated by the employer without penalty only for cause. Employees hired for an indefinite term who have mo...

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12.3 What is the legal or best practice process for terminating and what happens if an employer fails to follow it?

The employer may terminate an employment relationship with or without cause. If the employer is ending the relationship without cause, the law provides that the employer must give appropriate prior notice of termination. If the employer is ...

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12.4 Are there any special protections against dismissal?

Certain reasons for dismissal are automatically considered unfair. If one of these reasons applies, the legal rules about fair procedure are not relevant.  There are particular rules prohibiting the termination of union representative ...

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12.5 What is the minimum notice period? Are there circumstances where an employee may be entitled to longer?

There are different notice periods according to the employee’s length of service: one month for service of up to five years; and two months for service over five years. During the trial period for indefinite-term cont...

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12.6 Can an employer summarily dismiss by making a payment in lieu of notice? Is summary dismissal ever possible without payment in lieu?

Employers can make a payment instead of the required notice. Typically, employers do not provide prior notice and often make payments in lieu of notice. The payment is subject to inc...

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12.7 What happens if an employee resigns? Could this be regarded as constructive dismissal?

No. The resignation is regarded as a voluntary termination of the employment, ...

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12.8 Is it possible to retire an employee compulsorily?

It is possible to retire an employee compulsorily in the following circumstances: the employee has at least 30 years of pension contributions and is therefore entitled to receive retirement ben...

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12.9 What payments must be made to an employee on termination of employment?

The employer must pay one month’s remuneration for each year of service or any period longer than three months, based on the ‘highest normal, habitual salary’ accrued during the last year of service. For example, if the employee has w...

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12.10 How can an employer settle claims against it by an employee?

An employer can settle purely contractual claims by agreement with the employee, but this can be challenged as invalid by the employee, unless it meets certain conditions. ‘Separation agreements’ by mutual consent must be made before a ...

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13. Collective Dismissals
13.1 Must employers consult with employees about multiple dismissals and how many dismissals trigger this requirement?
Updated on 26 October 2022

Employers can generally decide to close plants and terminate employees without consultation, provided they make full severance payments to the affected employees. If the employer can show that there is a downturn in work volumes or force m...

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13.2 What information must be provided about the dismissals? When must it be given and to whom?
Updated on 26 October 2022

When collective dismissals are expected, the employer should initiate a crisis prevention procedure by informing ...

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13.3 Is there a legal process for consultations? How long do consultations take in practice?
Updated on 26 October 2022

In a crisis prevention procedure, the employer must submit a plan to the Ministry of Labour. Within two days, the Ministry will invite the  employer and the union to a hearing at the Ministry of Labour, and there will be a first attempt at...

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13.4 What happens if the employer fails to comply with the information and consultation requirements?
Updated on 26 October 2022

If the employer does not invoke the special ‘crisis prevention procedure’ that applies to mass redundancies for economic reasons or reasons of force majeure, it w...

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13.5 Is there a statutory selection order that must be applied when a number of dismissals take place?
Updated on 26 October 2022

The employer must start with dismissals of employees with ...

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13.6 Are there any additional payments to make to employees in cases of collective redundancy?
Updated on 26 October 2022

The severance payment for collective redundancy amounts to half of the severance payment ...

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14. Business Transfers
14.1 Are employees protected if the identity of their employer changes following a share takeover?
Updated on 01 November 2022

By law, if a share takeover does not reduce the liability of the existing employer, there is no specific protection for employees. Employees only have a right to stop working and make a claim for constructive dismissal if a s...

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14.2 Are employees protected if the business in which they work is sold to a new employer? Are they protected if a service is outsourced or the business is partially transferred?
Updated on 01 November 2022

Sale of a business  If a business is sold, the existing labour relationships will continue with the new employer on their existing contractual terms and conditions. The buyer company must take account of length of service with the old...

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14.3 If employees are protected upon transfer of the business to a new employer, what are the duties of the old and new employer?
Updated on 01 November 2022

Where a business is transferred, all the obligations arising from the employment contract between the transferor and employee at the time of the transfer pass to the transferee. The employment contract continues with the transferee and the ...

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14.4 Can employees object to transferring to a new employer?
Updated on 01 November 2022

Employees can challenge a transfer if their employment conditions change substantially. If that is the case, they may make a claim for constructive dismissal. If successful, they will be entitled to mandatory severance.  An employee...

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14.5 What happens to the terms of the employment contracts? What happens to employee benefits that are not part of the employment contract (e.g. bonuses)?
Updated on 01 November 2021

Terms  The terms of employment and all rights and obligations under it transfer to the transferee.  A transfer does not constitute grounds to change the terms of employment contracts. Employment terms can only be changed in accordance wit...

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14.6 What liabilities transfer to the new employer? Is there joint liability with the old employer?
Updated on 01 November 2022

The transferor and transferee are jointly and severally liable for employment obligations existing at the time of the transfer. This applies whether the transfer is temporary or permanent, whether or not the trans...

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14.7 What happens to any collective agreements? Do they transfer to the new employer?
Updated on 01 November 2022

In both transfers of businesses and transfers of employment contracts, collective agreements remain in force and cannot be chan...

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14.8 Can employers make changes to people's employment contracts?
Updated on 01 November 2022

In general terms, the employer has the power to introduce any changes it likes to the form and content of the employment contracts, provided they do not involve an unreasonable exercise of that power, alter the essential terms of the contr...

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14.9 When can employees be safely dismissed during or after a transfer?
Updated on 01 November 2022

There is no statutory term (apart from the notice period for dismissal) that employers need to observe before they can carry out redundancies. Thus, the transf...

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14.10 Is there a requirement to consult with employees (or their representatives) upon a business transfer? Who must employers consult?
Updated on 01 November 2022

There is no legal requirement to consult with employees or their representatives before a business transfer takes place. However, employees are often given notice that their labour relationships will continue with the buyer from the ...

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14.11 What information must employers provide before transfer?
Updated on 01 November 2022

The name of the new employer, the date on which the transfer will become effective and details of the employees’ ...

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14.12 What does a consultation involve and how long does it last in practice?
Updated on 01 November 2022

There is no obligation to consult, but in practice it may be wise to do so if the business activities are going to change, people’s jobs will alter, or if the business is going to be reorganised in such a way that this increases the ris...

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14.13 What happens if an employer fails to inform and consult properly?
Updated on 01 November 2022

In the case of a ‘transfer of establishment’, if an employer fails to inform employees about the transfer, the employee demand to be given information and/or consider that he or she has been dismissed.  In the ca...

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14.14 What happens to the works council and other employee representatives upon the transfer of a business?
Updated on 01 November 2022

Argentina labour law does not provide for work councils. Employee representatives will continue their position and duties with the new employer. ...

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15. Pensions
15.1 Are employees entitled to receive state pension benefits? If so, what are their basic rights under the state pension?
Updated on 26 October 2022

In 2008, Argentina returned to using a pay-as-you-go system (‘PAYG’) for retirement, based on the ‘redistribution principle’. In general terms, the following conditions apply to mandatory retirement: workers must have made ...

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15.2 Is there a requirement for employers to provide employees with access to a pension scheme? If so, are there any minimum legal requirements for that pension scheme?
Updated on 26 October 2022

The only requirement for an employer, with regards to providing access to a pension scheme, is to pay the mandatory contributions to the Social Security Administration. When an employee has reached the retirement age of 70 ...

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15.3 Can an employer fund and operate its own pension scheme for its employees? If so, how might the scheme operate?
Updated on 26 October 2022

An employer may not fund and operate its own pension scheme instead of the state pension scheme, as the state l...

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15.4 Is there a requirement to consult with employees (or their representatives) about proposed changes to an employer's pension arrangements? If so, what are the consultation requirements?
Updated on 26 October 2022

An employer has statutory duty to consult affected employees in connection with any change to a private pension scheme, except where ...

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15.5 In general terms, what is the tax treatment of pensions in your country?
Updated on 26 October 2022

In Argentina, pensions are given the same tax treatment as salary and so the income an individual earns from pens...

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15.6 What, if anything, needs to be put in the contract of employment about pensions' entitlement?
Updated on 26 October 2022

Nothing needs to be put in t...

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16. Investigations & Performance Management
16.1 When must an employer conduct an investigation and what are the investigations normally about?
Updated on 01 November 2022

An investigation must be conducted before any disciplinary action may be taken for a breach of the employment contract, a breach in the duties ...

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16.2 Are employees obliged to report suspected misconduct or is this left up to their good will?
Updated on 01 November 2022

Yes, employees are obliged to report any suspected misconduct. It is best practice for employers to remind employees o...

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16.3 How soon must the employer start an investigation and how must it conduct it?  
Updated on 01 November 2022

The law does not establish any specific deadline to start the investigation after the alleged misconduct. However, it requires that the disciplinary action must be ‘contemporary’ to the misconduct, so the sooner the ...

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16.4 Do employees have to participate in an investigation conducted by the employer?  
Updated on 01 November 2022

Employees are not obliged to participate in an investigation conducted by an employer, but the employee must cooperate...

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16.5 Can the employee be represented by a lawyer in the investigation?   
Updated on 01 November 2022

Yes, but it does not happen frequently except in the most serious cases.  ...

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16.6 Must the employer show the employee all the evidence?  
Updated on 01 November 2022

Yes, in order to adequately support the eventual disciplinary action.  ...

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16.7 Is there a separate regime for ‘whistleblowing’  and if so, what does it cover? 
Updated on 01 November 2022

There is no special protection for whistle-blowing in the law, and employers are not required to put systems in place to allow for anonymous reporting.   ...

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16.8 What are the processes for dealing with low performance? 
Updated on 01 November 2022

The standards and procedures for low performance are a series of disciplinary actions that can take place gradually. The first step is a verbal warning, followed by a written warning, and then suspension without payment of salary....

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16.9 Are there statutory rules about how grievances should be handled?
Updated on 01 November 2022

There are no statutory rules regarding employee grievances, but the employer can be bound by an internal policy for handling grievances. The employer can decide whether or not grievances are or can be anonymous, and can establi...

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1. Recruitment
1.1 Do advertisements for jobs require any particular wording or details about the job?
Updated on 31 March 2023

There are no formal requirements in relation to the form or content of job advertisements in Australia. Nevertheless, it is important to ensure that advertisements and statements made in the course of pre-employment negotiations are not mi...

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1.2 What checks can an employer carry out about the background (including social media checks) and health of job applicants and at what stage in the hiring process? Can employers ask for references?
Updated on 31 March 2023

In broad terms it is permissible for an employer to conduct reference and qualification checks in the context of a recruitment process. This can include seeking information about a job applicant’s previous work history and confirmation...

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1.3 Can employment be made subject to a probationary period? If so, how long for?
Updated on 31 March 2023

In principle, it is permissible in Australia to make employment subject to a period of probation, and there are no formal rules as to the duration of any such period. At the end of the probationary period the employer may terminate t...

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1.4 Are there special rules about dismissal during a probationary period?
Updated on 31 March 2023

See section 1.3 above. ...

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1.5 Can job applicants bring claims against the prospective employer? What might they claim for?
Updated on 31 March 2023

Anti-discrimination legislation in all Australian jurisdictions makes it unlawful to discriminate against potential employees, as well as against actual employees. For example, it is unlawful for an employer to take ‘adverse action’...

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1.6 What processes should be followed in employing foreign workers?
Updated on 31 March 2023

Individuals who are not Australian citizens can work in Australia only when they possess a valid visa which enables them to undertake the work in question. It is important, therefore, for prospective employers to ensure that job applicant...

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1.7 What records should an employer keep about the employment of foreign workers?
Updated on 31 March 2023

Employers should keep records of any relevant information relating to the sponsorship of a foreign worker. This includes any correspondence with the Departme...

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1.8 Can employers keep their records about candidates they did not hire?
Updated on 31 March 2023

Potential privacy law issues can arise in circumstances where an applicant provides personal information to a prospective employer and that applicant is not hired, and the business intends to store or otherwise use that information. As note...

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1.9 What questions can’t employers ask in interviews?
Updated on 31 March 2023

Employers cannot ask questions in job interviews which evince, or might be taken to evince, an intention unlawfully to discriminate against a prospective employee. This would, for example, preclude questions about an applicant’s trade uni...

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2. Employment Contracts
2.1 What determines whether an individual is an employee or an independent contractor and what is the practical difference?
Updated on 31 March 2023

Characterising work relationships Australian courts have adopted a number of ‘tests’ in order to determine whether a particular work relationship is one of employer and employee or of principal and contractor. The traditional approach w...

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2.2 Are there any other key distinctions between types of employees (e.g. blue collar, white collar, or sales representatives) and what practical difference does this make?
Updated on 31 March 2023

Almost all employees in Australia have their terms and conditions of employment regulated to a greater or lesser extent by federal or state industrial legislation. In particular, the great majority of employees fall within the scope of the ...

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2.3 Are there any special rules that apply to the employment of company directors?
Updated on 31 March 2023

It is common practice for a company director to be classified as either an executive director (who is also an employee of the company) or a non-executive director (who is not an employee of the company). Whether or not a director is also an...

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2.4 Are there any rules about part-time employment and do employees have a right to request part-time or flexible arrangements?
Updated on 31 March 2023

Part-time employment Under Australian law, employees who ordinarily work 38 hours or less per week are commonly described as ‘part-time’ employees, including in awards and agreements made under the Fair Work Act. Around 30% of all emplo...

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2.5 Are there any rules or restrictions on fixed-term employment?
Updated on 31 March 2023

Fixed-term contracts Employers and employees are generally at liberty to enter into contracts that are expressed to remain in force until the occurrence of some pre-determined event such as a specified date or the completion of a specified ...

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2.6 When is a fixed-term employment contract converted into an indefinite-term contract?
Updated on 31 March 2023

Fixed-term employment may convert into open-ended employment in a range of circumstances. The most straightforward is where the employer and employee formally negotiate such a conversion. Conversion may also occur where an employee has been...

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2.7 What are the legal and practical implications of engaging temporary workers through an employment agency?
Updated on 31 March 2023

The engagement of temporary workers through an employment agency or supplier is commonly referred to in Australia as ‘labour hire’. It typically involves the supplier providing a service to another organisation (‘host’) by supplying...

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2.8 Can the employer put its employees at the disposal of another company? If so, what restrictions apply?
Updated on 31 March 2023

Employers (‘first employer’) may also enter into arrangements whereby some of their employees are ‘loaned’ or ‘seconded’ to another employer (‘second employer’), such as a fellow member of a corporate group. Such arrangement...

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3. Terms and Conditions
3.1 Is it necessary to provide a written employment contract? If so, what terms must be in the contract and when must the contract be provided?
Updated on 31 March 2023

Employment contracts in Australia can be written, oral, or a combination of the two. They may also include terms implied by law and by conduct.   It is not strictly necessary for employment contracts to be in writing. It is, howeve...

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3.2 Is it common in your country to issue an offer letter in addition to the employment contract?
Updated on 31 March 2023

It is common practice for an offer letter to set out core terms and conditions of employment and upon acceptance, to become the employment contract. Sometimes the offer letter is accompanied by a separate document which the employ...

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3.3 What language should the employment contract be in?
Updated on 31 March 2023

Employment contracts can be in any language. For obvious practical reasons, it is preferable that they be in English.  Furthermore, Australian law requires employers to make and keep ‘employee records’ in relation to a rang...

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3.4 Are there any terms that are always implied into an employment contract, even if they are not set out in writing? What are they?
Updated on 31 March 2023

Contracts of employment in Australia may contain terms implied by law and terms implied by conduct. Both forms of implied terms will yield to express provisions to the contrary. They will also yield to any inconsistent provision of a statut...

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3.5 Does the written contract of employment have to contain all the terms and conditions of employment or is it possible to incorporate terms from other agreements or documents?
Updated on 31 March 2023

It is possible to incorporate terms from other agreements and documents, including industrial instruments, into a contract of employment. This is most effectively done by expressly referring to the relevant agreements and documents in the...

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3.6 What are the legal considerations when an employer wants to make changes to employees’ terms and conditions?
Updated on 31 March 2023

Variation of an employment contract requires the agreement of both the employer and the employee. An employment contract cannot unilaterally be varied. Any attempt to do so is likely to constitute a breach that would enable the emplo...

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3.7 What documentation is normally made available to the employee in addition to contractual documents? How are non-contractual documents distinguished from contractual ones?
Updated on 31 March 2023

Employer policies and procedures are commonly made available to employees at the beginning of employment, and may be supplemented or varied during the currency of the employment relationship. Typically, employment contracts will...

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4. Compensation and Benefits
4.1 Is there a minimum wage? Does it have to be paid through basic salary only, or can other payments made to the employee (e.g. tips, bonuses, housing allowance etc) be included?
Updated on 31 March 2023

The great majority of Australian employees are covered by one of 122 ‘modern awards’. These awards set minimum terms and conditions of employment for the employees who fall within the coverage of the award in question. Failure to ...

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4.2 Are wages automatically adjusted in line with inflation? If so, how does this work?
Updated on 31 March 2023

Minimum wages are not automatically adjusted in line with inflation. However, the Fair Work Commission must take inflation into account when setting minimum wage rates under the NMWO and through variations to modern award minim...

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4.3 In outline, what tax and social security obligations are on the employer and employee and what arrangements must be put in place to ensure these are met?
Updated on 31 March 2023

Tax  Under the Pay As You Go system, Australian employers are required to withhold tax at a specified rate from any payments made to an employee. The employer must remit this amount to the Australian Taxation Office (‘ATO’). T...

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4.4 What is the rate of income tax and social security for an employee with an income of EUR 100,000, married with two children?
Updated on 31 March 2023

Income tax deduction  EUR 100,000 equates to approximately AUD 165,000. For an employee who is married with two children and earning this salary, and without accounting for any other factors affecting income tax thresholds and rates...

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4.5 Are there rules governing the payment of bonuses? What type and size of bonuses are common in practice? If someone leaves, is it possible to claw back bonus already paid out?
Updated on 31 March 2023

Bonus entitlements (if any) will be regulated by any applicable awards, enterprise agreements or individual employment contracts, and/or by employer policies. These instruments and policies commonly (but not invariably) provide ...

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4.6 Are employers required to provide any particular benefits to employees (other than pension contributions)? If so, what are they?
Updated on 31 March 2023

The National Employment Standards (‘NES’) set out in the Fair Work Act comprise minimum terms and conditions that apply to all employees. They include provision for annual leave, carer’s/personal leave, compassionate leave, par...

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4.7 In practice, what benefits are usually offered to employees?
Updated on 31 March 2023

Australian employees are commonly (but by no means invariably) provided with access to salary sacrifice arrangements (‘SSA’) whereby they contractually agree to give up part of their salary in exchange for a benefit of a similar value. ...

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5. Working Hours
5.1 Is there a limit on daily and/or weekly working hours?
Updated on 31 March 2023

There is no comprehensive legal limit on daily hours of work, although industrial instruments (modern awards and enterprise agreements) may impose restrictions on daily hours of work, and requiring employees to work excessive hours ma...

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5.2 If so, is it possible to exceed this limit through agreement?
Updated on 31 March 2023

It is not permissible for an industrial instrument to exclude any provision of the NES, and any contractual provision that purported to derogate from the NES would be unlawful. It follows that it would not be possible to exceed the wee...

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5.3 Are any employees exempt from the rules about working time?
Updated on 31 March 2023

The minimum terms and conditions in relation to working time as set out in sections 5.1 and 5.2 above apply to all employees who fall within the Fair Work Act. This means that they apply to the overwhelming majority of employees...

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5.4 What time recording obligations are there on employers?
Updated on 31 March 2023

The Fair Work Act and the accompanying Regulations set out detailed requirements in relation to the keeping of employee records and the provision of pay slips to employees.    The required records must include basic information...

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5.5 Does the law allow for or encourage agile working (having self-managing interdisciplinary teams with employees switching between them based on company requirements; flexible working time; open-plan offices; increased remote working)? If so, what are the rules?
Updated on 31 March 2023

Self-management, open-plan offices and remote working  Generally, the capacity of employers to provide open-plan offices or self-managing interdisciplinary teams is a matter of managerial discretion, providing that the arrangement is ot...

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5.6 Are there any limits on overtime work?
Updated on 31 March 2023

As indicated in section 5.2 above, any request by an employer that an employee work additional hours must be ‘reasonable’ under the criteria set out in the law. The law does not, however, set a specific limit on the...

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5.7 Do we need to get consent from employees for overtime?
Updated on 31 March 2023

The law does not contain any express requirement that the employer obtain consent from employees to work additional hours or overtime. However, as set out in section 5.2 above, an employee may refuse to work additional hours if they...

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5.8 Is there a specific rate of pay that applies to overtime? If so, please specify.
Updated on 31 March 2023

There is no legislative provision which dictates how overtime is to be paid. Industrial instruments or employment contracts will typically set out the relevant rates of pay, including overtime rates.  Such rates are generally cal...

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5.9 What rules (if any) are there regarding breaks and rest periods?
Updated on 31 March 2023

Labour legislation does not expressly provide a statutory entitlement to breaks or rest periods.   Meal breaks are commonly dealt with in industrial instruments or contracts of employment, most often in terms to the effect that a...

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5.10 What are the consequences for an employer of: (a) exceeding the limits on daily/weekly working hours; and (b) breaking the rules on breaks and rest periods?
Updated on 31 March 2023

Working hours  A contravention of the rules regarding working hours set out in the NES, a modern award or an enterprise agreement constitutes a contravention of a civil remedy provision of the Fair Work Act. An affected employee, th...

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6. Time Off Work
6.1 What is the minimum entitlement to annual leave?
Updated on 15 August 2023

Under Australian law all employees (except casual employees) are entitled to a minimum of four weeks of paid annual leave per year. Those who are characterised as ‘shiftworkers’ are entitled to an additional week of paid�...

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6.2 How much are employees entitled to be paid for annual leave?
Updated on 15 August 2023

Payment in respect of statutory annual leave is calculated at the employee’s base rate of pay for their ordinary hours of work. It therefore does not include any overtime, penalty rates, or&nbs...

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6.3 Do employees have a right to paid time off work for public holidays?
Updated on 15 August 2023

Employees who would ordinarily work on a day that coincides with a public holiday are entitled to be absent from work and to receive payment at their base rate of pay for their ordinary hours of work on that day. Casual employees who are no...

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6.4 What rules apply to employees who are absent from work on account of sickness?
Updated on 15 August 2023

All employees (except casual employees) are entitled by law to ten days of paid personal/carer’s leave per year. Personal/carer’s leave can be taken:  when the employee is unable to work due to personal illness or injury; or  to pr...

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6.5 What are the arrangements for family-related leave and pay? In practice, do employers provide the minimum only, or might they make more generous arrangements?
Updated on 15 August 2023

Unpaid parental leave  The law provides for unpaid parental or adoption leave. Employees with at least 12 months of continuous service are entitled to up to 12 months’ unpaid leave relating to the birth or adoption of a child who is in t...

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6.6 What types of leave (other than family or care-related leave) are available?
Updated on 15 August 2023

Long service leave (‘LSL’)   This is a distinctively Australian form of leave entitlement which was originally intended to provide colonial public servants with an opportunity to take an extended period of leave in the ‘home country...

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7. Health and Safety
7.1 Broadly, what are the minimum legal standards that an employer must meet to ensure the safety of employees?
Updated on 15 August 2023

In Australia, there is no single work health and safety (‘WHS’) law that applies across the country. However, the WHS laws in each of Australia’s nine jurisdictions are very similar, and seven of them have enacted a model Work Health ...

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7.2 How are health and safety rules regulated and enforced in practice?
Updated on 15 August 2023

The WHS laws of each jurisdiction are administered and enforced by a jurisdiction-specific WHS regulator. Under the Model Act the relevant regulator has responsibility for monitoring and enforcing the legislation, and for conducting legal p...

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7.3 What are the consequences for employers of breaches of health and safety rules?
Updated on 15 August 2023

In all Australian jurisdictions breaches of work health and safety duties are criminal offences and can result in substantial penalties. However, it is important to note that breach of the Model Act involves only criminal penalties; it does...

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7.4 Can an employer be liable for the activities of third-party contractors?
Updated on 15 August 2023

Employers could be criminally liable for the activities of third-party contractors under the Model Act in some circumstances. First, the Model Act provides that a PCBU must ensure that the health and safety of ‘other persons’ is not put...

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7.5 If there is a serious work accident, is there a requirement to notify the authorities and what does this involve?
Updated on 15 August 2023

Obligation to notify regulator of notifiable incidents Each jurisdiction in Australia has a WHS regulator charged with enforcement of the jurisdiction’s WHS laws (see section 7.2 above). PCBUs are required to ensure that the WHS regulato...

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8. Discrimination
8.1 What kinds of characteristics are protected by discrimination law?
Updated on 15 August 2023

Each of the Australian jurisdictions, including the Commonwealth, has enacted legislation that is intended to prevent discrimination in employment and in other contexts against people on the ground that they possess specified ‘protected a...

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8.2 Are there circumstances where it is not discriminatory to treat someone differently when they have (or do not have) one of these characteristics?
Updated on 15 August 2023

All anti-discrimination statutes contain a range of general and specific exceptions, exclusions and exemptions that, if established, have the effect that acts of discrimination that fall within their scope are not unlawful.   It is import...

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8.3 Is there a duty on employers to avoid 'indirect' discrimination (i.e. where a rule applied to all employees disadvantages a protected group)?
Updated on 15 August 2023

Australian anti-discrimination statutes prohibit both direct and indirect discrimination.   The test for what constitutes indirect discrimination differs between jurisdictions, but will generally be taken to occur if a condition or requir...

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8.4 Is there an obligation to make reasonable adjustments, e.g. for disabled employees or those with religious beliefs?
Updated on 15 August 2023

Disability discrimination law requires employers to make, or propose to make, ‘reasonable adjustments’ to try to reduce or remove barriers and promote equal opportunity for people with disabilities. Where failure to do so has or would h...

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8.5 Is there protection against harassment based on a protected characteristic?
Updated on 15 August 2023

Harassment   Harassment based on a protected characteristic is prohibited by a range of provisions at both the Federal and State and Territory levels.    For example, Federal race discrimination law prohibits offensive behaviour based ...

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8.6 Is there protection against victimisation or retaliation (i.e. where an employee is badly treated for having complained about discrimination, or helped someone else complain)?
Updated on 15 August 2023

Anti-discrimination legislation at the Federal and State and Territory levels prohibits victimisation of a complainant, a person who supports a complainant and a person giving evidence regarding a complaint.   By way of illustration, unde...

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8.7 What are the potential consequences for the employer if a claim for discrimination, harassment or victimisation/retaliation is successful?
Updated on 15 August 2023

Discrimination  The consequences of, and remedies for, discrimination claims vary depending on whether the action is pursued under anti-discrimination legislation (Federal or State or Territory), or under the general protections provisions...

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8.8 If there is a claim for discrimination, how is the burden of proof shared and what are the most commons defences?
Updated on 15 August 2023

Burden of proof  The standard of proof under the anti-discrimination statutes and the general protections provisions of employment law is the ‘balance of probabilities’.  The burden of proof is reversed for claims under employment leg...

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8.9 Can an employer be liable for the discriminatory actions of its employees or third parties (e.g. customers or suppliers)?
Updated on 15 August 2023

Vicarious liability  Under Federal anti-discrimination legislation, an employer or an individual in a managerial or supervisory position may be found vicariously liable for unlawful discrimination by its employees in connection with their ...

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8.10 Are there statutory gender pay gap reporting obligations in your country?
Updated on 15 August 2023

The Workplace Gender equality legislation requires non-public sector employers with 100 or more employees to submit a report to the Workplace Gender Equality Agency (WGEA) each year. The reporting process requires employers to complete a qu...

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8.11 What legal obligations do employers have to protect the mental health of their employees? Are mental health conditions a protected characteristic, in terms of protection against dismissal or from discrimination? What are the legal obligations of employers where a mental health condition is protected by law?
Updated on 15 August 2023

Workplace health and safety legislation requires a person conducting a business or undertaking (PCBU) to ensure, so far as is reasonably practicable, the physical and psychological health and safety of workers engaged or caused to be engage...

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8.12 In practice, how common are discrimination claims by employees?
Updated on 15 August 2023

There are no reliable centralised data on the numbers of complaints made to the various regulatory bodies that have responsibility under Federal and State and Territory anti-discrimination legislation.  At the Federal level, formal complai...

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8.13 What are the typical amounts of awards made in cases of unlawful discrimination?
Updated on 15 August 2023

Historically, awards of compensation in discrimination cases in Australia have generally been low. In part, this can be attributed to the fact that in some jurisdictions there are legislative caps on awards of damages, and such caps are set...

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9. Employee Data Privacy
9.1 Are there rules on the protection of employee information?
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9.2 What are the consequences if an employer breaches these rules?
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9.3 In practice, how can an employer collect and process confidential employee information?
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9.4 What are the restrictions (if any) on the monitoring of employees?
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9.5 What is the legal position with regard to the use of social media in the workplace and when employees are off duty?
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9.6 Is there any protection for employees who 'blow the whistle' on what they think are unlawful or immoral activities?
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10. Employee Competition and Confidentiality
10.1 How can an employer ensure employees keep work-related information confidential?
Updated on 15 August 2023

Employees in Australia are under an implied duty of fidelity. Amongst other things, this requires employees not to injure their employer’s interests by disclosing or misusing confidential information acquired in the course of their employ...

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10.2 How can an employer ensure employees do not act in competition with it?
Updated on 15 August 2023

The duty of fidelity requires that employees not engage in business activities that compete with their employer during the employment relationship. That does not necessarily mean, however, that employees cannot ...

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10.3 Once employment has ended, can an employer restrict the use of confidential information by employees?
Updated on 15 August 2023

Once employment is ended, the duty of fidelity no longer operates to protect the confidentiality of the employer’s information. That does not mean, however, that such information is entirely unprotected. There are...

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10.4 Once employment has ended, can an employer prevent employees from acting in competition with it?
Updated on 15 August 2023

The common law doctrine of restraint of trade means that an employer cannot protect itself against all competition by a former employee. It may, however, be possible to secure a measure of protection against certain forms of post-employment...

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11. Worker Representation
11.1 What is the role of trade unions in your jurisdiction?
Updated on 25 November 2021

Despite declining membership levels in recent years, trade unions continue to play an important role in social, political and industrial life in Australia. The Fair Work Act is the principal piece of legislation governing workplace relation...

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11.2 Do workforces tend to be unionised?
Updated on 25 November 2021

In Australia, some industries have moderately high rates of union density, whilst others have almost no union presence. Density is highest in the public sector – notably in education and training, public administration, and...

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11.3 Does an employer have to work with an established trade union? If there is no union, must an employer establish or recognise one?
Updated on 25 November 2021

Under the Fair Work Act, employers can be required to negotiate with unions where a majority of the workforce wish them to do so,...

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11.4 What role do employee representative bodies have in the workplace? Is there an obligation to inform and/or consult? Do they have any decision-making powers? When is an employer required to recognise or set up an employee representative body?
Updated on 25 November 2021

Unlike many European countries, Australia does not have formal provision for works councils at either the level of the workplace or the enterprise. Many workplaces h...

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11.5 What legal restrictions are placed on trade unions in terms of organising strikes and other industrial action?
Updated on 25 November 2021

There is no freestanding ‘right to strike’ in Australian law. On the contrary, all industrial action by employees is, on its face, unlawful under both common law and statute. However, the Fair Work Act does permit the taking of lawful i...

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12. Termination of Employment
12.1 On what grounds can an employer lawfully terminate employment?
Updated on 25 November 2021

In principle an employer can lawfully terminate the employment of an employee on any grounds and in any manner, so long as it adheres to the terms of the relevant contract of employment. This principle must, however, be read subject to an e...

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12.2 What employee protection exists where an employer terminates without lawful grounds?
Updated on 25 November 2021

The common law of employment offers only very limited protection to an employee whose employment is terminated, because the common law generally allows the employer to terminate at any time and on any ground, so long as it observes the term...

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12.3 What is the legal or best practice process for terminating and what happens if an employer fails to follow it?
Updated on 25 November 2021

To minimise exposure to claims arising out of termination of employment, employers should: have clear policies about which forms of conduct may lead to dismissal, communicate these policies to employees, and apply them in a consistent mann...

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12.4 Are there any special protections against dismissal?
Updated on 25 November 2021

Employees may bring a ‘general protections’ claim against an employer if the employer has taken ‘adverse action’ against the employee for a prohibited reason. Such reasons include that the employee:   has a ‘workplace right�...

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12.5 What is the minimum notice period? Are there circumstances where an employee may be entitled to longer?
Updated on 25 November 2021

Australian law sets out minimum notice periods that employers must give to employees: Period of employment Notice period One year or less one week One to three years two weeks Three to five years three weeks More than five years ...

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12.6 Can an employer summarily dismiss by making a payment in lieu of notice? Is summary dismissal ever possible without payment in lieu?
Updated on 25 November 2021

Provided it is permitted by the contract of employment, applicable modern award or enterprise agreement, employers can terminate employment with immediate effect by making a payment in lieu of the required notice. Payment in lieu of notice ...

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12.7 What happens if an employee resigns? Could this be regarded as constructive dismissal?
Updated on 25 November 2021

Employees who wish to resign are typically required to provide the employer with notice of resignation. There is no statutory minimum notice period for employees; the notice period will usually be set out in the applicable modern award, ent...

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12.8 Is it possible to retire an employee compulsorily?
Updated on 25 November 2021

It is unlawful for an employer to discriminate against an employee on the basis of age. This typically means that compulsory retirement polic...

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12.9 What payments must be made to an employee on termination of employment?
Updated on 25 November 2021

Severance for Redundancy An employee whose position is made redundant will generally be entitled to a redundancy payment.  The matter is commonly dealt with in enterprise agreements, subject to the following statutory minimum payments: ...

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12.10 How can an employer settle claims against it by an employee?
Updated on 25 November 2021

Where there is a risk that an employee may bring a claim against an employer, the employer may seek to enter into a separation agreement or release...

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13. Collective Dismissals
13.1 Must employers consult with employees about multiple dismissals and how many dismissals trigger this requirement?
Updated on 25 November 2021

Statutory duty to consult Australian law requires that where an employer has decided to dismiss 15 or more employees for reasons of an ‘economic, technological, structural or similar nature’, it must notify and consult with any union(s)...

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13.2 What information must be provided about the dismissals? When must it be given and to whom?
Updated on 25 November 2021

Information in relation to the statutory duty to consult The employer must notify each union that represents any of the affected employees of three things: the proposed dismissals and the reasons for them; the number and categories of empl...

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13.3 Is there a legal process for consultations? How long do consultations take in practice?
Updated on 25 November 2021

Both the statutory duty to consult, and the obligation to notify Centrelink, are couched in terms of notification ‘as soon as practicable’ after taking the decision to terminate employment, but before implementing it. The model consulta...

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13.4 What happens if the employer fails to comply with the information and consultation requirements?
Updated on 25 November 2021

If an employer fails to comply with the information or consultation obligations in an award or enterprise agreement, the employer will be in breach of the general statutory prohibitions on contravening awards or enterprise agreements, and a...

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13.5 Is there a statutory selection order that must be applied when a number of dismissals take place?
Updated on 25 November 2021

There is no statutory selection order that must be applied under Australian law. In principle, practices such as ‘last on first off’ or ‘first on last off�...

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13.6 Are there any additional payments to make to employees in cases of collective redundancy?
Updated on 25 November 2021

Australian labour law provides employees with a minimum entitlement to severance pay in all cases of redundancy. There are no ad...

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14. Business Transfers
14.1 Are employees protected if the identity of their employer changes following a share takeover?
Updated on 25 November 2021

Under Australian law a share takeover of a company (as distinct from a business sale) does not result in a change in the identity of the employer. Consequently, the change of ownership will have no effect on the employment of the comp...

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14.2 Are employees protected if the business in which they work is sold to a new employer? Are they protected if a service is outsourced or the business is partially transferred?
Updated on 25 November 2021

There is no provision in Australian law whereby, on the transfer of all or part of a business, the workforce in that business is automatically transferred to the new owner of the business on the employees’ existing terms and conditions ...

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14.3 If employees are protected upon transfer of the business to a new employer, what are the duties of the old and new employer?
Updated on 25 November 2021

The new employer (transferee) is not under any obligation to offer employment to employees or former employees of the transferor.   If, however, the transferee does offer employment to some or all of the transferor’s employees, then is...

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14.4 Can employees object to transferring to a new employer?
Updated on 25 November 2021

As noted in section 14.2 above, in a transfer of business situation employees are not automatically transferred, nor are they entitled to be provided with employment by the new employer/transferee.  Rather, where there is a transfer o...

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14.5 What happens to the terms of the employment contracts? What happens to employee benefits that are not part of the employment contract (e.g. bonuses)?
Updated on 25 November 2021

Terms of employment contract Where a transfer of business occurs, the transferring employee’s employment contract with the old employer is terminated, and the transferring employee will enter into a new employment contract with the new em...

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14.6 What liabilities transfer to the new employer? Is there joint liability with the old employer?
Updated on 25 November 2021

Generally, liabilities stemming from any litigation (e.g. an unfair dismissal or work-injury claim) will not transfer, as the old employer remains the named respondent.   Commercially, it is possible for transferors and transferees t...

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14.7 What happens to any collective agreements? Do they transfer to the new employer?
Updated on 25 November 2021

Where there is a transfer of business in the sense described in section 14.2 above, any ‘transferable instrument’ that covered the old employer prior to the transfer will normally cover the new employer and the transferring employ...

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14.8 Can employers make changes to people's employment contracts?
Updated on 25 November 2021

As discussed in section 14.2 above, contracts of employment do not ‘transfer’ in Australia in transfer of business situations. The transferring employee’s employment contract with the old employer is terminated, and the transferrin...

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14.9 When can employees be safely dismissed during or after a transfer?
Updated on 25 November 2021

The transferee in a transfer of business situation is not obliged to offer employment to all or any of the employees of the transferor. In that sense, employees can ‘safely’ be dismissed at any time in the context of a transfer.  If...

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14.10 Is there a requirement to consult with employees (or their representatives) upon a business transfer? Who must employers consult?
Updated on 25 November 2021

A requirement to consult with employees or their representatives will generally be imposed only on the old employer, and can derive from:  applicable industrial instruments, such as an enterprise agreement or modern award; and  the...

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14.11 What information must employers provide before transfer?
Updated on 25 November 2021

Industrial instruments  Where the standard consultation clause under a modern award applies, the old employer is required to provide in writing to the employees and their representatives all relevant information about the change including ...

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14.12 What does a consultation involve and how long does it last in practice?
Updated on 25 November 2021

Industrial instruments  The form and procedure of the relevant consultation obligations may differ depending on the applicable modern award or enterprise agreement. Consultation generally involves discussing a framework of the proposed ter...

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14.13 What happens if an employer fails to inform and consult properly?
Updated on 25 November 2021

Industrial instruments  Failure to comply with a consultation term of a modern award or enterprise agreement could result in the imposition of civil penalties and the making of other court orders. Where a party (most typically a un...

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14.14 What happens to the works council and other employee representatives upon the transfer of a business?
Updated on 25 November 2021

There are no statutory provisions relating to works councils in Australia.  Any representative arrangements that may be in place at the transferor are a matter between the transferor and its employees and/or their unions. If those arrang...

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15. Pensions
15.1 Are employees entitled to receive state pension benefits? If so, what are their basic rights under the state pension?
Updated on 25 November 2021

Australia has a comprehensive social security system that provides means-tested benefits to meet a range of circumstances. One element of this system is the Age Pension, which is provided to individuals of retirement age (‘retirement age�...

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15.2 Is there a requirement for employers to provide employees with access to a pension scheme? If so, are there any minimum legal requirements for that pension scheme?
Updated on 25 November 2021

Employers in Australia make contributions on behalf of employees to the employee’s chosen superannuation fund. If the employee does not choose a fund, a new employer must check to see if the employee has an existing fund (‘stapled fund�...

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15.3 Can an employer fund and operate its own pension scheme for its employees? If so, how might the scheme operate?
Updated on 25 November 2021

It is legally permissible for an employer to operate its own superannuation fund, which could be a defined-contribution or defined-benefit fund. With the advent of mandatory superannuation arrangements, however, this is no longer c...

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15.4 Is there a requirement to consult with employees (or their representatives) about proposed changes to an employer's pension arrangements? If so, what are the consultation requirements?
Updated on 25 November 2021

Employers are responsible for selecting the default fund, and most employers simply pay the mandated Superannuation Guarantee contributions to the superannuation funds chosen by their employees (or to the default fund for employees that do ...

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15.5 In general terms, what is the tax treatment of pensions in your country?
Updated on 25 November 2021

Superannuation contributions typically receive favourable tax treatment. Superannuation Guarantee contributions are not generally included when determining an employee’s ‘assessable income’ for the purposes of income tax. Superannuati...

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15.6 What, if anything, needs to be put in the contract of employment about pensions' entitlement?
Updated on 25 November 2021

Contracts of employment should specify whether the wages or salary provided under them is ‘inclusive’ or ‘exclusive’ of the mandated Superannuation Guarantee contribution. For waged employees who are paid by the hour, the rate of pa...

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16. Investigations & Performance Management
16.1 When must an employer conduct an investigation and what are the investigations normally about?
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16.2 Are employees obliged to report suspected misconduct or is this left up to their good will?
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16.3 How soon must the employer start an investigation and how must it conduct it?  
Updated on 25 November 2021

Timing for starting an investigation  With the exception of some specific types of public sector investigations which might be subject to regulatory timeframes, there are no specific requirements under Australian law relating to the timi...

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16.4 Do employees have to participate in an investigation conducted by the employer?  
Updated on 25 November 2021

Must employees participate in a workplace investigation?  Employees in Australia have an implied contractual duty to obey lawful and reasonable directions given by their employer, when those directions fall within the scope of their emp...

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16.5 Can the employee be represented by a lawyer in the investigation?   
Updated on 25 November 2021

An internal investigation is a fact finding, not disciplinary or legal, process and there is no right to legal representation in that process (unless provided for in an employer’s policies).  However, employees are generally entitled ...

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16.6 Must the employer show the employee all the evidence?  
Updated on 25 November 2021

In circumstances where an employer is seeking to rely on an investigation to take disciplinary action against an employee, there is no obligation for the employer to provide the employee with all evidence gathered in that investigation.  ...

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16.7 Is there a separate regime for ‘whistleblowing’  and if so, what does it cover? 
Updated on 25 November 2021

Regime for whistleblowing There are effectively two regimes for whistleblowing in Australia, one in the private sector and one for government employees. Whether an employer is required to put systems in place for anonymous reporting will de...

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16.8 What are the processes for dealing with low performance? 
Updated on 25 November 2021

Australian law does not prescribe how an employer must deal with a poorly performing employee. However, some employers will be subject to rules about this, for example through industrial instruments that apply to the workplace or ...

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16.9 Are there statutory rules about how grievances should be handled?
Updated on 25 November 2021

Rules about grievance handling  Other than the requirements relating to investigations and whistleblowing discussed elsewhere in this chapter, Australian law does not prescribe how an employer must handle an employee grievance.  Howeve...

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1. Recruitment
1.1 Do advertisements for jobs require any particular wording or details about the job?
Updated on 05 April 2023

Job advertisements must not be worded in a discriminatory way. They must be worded gender-neutrally. They must specify the minimum wage according to law and the applicable collective agreement for the position. If no mandatory regulations o...

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1.2 What checks can an employer carry out about the background (including social media checks) and health of job applicants and at what stage in the hiring process? Can employers ask for references?
Updated on 05 April 2023

The employer must not ask for details of health conditions that will not affect performance or are not relevant for the job (e.g. HIV where the position is office-based). An employer may check if the employee is in a state of health that wi...

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1.3 Can employment be made subject to a probationary period? If so, how long for?
Updated on 05 April 2023

An offer of employment may be made subject to the completion of a probationary period. The probationary period must not be longer than one mo...

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1.4 Are there special rules about dismissal during a probationary period?
Updated on 05 April 2023

During a one-month probationary period, either party may terminate the employment contract with immediate...

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1.5 Can job applicants bring claims against the prospective employer? What might they claim for?
Updated on 05 April 2023

Job applicants may bring claims for compensation against a prospective employer if their applications were rejected for...

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1.6 What processes should be followed in employing foreign workers?
Updated on 05 April 2023

An employer must obtain a work permit for a foreign worker if the foreign worker does not have a permit allowing him or her to nominate an employer in Austria. There are various different types of work permits. For example, qualified employ...

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1.7 What records should an employer keep about the employment of foreign workers?
Updated on 05 April 2023

Foreign workers who do not belong to an EEA country or Switzerland require a work permit. Therefore, the employer must keep work permits on the premises and available for inspection.  For foreign workers who remain subject to their home co...

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1.8 Can employers keep their records about candidates they did not hire?
Updated on 05 April 2023

Under the GDPR, the controller is obliged to delete personal data without undue delay if that data is no longer necessary for the purposes for which it was initially collected or processed (i.e. the application process). Thus, the employer ...

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1.9 What questions can’t employers ask in interviews?
Updated on 05 April 2023

In principle, questions concerning the employee’s private sphere are impermissible due to the applicant’s privacy rights. Exceptions exist if the question directly affects the employment relationship.   Questions about religious b...

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2. Employment Contracts
2.1 What determines whether an individual is an employee or an independent contractor and what is the practical difference?
Updated on 05 April 2023

Whether an individual is considered to be an employee or an independent contractor depends predominantly on the following criteria: whether the individual must work fixed hours and in a specific workplace; whether the individual may assign...

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2.2 Are there any other key distinctions between types of employees (e.g. blue collar, white collar, or sales representatives) and what practical difference does this make?
Updated on 05 April 2023 by Schima Mayer Starlinger

Austrian labour law distinguishes between blue and white-collar employees. Under the White-Collar Employees Act (Angestelltengesetz) a white-collar employee is a person who is employed predominantly in commercial or other higher, non-commer...

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2.3 Are there any special rules that apply to the employment of company directors?
Updated on 05 April 2023

There are some rules which apply specifically in connection with the employment of company directors, as they are always considered to be...

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2.4 Are there any rules about part-time employment and do employees have a right to request part-time or flexible arrangements?
Updated on 05 April 2023

In general, employees are not entitled to request part-time hours except for parental reasons.  Essentially, there are no restrictions regarding part-time employment. Employers and employees are therefore free to agree on part-time working...

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2.5 Are there any rules or restrictions on fixed-term employment?
Updated on 05 April 2023

Employees and employers are generally free to agree on fixed-term employment. However, employment contracts for a definite period cann...

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2.6 When is a fixed-term employment contract converted into an indefinite-term contract?
Updated on 05 April 2023

If there is no justification for concluding multiple fixed-term contracts in succession, the employment converts into an indefinite-term employment relationship (see above in 2.5).  Further, a fixed-term contract may convert into an indefi...

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2.7 What are the legal and practical implications of engaging temporary workers through an employment agency?
Updated on 05 April 2023

Essentially, employers are free to employ temporary workers through an employment agency. In fact, the employment n...

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2.8 Can the employer put its employees at the disposal of another company? If so, what restrictions apply?
Updated on 05 April 2023

The employer may put its employees at the disposal of another organisation, but some aspects of employment law will apply to it. The law provides for equal treatment during the assignment. So...

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3. Terms and Conditions
3.1 Is it necessary to provide a written employment contract? If so, what terms must be in the contract and when must the contract be provided?
Updated on 05 April 2023

There is no obligation to provide a written employment contract in Austria. However, the employee is entitled to written notification (‘Dienstzettel’) setting out the main duties and obligations arising from employment immediately after...

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3.2 Is it common in your country to issue an offer letter in addition to the employment contract?
Updated on 01 April 2022

It is not common practice i...

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3.3 What language should the employment contract be in?
Updated on 05 April 2023

There is no mandatory requirement in terms of the language that must be used in an employment contract. The contract may be in English as well as German provided all the parties understand it. Ho...

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3.4 Are there any terms that are always implied into an employment contract, even if they are not set out in writing? What are they?
Updated on 05 April 2023

Generally, statutory law, collective agreements and workplace agreements regulate a significant part of the employment relationship even if not explicitly set out in the contract. As a rule, individual employment contracts cannot change pro...

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3.5 Does the written contract of employment have to contain all the terms and conditions of employment or is it possible to incorporate terms from other agreements or documents?
Updated on 05 April 2023

Applicable collective agreements and workplace agreements regulate the employment relationship even if they are not set ou...

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3.6 What are the legal considerations when an employer wants to make changes to employees’ terms and conditions?
Updated on 05 April 2023

Generally, if a change to the employees’ terms and conditions is not covered by the employment contract and/or is not reasonable (e.g. modification of the...

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3.7 What documentation is normally made available to the employee in addition to contractual documents? How are non-contractual documents distinguished from contractual ones?
Updated on 05 April 2023

All documents that are referred to in the ...

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4. Compensation and Benefits
4.1 Is there a minimum wage? Does it have to be paid through basic salary only, or can other payments made to the employee (e.g. tips, bonuses, housing allowance etc) be included?
Updated on 05 April 2023

There is no statutory minimum wage. However, minimum wages can be set in collective bargaining agreements. Therefore, the social partners have major influence on the minimum wage in Austria. At present, there are more than 850 collective ba...

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4.2 Are wages automatically adjusted in line with inflation? If so, how does this work?
Updated on 05 April 2023

There is no explicit requirement to adjust wages in line with inflation. Wages are only adjusted by collective bargaining increases, which are usually agreed between the parties to the collective bargaining agreements every year. However, i...

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4.3 In outline, what tax and social security obligations are on the employer and employee and what arrangements must be put in place to ensure these are met?
Updated on 05 April 2023

Tax and the employees’ social security contributions are deducted from the employees’ gross salary and paid to the relevant authorities by the employer. The employer is liable for the deduction and payment of the contributions.  Tax  ...

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4.4 What is the rate of income tax and social security for an employee with an income of EUR 100,000, married with two children?
Updated on 05 April 2023

For an annual gross salary of EUR 100,000 the tax payable would be approximately 26% (i.e. EUR 26,000) and the social security contribution approximately 13% (i.e. EUR 13,000). Therefore, the net amount would be a...

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4.5 Are there rules governing the payment of bonuses? What type and size of bonuses are common in practice? If someone leaves, is it possible to claw back bonus already paid out?
Updated on 05 April 2023

There are no specific rules governing the payment of bonuses, other than the regulations set out in the Corporate Governance Codex that apply to members of management bo...

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4.6 Are employers required to provide any particular benefits to employees (other than pension contributions)? If so, what are they?
Updated on 05 April 2023

Employers pay social insurance contributions for the statutory pension, health, unemployment scheme...

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4.7 In practice, what benefits are usually offered to employees?
Updated on 05 April 2023

The benefits that employers offer to employees...

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5. Working Hours
5.1 Is there a limit on daily and/or weekly working hours?
Updated on 05 April 2023

The daily limit on normal working hours is eight hours. The weekly limit is 40 hours. However, collective agreements may provide for lower limits of working hour...

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5.2 If so, is it possible to exceed this limit through agreement?
Updated on 05 April 2023

The limits on working hours may be exceeded by a flexible allocation of working time and overtime, generally based on collective bargaining agreements or works agreements. However, the new maximum daily working time introduced in September�...

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5.3 Are any employees exempt from the rules about working time?
Updated on 05 April 2023

Most management staff are exempt from the law on working time and rest periods. The law provides that employees are excluded if they have been given independent decision-making (i.e. executive or managerial) authority and if they can set th...

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5.4 What time recording obligations are there on employers?
Updated on 05 April 2023

The employer must monitor employees’ working time and ensure ...

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5.5 Does the law allow for or encourage agile working (having self-managing interdisciplinary teams with employees switching between them based on company requirements; flexible working time; open-plan offices; increased remote working)? If so, what are the rules?
Updated on 05 April 2023

Comin...

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5.6 Are there any limits on overtime work?
Updated on 01 April 2022

Working time, including overtime, must not exceed twelve hours a day or 60 hours a week, ...

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5.7 Do we need to get consent from employees for overtime?
Updated on 05 April 2023

Comin...

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5.8 Is there a specific rate of pay that applies to overtime? If so, please specify.
Updated on 05 April 2023

According to Austrian law, overtime work must be remuner...

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5.9 What rules (if any) are there regarding breaks and rest periods?
Updated on 05 April 2023

If the daily working hours exceed six hours, the employee must take a 30 minute break. This break is usually unpaid unless otherwise agreed. Employees are also entitled to a daily rest period of at least 11 hours and a weekly rest pe...

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5.10 What are the consequences for an employer of: (a) exceeding the limits on daily/weekly working hours; and (b) breaking the rules on breaks and rest periods?
Updated on 01 April 2022

For exceeding the limits on daily or weekly working hours ...

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6. Time Off Work
6.1 What is the minimum entitlement to annual leave?
Updated on 27 July 2023

The statutory annual leave entitlement is 25 working days. If Saturday is included as a working day, the annual entitlement is 30 working days. The entitlement increases after 25 years of service to 30 working days and 36 working days if Sa...

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6.2 How much are employees entitled to be paid for annual leave?
Updated on 27 July 2023

For periods of leave an employee is entitled to the remuneration he or she would have received if not on holiday. The method of calculation depends on the remuneration pattern: Remu...

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6.3 Do employees have a right to paid time off work for public holidays?
Updated on 27 July 2023

There are 13 paid public holidays in Austria which must be provided and are not included in the statutory minimum holiday entitlement. Employees may only work on public holidays as permitted by law. If they do work, they will receive salary...

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6.4 What rules apply to employees who are absent from work on account of sickness?
Updated on 27 July 2023

Employees who fall ill or who are injured unintentionally or without gross negligence are entitled to paid sick leave for:  a minimum of six weeks and a maximum of 12 weeks at full pay;  a further four weeks (i.e. after the 6 to 12-week ...

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6.5 What are the arrangements for family-related leave and pay? In practice, do employers provide the minimum only, or might they make more generous arrangements?
Updated on 27 July 2023

Maternity rights  Pregnant employees and mothers are protected from dismissal from the date of the pregnancy until at least four months after giving birth. During this time, these employees can only be dismissed based on a prior court orde...

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6.6 What types of leave (other than family or care-related leave) are available?
Updated on 27 July 2023

Educational leave  Educational leave may be agreed between the employer and employee if the employee has worked for the organisation for a minimum of six months. This kind of leave must be used for the further training of the employee and ...

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7. Health and Safety
7.1 Broadly, what are the minimum legal standards that an employer must meet to ensure the safety of employees?
Updated on 27 July 2023

Employers have a general obligation to organise working conditions in a way that protects the life and health of employees. Employers must also safeguard employees’ interests.   Accordingly, the place of work must be equipped to avoid w...

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7.2 How are health and safety rules regulated and enforced in practice?
Updated on 27 July 2023

Mandatory health and safety measures are primarily set out in the Austrian Employee Protection Act (‘ArbeitnehmerInnenschutzgesetz’ or ‘ASchG’). Other laws that contain health and safety regulations include the Mother’s Protection...

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7.3 What are the consequences for employers of breaches of health and safety rules?
Updated on 27 July 2023

Health and safety provisions are enforced by the Labour Inspectorate (‘Arbeitsinspektorat’).  The violation of statutory employee-protection provisions can lead to high administrative fines. The amount varies greatly according to t...

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7.4 Can an employer be liable for the activities of third-party contractors?
Updated on 27 July 2023

In general, employers are not liable for the activities of third-party con...

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7.5 If there is a serious work accident, is there a requirement to notify the authorities and what does this involve?
Updated on 27 July 2023

An employer must immediately notify the Labour Inspectorate (‘Arbeitsinspektorat’) of any accident at work resulting in an employee’s death or serious injury, unless a report has been made to the police (who are in turn requir...

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8. Discrimination
8.1 What kinds of characteristics are protected by discrimination law?
Updated on 27 July 2023

Equal treatment law aims to ensure that men and women are treated equally at work. In 2000, two EU directives came into force with the following objectives: to implement the principle of equal treatment between persons irrespective of raci...

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8.2 Are there circumstances where it is not discriminatory to treat someone differently when they have (or do not have) one of these characteristics?
Updated on 27 July 2023

Exceptions to the general rules against discrimination may arise if the differential treatment is an occupational requirement and is therefore justified. For example, an exception would apply where religion or belief is a substantial, legit...

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8.3 Is there a duty on employers to avoid 'indirect' discrimination (i.e. where a rule applied to all employees disadvantages a protected group)?
Updated on 27 July 2023

Indirect forms of discrimination are prohibited. For example, part-time employees must not be treated less favourably than full...

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8.4 Is there an obligation to make reasonable adjustments, e.g. for disabled employees or those with religious beliefs?
Updated on 27 July 2023

Disadvantages placed on employees with religious beliefs, for example Muslim women who wear a headscarf at work based on their religious conviction, can be considered prohibited discrimination on the basis of sex, religion or ethnic origin....

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8.5 Is there protection against harassment based on a protected characteristic?
Updated on 27 July 2023

Harassment is deemed to be a form of discrimination under equal treatment law. Sexual and other forms of harassment are prohibited in this context, including any negative behaviour in relation to a person’s racial or ethnic origin, religi...

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8.6 Is there protection against victimisation or retaliation (i.e. where an employee is badly treated for having complained about discrimination, or helped someone else complain)?
Updated on 27 July 2023

An employee must not be discriminated against or dismissed simply because he or she has brought an equal treatment claim or acted as a witness in discrimination proceedings. T...

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8.7 What are the potential consequences for the employer if a claim for discrimination, harassment or victimisation/retaliation is successful?
Updated on 27 July 2023

A job applicant who is discriminated against by an employer in the recruitment process is entitled to compensation. Essentially, the amount of compensation for not getting a job based on discrimination is equal to at least two months’ rem...

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8.8 If there is a claim for discrimination, how is the burden of proof shared and what are the most commons defences?
Updated on 27 July 2023

If there is a claim for discrimination in employment, the claimant must present credible evidence of discrimination to the competent Labour and Social Court. The employer as defendant party has the burden to prove that the difference in tre...

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8.9 Can an employer be liable for the discriminatory actions of its employees or third parties (e.g. customers or suppliers)?
Updated on 27 July 2023

Equal treatment law not only prohibits discriminatory behaviour on the part of the employer, but also that of its representa...

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8.10 Are there statutory gender pay gap reporting obligations in your country?
Updated on 27 July 2023

There is no general legal obligation for employers to report gender pay differences.  However, employers of more than 150 people must prepare an internal income report every two years, covering the average income of all employees in the co...

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8.11 What legal obligations do employers have to protect the mental health of their employees? Are mental health conditions a protected characteristic, in terms of protection against dismissal or from discrimination? What are the legal obligations of employers where a mental health condition is protected by law?
Updated on 27 July 2023

In general, employers have a statutory obligation to organise the working conditions in a way that protects the life and health of employees. In addition to physical health, Austrian labour law also protects mental health. This includes men...

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8.12 In practice, how common are discrimination claims by employees?
Updated on 27 July 2023

There is no publicly available information about recent types of claims. We are aware that discri...

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8.13 What are the typical amounts of awards made in cases of unlawful discrimination?
Updated on 27 July 2023

The typical amounts of awards made in cases of unlawful discrimination are limited by the minimum and maximum payment levels defined by the Austrian equal treatment law. In the event of a discriminatory failur...

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9. Employee Data Privacy
9.1 Are there rules on the protection of employee information?
Updated on 27 July 2023

There are no rules that are specific to employee information, but the provisions of the General Data Protection Regulation (GDPR) are applicable for any person processing personal data belonging to someone else (which would include an emplo...

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9.2 What are the consequences if an employer breaches these rules?
Updated on 27 July 2023

Breach of the General Data Protection Regulation (‘GDPR’) can result in serious financial penalties: fines up to EUR 20 million or 4% of a company’s total global turnover in the previous fiscal year (whichever is higher) for the most ...

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9.3 In practice, how can an employer collect and process confidential employee information?
Updated on 27 July 2023

An employer may collect and process confidential employee information, but if it is ‘personal data’ (that is, information relating to an identifiable living individual, who can be identified directly or indirectly by reference to the da...

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9.4 What are the restrictions (if any) on the monitoring of employees?
Updated on 27 July 2023

Employers may have a legitimate interest to protect by implementing technology that monitors the activities of its employees, but these interests must be balanced with an employee’s right to privacy, which extends to the person’s workpl...

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9.5 What is the legal position with regard to the use of social media in the workplace and when employees are off duty?
Updated on 27 July 2023

There is no case law concerning access of employees’ social media by employers. However, there is legal doctrine concerning the use of the Internet and emails by employees for private reasons to the effect that if private use of the Inter...

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9.6 Is there any protection for employees who 'blow the whistle' on what they think are unlawful or immoral activities?
Updated on 27 July 2023

In 2023 the EU Whistleblowing Directive was implemented into national law. The Austrian law (the ‘HinweisgeberInnenschutzgesetz’) covers the following areas:   public procurement;  financial services, products and markets and the pr...

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10. Employee Competition and Confidentiality
10.1 How can an employer ensure employees keep work-related information confidential?
Updated on 27 July 2023

According to Austrian law an employee must act in good faith in relation to his or her employer. This means that he or she must safeguard the employer’s interests. The employee is obliged to keep professional secrets if the employer has a...

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10.2 How can an employer ensure employees do not act in competition with it?
Updated on 27 July 2023

By law, employees must not take part in activities that compete with their employer during the employment relationship. It is grounds for dismissal if employees operate an independent commercial enterprise or engage in trading act...

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10.3 Once employment has ended, can an employer restrict the use of confidential information by employees?
Updated on 27 July 2023

There is generally only a duty to keep work-related informat...

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10.4 Once employment has ended, can an employer prevent employees from acting in competition with it?
Updated on 27 July 2023

Generally, the prohibition against competition ends when the employment relationship ends, unless otherwise agreed.  In accordance with the law for white-collar and blue-collar workers the duty not to compete can extend beyond termination ...

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11. Worker Representation
11.1 What is the role of trade unions in your jurisdiction?
Updated on 01 November 2022

The Austrian Trade Union Federation (Österreichischer Gewerkschaftsbund, ‘ÖGB’) is an umbrella organisation of labour unions of employees. It is the only voluntary association of employees in Austria. It is subdivided into seven membe...

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11.2 Do workforces tend to be unionised?
Updated on 01 November 2022

The Austrian Trade Union Federation has approximately 1.20 million members (union density of approximately 40%), while the Chambers of Labour have appro...

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11.3 Does an employer have to work with an established trade union? If there is no union, must an employer establish or recognise one?
Updated on 01 November 2022

In Austria employers are not required to work with trade unions. The majority of employers are represented by the Austrian Federal Economic Chambers (Österreichische Wirtschaftskammer...

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11.4 What role do employee representative bodies have in the workplace? Is there an obligation to inform and/or consult? Do they have any decision-making powers? When is an employer required to recognise or set up an employee representative body?
Updated on 01 November 2022

A works council must be set up if a business permanently employs at least five employees over the age of 18. A ‘business’ means a workplace that forms an organisational unit that has a production process or operation largely independent...

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11.5 What legal restrictions are placed on trade unions in terms of organising strikes and other industrial action?
Updated on 01 November 2022

There is very little law about strikes and other industrial action in Austria. Only a few isolated regulations in constitutional law, labour law, and social security law exist. There is no law that obliges the unions to inform the employer ...

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12. Termination of Employment
12.1 On what grounds can an employer lawfully terminate employment?
Updated on 01 November 2022

Under Austrian law the employer can give notice without giving a reason. It is not necessary to demonstrate a redundancy situation or any other reasons. In principle, giving notice in writing is only obligatory when contractually agreed, bu...

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12.2 What employee protection exists where an employer terminates without lawful grounds?
Updated on 01 November 2022

Employees employed for more than six months in a business with at least five permanent employees are entitled to general protection against termination. This means they have the option to appeal against a dismi...

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12.3 What is the legal or best practice process for terminating and what happens if an employer fails to follow it?
Updated on 01 November 2022

There are no statutory selection criteria that need to be used in redundancy situations. The employer can give notice without giving a reason. In terms of termination for employee-related reasons, such as poor performance, the employer may ...

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12.4 Are there any special protections against dismissal?
Updated on 01 November 2022

Special protection against termination applies to the following groups of employees: disabled employees who have been with the organisation for at least six months, with certain exceptions (the degree of disability must be officially deter...

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12.5 What is the minimum notice period? Are there circumstances where an employee may be entitled to longer?
Updated on 01 November 2022

The statutory notice period for employees is one month from the end of each calendar month. It is possible to contractually agree on a longer termination period for the employee, but it must not be longer than the notice period for the empl...

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12.6 Can an employer summarily dismiss by making a payment in lieu of notice? Is summary dismissal ever possible without payment in lieu?
Updated on 01 November 2022

The employee is entitled to the same financial treatment during the notice period, as Austrian labour law does not provide for payment in lieu of notice. The employee is also obliged to work during the notice period. It is possible to relea...

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12.7 What happens if an employee resigns? Could this be regarded as constructive dismissal?
Updated on 01 November 2022

Ordinarily, an employee who resigns is subject to the same notice terms and notice period that apply to termination by the employer (see section 12.5). If the employee resigns with immediate effect, the employment will be deemed terminated ...

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12.8 Is it possible to retire an employee compulsorily?
Updated on 01 November 2022

It is not possible to retire an employee compulsorily when he or she reaches the statutory retirement age. T...

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12.9 What payments must be made to an employee on termination of employment?
Updated on 01 November 2022

The employee is entitled to the same financial treatment during the notice period as during ordinary employment and this covers the following: remuneration until the end of the notice period; pro-rata holiday pay (i.e. pay for unused annua...

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12.10 How can an employer settle claims against it by an employee?
Updated on 01 November 2022

It is possible to settle claims by employees by means of a voluntary termination payment, bu...

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13. Collective Dismissals
13.1 Must employers consult with employees about multiple dismissals and how many dismissals trigger this requirement?
Updated on 01 November 2022

The employer must notify the works council if it plans to give notice of termination to an employee. The works council has one week to consent, disagree, or offer no views. This so-called ‘preliminary procedure’ must be observed for eve...

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13.2 What information must be provided about the dismissals? When must it be given and to whom?
Updated on 01 November 2022

In cases of collective redundancy, the employer must provide the Public Employment Service (the ‘Arbeitsmarktservice’, or ‘AMS’) with written notification of the planned dismissals within a 30-day period. Before notifying AMS, the e...

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13.3 Is there a legal process for consultations? How long do consultations take in practice?
Updated on 01 November 2022

There is no minimum consultation period, but it must be held when the works council still has a genuine opportunity to assess the consequenc...

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13.4 What happens if the employer fails to comply with the information and consultation requirements?
Updated on 01 November 2022

If an employer fails to conduct the so-called ‘preliminary procedure’ (i.e. the ...

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13.5 Is there a statutory selection order that must be applied when a number of dismissals take place?
Updated on 01 November 2022

There is no statutory selection order for dismissals under Austrian law. However, if an employer is basing dismissals on operational reasons, the employer must prove...

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13.6 Are there any additional payments to make to employees in cases of collective redundancy?
Updated on 01 November 2022

In principle, there are no compulsory additional payments to be made in addition to the statutory severance payment that dismissed employees may be entitled to (if they belong to the pre-2003 severance payment schem...

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14. Business Transfers
14.1 Are employees protected if the identity of their employer changes following a share takeover?
Updated on 01 November 2022

A transfer of undertaking requires a change of the identity of the employer (owner). This will not generally be...

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14.2 Are employees protected if the business in which they work is sold to a new employer? Are they protected if a service is outsourced or the business is partially transferred?
Updated on 01 November 2022

Sale of a business If the business is sold, the buyer, as the new employer, becomes automatically bound by the rights and obligations contained in each individual employment contract. The employee transfer rules apply to sales, leases, and ...

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14.3 If employees are protected upon transfer of the business to a new employer, what are the duties of the old and new employer?
Updated on 01 November 2022

For the old employer: It must inform and consult in advance with the works council, if one exists, about the planned transfer. If no works council is established, either the old employer or the new employer must inform the employees in adv...

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14.4 Can employees object to transferring to a new employer?
Updated on 01 November 2022

There is no general right for employees to object a transfer and therefore the employment contract with the transferee remains valid. However, employees have a right to object that...

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14.5 What happens to the terms of the employment contracts? What happens to employee benefits that are not part of the employment contract (e.g. bonuses)?
Updated on 01 November 2022

Terms The transferee, as the new employer, must take over all rights and obligations contained in each individual employment contract. This happens automatically by operation of law. Therefore, employees may not be employed by the transfere...

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14.6 What liabilities transfer to the new employer? Is there joint liability with the old employer?
Updated on 01 November 2022

As soon as the transferee steps into the existing employment contract as the new employer, replacing the transferor, any liabilities resulting from that contract are also transferred. For obligations arising from the period prior to the tra...

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14.7 What happens to any collective agreements? Do they transfer to the new employer?
Updated on 01 November 2022

Upon transfer, the employment contract will be governed by the collective agreement of the transferee. If both the transferee and the transferor are subject to the same collective agreement, there will be no change. If a different collectiv...

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14.8 Can employers make changes to people's employment contracts?
Updated on 01 November 2022

Changes to individual contracts can be made only by mutual agreement or if one party has reserved the right to unilaterally change employment conditions. This right can only be exercised in good faith and is usually connected to bonus or pr...

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14.9 When can employees be safely dismissed during or after a transfer?
Updated on 01 November 2022

Neither the transferor nor the transferee may dismiss employees by reason of the transfer. Such a termination might be effective at first, but the employee could bring an action for a declaratory judgment that the dismissal was based on the...

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14.10 Is there a requirement to consult with employees (or their representatives) upon a business transfer? Who must employers consult?
Updated on 01 December 2021

The seller must inform and consult in advance with the works council, if one exists, about planned transfers. If no works council has been established, either the seller or the buyer must ...

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14.11 What information must employers provide before transfer?
Updated on 01 December 2021

The following information must be provided: the date or proposed date of the transfer; the reason for the transfer; the legal, economic and social ...

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14.12 What does a consultation involve and how long does it last in practice?
Updated on 01 December 2021

If a works council has been established and the changes are detrimental to employees, the works council may make recommendations to alleviate or avoid negative effects, and might wish to co-op...

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14.13 What happens if an employer fails to inform and consult properly?
Updated on 01 December 2021

There are no direct sanctions if the obligations to inform and consult are disregarded, but the emplo...

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14.14 What happens to the works council and other employee representatives upon the transfer of a business?
Updated on 01 December 2021

If the entire business is transferred, the existing works council and any works agreements remain unaffected. However, if only part of the business is transferred (i.e. becomes legally independent), the existing work...

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15. Pensions
15.1 Are employees entitled to receive state pension benefits? If so, what are their basic rights under the state pension?
Updated on 01 November 2022

Both employees and employers pay social security contributions into the compulsory public ...

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15.2 Is there a requirement for employers to provide employees with access to a pension scheme? If so, are there any minimum legal requirements for that pension scheme?
Updated on 01 November 2022

Employers are required to pay contributions to the compulsory public pension scheme but there is no other requirement for an employer to provide its employees with access to ...

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15.3 Can an employer fund and operate its own pension scheme for its employees? If so, how might the scheme operate?
Updated on 01 November 2022

Employers are free to provide company pension schemes for their employees. These pension schemes are regulated by a law which provides a framework to ensure the payment of benefi...

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15.4 Is there a requirement to consult with employees (or their representatives) about proposed changes to an employer's pension arrangements? If so, what are the consultation requirements?
Updated on 01 November 2022

A company group insurance scheme (‘Betriebliche Kollektivversicherung’) or commitment to a pension scheme (‘Pensionskassenzusage’) must be established by way of a works agreement. Pension schemes may be set up by co...

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15.5 In general terms, what is the tax treatment of pensions in your country?
Updated on 01 November 2022

Pensions are subject to taxation. However, employees�...

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15.6 What, if anything, needs to be put in the contract of employment about pensions' entitlement?
Updated on 01 November 2022

A pension scheme can be based on an individual contract between the employer and the em...

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16. Investigations & Performance Management
16.1 When must an employer conduct an investigation and what are the investigations normally about?
Updated on 01 November 2022

Employers have the right or, in some cases, the duty (e.g. in respect of a duty of care, establishment of a compliance organisation, antitrust audits) to carry out inspections and investigations. The main purpose of conducting investi...

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16.2 Are employees obliged to report suspected misconduct or is this left up to their good will?
Updated on 01 November 2022

In general, where an employee’s own work processes are affected or where the employee has a management function with control and supervisory authority over other employees, it is not only permissible but also mandatory for the empl...

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16.3 How soon must the employer start an investigation and how must it conduct it?  
Updated on 01 November 2022

In principle, there is no legally stipulated period of time in which the employer must take action after being informed of the conduct. Under the general duty of care, the employer must take action as soon as possible to begin ga...

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16.4 Do employees have to participate in an investigation conducted by the employer?  
Updated on 01 November 2022

Employees are generally obliged to participate in internal investigations, based on either the employer’s right to issue instructions or the employee’s duty of loyalty. Insofar as the investigation concerns work-related info...

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16.5 Can the employee be represented by a lawyer in the investigation?   
Updated on 01 November 2022

There is no explicit statutory rule that entitles an employee to involve third parties from outside the company in the investigation. If the employee does not wish to answer the questions asked, the employer may consider giving the em...

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16.6 Must the employer show the employee all the evidence?  
Updated on 01 November 2022

We are not aware of any statutory rule requiring the employer to disclose all of its evidence to the employee during the internal investigation. If the employer keeps a personal employee file, the employee generally has a right t...

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16.7 Is there a separate regime for ‘whistleblowing’  and if so, what does it cover? 
Updated on 01 November 2022

Starting in 2013 the Economic and Corruption Prosecutor has had its own website that allows reports of corruption and economic crime to be made with a guarantee of full anonymity. Because of its success, this system�...

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16.8 What are the processes for dealing with low performance? 
Updated on 01 November 2022

First of all, it should be noted that while the employee is obliged to make honest efforts, he or she owes only his job performance, but no particular success.   The employer may admonish/warn the employee in case of low performanc...

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16.9 Are there statutory rules about how grievances should be handled?
Updated on 01 November 2022

If the employees’ grievance is, for example, a complaint about other employees or supervisors (e.g. mobbing), there are no specific legal regulations on how the employer should deal with it. However, under the general duty of care, th...

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1. Recruitment
1.1 Do advertisements for jobs require any particular wording or details about the job?
Updated on 31 March 2023

There is no prescribed form of wording required for job advertisements or details that need to be included. However, care should be taken to ensure that the advertisement does not discriminate between applicants on grounds of race, origin,...

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1.2 What checks can an employer carry out about the background (including social media checks) and health of job applicants and at what stage in the hiring process? Can employers ask for references?
Updated on 31 March 2023

Employers are not prohibited from carrying out background checks and these can be done at any stage in the hiring process. Nevertheless, it is recommended that checks should only be carried out where they are proportionate and necessary, ...

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1.3 Can employment be made subject to a probationary period? If so, how long for?
Updated on 31 March 2023

Bahrain labour law allows employers to apply a probationary period where this is expressly stated in the employment contract. Probation can be applied only once during the period of employment. The probationary period can last up to t...

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1.4 Are there special rules about dismissal during a probationary period?
Updated on 31 March 2023

The employer or the employee can give notice to terminate the employment contract at any time during the probationary period.  At least one day’s written notice must be given. ...

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1.5 Can job applicants bring claims against the prospective employer? What might they claim for?
Updated on 31 March 2023

The Bahrain Labour Law does not expressly extend any protection to job applicants.  It is arguable that applicants can bring a claim of discrimination on grounds of race, origin, religion, language or belief where they have been denied a...

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1.6 What processes should be followed in employing foreign workers?
Updated on 31 March 2023

Foreign nationals are required to have a work permit sponsored by an employer in Bahrain. The application for the work permit must be submitted to the Labour Market Regulatory Authority (‘LMRA’) using the online Expat Managem...

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1.7 What records should an employer keep about the employment of foreign workers?
Updated on 31 March 2023

Employers should retain copies of the employee’s passport, work permi...

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1.8 Can employers keep their records about candidates they did not hire?
Updated on 31 March 2023

Employers can keep their records about unsuccessful job candidates provided that the individual has given consent in writing for his or her data to be processed and retained. ...

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1.9 What questions can’t employers ask in interviews?
Updated on 31 March 2023

Whilst there is nothing in the law that prohibits employers from asking any particular questions during interviews, they should nevertheless refrain from asking questions regarding the individual’s political or religious beliefs, sexu...

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2. Employment Contracts
2.1 What determines whether an individual is an employee or an independent contractor and what is the practical difference?
Updated on 31 March 2023

The Bahrain Labour Law applies to all employees, who are defined as ‘natural persons working in return for a wage and under the employer’s management and supervision’. The concept of independent contractor does not expres...

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2.2 Are there any other key distinctions between types of employees (e.g. blue collar, white collar, or sales representatives) and what practical difference does this make?
Updated on 31 March 2023

There are no key distinctions between employees who are blue collar/white collar/sales representatives under the Bahrain Labour Law. However, the Labour Law does not apply to domestic workers and persons regarded as such, including ag...

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2.3 Are there any special rules that apply to the employment of company directors?
Updated on 31 March 2023

There are two types of directors in Bahrain: (i) a company director who is officially appointed via a board or shareholders’ resolution and is listed in the company’s Commercial Register, and (ii) an employee simply having an o...

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2.4 Are there any rules about part-time employment and do employees have a right to request part-time or flexible arrangements?
Updated on 31 March 2023

Bahraini labour law does not address part-time or flexible working. As such, there is no prohibition or restriction on such arrangements, but employees do not have a legal right to request them. ...

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2.5 Are there any rules or restrictions on fixed-term employment?
Updated on 31 March 2023

There are certain rules under the labour laws governing fixed-term employment.   Fixed-term employment contracts automatically terminate at the end of the contractual period unless renewed by an express agreement between the partie...

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2.6 When is a fixed-term employment contract converted into an indefinite-term contract?
Updated on 31 March 2023

A fixed-term employment contract will convert into an indefinite-term contract in the following circumstances:  if the employer and employee continue executing the employment relationship after the expiry of the fixed contractual�...

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2.7 What are the legal and practical implications of engaging temporary workers through an employment agency?
Updated on 31 March 2023

The concept of a temporary worker does not exist in the Bahrain labour laws.  Individuals engaged through an agency will not become the employees of the end user client unless there is an express agreement to this effect or the ...

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2.8 Can the employer put its employees at the disposal of another company? If so, what restrictions apply?
Updated on 31 March 2023

Bahraini labour law does not address secondments, although in practice they are not uncommon. While there are no restrictions in this regard for Bahraini employees, expatriate workers are restricted from working for third parties ot...

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3. Terms and Conditions
3.1 Is it necessary to provide a written employment contract? If so, what terms must be in the contract and when must the contract be provided?
Updated on 31 March 2023

A written employment contract is required and must be executed in duplicate, with one copy to be retained by the employer and the other to be given to the employee.  The contract should be written in Arabic but can be written in another la...

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3.2 Is it common in your country to issue an offer letter in addition to the employment contract?
Updated on 31 March 2023

An offer letter is not required but is sometimes issued to support an application for a work permit for an expatriate employee.  However, it is increasingly common now for an empl...

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3.3 What language should the employment contract be in?
Updated on 31 March 2023

The employment contract should be written in Arabic but can be written in a different language provided that an Arabic translation is included too. ...

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3.4 Are there any terms that are always implied into an employment contract, even if they are not set out in writing? What are they?
Updated on 31 March 2023

The employee’s statutory rights to leave such as annual leave and sick leave, the end of service gratuity, protection against unlawful termination, and other basic statutory rights are implied into the employment contract.  Likewise, the...

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