On Wednesday 18 May, Austria’s parliament adopted its first –law against social and wage dumping. For a long time Austria has been making provisions combatting lenient wage and social practices. However the assortment of provisions have never been coalesced into one specific and clearly identifiable law. Austria’s parliament has also seized the opportunity to transcribe certain European provisions into national law and to broaden some purely Austrian measures such as the introduction of the principle of employers’ responsibility in Austria’s building and construction sector vis-à-vis their foreign sub-contractors.
The first role of this law was to coalesce all the existing measures in several current pieces of legislation (law on posting of workers, law on company pensions, law on employment contracts, Regional Labor Codes, etc.). The government’s view was the current ‘fragmentation’ led to a lack of clarity and visibility and was in no small part responsible for a substandard application of the rules as well as difficulties in implementing sanctions. “This new law will safeguard better equal opportuniti
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