Austrian Employment Law (Arbeitsrecht): Notice, Abfertigung and Ending a Job

Austrian employment law runs on its own statutes, separate from Germany's, even though the two countries share a language and much of the vocabulary a search engine will return. This hub is the entry point for the site's Austrian employment law section: how a job is governed from hiring to exit, what happens to notice and severance pay when it ends, and the different routes an employment relationship in Austria can take to a close.

Two statutes carry almost everything covered in this section. The Angestelltengesetz (AngG) sets notice periods and core protections for salaried employees (Angestellte), and the ABGB, Austria's general civil code, now applies an identical notice scale to blue collar workers (Arbeiter) as well. A third statute, the BMSVG, runs the portable severance fund that has applied to nearly every Austrian job since 2003.

For the wider legal system this section sits inside, including the courts, the codes and how Austrian statutes are cited, see the Austria overview.

Information last verified on 22 July 2026. This page provides general legal information about Austrian law and does not constitute legal advice in an individual case.

The Legal Framework: AngG and ABGB, Not Germany's BGB

Austrian employment law sits primarily in the Angestelltengesetz, a statute written for salaried employees (Angestellte) that covers notice periods, dismissal protection and, historically, the older Abfertigung ALT severance scale. Blue collar workers (Arbeiter) were governed by a separate, generally less generous set of rules until relatively recently.

That gap closed on 1 October 2021, when § 1159 ABGB took effect with wording that mirrors § 20 AngG almost word for word. Since that date, an Arbeiter's notice period follows the identical scale as an Angestellte's, with one narrow carve out for seasonal industries that can still set a shorter period through a Kollektivvertrag.

This is exactly the point where a German language search goes wrong for an Austrian reader. Germany's equivalent provision is § 622 BGB, and it uses a different scale with a different termination date mechanic. § 622 BGB has no application to an employment relationship based in Austria, however similar the search term looks. Treat any explanation of German notice law as answering the wrong country's question, not an approximate version of the Austrian one.

A third statute matters just as much for anyone thinking about how a job ends: the Betriebliches Mitarbeiter und Selbständigenvorsorgegesetz, or BMSVG, which has run Austria's portable Abfertigung NEU severance system since 2003. The AlVG, the unemployment insurance statute, also comes into play the moment an employee's own decision ends the job.

Notice Periods at a Glance

An employer's statutory minimum notice under § 20 Abs 2 AngG starts at six weeks and lengthens four times over a career, reaching five months after twenty five completed years of service. Employer notice must generally land at the end of a calendar quarter, not simply run for a fixed number of weeks from the day it is given, which can push the real last working day later than the bare notice figure suggests.

An employee who resigns has a simpler rule: one month's notice under § 20 Abs 4 AngG, ending on the last day of a calendar month, extendable by agreement up to six months but never longer than the employer's own notice period for the same relationship. Since 1 October 2021, Arbeiter follow this same scale under § 1159 ABGB.

The full scale, the calendar quarter mechanic, and a worked example of how it changes a real termination date are covered on the notice periods page.

Severance Pay at a Glance: Abfertigung NEU vs Abfertigung ALT

Which Abfertigung system applies to a given job turns on a single date: whether the employment relationship's contractually agreed start falls after 31 December 2002. Almost every job beginning today falls under Abfertigung NEU, governed by the BMSVG, where the employer pays a running 1,53 percent of monthly Entgelt plus Sonderzahlungen into a BV-Kasse belonging to the employee, with no salary cap on that contribution base.

Continuous service that began before that cutoff can still fall under the older Abfertigung ALT, a lump sum under § 23 AngG calculated as a multiple of the last month's Entgelt on a step scale that rises with years of unbroken service, from three years to twenty five. The two systems answer completely different questions and are not interchangeable for the same period of service.

The exit route matters enormously for Abfertigung ALT specifically: resigning forfeits the entire ALT lump sum outright, while an employer termination or a mutual termination preserves it. Abfertigung NEU behaves differently again, since its contributions are never forfeited by any exit route, only the timing of the payout changes. The full mechanics, the exact ALT scale and a worked contribution example are covered on the severance pay page.

Ending a Job Three Ways

An Austrian employment relationship ends through one of three routes, and each carries different consequences for notice, Abfertigung and unemployment benefit.

An employer can give notice under the § 20 AngG scale described above, which the employee does not need to agree to and which preserves both Abfertigung systems and the employee's Arbeitslosengeld claim without any Sperre. An employee can resign under § 20 Abs 4 AngG, which is simpler on notice but carries two costs many people do not expect until they leave: an Abfertigung ALT claim is forfeited outright, and a four week Sperre applies to Arbeitslosengeld under § 11 AlVG.

The third route, an einvernehmliche Auflösung, is a mutual termination where both sides simply agree on an end date rather than either side unilaterally giving notice. Because neither side unilaterally quit or was at fault, this route generally avoids the Arbeitslosengeld Sperre that a plain resignation triggers, and because it is not a resignation in the sense § 23 Abs 7 AngG uses, it generally preserves an Abfertigung ALT claim that a Selbstkündigung would forfeit.

The full comparison of all three routes, including when a mutual termination is the better choice for an employee who wants to leave, is covered on the mutual termination and resignation pages.

Working the Numbers: Two Tools

The formulas behind notice periods and Abfertigung NEU contributions are simple in principle but easy to get wrong by hand, particularly the calendar quarter rule on employer notice and the non-linear jump between Abfertigung ALT's service thresholds.

The Kündigungsfrist Rechner takes a start date and length of service and works out the exact statutory termination date, applying the calendar quarter rule where it governs. The Abfertigung Rechner estimates the BV-Kasse contributions paid under Abfertigung NEU for a given salary and timeline, and states plainly that its output is an estimate of contributions paid rather than a promised final payout, since the BV-Kasse's investment result is never fixed in advance.

Both tools apply only to the general statutory rules described across this section. A Kollektivvertrag, an individual contract or a special protection period can all change the result for a specific employee, which is why the tools are a starting point rather than a final answer for an individual case.