Enhanced termination rules and collective bargaining agreements: a new chapter for freelance employees in Austria

New termination rules 

By amending the Austrian Civil Code, the new law provides that freelance employment relationships (within the meaning of Section 4(4) of the Austrian General Social Security Act) that are not concluded for a fixed term may be terminated by either party upon notice with effect as of the 15^th or the last day of each calendar month, subject to a notice period of four weeks, which is extended to six weeks from the commencement of the third year of service. During the first month, a probationary period may be agreed, during which either party may terminate the relationship at any time. These provisions are mandatory in nature; deviations are permissible only insofar as they constitute improvements in favour of the freelance employee. For existing contractual arrangements concluded prior to 1 January 2026, divergent terms remain valid.

Collective bargaining agreement eligibility

Furthermore, amendments to the Austrian Labour Constitution Act now enable collective bargaining agreements to be concluded specifically for freelance employees (again within the meaning of Section 4(4) ASVG). Alternatively, it permits existing collective bargaining agreements to be expressly extended to cover such freelance employment relationships. It should be noted that existing collective bargaining agreements will not be included automatically by operation of law; an explicit provision in the respective collective bargaining agreement is required for such an extension to take effect. Where instruments of collective legislation, such as collective bargaining agreements, apply to freelance employees, this must henceforth also be indicated in the written statement of employment terms (Dienstzettel) or in the employment contract.

Practical considerations

The legislative changes for freelance employees entered into force on 1 January 2026 and establish new conditions for freelance employment relationships in Austria. For the first time, statutory notice periods and termination dates apply to freelance employment relationships, restricting the flexibility that has characterised such arrangements to date. The extension of collective bargaining agreements to freelance employees can increase the practical relevance of minimum standards and may have considerable implications for remuneration structures and working conditions. However, the actual consequences of this new legislation remain to be seen. Employers engaging freelance employees are advised to ensure compliance with the new requirements and to monitor further developments, especially with regard to potential collective bargaining agreements.

authors: Teresa Waidmann & Franziska Viktoria Waltersdorfer