Austria
Gender quotas on supervisory boards
Impact date: The changes took effect on 30 June 2026. The new 40% quota applies to elections and appointments to supervisory boards made after 31 December 2026; existing mandates remain unaffected. To implement the Women on Board Directive (EU) 2022/2381, the Austrian Stock Corporation Act will introduce a requirement for listed companies’ supervisory boards to consist of at least 40% women and at least 40% men.
Employer implications/action needed N/A
Employer risk This will affect approximately 65 Austrian companies. Existing mandates remain unaffected by these new provisions, as the transitional rule applies the new quota to elections and appointments to supervisory boards made after 31 December 2026. For unlisted companies with more than 1,000 employees, the existing quota regulation in the supervisory board (30%) will remain unchanged.
Business mobility
Impact date: 7 August 2026 Austria has adopted amendments to the Settlement and Residence Act and the Employment of Foreign Nationals Act (“NAG” and “AuslBG”). The reform implements the revised EU Single Permit Directive (EU) 2024/1233. As a general rule, residence-permit applications must be decided within 90 days, with a possible 30-day extension in exceptionally complex cases.
Employees holding an employer-specific combined residence and work permit will generally be permitted to start working for a new employer if no decision on their application has been issued within 45 days. Following job loss, the authorities must normally allow a six-month period to find new employment before withdrawing the permit. This period is extended by three months where the former employer imposed particularly exploitative working conditions.
Employer implications/action needed An employee whose permit is tied to a specific employer must still apply for authorization before changing jobs but may, subject to the statutory requirements, begin new employment after the 45-day period. Family members may also obtain a combined residence and work permit through a single procedure where they have a concrete job offer. The reform further introduces a six-week deadline for certain decisions by the Public Employment Service and allows holders of job-seeker visas who apply for a Red-White-Red Card in Austria to remain until the final decision. Family reunification for persons granted international protection will also be reorganized under the residence-law framework.
Employer risk Employing a third-country national before the applicable waiting period has expired, or without verifying that the relevant permit covers the intended employment, may constitute illegal employment and result in administrative fines. Delays or rejected applications may also create operational risk if a newly recruited employee cannot commence or continue work as planned. Employers should therefore carefully document the permit type, application date and any official suspension of the procedure.
Employment of Ukrainian refugees / extension of the Regulation on Displaced Persons (Vertriebenen-Verordnung)
Impact date: Extended to 4 March 2028 The Mass Influx Directive (2001/55/EC) was implemented in Austria by the Regulation on Displaced Persons in March 2022. This Regulation established a temporary right of residence and facilitated access to the Austrian labor market for displaced Ukrainians until 3 March 2023. This has been extended again to 4 March 2028.
Employer implications/action needed A job platform has been created to help Ukrainian refugees find employment and to facilitate the process of employing Ukrainian refugees. Interested employers may wish to subscribe.
Employer risk N/A
EU Pay Transparency Directive (2023/970/EU)
Impact date: The Directive should have been transposed by 7 June 2026. The timing of Austrian implementing legislation remains to be disclosed. Austria was required to transpose the EU Pay Transparency Directive (Directive (EU) 2023/970) by 7 June 2026. Austria has missed the implementation deadline and no implementing legislation has yet been published. The Directive will require changes to Austrian law in areas such as pay transparency before employment, employee information rights, gender pay gap reporting and enforcement.
Employer implications/action needed Employers should monitor Austrian implementation and review recruitment materials, pay-setting and progression criteria, confidentiality clauses, job classifications, pay data and reporting processes. Applicants must receive the starting salary or range before interview and cannot be asked about pay history. Employees may request individual and sex-disaggregated comparative pay information. Reporting starts in 2027 for employers with 150+ workers and in 2031 for those with 100–149. Unremedied unexplained pay gaps of at least 5% may trigger joint pay assessments. Non-compliance may result in compensation claims, fines, shifted burdens of proof and reputational harm. Directly effective EU equal-pay principles may already apply.
Contact
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.
Connect with us
