Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
INS Global operates as a local partner that provides international companies with global Human Resources outsourcing services.
A PEO (Professional Employer Organization) is a global mobility partner that ensures total legal compliance assurance in a target market for all overseas employees. A PEO in Austria gives companies the local expertise needed global expansion. Hire and provide HR services for employees in as little as 48h with INS Global.
An EOR (Employer of Record) is a third-party provider of employment outsourcing services that acts as an employer for tax and HR administrative purposes. INS Global’s EOR in Austria allows companies to securely and cost-effectively hire and manage employees overseas in less than 48 hours.
The professional advisors that work with a PEO have intimate knowledge of local legal and administrative procedures; they are well equipped to ensure legal compliance in all aspects so that you avoid making any costly errors.
When entering a new market any issue with HR or local laws can lead to a surprisingly high number of fees and fines. With a PEO you can set up quickly in your target market as well as bypass time-consuming pitfalls and misunderstanding.
By taking care of a multitude of different HR tasks such as headhunting, payroll outsourcing, and contractor management, a PEO frees you to invest your time and energy towards success and growth in your company goals.
Typically it takes anywhere from 4 months to one year to establish a new company in a foreign market. A PEO can accomplish the same results in less than a week. *Estimate
Your PEO partner will fully all the required aspects of HR services, allowing every part of the process to be streamlined into a single point of contact.
The process of integrating your company in a foreign market is usually an intricate and time-consuming process that requires a legal and physical presence in order to start operating there.
A Global PEO helps you avoid these issues by acting as a legal intermediary for essential HR services.
The Advantage in Figures
| PEO/EOR | Company Incorporation | ||
|---|---|---|---|
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Price |
80% Less Expensive |
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Market Entry |
2-5 Days |
6 Months |
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Employee Turnover |
Decrease by 14% |
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Recommendation |
98% of the Current PEO Clients |
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Administrative Fees |
Saves an Average of $450 |
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Costly Payroll and Compliance Fines |
Help Avoid |
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Company Growth Rate |
7 - 9% |
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ROI |
27% |
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Closed During Pandemic |
-58% |
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Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
INS Global’s PEO in Austria can be utilized to manage your employee recruitment and assignment needs in 4 comprehensive steps:
Once you’ve decided to expand into the Austrian market and want to make the most of a PEO agreement, it’s important that you understand the difference between PEOs and Employer Of Records, in order to choose the one that best fits your business needs:
INS Global offers both Professional Employer Organization and Employer of Record services in Austria. Contact our team of experts today, or read this article to learn more about the specifics of these two services.
An employment contract in Austria should clearly define all of the employee’s duties and benefits, and the salary must be in euros.
Typically a probation period does not last longer than one month, except in the case of apprentices, in which it may last three months.
Austria prides itself in having strong legislation to protect workers and worker’s right.
Any workplace with at least five workers can set up a work council. The number of members in a work council depends on the number of workers.
A work council’s involvement extends to the social, personal, and economic issues an employee might face.
The council is allowed to preside over a variety of decisions such as notices of dismissal, payment, health and safety, disciplinary methods, and more.
There are 13 days of paid public holidays every year in Austria. If an employee is asked to work on one of these holidays, they are entitled to an additional 100% of their usual wage.
As long as an employee has worked for a minimum of 6 months they will receive five weeks of paid vacation days. This extends to those who both part time and full-time employees. For those who have worked more than 25 years, the number of paid vacation days is raised to six weeks.
The amount paid sick leave varies according to how long the employee has worked with the company. Starting from one year of employment, an employee can take up to six weeks of sick leave with full pay, and an additional 4 weeks at 50% of their wage.
The number of weeks of full pay increases with the number of years worked. A medical certificate may be required when applying for sick leave. Sick leave that extends beyond the allotted time will be covered by the state.
Maternity leave in Austria is 16 weeks, typically 8 weeks before birth and 8 weeks after. During this time the mother continues to receive her wages at the same amount they were paid in the weeks before the leave. Freelance contractors are also eligible for paid maternity leave.
Both parents can take unpaid parental leave until the child is 2 years old, as long as they live with the child in the same household. Other instances of paid leave include the care for a sick child under 12 years old, which is 2 weeks; leave for marriage or bereavement, which can be between 1-3 days depending on collective agreement; and unpaid leave up to 6 months to care for an ailing family member.
Corporate tax in Austria is 25%, although there are plans to reduce it to 24% by 2023.
The Austrian social system covers a wide range of needs including maternity leave, unemployment, pensions, medical care, and more. Insurance is mandatory for both self-employed and those employed by a company.
Personal income tax varies depending on the amount of income; it can be as low as 0% to as high as 55%.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
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