Expand with an Employer of Record in Austria in 2024

Employer of Record in Austria (EOR in Austria)

Hire Globally, Pay Locally, Expand Effortlessly

Austria, with its stable economy and strategic location in Central Europe, offers significant opportunities for international businesses. However, Austria’s regulatory landscape, including labor laws and tax regulations, can be complex. An Employer of Record (EOR) in Austria can serve as your local partner, ensuring a smooth market entry and ongoing compliance with all necessary regulations.

Want to have a Team in Austria TODAY?

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Want to Have a Team in Austria TODAY?

Show me how to grow my business now!

We prefer to let others grow their business.

How an Employer of Record in Austria Operates in Just 3 Steps

Step 1: Comprehensive Planning & Needs Assessment

Your journey with an EOR in Austria like INS Global, begins with a detailed consultation to understand your business objectives and needs. This includes discussing the number of employees, their roles, and your timeline for your expansion into Austria, ensuring that the EOR can tailor their services to align with your goals.

Step 2: Streamlined Setup, Recruitment & Onboarding

Whether you are establishing a new team in Austria or transferring existing employees, an EOR handles all legal processes by legally hiring staff locally on your behalf. This includes managing visas and work permits, organizing payroll, contract management, and ensuring total compliance with Austrian labor regulations. By acting as your legal employer in Austria from the start, the EOR removes the need for you to set up a local entity, saving you valuable time and resources.

Step 3: Ongoing Management & Compliance Assurance

Once your employees are in Austria and operating as usual, an EOR oversees ongoing HR and payroll functions. This includes processing salaries, managing employee benefits, and ensuring health insurance and social security contributions compliance. EORs then serve as the HR interface between you and your Austrian team, managing administrative tasks and addressing employee concerns, allowing you to focus on business growth with confidence.

Infographic | INS Global
Employer of record Austria

Employer of Record in Austria (EOR in Austria) - Summary

The Benefits of Austrian EOR Services for Your Business

Efficient Setup

Helps you avoid the complexities of navigating tax systems and labor laws in Austria. EOR services then simplify the setup process, ensuring compliance from the start.

Consistent Compliance Management

Austria’s regulations can be intricate, but EORs have the expertise and experience needed to keep your business compliant with local tax laws, labor regulations, and social security contributions.

Minimized Risk and Liability

Acting as your legal employer in Austria, an EOR reduces the risks associated with employment regulations and ensures compliance.

The Ability to Focus on Core Business Objectives

Delegating HR tasks like recruitment, payroll processing, and tax management to your EOR allows you to focus on core business activities

Cost Planning and Management

EOR services can be much more economical than establishing a local subsidiary, particularly for smaller teams or temporary needs, by helping you avoid initial incorporation costs and ongoing administrative burdens like the overheads required to hire in-house HR staff.

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

Choosing Between an EOR and Company Incorporation in Austria

While setting up a subsidiary in Austria is often considered the default option for local expansion, opting for an EOR offers several comparative advantages, including:

  • Speed – The business setup process in Austria is expedited with an EOR like INS Global, enabling you to start operations and hire staff much faster. Company incorporation can take several months of planning and documentation, whereas an EOR can make your team operational within weeks or even days.

  • Compliance – EORs and subsidiaries must always comply with Austrian tax laws and labor regulations when employing local staff. However, EORs already have the specialized knowledge to handle these complexities and ensure continuous compliance without the need for in-house experts.

  • Cost – For small teams or temporary needs, EOR services are often more cost-effective than establishing a subsidiary, as you avoid upfront incorporation expenses and ongoing administrative costs. For larger companies, EORs provide specialized streamlining options that help you efficiently integrate new markets into multi-country payroll systems.

  • Control – While incorporation offers full control over HR, finances, and operations, EORs can provide the same level of organizational control over your workforce while reducing your administrative responsibilities and liability.

5 Essential Factors for Selecting the Best Employer of Record in Austria

Choosing the right EOR in Austria is critical for successful market entry. So you can be prepared, consider these 5 key factors:
  • Experience and Track Record – Seek an EOR in Austria with proven experience and a strong industry reputation like INS Global. Look for as many client testimonials and industry accolades as possible as potential indicators of reliability.
  • Comprehensive Service Offerings – Ensure the EOR in Austria provides all necessary services or can customize their offerings to suit your needs. This may include visa and work permit support, payroll processing, tax compliance, and navigating Austria’s tax and labor regulations.
  • Scalability – Opt for an EOR in Austria that can scale its services as your business grows. Their staff should be capable of managing an increasing workforce and evolving business requirements as your needs change.
  • Clear Communication and Transparency – Choose an EOR in Austria known for providing clear and consistent communication. They should keep you informed about regulatory updates, impending deadlines, and potential issues. Look for a dedicated point of contact and online tools for easy access to essential information.
  • Transparent Cost Structure – Compare the pricing models of different EOR providers in Austria. Ensure their fees are transparent and competitive with no hidden costs. Third-party advice can help you get the best value for your EOR in Austria.

Austria: Labor Law Overview

  • Employment Contracts – Contracts must be in German or English and outline employment terms, including salary, benefits, working hours, termination clauses, and minimum wage requirements. An EOR in Austria ensures your contracts comply with Austrian labor law and protect your interests.
  • Probationary Periods – Probation periods in Austria typically last up to 6 months. An EOR in Austria can help set up probation periods that comply with local laws while allowing you to assess new employees.
  • Working Hours – Standard work hours in Austria are usually 40 hours per week with limits on overtime. EOR services assist in tracking work hours and ensuring compliance with overtime regulations to prevent penalties.
  • Paid Leave – Employees in Austria are entitled to various types of paid leave, including public holidays, annual leave, sick leave, and maternity leave. An EOR manages leave requests and ensures proper compensation according to Austrian labor laws.
  • Health Insurance and Social Security – Both employers and employees contribute to health insurance and social security schemes. Your EOR handles these contributions as part of the payroll process.
  • Severance Pay – Severance pay is legally required in certain situations, such as termination without cause. An EOR guides you through severance pay practices and calculations to ensure compliance with local laws.
Navigating Austrian labor law in-house can be challenging and time-consuming, especially if your staff aren’t familiar with it already. Partnering with an EOR in Austria ensures your business remains compliant with labor laws, protecting you from potential risks and allowing you to focus on growth.
Employer of Record in Austria (EOR in Austria)

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FAQs

An EOR handles all legal, HR, and compliance tasks when employing workers abroad, allowing businesses to enter the Austrian market quickly without needing to establish a local entity.

Using an EOR in Austria is typically more cost-effective than setting up a local subsidiary for smaller or medium-sized companies, or in cases where long-term plans are uncertain, as it eliminates initial incorporation costs and reduces ongoing administrative expenses.

Yes, an Austrian EOR manages the entire visa and work permit application process, ensuring compliance with local immigration laws and regulations.

EOR services are beneficial for businesses of all sizes, especially those seeking rapid market entry, cost savings, and reduced administrative burdens.

EORs in Austria have local experts who stay updated on regulatory changes and manage all compliance aspects, ensuring your business adheres to Austrian labor laws even as they evolve.

While the Austrian EOR is the legal employer, you retain significant control over day-to-day management and operational decisions regarding your employees.

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