THE “S” IN FOCUS
Has your country implemented - or is in the process of implementing - any board/senior
management gender and/or other diversity targets or composition requirements?
Yes, there is a mandatory gender quota of 30% for supervisory boards of all listed companies and
additionally for companies with more than 1,000 employees.
Most recently, the Austrian Chamber of Employees advocated for the introduction of this 30% rule for
the board of directors of listed companies, but there are no corresponding legislative initiatives.
Does your country have any statutory procedures with respect to equal pay? How is the EU Pay
Transparency Directive expected to change the current status on equal pay reporting in your country?
Companies with more than 150 employees must issue an income report at least once every two years.
The report must include details of the classification of women and men in the applicable collective
bargaining agreement or the internal policies of the company, as well as the average or median
remuneration, with the goal of providing income transparency.
The company must submit the income report to employee representatives and must consult with
them upon their request. If no employee representatives have been elected, the company must make
the report available to employees directly.
Although no legislative changes have yet been made to implement the EU Pay Transparency Directive
(2023/970), we expect that the existing reporting rules described above will be amended so as to
comply with the requirements of its Article 9.
The directive provides reporting requirements, a joint pay assessment and mandatory remedies, which
will considerably extend existing Austrian works council participation rules around the promotion of
women at the workplace.
Within your country, are there any statutory procedures with respect to preventing discrimination and
sexual harassment?
There is no statutory procedure for the purpose of preventing discrimination and sexual harassment.
However, the company must provide immediate relief and assistance in such cases or otherwise risks
becoming liable for damages or fines.
Measures can include suspensions of employees, internal investigations, as well as the termination
of the employment of perpetrators.
Victims of discrimination and sexual harassment can seek legal advice and representation from the
Ombud for Equal Treatment free of charge. They can also seek the opinion of the Equal Treatment
Commission instead of, or prior to, raising claims in court. Unlike regular court procedures, procedures
before the Equal Treatment Commission are free of charge and confidential. The opinion of the
Commission is non-binding but can serve as proof in a subsequent court procedure or facilitate a
settlement more swiftly.
Is there any legislation concerning protecting against human rights breaches in general and/or in the
supply chain in your country?
At the time of writing, there are no rules around human rights breaches in supply chains. However,
stringent labour and employment rules apply within Austria, both in respect of local workforce and
employees posted or leased to Austria from abroad.
Such rules include stringent working time regulation, sector-specific minimum wages and employee
health and safety. Additionally, employees in businesses with a headcount of just five or more can
already elect a works council whose role is, amongst others, to supervise compliance with these rules.
Notwithstanding the lack of rules around supply chains, clients are well advised to put in place
appropriate policies against human rights breaches in their supply chain. This is both in light of the
growing significance of this topic and with a view to meeting the requirements of the EU Corporate
Sustainability Due Diligence Directive (2024/1760), which entered into force on 25 July 2024. Originally,
it should have been transposed by member states into national law within two years from this date.
However, the member states have agreed on pushing that date back one more year, giving them three
years to transpose the directive. Although no legislative initiatives have been published in Austria so
far, companies will face stringent requirements to identify and address the adverse impact of their
operations on human rights.
“E” - AN ASPECT ON THE RISE
Climate change is the number one topic of concern for Generation Z. Are employers in your country
taking steps to ensure the “Environmental” ESG pillar in employment terms and conditions?
The pandemic and the digitisation of workplaces have catalysed a cultural shift in favour of remote
work as well as online meetings and against frequent business travel. More permissive remote working
policies have meant that employees experience more liberty to work from abroad, combining family
life and leisure with professional commitments and thus reducing the need for frequent travel.
The Austrian tax landscape has also been fertile ground for electric company cars, which can be
provided for both business and private use to create a tax advantage.
Have you experienced any employers taking more creative measures to factor in the “Environmental”
pillar in an employment context? (e.g., special sustainability bonuses for employees who bike or walk
to the workplace?)
Employer measures have so far centred mainly around green transport with few out-of-the-box
initiatives. Public initiatives are also increasingly encouraging green transport such as cycling to work.
You can find the entire WSG report here: