Website of the Austrian Social Ministry

Wage inspections

The Act on the Combating of Wage and Social Dumping (LSDB-G) is intended to ensure equal wage conditions for workers in Austria.
Due to an amendment to the Act on the Adaptation of Employment Contracts, changes were made in wage inspections as of 1 January 2015. 

Administrative penalties for underpayment

Payment lower than that which is due according to laws, regulations or collective agreements can lead to an administrative penalty. It depends whether the payment is lower than the so-called basic wage.

Range of penalties in relation to wage inspections

The range of penalties for not keeping wage records on file and - in the case of employment agencies - for not providing wage records, have been brought into line with those for underpayment.

Depending on the number of employees affected and whether the administrative offence has been committed previously, the penalties range from €1,000 - €50,000. Employment agencies now have to provenly make wage documentation available, and hirers who do not keep such documentation on file commit an offence when they do not keep wage records on file. The range of penalties for circumventing inspections has been increased to €20,000. In addition, not sending documentation in spite of being called upon to do so can lead to a fine.

As with underpayment, circumventing inspections and not keeping wage records on file can lead to the company being prevented from carrying out its business activities.

Extended safeguarding measures

In the case of grounds for suspicion of an administrative offence, and if there are reasons to expect that there may be impediments to prosecution of the offender, the measures taken to ensure the payment of administrative penalties is extended by:

  • Demanding provisional collateral (money or objects belonging to the employer or the agency)
  • The freezing of payments to the contractor or hirer by the inspection authorities.

In addition, measures to ensure the payment of fines for all administrative offences can be imposed in accordance with the Act on the Adaptation of Employment Contracts.