Provisioning of termination gratuities

There are two systems for the provisioning of termination gratuities in Austria.

New provisions

The new provisions are valid for all employment contracts that began from 1.1.2003 onwards and, since 1.1.2008 also for freelancers.  

Old provisions

The old provisions are valid for employment contracts that began before 1.1.2003. Depending on the period of service for the company the termination entitlement can be up to one year’s salary.