What Is the Termination Period in Austria in 2026, Notice Periods, Exceptions and Employer Obligations

If you are asking what is the termination period in Austria, the short answer is that it depends on who is ending the employment relationship and how long the employee has been with the company. Under Austrian law, employers must observe statutory notice periods that range from six weeks to five months depending on the employee’s length of service, while employees are generally required to give one month’s notice. Recent labour-law amendments that took effect in 2026 have tightened certain protections, extended coverage to previously excluded worker categories, and refined how the Abfertigung neu severance system operates, making it essential for both employees and HR professionals to understand the current rules.

Source: Unternehmensserviceportal (USP) and Österreich.gv, official Austrian government guidance on termination of employment.

Statutory Termination Periods in Austria, the Full Table Explained

The table above sets out the statutory minimum notice periods that apply to most white-collar employees (Angestellte) in Austria. These periods are codified in the Angestelltengesetz (Salaried Employees Act). Since 2021, the same notice-period framework has applied to blue-collar workers (Arbeiter) as well, a harmonisation that was finalised after transitional periods ended. The result is a single, unified schedule that governs the vast majority of employment terminations across Austria.

How notice periods are counted, the month-end rule

One of the most important, and most frequently misunderstood, features of Austrian termination law is the termination date (Kündigungstermin). Unless an applicable collective agreement (Kollektivvertrag) or the employment contract provides otherwise, an employer’s notice of termination must expire on the last day of a calendar quarter (31 March, 30 June, 30 September or 31 December). However, an agreement may permit termination to take effect on the 15th or the last day of any calendar month, which is extremely common in practice.

For employees giving notice, the statutory rule is simpler: the employee’s one-month notice period typically runs to the last day of a calendar month.

Practical calendar examples

Example 1, Employer termination. An employee has worked for 3 years. The employer must give 2 months’ notice. If the contract allows termination to take effect on the last day of any month and the employer delivers notice on 10 May 2026, the earliest lawful termination date is 31 July 2026 (two full months, counted from the end of the month in which notice is given).

Example 2, Employee resignation. An employee decides to resign and is bound by the statutory one-month notice period running to a month-end. If the employee delivers the resignation on 18 June 2026, the employment ends on 31 July 2026.

These calendar mechanics matter enormously. Miscounting by even a single day can render a termination notice ineffective, leaving the employment relationship intact and the employer liable for additional wages. When in doubt, checking the applicable collective agreement and seeking legal advice on the correct termination date is essential.

When collective agreements override the statutory minimum

Austrian collective agreements (Kollektivverträge) frequently contain their own notice-period provisions. A collective agreement may set longer notice periods, specify different permissible termination dates, or impose additional procedural steps such as written-form requirements. The statutory periods set the floor, they cannot be reduced to the employee’s disadvantage, but they can be extended by a collective agreement or an individual contract. HR departments should always cross-reference the relevant collective agreement before acting on a termination.

Who Can Give Notice and How the Termination Period Runs

Austrian law distinguishes between several ways an employment relationship can end. Understanding these distinctions is critical for anyone navigating a termination notice in Austria, whether as the party giving or receiving it.

Employee notice versus employer notice, key differences

Employer-initiated termination (Kündigung durch den Arbeitgeber). The employer must observe the statutory or contractual notice period and ensure that the termination takes effect on a permissible termination date. Although Austrian law does not require the employer to state reasons in the termination notice itself, the employer may later need to justify the dismissal if the employee challenges it in court.

Employee resignation (Kündigung durch den Arbeitnehmer). The employee must observe the one-month statutory notice period (or any longer period agreed by contract, up to a maximum of six months, provided the employer’s notice period is at least equally long). No justification is required, and the resignation is effective once it reaches the employer.

In both cases, the termination notice does not need to be in writing under general statutory law, an oral notice is legally valid. However, many collective agreements and individual contracts require written form, and delivering notice in writing is strongly recommended for evidentiary purposes.

Termination during the probation period in Austria

Most employment contracts in Austria include a probation period (Probezeit) of up to one month. During this period, either party can end the employment relationship at any time, without notice, without giving reasons, and with immediate effect. No notice period applies during probation, and no severance obligation arises. After the probation month expires, the standard statutory termination period in Austria takes effect immediately.

2026 Labour Reforms, What Changed and When

Austria’s employment law landscape saw notable adjustments in 2026. While the core statutory notice-period brackets set out in the Angestelltengesetz remain unchanged, the reforms targeted several adjacent areas that directly affect how terminations are carried out and who is protected.

Key changes effective in 2026

• Extended protections for freelancers and economically dependent contractors (freie Dienstnehmer). The 2026 amendments strengthened the employment-law protections available to individuals classified as freelance service providers where economic dependency on a single principal can be demonstrated. Industry observers expect this change to increase re-classification disputes, particularly in the gig economy and IT contracting sectors. Employers who engage such workers should review their contractual arrangements to minimise exposure.
• Marginal employment (geringfügige Beschäftigung), new notice obligations. Workers in marginal employment now benefit from the same statutory notice-period framework that applies to regular employees. Previously, many marginal contracts contained shorter or ambiguous notice terms. The reform closed this gap and ensures that the standard six-week minimum employer notice period applies regardless of working-hour thresholds.
• Abfertigung neu, contribution and transparency reforms. The employer’s mandatory contribution of 1.53 % of gross salary to the employee’s Betriebliche Vorsorgekasse (BV fund) continues, but 2026 saw new transparency requirements: employers must now provide employees with an annual statement showing accrued severance entitlements. The likely practical effect will be greater employee awareness of severance balances, potentially influencing resignation and negotiation behaviour.
• Digital delivery of termination notices. Building on prior pandemic-era practices, the 2026 reforms confirmed the validity of electronically delivered termination notices provided certain conditions are met, including verifiable receipt, qualified electronic signatures where contractually required, and compliance with any collective-agreement form requirements.

Transitional rules and practical implications

For terminations initiated before the effective dates of the 2026 reforms, the prior rules generally continue to apply to that specific notice period. Any notice given after the reform took effect is governed by the new provisions. Employers with pending restructurings or planned headcount reductions should carefully timeline their actions and, where necessary, consult with legal counsel to determine which rule set applies.

Termination Exceptions in Austria, Immediate Dismissal, Misconduct, Fixed-Term and Probation

Not every termination follows the standard notice-period framework. Austrian law recognises several important exceptions where different rules, or no notice period at all, apply.

Immediate dismissal (Entlassung) for serious misconduct

An employer may dismiss an employee without notice if there is a serious ground (wichtiger Grund) justifying immediate termination. Recognised grounds include persistent refusal to perform work duties, gross breach of trust, criminal conduct in connection with the employment, and appearing at work under the influence of alcohol or drugs where this endangers safety. The dismissal must be declared promptly, undue delay can be interpreted as the employer condoning the behaviour, which extinguishes the right to immediate dismissal.

Conversely, an employee may walk out without notice (vorzeitiger Austritt) if the employer commits serious breaches, for example, failure to pay wages, endangering the employee’s health, or committing criminal acts against the employee.

Fixed-term contracts and special termination rules

A fixed-term contract (befristetes Arbeitsverhältnis) ends automatically on the agreed expiry date without notice. Premature termination by either party is only permitted if the contract expressly provides for it or if grounds for immediate dismissal or justified early departure exist. Repeated renewals of fixed-term contracts may cause them to be reclassified as indefinite-term employment, with full notice-period protections applying from that point.

Protected employees, who cannot be terminated on standard notice

Austrian law grants enhanced dismissal protection to several categories of employees:

• Pregnant employees and those on maternity or parental leave. Termination is only lawful with the prior consent of the labour court.
• Works council members (Betriebsräte). Dismissal requires the consent of the court and can only be based on specific statutory grounds.
• Employees on military or civilian service. Termination protection applies for the duration of the service and a defined period afterwards.
• Disabled employees (begünstigte Behinderte). Termination requires prior approval from the disability committee (Behindertenausschuss).

Attempting to terminate a protected employee without following the prescribed procedure renders the dismissal void. This is one of the most common causes of unfair dismissal claims in Austria.

Severance Pay in Austria, Abfertigung Neu Overview, Calculation and Examples

Understanding severance pay in Austria is inseparable from understanding how terminations work. Since 2003, the Abfertigung neu system has replaced the old employer-funded lump-sum severance model for new employment relationships.

How Abfertigung neu works

Under the Abfertigung neu regime, the employer pays a contribution equal to 1.53 % of the employee’s gross monthly salary into a corporate staff-provision fund (Betriebliche Vorsorgekasse, or BV fund). Contributions begin from the second month of employment and continue for the entire duration of the relationship. The accumulated balance belongs to the employee and is portable, it follows the employee from job to job.

The employee can claim the severance balance when the employment relationship ends, provided at least three full contribution years have passed. Crucially, entitlement depends on how the employment ends:

• Employer-initiated termination: Employee may claim the full balance.
• Mutual agreement: Employee may claim the full balance.
• Employee resignation: Employee retains the balance in the fund but cannot withdraw it until retirement (or until a subsequent qualifying termination event).
• Immediate dismissal for cause: Employee retains the balance in the fund but cannot claim payment.

Worked examples

3-year employee, gross salary €3,500/month. Monthly contribution: €3,500 × 1.53 % = €53.55. Over 36 months (minus the first month): approximately 35 × €53.55 = €1,874.25 (before fund returns). On employer-initiated termination, the employee may claim this balance.

10-year employee, gross salary €5,000/month. Monthly contribution: €76.50. Over approximately 119 contributing months: roughly €9,103.50 (before fund returns). Actual payout will be higher or lower depending on fund performance.

The 2026 transparency reforms mean employees now receive an annual statement from their BV fund showing the current balance, contribution history and projected value, a practical improvement that helps both parties plan ahead during termination negotiations.

Employer Obligations in Austria, the Lawful Termination Process Checklist

Getting the process right is as important as getting the notice period right. Failing to follow the correct procedure can expose employers to reinstatement orders, compensation claims and regulatory penalties. Below is a step-by-step checklist reflecting current employer obligations in Austria.

• Confirm the contract type. Is the employee on an indefinite, fixed-term, probationary or marginal contract? The applicable notice rules differ.
• Check the collective agreement. Identify whether the relevant Kollektivvertrag imposes longer notice periods, specific termination dates or procedural requirements beyond the statutory minimum.
• Calculate the correct notice period. Count the employee’s length of service precisely to determine the applicable bracket from the statutory table.
• Determine the permissible termination date. Verify whether termination must fall on a quarter-end, month-end or the 15th, as permitted by agreement.
• Check for protected status. Before issuing notice, confirm whether the employee falls into any protected category (pregnancy, parental leave, works council, disability). If so, obtain the required court or committee approval first.
• Consult the works council (if applicable). Under the Arbeitsverfassungsgesetz, the employer must notify the works council of a planned termination and allow it to comment within five working days. Although the works council’s objection does not prevent the termination, failing to notify it can complicate any subsequent legal challenge.
• Prepare and deliver the termination notice. Include the employee’s name, the termination date, and any reference to the applicable notice period. Deliver in writing (recommended) with documented proof of receipt.
• Process final pay and entitlements. Calculate outstanding wages, unused holiday entitlement (Urlaubsersatzleistung), any applicable special payments (13th and 14th salary), and confirm the final Abfertigung neu contribution.
• Issue a certificate of employment (Dienstzeugnis). The employee is entitled to this upon request.
• File social-security de-registration. Notify the relevant social-insurance carrier of the end of employment within the prescribed deadline.

Penalties and remedies for unlawful termination

If an employee successfully challenges a termination, whether on procedural grounds, for breach of protected status, or as socially unjustified (sozialwidrig), the labour court may order reinstatement or award compensation. Under certain circumstances, the employer may also face administrative penalties. Claims must generally be filed within strict time limits, making timely legal advice critical for both sides.

What to Do If You Were Dismissed, Employee Next Steps and Remedies

Receiving a termination notice can be stressful, especially if you are unsure whether the dismissal was lawful. The following checklist outlines the immediate steps every affected employee should take.

• Request written confirmation. If you received the notice orally, ask the employer to confirm the termination in writing, including the stated termination date.
• Check the reason. While Austrian law does not require the employer to state reasons in the notice, you have the right to ask. Understanding the basis for the termination is critical for assessing whether it may be challenged.
• Gather your documents. Collect your employment contract, payslips, any written correspondence, performance reviews, and the termination notice itself.
• Contact your works council or trade union. If a works council exists in your workplace, it may have already been consulted, ask for its opinion on the termination. Trade unions can provide legal support and advice on next steps.
• Check deadlines carefully. To challenge a termination as socially unjustified (Kündigungsanfechtung), the claim must typically be filed with the labour court within two weeks of the works council receiving notice, or within two weeks of the termination being delivered if no works council exists. Missing this deadline usually means losing the right to challenge.
• Register with the AMS. Report to the Austrian Public Employment Service (Arbeitsmarktservice) as soon as possible, ideally immediately upon receiving notice, before the employment actually ends. Early registration protects your eligibility for unemployment benefits and health-insurance coverage.
• Consult an employment lawyer. If you believe the termination was unlawful, discriminatory, or procedurally defective, seek legal advice promptly. An experienced employment lawyer can assess whether you have grounds for an unfair dismissal claim in Austria and advise you on the most effective course of action.

Comparison Table, Before and After the 2026 Reforms

Conclusion, Protecting Your Rights Under Austria’s Termination Rules

Whether you are an employee who has just received notice or an HR professional planning a restructuring, understanding what is the termination period in Austria is the essential first step. The statutory framework, from the six-week minimum through to five months for long-tenured staff, sets clear boundaries, but collective agreements, protected-status rules and the 2026 reforms add layers of complexity that demand careful attention. Getting the notice period, the termination date, or the procedural requirements wrong can be costly. For case-specific guidance, consulting an experienced employment lawyer in Austria is the most reliable way to protect your position and ensure full compliance with the law.

Sources

1. Unternehmensserviceportal (USP), Notice of Termination
2. Österreich.gv, Termination of Employment
3. Migration.gv.at, Ending Employment
4. CMS Law, Expert Guide to Dismissals in Austria
5. CXC Global, End of Employment and Notice Period in Austria
6. Work in Austria, Employment Conditions and Probation
7. Remote.com, Austria Employment Termination