(Bauarbeiter-Urlaubs- und Abfertigungsgesetz) Act on Construction Workers’ Annual Leave and Severance Pay, Federal Law Gazette (FLG) no. 414/1972, as amended by
Status as of 1 October 2007
Federal Act governing annual leave and severance pay for workers in the construction sector (Bauarbeiter-Urlaubs- und Abfertigungsgesetz; BUAG)
Scope
The provisions of this Federal Act shall not apply to persons a) who are predominantly employed as white-collar workers as defined by the Salaried Employees Act (Angestelltengesetz), Federal Law Gazette no. 292/1921; b) whose employment relationship is governed by the Contractual Public Employees Act (Vertragsbedienstetengesetz) 1948, Federal Law Gazette no. 86/1948; c) whose employment relationship is governed by the Agricultural Labour Act (Landarbeitsgesetz) 1984, Federal Law Gazette no. 287; d) who are employed for a maximum period of three months for training purposes.
The provisions of this Federal Act shall further apply to workers (apprentices) as defined by Para 1 who are employed in jobs carried out on behalf of public bodies as well as institutions, foundations and funds in businesses or enterprises administered by them or autonomously, provided that the nature of these jobs is covered by the provisions of Section 2.
The provisions of this Federal Act shall also apply to workers who are posted abroad by an employer whose registered office is on Austrian territory.
a) businesses of master builders, master bricklayers, construction firms, businesses engaging in the bending and installation of structural iron, demolition businesses, businesses whose owners are licensed to carry out masonry and bricklaying work pursuant to Section 6 of the Building Trade Act (Baugewerbegesetz), Imperial Law Gazette no. 193/1893, businesses engaging in earth moving (like building), earthwork, concrete pipes and concrete cutting, water regulation, torrent control and avalanche protection, preparation and improvement work, road construction, construction of back roads, grinding out chimneys and fireplaces, coating facades for the purpose of thermal insulation; b) businesses of master stonemasons, businesses whose owners are licensed to carry out the trade of stonemasonry pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, businesses manufacturing cast stone or terrazzo; c) roofing businesses, paving businesses; d) stove-fitting businesses (except for businesses engaging in manufacturing only), tiling businesses; e) businesses of master well sinkers, businesses whose owners are licensed to carry out the trade of well sinking pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, deep drilling businesses, scaffolding rental businesses, businesses renting out construction equipment including service staff, thermal, cold, sound and fire insulation businesses, asphalting businesses, blacktopping businesses, businesses engaging in sealing against moisture and infiltration water, businesses engaging in stucco and drywall work, plasterwork businesses, stone wood tiling businesses, screed manufacturing businesses; f) carpentry businesses and businesses whose owners are licensed to carry out the trade of carpentry pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, parquetry businesses; g) specialised businesses which carry out activities that fall within the scope of the businesses as defined by lits. a to f with respect to their fields of activity; h) temporary agencies with respect to those workers who are recruited in order to be hired out to perform activities carried out by the businesses covered by lits. a to g with respect to their fields of activity, or actually hired out to perform predominantly such activities.
With regard to the Division of Severance Pay Regulation, the following shall be deemed businesses (enterprises) as defined by Section 1: a) businesses of master builders, master bricklayers, construction firms, businesses engaging in the bending and installation of structural iron, demolition businesses, businesses whose owners are licensed to carry out masonry and bricklaying work pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, businesses engaging in earth moving (dike building), earthwork, concrete pipes and concrete cutting, water regulation, torrent control and avalanche protection, preparation and improvement work, road construction, construction of back roads, grinding out chimneys and fireplaces, coating facades for the purpose of thermal insulation; b) businesses of master stonemasons, businesses whose owners are licensed to carry out the trade of stonemasonry pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, businesses manufacturing cast stone or terrazzo; c) roofing businesses, paving businesses; d) stove-fitting businesses (except for businesses engaging in manufacturing only), tiling businesses; e) businesses of master well sinkers, businesses whose owners are licensed to carry out the trade of well sinking pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, deep drilling businesses, scaffolding rental businesses, businesses renting out construction equipment including service staff, thermal, cold, sound and fire insulation businesses, asphalting businesses, blacktopping businesses, businesses engaging in sealing against moisture and infiltration water, businesses engaging in stucco and drywall work, plasterwork businesses, stone wood tiling businesses, screed manufacturing businesses; f) carpentry businesses, businesses whose owners are licensed to carry out the trade of carpentry pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, unless they are operated as factories, parquetry businesses; g) specialised businesses which carry out activities that fall within the scope of the businesses as defined by lits. a to f with respect to their fields of activity; h) temporary agencies with respect to those workers who are recruited in order to be hired out to perform activities carried out by the businesses covered by lits. a to g with respect to their fields of activity, or actually hired out to perform predominantly such activities. (2a) With regard to the Division of Winter Holiday Regulation, the following shall be deemed businesses (enterprises) as defined by Section 1: a) businesses of master builders, master bricklayers, construction firms, businesses engaging in the bending and installation of structural iron, demolition businesses, businesses whose owners are licensed to carry out masonry and bricklaying work pursuant to Section 6 of the Building Trade Act, Imperial Law Gazette no. 193/1893, businesses engaging in earth moving (dike building), earthwork, concrete pipes and concrete cutting, water regulation, torrent control and avalanche protection, preparation and improvement work, road construction, construction of back roads, grinding out chimneys and fireplaces, coating facades for the purpose of thermal insulation (except painting businesses); b) specialised businesses which carry out activities that fall within the scope of the businesses as defined by lit. a with respect to their fields of activity; c) temporary agencies with respect to those workers who are recruited in order to be hired out to perform activities carried out by the businesses covered by lit. a or b with respect to their fields of activity, or actually hired out to perform predominantly such activities.
Industrial businesses shall also be considered businesses (enterprises) pursuant to Paras 1, 2 and 2a.
Upon joint request of the statutory interest group of employers and the Austrian Trade Union Federation, the Construction and Wood Workers Union, other types of business shall be included in the scope of this Federal Act by means of an ordinance of the Federal Minister for Labour and Social Affairs, if the terms of employment relevant for annual leave, entitlement to severance pay and employment on winter holidays have been defined in a similar way as in the types of business listed in Paras 1, 2 and 2a.
In mixed businesses with an organisational separation of the different activities pursuant to Para 1 into business divisions, those workers employed in business divisions engaging in activities as defined by Section 2 shall be subject to the provisions of this Federal Act.
In mixed businesses with no organisational separation into business divisions only those workers shall be subject to the provisions of this Federal Act who predominantly carry out activities as defined by Section 2.
The provisions of this Federal Act shall also apply to workers in a mixed business who were hired to work in a business division subject to this Federal Act for the duration of their employment relationship, even if they work in a business division which is not subject to this Federal Act. This shall also apply correspondingly to workers in mixed businesses without an organisational separation into business divisions.
If uniformity of annual leave and severance pay regulations is required for administrative reasons and if cases of hardship which would otherwise arise for the workers can be eliminated, any and all workers as defined by Section 1 Para 1 working in a mixed business can be included in the scope of this Federal Act by means of an ordinance of the Federal Minister for Labour and Social Affairs, upon joint request of the competent statutory interest group of employers and the Austrian Trade Union Federation, Construction and Wood Workers Union. Upon joint request of the mentioned interest groups or on the authority’s own initiative, the inclusion shall be revoked if the prerequisites for the inclusion have ceased to exist.
If the majority of the workers in a company is subject to the Division of Severance Pay Regulation, the employer may file a request to the Holiday and Severance Pay Fund to include all workers of the company who are subject to the Division of Annual Leave Regulation in the scope of the Division of Severance Pay Regulation. If the prerequisites are met, the Holiday and Severance Pay Fund shall include them as of the date when the request was filed. If the Holiday and Severance Pay Fund rejects the request or does not deal with it within six weeks, the employer may call upon the competent District Administration Authority to decide on its request by means of an administrative decision (Bescheid) within two weeks. The provisions of Section 25 Paras 3 and 5 shall correspondingly apply to these proceedings.
Annual leave provisions Annual leave entitlement and qualification
(1a) After 26 qualification weeks the worker shall be entitled to half of the annual leave. Subsequently, the entitlement builds up proportionately to the employment weeks accrued in the qualification period.
For each wage supplement (Section 21) to be paid by the employer for the Division of Annual Leave Regulation the worker shall acquire additional qualification on the wage supplement amount. The qualifications shall be defined by means of an ordinance of the Federal Minister for Labour and Social Affairs in line with the extent of annual leave and upon joint request of the competent bodies of workers and employers entitled to enter into collective agreements. In this context, the payment (annual leave remuneration) resulting from the qualifications accrued in the qualification period shall be equivalent to a continued payment of wages corresponding to the duration of the leave period in the amount of the wage pursuant to Section 21 Para 3 plus an annual leave bonus to the same extent. If the budgetary management of the Holiday and Severance Pay Fund (Section 14) for the Division of Annual Leave Regulation so requires, the Federal Minister for Labour and Social Affairs shall modify the qualifications in conjunction with a provision pursuant to Section 21 Para 1 last sentence by ordinance.
In addition to the employment periods pursuant to Para 1, the following shall be apportioned when computing the duration of annual leave: a) periods for which a compensation for wrongful imprisonment pursuant to Section 13a Para 1 or Section 13c Para 1 of the Victims Assistance Act (Opferfürsorgegesetz) 1947, Federal Law Gazette no. 133, is due; b) periods of basic or one-year military service or alternative civilian service, provided the employment weeks as defined by Section 5 were accrued before being drafted into basic or one-year military service or before being assigned to alternative civilian service, or provided that an employment relationship as defined by this Federal Act is entered into within six working days after completing the basic or one-year military service or alternative civilian service; c) periods of employment bans pursuant to the Maternity Leave Act (Mutterschutzgesetz), Federal Law Gazette no. 221/1979, provided that there was no remuneration entitlement vis-à-vis the employer; d) periods of absence from work which were expressly granted by the employer or his/her authorised agent for the purpose of attending education and training courses and seminars; e) periods of extended educational leave pursuant to Section 119 of the Labour Constitution Act (Arbeitsverfassungsgesetz), Federal Law Gazette no. 22/1974; f) periods of work as a development aid worker in a development aid organisation as defined by Section 1 Para 2 of the Federal Act of 10 July 1974, Federal Law Gazette no. 474; g) education periods in a builder’s school pursuant to Section 59 of the School Organisation Act (Schulorganisationsgesetz), Federal Law Gazette no. 435/1995, as amended.
Periods as defined by Para 3 shall only be considered for computing the duration of annual leave to the extent that they have not been taken into account as employment periods pursuant to Para 1. Employment periods
a) periods of employment in employment relationships subject to the provisions of this Federal Act; b) periods of paid leave according to the provisions of this Federal Act; c) periods of inability to work caused by sickness (accident), accident at work or occupational disease for the time of the employment relationship or, if the employment relationship ends during the inability to work, for the time a person is entitled to remuneration by law or collective agreement in cases of such inability to work; d) periods of inability to work caused by other reasons for which a person is entitled to continued remuneration; e) periods of inactivity due to bad weather for which bad weather compensation is due, as well as periods of inactivity due to bad weather for which there is no entitlement to bad weather compensation, because the maximum number of bad weather hours for which compensation can be paid has been exceeded; f) periods of absence from work expressly granted by the employer or his/her authorised agent up to the maximum of one working day; g) periods of educational leave pursuant to Sections 118 and 130 Para 3 of the Labour Constitution Act; h) periods of military field exercises pursuant to Section 28 Para 2 of the National Defence Act (Wehrgesetz) 1990, Federal Law Gazette no. 305, for no longer than 60 days. **Qualification week** **Section 6.** (1) A qualification week shall be a calendar week comprising employment periods pursuant to Section 5 on five working days.
The prerequisite as defined by Para 1 shall also be deemed met in those cases where - due to a different distribution of regular working hours - work is being performed on less or more than five working days.
Employment periods which do not comprise a full calendar week due to the commencement or end of the employment relationship and/or the period as defined by Section 5 lit. c during the calendar week, or due to the loss of individual working days for which the employer is not obliged to pay remuneration, will be added to other such employment periods and the resulting full qualification weeks will be taken into account.
For workers in businesses pursuant to Section 2 Para 2a who have acquired more than 47 qualification weeks (Section 6) in a calendar year, the following shall apply:
For workers in businesses pursuant to Section 2 Para 2a who have acquired more than 47 qualification weeks (Section 6) in two consecutive calendar years the following shall apply:
**Taking leave** **Section 7.** (1) Paid leave can only be taken as long as an employment relationship exists. It can be taken in parts; one part has to consist of at least six working days or a multiple thereof.
The first day of paid leave shall be set by mutual agreement of the employer and the worker taking into account both the requirements of the business and the worker’s recreation possibility in such a way that paid leave can be taken to the extent of the entitlement acquired as of the 27th qualification week, but, at any rate, within the next 47 qualification weeks (annual leave period) following the qualification period (Section 4 Para 1).
The leave start date must not be set in periods in which a worker is unable to work for reasons specified in Section 2 of the Continued Remuneration Act (Entgeltfortzahlungsgesetz) 1974, Federal Law Gazette no. 399, during which he/she is entitled to care leave or otherwise entitled to continued remuneration. remuneration while not working, provided that these circumstances had been known when the agreement was made. If it happens nonetheless, the period of inability to work shall not be considered leave.
If no agreement about the leave start date is reached within one week, leave can start after six more weeks have passed. In this case, the employer shall be notified about the first day of leave no later than two weeks before the leave start date.
If, at the time of notice, the worker is entitled to paid leave and wants to take it, leave shall be granted. If the time between the notice and the end of the employment relationship is not sufficient to use up paid leave, the employment relationship shall be extended by this time period. (5a) Without prejudice to the agreement on paid leave pursuant to Para 2, the following shall apply to businesses pursuant to Section 2 Para 2a: In December and January, paid leave of two weeks or less, if the worker is only entitled to a shorter period of paid leave, shall be agreed through a works agreement or individual agreement and shall be taken. If the employment relationship is terminated during this period of time and if the worker is entitled to paid leave at the time of termination, two weeks’ paid leave or less - if the worker is only entitled to a shorter period of paid leave - shall be taken in any case. The employment relationship shall be extended by this period; Para 5 shall apply when more than two weeks’ paid leave are taken.
The leave entitlement shall lapse if the worker has not used up the leave during the leave period. It shall not lapse if the worker was not able to take leave for reasons outside his/her sphere of influence. As soon as the impediment for taking leave has disappeared, paid leave shall be taken within three months and consequently be used up to its full extent.
The employer shall keep records specifying for each worker a) the commencement of the employment relationship; b) the time when the worker took paid leave; c) the remuneration the worker received for paid leave taken. Falling ill during paid leave
If, during his/her paid leave, a worker is engaged in gainful activities contradictory to the recreational purpose of paid leave, Para 1 shall not apply if the illness (the accident) occurs as a direct consequence of these activities.
After three days of illness the worker shall notify the employer immediately of the illness. If this is not possible for reasons outside the worker’s sphere of influence, the notification shall be deemed timely if it occurs immediately after the impediment to notification has disappeared. When the worker returns to work, he/she shall without culpable delay present a sick note of a physician or the competent health insurance institution specifying the start, duration and cause of the inability to work. If the worker falls ill during holidays abroad, an official confirmation of an authority shall be attached to the physician’s sick note stating that the latter was issued by a doctor licensed to practice as a physician. Such an official confirmation is not required if the worker was admitted to a hospital for in-patient or outpatient treatment and a confirmation of this hospital is presented. If the worker does not meet these obligations, Para 1 shall not apply. Annual leave remuneration
The employer shall request the transfer of annual leave remuneration from the Holiday and Severance Pay Fund at a date that allows timely payment to the worker, at the earliest, however, one month before the agreed leave start date. On the basis of the available documentation, the employer shall first make sure that the worker has already acquired the leave entitlement at the leave start date.
The Holiday and Severance Pay Fund shall, as requested by the employer, compute the leave remuneration to be transferred to him/her on the basis of the qualifications acquired and shall transfer it to the special account to be opened by the employer for the transfer of annual leave remunerations.
If, due to the agreed leave start date, the employer has to request the transfer of leave remuneration before the qualification weeks constituting the leave entitlement have been completed, the Holiday and Severance Pay Fund shall compute the not yet reported qualification weeks according to the average of the qualifications acquired so far in the current qualification period. Any difference between this computation and the actually acquired qualifications shall be offset the next time leave remuneration or payment in lieu is computed.
The employer shall pay out leave remuneration due on the last working day prior to the leave start date, taking into account any provisions defined by law or collective agreement on the payment of wages. Simultaneously, the worker shall receive the computation and status statement as provided by the Holiday and Severance Pay Fund. The worker shall confirm receipt of leave remuneration vis-à-vis the employer.
If leave remuneration is not paid out to the worker during the employment relationship or not paid out in full within three months after transfer by the Holiday and Severance Pay Fund if the worker takes leave and if it is not transferred back to the Holiday and Severance Pay Fund, the employer shall, as of this date, pay interest of 10% p.a. to the Holiday and Severance Pay Fund for annual leave remuneration not used up. The Holiday and Severance Pay Fund may reduce the interest rate or waive interest altogether for good reason.
If the worker does not take leave or takes only part of it during the employment relationship, the employer shall, within two weeks after termination of the employment relationship, transfer received leave remuneration to the extent of the untaken leave back to the Holiday and Severance Pay Fund.
The Holiday and Severance Pay Fund may pay out leave remuneration directly to the worker if the employer has not met the requirements as defined by Paras 5 and 7, if the payment of wage supplements is in arrears by more than two wage supplement periods, or if no special account for annual leave remunerations (Para 3) has been opened.
In return, the worker shall receive remuneration in the amount of one sixth of annual leave remuneration owed for one week in addition to the corresponding leave remuneration from the Holiday and Severance Pay Fund. This shall be paid out with the next leave remuneration or, if applicable, the payment in lieu. Prohibition of cash compensation for untaken leave
Payment in lieu
a) he/she has not been in an employment relationship to which this Federal Act applies for at least six months; b) he/she has been granted a pension according to the provisions of the General Social Insurance Act (Allgemeines Sozialversicherungsgesetz), Federal Law Gazette no. 189/1955, as amended.
In the event of death, the entitlement shall be passed on to the heirs.
The payment in lieu shall be claimed from the Holiday and Severance Pay Fund. Lapse of annual leave remuneration and payment in lieu
The entitlement to payment in lieu shall lapse if it is not claimed from the Holiday and Severance Pay Fund within three years after the end of the last employment relationship to which this Federal Act applies. If payment in lieu is claimed in time, the entitlement to receiving payment shall be subject to a limitation period of thirty years. Protection against attachment
The annual leave remunerations mentioned in Para 1 shall have priority in composition proceedings (Section 23 of the Composition Code (Ausgleichsordnung), Imperial Law Gazette no. 337/1914) and constitute a separate asset (Sondermasse) in bankruptcy proceedings. The repayment claim of the Holiday and Severance Pay Fund to these annual leave remunerations shall be settled with money from this separate asset. Mandatory provisions
Severance pay provisions
(1a) If the worker meets the requirements pursuant to Sections 13b and 13c, he/she shall be entitled to severance pay even if the employment relationship is continued with fewer working hours as defined by Section 253a Para 2 ASVG while granted part-time pension from statutory pension insurance. In this case, the entitlement to severance pay arises when the working hours are reduced.
Female workers shall be entitled to half of the severance pay due (Section 13b Para 7, Section 13d), but no more than three monthly remunerations, if they meet the requirements pursuant to Section 13b and have recorded at least 260 employment weeks and if
Para 2 shall also apply to male workers, provided that they take parental leave as defined by the Parental Leave Act for Fathers (Vater-Karenzgesetz; VKG), Federal Law Gazette no. 651/1989, as amended or in similar Austrian legislation and announce their premature resignation from the employment relationship at least three months prior to the end of parental leave.
A male worker shall not be entitled to severance pay if he resigns as defined by Para 3 after he has stopped living in the same household with the child or has ceased to be predominantly in charge of child care. (4a) A worker shall also be entitled to severance pay pursuant to Para 2 or 3 if he/she resigns during a part-time employment pursuant to MSchG or VKG.
If the employment relationship is terminated due to death of the worker and the requirements pursuant to Sections 13b and 13c are met, the legal heirs, whom the worker was legally obliged to support, are entitled to receive half of the severance pay due (Section 13b Para 7, Section 13d).
The prerequisite as defined by Para 1 no. 2 shall also be deemed met if the worker is given notice after at least 92 employment weeks during the last 22 weeks of the 156-week period, and the employer
The worker shall have resumed work (Para 2 no. 1) in time if he/she does so without deliberate delay immediately after the impediment outside his/her sphere of influence has disappeared.
Employment periods with other employers during the interruptions (Para 1 no. 2) shall not be taken into account.
Within the scope of reporting pursuant to Section 22, the employer shall report to the Holiday and Severance Pay Fund the details required for the assessment whether the requirements as defined in Para 1 have been met and submit a copy of the written promise (Para 2 no. 1).
If the employer’s enterprise (business) is part of a group (Section 15 of the Stock Corporation Act (Aktiengesetz) 1965 or Section 115 of the Act on Limited Liability Companies (Gesetz über Gesellschaften mit beschränkter Haftung)), the requirement of being employed by the same employer (Para 1) shall also be deemed met if the worker is employed by other enterprises (businesses) of the group which are subject to the severance pay provisions of this Federal Act. This requirement shall also be deemed met in the case of employment with joint ventures of which the employer is a part.
Workers in staffing companies (Section 2 Para 2 lits. a and c) or in mixed businesses (Section 3 Paras 1 to 6) who, in the course of the employment relationship, work in jobs which are alternatively subject to the scope of this Federal Act regarding the Division of Severance Pay Regulation and of the Workers’ Severance Pay Act (Arbeiter-Abfertigungsgesetz), Federal Law Gazette no. 107/1979, as amended, meet the entitlement requirements as defined by Para 1 no. 1, regardless of how often they changed jobs and regardless of the duration of the individual employment relationships, provided that the employment relationship lasted for three continuous years. If such an employment relationship is terminated, the worker shall be entitled to severance pay in accordance with the provisions of this Federal Act. When claiming severance pay after termination of this employment relationship the worker shall – taking into account the overall duration of the employment relationship – be entitled to the share of severance pay which is equivalent to the proportion of employment weeks accrued within the scope of this Federal Act in relation to the overall duration of the employment relationship.
Employment periods as defined by this Federal Act which, pursuant to Section 23 Para 1 of the Salaried Employees Act (Angestelltengesetz), Federal Law Gazette no. 292/1921, as amended, are taken into account for severance pay according to the Salaried Employees Act, shall not be considered as meeting the entitlement requirements pursuant to Para 1 and shall not be apportioned pursuant to Section 13c. If these employment periods are taken into account for severance pay pursuant to Sections 23 and 23a of the Salaried Employees Act, the employer shall be entitled to a pro-rated refund of this severance pay. The refund shall amount to the proportion of the employment periods accrued within the scope of this Federal Act in relation to the overall duration of the employment relationship. The computation shall be based on the principles defined in this Federal Act; the hourly wage under the collective agreement at the time of termination of the employment relationship according to the classification of the worker prior to starting an employment relationship subject to the Salaried Employees Act shall be used as the hourly wage under the collective agreement as defined by Section 13d Para 2. The refund shall be claimed from the Holiday and Severance Pay Fund by means of an application, while simultaneously providing evidence on the severance pay amount and reporting the overall duration of the employment relationship.
Employment periods under this Federal Act which are not taken into account for severance pay pursuant to Section 23 Para 1 of the Salaried Employees Act shall be included when claiming severance pay under this Federal Act. Commencing an employment relationship subject to the Salaried Employees Act shall be considered as termination as defined by Section 13a Para 1 no. 6.
Periods of basic or one-year military service or alternative civilian service, however, shall only be taken into account when it comes to meeting the requirements of Section 13b and to apportionment pursuant to Para 1, if the basic or one-year military service or alternative civilian service took place during an intact employment relationship and this employment relationship was not terminated as specified in Para 4 nos. 1 to 4.
A calendar week shall, except for cases of apportionment pursuant to Section 4 Para 3, be considered an employment week if it meets the requirements as defined by Section 6.
Employment periods from an employment relationship shall, both when it comes to meeting the requirements as defined in Section 13b and to apportionment pursuant to Para 1, not be taken into account if this employment relationship is terminated by
unless hereinafter defined otherwise.
If in cases under Section 13a Para 1 nos. 1 to 5 and nos. 7 to 10 an employment relationship ends through the worker’s resignation, the employment periods from this employment relationship shall be taken into account when it comes to meeting the requirements as defined in Section 13b and to apportionment pursuant to Para 1.
Apprenticeship periods shall be taken into account if the number of employment weeks including the apprenticeship period amounts to 364. Furthermore, after completing the apprenticeship the worker has to meet the requirement as defined by Section 13b, unless it was already met during an employment relationship prior to the apprenticeship. In order to meet the requirement as defined by Section 13b in an employment relationship after completing the apprenticeship, any employment periods of an employment relationship with the same employer immediately preceding the apprenticeship shall be taken into account. If the apprenticeship period was not taken into account when computing the entitlement to severance pay pursuant to Section 13d, Section 13e Para 2 shall apply correspondingly.
Within the scope of reporting pursuant to Section 22, the employer shall report to the Holiday and Severance Pay Fund the details required for the assessment of the apportionment under Para 1.
2 monthly wages after 156 employment weeks; 3 monthly wages after 260 employment weeks; 4 monthly wages after 520 employment weeks; 6 monthly wages after 780 employment weeks; 9 monthly wages after 1,040 employment weeks; 12 monthly wages after 1,300 employment weeks. The total of the number of monthly wages from claiming severance pay two or more times must not exceed the number of monthly wages that would result from adding up all previous apportionable employment periods at the time of the respective latest assertion of the claim. Altogether, the maximum entitlement of twelve monthly wages must not be exceeded in case of repeated claims.
Regardless of when severance pay is claimed, the basis for computing the monthly wages shall be the hourly wage under the collective agreement which was applicable to the worker in the past 52 weeks prior to termination of the last employment relationship when the entitlement arose (Section 13a) plus a 20% wage supplement. The hourly wage results from the predominant classification of the worker, taking into account the last wage increase under the collective agreement in this period. For lack of a regulation of the hourly wage in the collective agreement, the hourly wage agreed in the last employment relationship and reported to the Holiday and Severance Pay Fund (Section 21a Para 3 last sentence) shall serve as the basis for the computation.
The number of hours for computing the monthly wage shall result from the regular working hours as defined in the collective agreement or, if not available, by law. If shorter working hours were contractually agreed, these or the actual longer working hours up to the maximum permissible regular working hours shall be taken into account for the computation, if these working hours were relevant for the entire period on which the computation of severance pay entitlement was based. If this period includes both employment periods with regular working hours as defined by the collective agreement or law and employment periods with contractually agreed shorter working hours or actual longer working hours, the average number of hours resulting from the proportion of each employment period to the total of working periods shall be used for computing monthly remuneration. (3a) If a part-time employment relationship pursuant to Section 15c MSchG or Section 8 Parental Leave Act (Elternkarenzurlaubsgesetz; EKUG) is terminated by the employer’s notice, dismissal without fault or resignation with good cause, this part-time employment shall be taken into account when computing the monthly wage with the number of hours on which the employment relationship was based before it became part-time.
Furthermore, the pro-rated bonus payments as defined by law or collective agreement shall be taken into account when computing the monthly wage. The corporate bodies of employers and workers entitled to enter into collective agreements can lay down the way and the extent to which bonus payments are taken into account for the computation of remuneration.
If the apportionable employment periods acquired at the time of the payout exceed the employment weeks required for this severance pay entitlement (Section 13d Para 1), these employment periods shall be taken into account when computing a new entitlement, provided it arises on the basis of at least 260 new employment weeks.
If the worker is not yet entitled to severance pay at a time the employment relationship is terminated due to insolvency of the employer, the employment periods of this employment relationship shall be taken into account both for computing a new severance pay entitlement and for meeting the requirements under Section 13b.
Winter holiday remuneration Refund
The amount of remuneration shall be computed on the basis of the hourly wage under the collective agreement applicable to the worker in the current calendar year, plus a 20% wage supplement. In this context, the predominant classification of the worker shall be used, taking into account the latest wage increase under the collective agreement in this period. For lack of a regulation of the hourly wage in the collective agreement, the hourly wage agreed and reported to the Holiday and Severance Pay Fund shall serve as the basis for the computation. Each winter holiday shall be computed as one fifth of the regular working hours per week under the collective agreement. Only those holidays and leisure days as defined by Para 1 coinciding with days from Monday to Friday shall be deemed winter holidays.
The employer shall be entitled to winter holiday remuneration for those workers who are reported to the Holiday and Severance Pay Fund for those calendar weeks in which the winter holidays fall. In the case of workers whose employment relationship ends within this period, the employer shall be entitled to winter holiday remuneration for those winter holidays for which these workers were reported to the Holiday and Severance Pay Fund due to an intact employment relationship.
On the basis of the reports pursuant to Section 22, the Holiday and Severance Pay Fund shall compute winter holiday remuneration for all workers employed by an employer in accordance with Para 3. The compensation for the social security contributions and statutory charges (supplementary charges) to be paid by the employer for holiday remuneration shall be a lump sum of 17% of the winter holiday remuneration transferred. The computed refund including the lump sum shall be settled against claims from the Holiday and Severance Pay Fund; if no claims exist, the refund shall be paid out to the employer. Alternative entitlement of the worker
The alternative entitlement to winter holiday remuneration shall be determined by the Holiday and Severance Pay Fund on the basis of the reports according to Section 22 and shall be paid out to the worker upon his/her request, in any case, however, together with the next leave remuneration or payment in lieu following the winter holidays. If it is paid out together with the leave remuneration, the employer shall also be entitled to the lump-sum pursuant to Section 13i Para 4 second sentence for the winter holiday remuneration.
The Holiday and Severance Pay Fund, Division of Winter Holiday Remuneration, shall pay a contribution to the labour market policy budget that is equivalent to the total of the deductions pursuant to Para 1 no. 2 in one financial year. The contribution shall be paid upon completion of the financial year (1 April). Winter holiday wage supplement
The wage supplements shall be paid for each qualification week in this period, except for military field exercise periods (Section 5 lit. h). The wage supplements not to be paid by the employer shall be paid by the Holiday and Severance Pay Fund itself.
The provisions for the wage supplement for the Division of Annual Leave Regulation (Section 21a Para 2 last sentence and Paras 3 to 7, 22, 23, 25, 25a, 27, 28, 29) shall apply correspondingly to the computation, payment order and collection of the wage supplement for the Division of Winter Holiday Regulation.
The wage supplement pursuant to Para 1 shall be determined each year by ordinance of the Federal Minister for Labour and Social Affairs, upon request of the competent bodies of employers and workers entitled to enter into collective agreements, taking into account the operating result of the previous financial statements for the accounting group of winter holiday remuneration and the expected expenses of the current and the following years, and applying average values of the week days with which the winter holidays coincide. Administrative costs (cost of material and personnel expenses) of 2% of the total administrative expenses shall be added.
The Holiday and Severance Pay Fund shall establish a separate division in order to handle the winter holiday regulation. The financial year in this division shall be the period from 1 April to 31 March.
Organisational structure of the Construction Workers’ Holiday and Severance Pay Fund Purpose and competence; members of the administrative bodies
The Holiday and Severance Pay Fund is a body corporate under public law established in Vienna. It is the competent public body for the entire territory of Austria.
The committee shall decide on the establishment of administrative units at regional level.
The Holiday and Severance Pay Fund is managed jointly by representatives of employers and workers who are assigned to the administrative bodies (Section 15) and, if necessary, recalled by the competent statutory interest groups. Only Austrian nationals who have reached the age of 24, are of full legal age and capacity and are not excluded from serving on a jury or as lay judges due to a conviction under criminal law, pursuant to the Jurors and Lay Judges Act (Geschworenen- und Schöffengesetz; GSchG) 1990, Federal Law Gazette no. 256/1990, as amended, may be assigned to these positions. If impediments arise only after the assignment, the competent body shall recall this representative.
The members of the administrative bodies carry out their work on an honorary basis. However, they are entitled to reimbursement for cash expenses that become necessary when performing their work. The heads and members of the executive board, the chairpersons and members of the audit board as well as the heads (deputies) of the advisory boards may receive a compensation fee (Funktionsgebühr) that is appropriate as regards the scope of their tasks; the amount shall be determined by the committee. Members of these administrative bodies who carry out several functions shall only be entitled to one compensation fee. Composition of the administrative bodies
The committee shall consist of 20 representatives of the employers (group of employers) assigned by the Austrian Federal Economic Chamber and of 20 representatives of the workers (group of workers) assigned by the Austrian Chamber of Labour. The committee shall elect two of its members to become chairpersons by a simple majority of the votes cast; they shall be chairpersons of the executive board at the same time, with one chairperson belonging to the group of employers, and one belonging to the group of workers.
In addition to the chairpersons, the board shall consist of four representatives each of employers and workers, who are members of and assigned by the group of employers and the group of workers of the committee, respectively.
The audit board shall consist of three representatives of the employers assigned by the Austrian Federal Economic Chamber and of three representatives of the workers assigned by the Chamber of Labour. The audit board shall elect two of its members to become chairpersons by a simple majority of the votes cast, with one chairperson belonging to the group of employers, and one belonging to the group of workers. The members of the audit board must not be members of another administrative body of the Holiday and Severance Pay Fund at the same time.
The advisory board of a federal province shall consist of two representatives of the employers assigned by the competent regional Economic Chambers, and of two representatives of the workers assigned by the competent regional Chambers of Labour. The advisory board shall elect one of its members to become chairperson by a simple majority of the votes cast, and his/her deputy from the group the chairperson does not belong to. The members of the advisory board must not be members of the executive board.
The members of the administrative bodies shall be assigned for a five-year period. The term of office of members who are assigned during the general five-year period shall end at the end of the respective period. The members of the executive board shall carry out their tasks beyond the general term of office until a new executive board has been established.
The administrative bodies shall pass their resolutions by a simple majority of the votes cast. The chairperson shall be the last one to cast his/her vote. In the event of a tie the vote of the chairperson shall be decisive. The rules of procedure (Section 18) shall specify the issues of the committee where a two-third majority of the votes cast is necessary for a resolution to be passed. Tasks of the administrative bodies
The executive board shall be responsible for the management. In agreement with the audit board, the executive board shall submit to the committee the annual estimates and financial statements as well as the staff and pay regulation for the staff of the Holiday and Severance Pay Fund. If no consensus can be reached, the executive board shall meet with the audit board in order to pass a resolution on the proposal. A two-third majority of the votes cast is required for this resolution to be valid.
The rules of procedure shall specify in which issues which chairperson shall preside over and chair the committee and the executive board. If one chairperson is unable to attend, the other chairperson shall fill in for him/her. Both chairpersons shall be jointly responsible for the legal representation of the Holiday and Severance Pay Fund. The rules of procedure shall specify the details about their substitution.
The audit board shall oversee the budgetary management of the divisions. Upon request, all business and accounting documents required by the audit board to execute its supervisory right shall be submitted and the necessary notifications shall be made. It may request an official audit of the relevant budgetary management from the Federal Ministry of Economics and Labour. The rules of procedure shall lay down which chairperson shall preside and chair the audit board in which issues, whereas the chairperson of the audit board who belongs to the group other than that of the chairperson responsible for the respective issue shall be put in charge. If one chairperson is unable to attend, the other chairperson shall fill in for him/her.
The advisory boards have the right to get involved in the management of the organisational units at regional level. If the competence of an organisational unit extends to more than one federal province, the advisory board of the federal province where the business is established shall deal with the matter. Furthermore, the advisory boards shall be notified of any fundamental issues concerning the management. In an organisational unit competent for more than one federal province, joint meetings of the advisory boards of several federal provinces can be held. Employees
The rights and obligations of the employees and their entitlement to remuneration are specified in a staff and pay regulation, which shall be adopted in a resolution by the committee. It needs to be approved by the Federal Minister for Economics and Labour in order to be effective. Rules of procedure
Authorisation
Annual estimate and financial statements
The financial statements on the budgetary management of the past financial year shall be adopted by resolution by the committee each year. The financial year shall correspond to the calendar year, unless defined otherwise in Section 13k Para 5.
The annual estimates and the financial statements shall be presented to the Federal Minister for Economics and Labour.
The assets of the Holiday and Severance Pay Fund which are available for investment shall be invested in a profitable way in accordance with the provisions for money held in trust for a ward. Budget surplus
The resolution as defined by Para 1 shall be passed on the basis of proposals of the groups of workers and employers in the committee, with each group having the right to propose measures worth half of the budget surplus. The groups can use their share of the budget surplus as defined in Para 1 either individually or jointly with the other group. A joint resolution shall be passed concerning the proposals of the groups. Coverage of expenses; wage supplements
For the Division of Annual Leave Regulation, upon joint request of the competent bodies of workers and employers entitled to enter into collective agreements, the wage supplement amount shall be fixed in such a manner that the expenses of the Holiday and Severance Pay Fund for the Division of Annual Leave Regulation including the pro-rated administrative costs are covered by the total of the collected wage supplements for annual leave. If necessary from the point of view of the budgetary management, the wage supplement amount for the Division of Annual Leave Regulation shall be modified appropriately by ordinance of the Federal Minister for Labour and Social Affairs.
The wage supplement amount used to cover the expenses for the severance pay regulation including the pro-rated administrative costs shall be specified on an annual basis uniformly for employment relationships to which the Act on Corporate Staff Provision (Betriebliches Mitarbeitervorsorgegesetz; BMVG), Federal Law Gazette I no. 100/2002, applies pursuant to Section 33a, and for employment relationships subject to Chapter III, taking into account the following:
a) a severance pay contribution in accordance with the percentage specified in Section 6 Para 1 BMVG of the wage due for an employment week, referring to the basis of computation for the severance pay regulation division pursuant to Section 21a Para 3, taking into account bonus payments on a pro-rata basis; as well as b) a severance pay contribution in the same percentage referring to the relevant basis of computation pursuant to Section 7 BMVG for periods pursuant to Section 7 BMVG, as far as the employer is obliged to pay a contribution;
a) the operating results of the previous year’s financial statements for the Division of Severance Pay Regulation; as well as b) the expected expenses for the current year and the following year.
From the wage supplements collected pursuant to Para 3, the Holiday and Severance Pay Fund shall transfer the severance pay contributions to the corporate provision fund pursuant to Section 33b within two weeks after they have become due. Payment of wage supplements
For the Division of Annual Leave Regulation the wage supplement shall be paid for each qualification week except for periods of annual leave (Section 4) and military field exercises (Section 5 lit. h), for the Division of Severance Pay Regulation the wage supplement shall be paid for each calendar week (employment week) except for periods of basic or one-year military service or alternative civilian service (Section 4 Para 3 lit. b) and military field exercises (Section 5 lit. h). The wage supplements not to be paid by the employer shall be paid by the Holiday and Severance Pay Fund itself. For parts of qualification weeks (employment weeks) pursuant to Section 6 Para 3, and for parts of qualification weeks resulting from the end or the beginning of the calendar month during this week, a wage supplement per day shall be paid, with one fifth of the weekly wage supplement to be paid for each working day.
The computation of the wage supplement to be paid for the individual worker shall, as far as the wage supplement for the Division of Annual Leave Regulation is concerned, be based on the hourly wage under the collective agreement plus 25%, and, as far as the wage supplement for the Division of Severance Pay Regulation is concerned, the hourly wage under the collective agreement plus 20%; this hourly wage is computed on the basis of the statutory or contractually agreed weekly number of working hours. If the hourly wage is not specified in the collective agreement, the agreed hourly wage shall be the basis for the computation.
If, on average, the agreed number of working hours falls below the statutory regular working hours or a smaller number of working hours specified by standards on a collective-agreement level (part-time work agreement), the hourly wage under the collective agreement raised pursuant to Para 3 shall be multiplied by the number of weekly working hours applicable to the worker on the basis of the agreement, and the result shall be divided by the number of the regular weekly working hours applicable to the other workers of the company.
If, in a certain qualification week, the worker worked by the piece or on a performance-linked basis (Section 96 Para 1 no. 4 of the Labour Constitution Act) for more than half of the working hours defined by law or contractually agreed, the wage supplement for the Division of Annual Leave Regulation shall be computed on the basis of the provision defined in Para 3, unless specified otherwise by the collective agreement.
The wage supplement as defined by Para 5 shall also be paid during a sick leave period of a worker (Section 5 lit. c), provided that the worker worked by the piece for more than half of the working hours defined by statute or contractually agreed in the qualification week preceding the sick leave.
The computation of the wage supplements for periods which the Holiday and Severance Pay Fund shall pay itself pursuant to Para 2 depends on the wage supplements the employer had to pay most recently.
The wage supplements to be computed for the individual worker shall be computed in euros, rounded off to two decimals.
Procedural rules Reporting obligation; payment order for wage supplements
Subsequently, the employer shall report all wage details relevant for the computation of the wage supplements as well as their changes, including any commencement and termination of the employment relationship, of each employed worker for each wage supplement period to the Holiday and Severance Pay Fund between the 1st and the 15th day of the month following the relevant wage supplement period, using the forms provided to him by the Holiday and Severance Pay Fund.
If the employer no longer employs workers as defined by Section 1 Para 1, he/she has to notify the Holiday and Severance Pay Fund of this fact. If the employer does not employ any workers only temporarily because of seasonal factors, the reporting obligation pursuant to Para 2 shall continue to exist in the form of a zero report for the duration of up to four wage supplement periods.
Each wage supplement period shall correspond to one calendar month.
The Holiday and Severance Pay Fund shall compute the wage supplements to be paid for the wage supplement period based on the employer’s report. In case of non-compliance with the reporting obligation, the Holiday and Severance Pay Fund may compute the wage supplements to be paid by the employer based on the previous report given or on its own computations. Wage records
Information of the workers
Payment of the wage supplements
If the employer fails to meet the obligation to pay the amount pursuant to Para 1 within the stipulated period or in the stipulated amount, the Holiday and Severance Pay Fund shall request the employer to pay the arrears within two weeks. Interest on arrears of 7% p.a. shall be charged from the due date. The Holiday and Severance Pay Fund may reduce or waive the interest on arrears for good reason.
If the employer does not comply with this request or does so only partly, the Holiday and Severance Pay Fund shall issue a statement of arrears to recover the amounts not paid within the stipulated period. This statement shall indicate the name and address of the debtor, the amount in arrears, the type of arrears together with extra charges, the wage supplement period to which the wage supplements in arrears belong and any interest on arrears due. On the statement, the Holiday and Severance Pay Fund shall note that there is no instance suspending the enforceability of the statement of arrears. The statement of arrears constitutes an execution title as defined by Section 1 of the Austrian Enforcement Code (Exekutionsordnung, EO).
As an extra charge, the Holiday and Severance Pay Fund may add to the statement of arrears a lump-sum reimbursement for the administrative costs resulting from instituting and executing the enforced collection, except for the costs to be awarded in administrative or judicial proceedings. This shall not affect the right to the costs to be awarded by administrative or judicial proceedings. The lump-sum reimbursement of costs shall be 0.5% of the amount to be recovered but at least EUR 1.50. The reimbursement may be demanded only once for the same debt. Any lawyer’s fees incurred in the proceedings to recover the wage supplements may only be claimed if they incurred in the proceedings on appeal.
An appeal against the statement of arrears pursuant to Para 3 shall be lodged by the employer with the District Administration Authority. The District Administration Authority shall decide on the correctness of the payment order by way of an administrative decision (Bescheid).
If the employer contests the payment order pursuant to Para 1 on the ground that he/she does not fall within the scope of this Federal Act, the District Administration Authority, upon application of the Holiday and Severance Pay Fund, has to decide as soon as possible but not later than one month after receipt of the application by means of an administrative decision whether the employer is subject to this Federal Act.
The head of the provincial government (Landeshauptmann) shall decide on appeals against an administrative decision pursuant to Paras 5 or 6. An appeal against the decision of the head of the provincial government shall not be admissible. If the subject matter of the proceedings is the question of whether this Federal Act applies to the employment relationship in question, the Federal Minister for Labour and Social Affairs shall be the last appellate instance; if at the same time the amount of the arrears is contested, he/she shall also decide on this issue.
The Holiday and Severance Pay Fund shall be granted the option of recovering the wage supplements not paid in due time by way of administrative proceedings (Section 3 Para 3 of the Administration Enforcement Act (Verwaltungsvollstreckungsgesetz) 1950).
Para 1 shall not apply if the purchase is made from a bankrupt’s estate or is part of execution proceedings.
If the ownership of the business is transferred to
Relatives pursuant to Para 3 no. 1 shall comprise:
A person has a substantial interest in a business if he/she holds a share of more than 25% in the current assets. In assessing the share in the current assets, the real economic content and not the outward appearance of the facts shall be decisive. Sections 22 to 24 of the Federal Tax Code (Bundesabgabenordnung, BAO) shall be applied correspondingly.
If any economic assets serving a business are not owned by the owner of the business but one of the persons specified in Para 4, the owner of the economic assets shall be liable with these assets for the wage supplements, as long as he/she does not provide evidence that he/she neither knew about the wage supplements in arrears nor could have known about them despite his/her position in the business.
The persons authorised to represent legal persons or commercial partnerships (Personenhandelsgesellschaften) as well as the legal representatives of natural persons shall be liable – besides the debtors of the wage supplements represented by them – for the wage supplements to be paid within the scope of their power of representation, if the wage supplements cannot be recovered due to a culpable breach of duties imposed on the representatives. Asset managers shall be liable correspondingly, to the extent of their capacity. Section 25 Paras 3 to 8 shall apply correspondingly. **Supplementary charges** **Section 26.** (1) The employer shall be entitled to a lump sum of 17% of the transferred annual leave remuneration from the Holiday and Severance Pay Fund as reimbursement for the social security contributions and statutory charges (supplementary charges) to be paid in connection with the granted leave. This lump sum, which has to be shown separately if the annual leave remuneration is transferred at the same time, shall only be paid out on condition that the employer has paid all due wage supplements.
If the annual leave remuneration is paid back pursuant to Section 8 Paras 6 and 7, the employer also has to refund the related supplementary charges received from the Holiday and Severance Pay Fund. **Correction of the payment order concerning wage supplements** **Section 27.** (1) If the payment order concerning the wage supplements to be paid is based on an incorrect report of the employer or if the payment order was made pursuant to Section 22 Para 5, the employer may apply for a correction of the payment order with the Holiday and Severance Pay Fund in his/her favour. The Holiday and Severance Pay Fund shall perform the correction only provided that it found the objections to be justified and that the wage supplements to be corrected were not yet included in computing the annual leave remuneration, the payment in lieu or the severance pay prior to the receipt of the application by the Holiday and Severance Pay Fund.
In the case of a correction, the differential amount will be credited to the payment order for wage supplements that is computed by the Holiday and Severance Pay Fund at the time of the correction.
If the Holiday and Severance Pay Fund rejects the application or does not deal with it within six weeks, the employer may call upon the competent District Administration Authority within two weeks to decide on his/her application by means of administrative decision (Bescheid) within a month. In other respects, Section 25 Para 7 shall apply correspondingly. **Privilege** **Section 28.** (1) The wage supplements pursuant to Section 21 shall be deemed other public charges.
When it comes to transactions of the Holiday and Severance Pay Fund with financial institutions, the annual leave remunerations shall not be subject to any restrictive clauses concerning the payment to the employer of the eligible worker or the refund to the Holiday and Severance Pay Fund. **Limitation** **Section 29.** (1) The right of the Holiday and Severance Pay Fund a) to determine the obligation to pay the wage supplements shall be subject to a limitation period of three years from the end of the wage supplement period in the case of the debtors of the wage supplements (employers) and those being jointly liable for the wage supplements; b) to demand payment of the wage supplements determined but not paid by the employer shall be subject to a limitation period of two years from the date of the payment order.
If the employer has failed to submit a report pursuant to Section 22 Para 1, the right of the Holiday and Severance Pay Fund shall be subject to a limitation period of seven years from the end of the wage supplement period.
The limitation period shall be interrupted by any action taken with the aim to determine or collect payment of the wage supplements at the time when the employer is informed thereof.
General provisions Judicial and administrative assistance
Cash expenses incurred as a result of the assistance by the entity receiving the request shall be reimbursed by the requesting office, with the exception of postal expenses. Cooperation
The Construction Workers’ Holiday and Severance Pay Fund shall be entitled to inspect the EDP supported company register, the EDP supported land register and the central business register electronically, as far as this is required to fulfil its imposed duties, in particular for making payments, determining the obligation to pay wage supplements and recovering the wage supplements. The right to inspect the land register shall also comprise the inspection of the register of persons. The right to inspect the company register shall also comprise the nationwide search for persons recorded in connection with the legal entities. Penal provisions
The Holiday and Severance Pay Fund shall be a party in the administrative penal proceedings. Supervision
The supervision shall include supervising compliance with the statutory provisions and the rules of procedure as well as the budgetary management and significant management issues. The employees entrusted with the supervision shall be entitled to participate in the meetings of the administrative bodies with an advisory vote. They may inspect all documents relevant for the budgetary management.
The Holiday and Severance Pay Fund shall contribute to covering the costs arising from the supervision pursuant to Para 1 by paying a supervisory fee. The Federal Minister for Labour and Social Affairs shall set its amount after a hearing of the Holiday and Severance Pay Fund.
Corporate provision fund (Mitarbeitervorsorgekasse) Definition of scope
Furthermore, the provisions of Chapter III shall also apply to workers who comply with the conditions of Section 13b on 31 December 2002 or who do not comply with them on 31 December 2002 but have already accrued employment weeks pursuant to Sections 5 and 6 and comply with the conditions stipulated under Section 13b by 31 December 2005. Workers who cannot comply anymore with the conditions stipulated under Section 13b within the three-year period due to an interruption in employment with the same employer of more than 22 weeks or due to the commencement of employment with a different employer shall be subject to the provisions of the BMVG from the commencement of the employment relation that follows the interruption of more than 22 weeks or from the commencement of the employment relationship with a different employer.
Apprentices who are in an apprenticeship on 1 January 2003 shall be subject to the provisions of the BMVG as of this date. The employment periods acquired during the apprenticeship shall be apportioned.
Workers who completed their apprenticeship before 1 January 2003 and comply with the conditions stipulated under Section 13c Para 6 shall be subject to the provisions of Chapter III. Workers who completed their apprenticeship before 1 January 2003 but do not comply with the conditions stipulated under Section 13c Para 6 shall be subject to the provisions of Chapter III as of this date, with the conditions of Section 13b being deemed fulfilled. As of 1 January 2003, the periods of apprenticeship and the employment periods with that employer with whom an employment relationship is established on 1 January 2003 shall be deemed employment weeks creditable to the entitlement to severance pay. The period of apprenticeship shall not be apportioned if the worker did not acquire employment weeks pursuant to Sections 5 and 6 from 1 January 2000 to 31 December 2002.
Upon assertion of a severance pay pursuant to Chapter III, the worker ceases to fall within the scope of the provisions of Chapter III and shall be subject to the provisions of the BMVG with regard to future entitlements to severance pay. Establishment of a corporate provision fund
Cancelled.
The initial capital pursuant to Section 3 Para 7 of the Austrian Banking Act (Bankwesengesetz, BWG), Federal Law Gazette no. 532/1993, shall be funded from the Division of Severance Pay Regulation. This shall also apply to own funds as may be required at any time pursuant to Section 20 Para 1 BMVG.
Section 5 Para 1 no. 13 of the BWG, Federal Law Gazette no. 532/1993, shall be applied subject to the proviso that a person that has a main occupation in the Holiday and Severance Pay Fund or – notwithstanding any other main occupation – holds a function in an administrative body of the Holiday and Severance Pay Fund may also be managing director. Scope
be replaced with information of the corporate provision fund for these employers which contains the points stipulated under Section 11 Para 2 no. 2 and 4 to 6.
The corporate provision fund pursuant to Section 33b may also be joined by other employers or by the employers listed under Para 1 for other groups of workers, while the provisions of the BMVG shall be applied.
Special provisions concerning annual leave in the case of postings Scope
The employment of workers as defined by Chapter I whose habitual place of work is Austria and who are hired by an employer not established in Austria to perform work in Austria shall also be deemed a posting as defined by this Federal Act. Annual leave entitlement
Annual leave remuneration
The entitlement arises to the extent of those qualifications for which the employer pays the wage supplements stipulated pursuant to Section 21. It shall be claimed from the Holiday and Severance Pay Fund.
If the worker takes leave during the posting, he/she shall claim the entitlement pursuant to Para 2 with the Holiday and Severance Pay Fund, providing evidence of the leave agreement (Urlaubsvereinbarung). The employer may claim the entitlement pursuant to Para 2 on behalf of the worker with the Holiday and Severance Pay Fund, providing evidence of the leave agreement. The leave remuneration shall be paid out directly to the worker. This shall also apply if the worker takes annual leave within six months after the posting, provided that the employment relationship with the employer making the posting still exists.
If the worker does not take annual leave pursuant to Para 3, he/she shall be entitled to receive payment in lieu to the extent of the acquired qualification if he/she has not been part of an employment relationship to which this Federal Act applies for at least six months. It shall be claimed by the worker from the Holiday and Severance Pay Fund. If the worker is again posted to Austria or if he/she enters into another employment relationship pursuant to this Federal Act before his/her entitlement to payment in lieu becomes due, the entitlements to annual leave remuneration vis-à-vis the Holiday and Severance Pay Fund shall be added up.
In order to claim leave remuneration, evidence of the circumstances constituting the claims (existence of an employment relationship governed by this Federal Act, duration of the employment in Austria) shall be provided. If leave remuneration is claimed for a six-week annual leave, the employment periods constituting this increased entitlement shall also be documented, even if they were performed abroad.
When leave remuneration is claimed, the Holiday and Severance Pay Fund shall inform both the worker and the employer about:
Reporting obligation
With regard to the obligation of initial reporting pursuant to Section 22 Para 1 of an employer established in another Member State of the European Economic Area, Section 7b Paras 3 and 4 of the Employment Contract Law Adaptation Act (Arbeitsvertragsrechts-Anpassungsgesetz, AVRAG), Federal Law Gazette no. 459/1993, as amended, shall apply to the posting for continued work. If the worker is posted within the framework of temporary hiring-out, Section 17 Paras 2 and 3 of the Temporary Agency Work Act (Arbeitskräfteüberlassungsgesetz, AÜG), Federal Law Gazette no. 196/1988, as amended, shall apply. The report pursuant to Section 7b Paras 3 and 4 AVRAG or Section 17 Paras 2 and 3 AÜG shall be deemed an initial report pursuant to Section 22 Para 1. Subsequently, the employer has to submit reports pursuant to Section 22 Paras 2 and 3.
If an employer not established in another Member State of the European Economic Area submits an initial report pursuant to Para 1, the Holiday and Severance Pay Fund shall submit a copy of this report to:
The person put in charge pursuant to Section 1 no. 3 shall be deemed the person authorised to accept service as defined by Section 8a of the Service of Documents Act (Zustellgesetz), Federal Law Gazette no. 200/1982, as amended, regardless of whether that person has his/her principal domicile in Austria, if any documents as defined by Section 1 Para 1 of the Service of Documents Act cannot be served to the employer in the domestic territory or – in the absence of corresponding agreements – abroad. Payment of wage supplements
If an employer does not meet the obligation to pay wage supplements, the Holiday and Severance Pay Fund shall address court to enforce the payment of the unpaid wage supplements. The Holiday and Severance Pay Fund shall be obliged to take all necessary and appropriate measures to recover the wage supplements.
The Labour and Social Court Vienna shall be the competent court. Other national social or holiday pay funds
Within the scope and duration of an agreement pursuant to Para 1, the employers concerned and their workers posted to Austria shall not be subject to the provisions set out under Section 33f Paras 2 to 6 and Section 33h.
The Holiday and Severance Pay Fund shall be authorised to exchange the necessary data for the purpose of exercising and checking compliance with an agreement with a foreign social or holiday pay fund. This refers to data:
If no agreement pursuant to Para 1 exists, an employer and his/her worker posted to Austria shall not be subject to the provisions set out under Section 33f Paras 2 to 6 and Section 33h, if the employer and his/her worker posted to Austria are subject to a comparable social or holiday pay fund system that ensures an essentially equal annual leave entitlement in the country where the employer is established. Para 1 nos. 1 to 4 shall apply correspondingly.
Transitional and final provisions Apportionment of employment periods
With regard to workers in businesses (enterprises) to which the Construction Workers’ Leave Act 1957 did not apply prior to the entry into force of this Federal Act, all employment periods when they were employed in similar businesses (enterprises) since 26 May 1946 shall be deemed employment periods as defined by Section 4. The same applies to workers in businesses (enterprises) that fall within the scope of this Federal Act for the first time because of an ordinance pursuant to Section 2 Para 3.
With regard to workers who are only governed by this Federal Act on the basis of their employment in mixed businesses pursuant to Section 3, the periods of continuous employment in this business shall be deemed employment periods as defined by Section 4. Any interruptions of the employment relationship of less than 60 days shall not be considered in this context. The same applies to workers who fall within the scope of this Federal Act for the first time because of an ordinance pursuant to Section 3 Para 5. Transitional provision on the conversion of the wage supplement period
Continued validity of agreements
References
Repeal of provisions
Pursuant to Para 1, the following shall be repealed in particular:
Entry into force
(1a) Section 13a Para 1 no. 7 and 8, Para 1a and Section 13c Para 5, as amended by the Federal Act, Federal Law Gazette no. 335/1993, shall enter into force on 1 July 1993. (1b) Section 4 Para 3 lit. g, as amended by the Federal Act, Federal Law Gazette no. 832/1995, shall enter into force on 1 November 1995. Section 6, Section 11 Para 1, Section 15 Para 5 first sentence, Section 20 Para 1, Section 21a Para 4 and Section 34 Para 2 last sentence, as amended by the Federal Act, Federal Law Gazette no. 832/1995, shall enter into force on 1 January 1996. (1c) Section 2 Paras 2, 3 and 4, Section 6 Paras 3 and 4, Section 7 Para 5a, Sections 13i, 13j, 13k and 39a, as amended by the Federal Act, Federal Law Gazette no. 417/1996, shall enter into force on 1 July 1996. (1d) Section 13g second sentence, Section 13i Para 2 last sentence, Section 13j Para 1 no. 4 first sentence and Section 25a Para 7 last sentence, as amended by the Federal Act, Federal Law Gazette no. 754/1996, shall enter into force on 1 January 1997. (1e) Section 4 Para 3 lit. b, Section 5 lit. h, Section 13c Para 2 and Section 21a Para 2, as amended by the Federal Act, Federal Law Gazette I no. 30/1998, shall enter into force on 1 January 1998. (1f) Section 2 Para 2a lit. a and Section 39a Para 5, as amended by the Federal Act, Federal Law Gazette I no. 113/1998, shall enter into force on 1 July 1998. Section 2 Para 1 lit. h, Para 2 lit. h and Para 2a lit. c, as amended by the Federal Act, Federal Law Gazette I no. 113/1998, shall enter into force on 1 August 1998. (1g) Section 2 Paras 1 to 2a, Section 4 Para 1, Section 6 Para 4 first sentence, Section 6 Para 5 first sentence, Section 7 Para 2, Section 8 Para 1, Section 8 Para 4, Section 13e Para 3 and Section 31, as amended by the Federal Act, Federal Law Gazette I no. 44/2000, furthermore the cancellation of Section 13a Para 1 no. 5a, Section 13a Para 1 second half of the first sentence (German version), Section 13f Para 2, Section 13g second sentence and of the number of the paragraph in Section 13f Para 1, as amended by the Federal Act, Federal Law Gazette I no. 44/2000, shall enter into force on 1 January 2001. Section 4 Para 1a first sentence, as amended by the Federal Act, Federal Law Gazette I no. 44/2000, shall enter into force on 1 January 2001; Section 4 Para 1a second sentence and Section 7 Para 1, as amended by the Federal Act, Federal Law Gazette I no. 44/2000, shall enter into force on 2 July 2001. (1h) With regard to the extension of the qualification period by the Federal Act, Federal Law Gazette I no. 44/2000, the following shall apply:
(1i) Section 13a Para 1 no. 5a, Section 13e Para 1 second half of the first sentence (German version), Section 13f Para 2 and Section 13g second sentence, as amended by the Federal Act, Federal Law Gazette I no. 113/1998, shall continue to apply to the termination of employment relationships in the case of the employer’s insolvency, if the decision to institute insolvency proceedings pursuant to Section 1 Para 1 of the Insolvency Guarantee of Remuneration Act (Insolvenz-Entgeltsicherungsgesetz, IESG) or any other facts constituting insolvency condition pursuant to Section 1 Para 1 no. 3 to 6 IESG was passed before 1 January 2001. (1j) Section 21a Para 8, Section 25 Para 4 and Section 32 Para 1, as amended by the Federal Act, Federal Law Gazette I no. 98/2001, shall enter into force on 1 January 2002. (1k) Section 13a Para 1 and Section 13c Para 5 as amended by the Federal Act, Federal Law Gazette I no. 143/2004, shall enter into force on 1 January 2005.
Any ordinances on this Federal Act may be adopted before the date specified under Para 1; they shall enter into force simultaneously with this Federal Act at the earliest.
Chapter VIa and Section 38, as amended by the Federal Act, Federal Law Gazette I no. 100/2002, shall enter into force on 1 July 2002. Section 21 Para 1 first sentence, Paras 3 and 4 as amended by the Federal Act, Federal Law Gazette I no. 100/2002, shall enter into force on 1 January 2003, unless otherwise regulated by means of an ordinance pursuant to Section 46 Para 1 last sentence BMVG.
The Holiday and Severance Pay Fund shall inform each worker after 31 December 2005 whether he/she is subject to the provisions set out in Chapter III. Workers who do not receive any such information by 31 December 2006 or do not assert their allocation to Chapter III by 31 December 2006, shall be subject to the provisions of the BMVG.
The apportionment of the employment periods pursuant to Section 33a Para 3 shall be performed applying the provisions of Section 21 Para 3 no. 1 lit. a correspondingly, while taking into account any wage increases under the collective agreement. The contributions for these employment periods shall be made by the Division of Severance Pay Regulation by 31 March 2003 at the latest.
Section 13a Para 2 no. 2, Paras 3 and 4a, as amended by the Federal Act, Federal Law Gazette I no. 64/2004, shall enter into force on 1 July 2004.
Section 18a and Sections 32c to 33i as amended by the Federal Act, Federal Law Gazette I no. 104/2005, shall enter into force on 1 September 2005. At the end of 31 August 2005, Sections 37 and 39a shall expire. Section 6 Paras 1 to 3, Section 13k Para 3, Section 21a Paras 2, 4 and 7, Section 22 Para 4 and Section 24, as amended by the Federal Act, Federal Law Gazette I no. 104/2005, shall enter into force on 1 May 2006. Section 22 Para 6 shall expire on 30 April 2006.
Section 14 Para 4, Section 31 Para 1 and Section 33g Para 1, as amended by the Federal Act, Federal Law Gazette I no. 35/2007, shall enter into force on 1 July 2007. Section 8 Para 2, Section 13f, Section 13j Para 2, Section 13k Para 5 first sentence, Section 14 Paras 3 and 5, Sections 15 to 18 and Section 19 Paras 1 to 3, as amended by the Federal Act, Federal Law Gazette I no. 35/2007, shall enter into force on 1 October 2007. At the end of 30 September 2007, Section 33b Para 2 shall expire. The regional branches existing on 30 September 2007 and the duties assigned to them at this date shall continue to exist until the resolution of the committee pursuant to Section 14 Para 3 enters into force. On 30 September 2007, the term of office of the following administrative bodies existing at that date shall end: the committee for the Division of Annual Leave Regulation, the committee for the Division of Severance Pay Regulation, the executive board of the Division of Annual Leave Regulation, the executive board of the Division of Severance Pay Regulation, the audit board for the Division of Annual Leave Regulation and the audit board for the Division of Severance Pay Regulation. The term of office of the administrative bodies pursuant to Section 15 Para 1 first sentence, as amended by the Federal Act, Federal Law Gazette I no. 35/2007, shall start on 1 October 2007. The assignment and formation pursuant to Section 15 Para 2, as amended by the Federal Act, Federal Law Gazette I no. 35/2007, shall be performed in such a timely manner that the administrative bodies pursuant to Section 15 Para 1 first sentence, as amended by the Federal Act, Federal Law Gazette I no. 35/2007, may commence their work on 1 October 2007. Implementation
Article V of the Federal Act, Federal Law Gazette no. 618/1987 Final and transitional provisions
Articles I to IV shall enter into force on 1 October 1987, in accordance with the following provisions. The ordinance to be issued pursuant to Section 12 Para 1 no. 5 of the Insolvency Guarantee of Remuneration Act (Insolvenz-Entgeltsicherungsgesetz, IESG), as amended by Art IV no. 2 laying down a lower wage supplement shall be issued for the first time for the contribution period of 1993. Prior to the beginning of the contribution period of 1993, employers that fall within the scope of the BUAG concerning the Division of Severance Pay Regulation shall pay the full wage supplement pursuant to Section 12 Para 1 no. 5 IESG.
With regard to workers who were employed on 1 October 1987 by an employer falling within the scope of the BUAG for the Division of Severance Pay Regulation pursuant to Art. I no. 2 lit. b and pursuant to Paras 2 and 3 of this Article, all employment periods with this employer subject to the Construction Workers' Leave Act (Bauarbeiter-Urlaubsgesetz) 1972 shall be apportioned for the three-year entitlement requirements as well as for any severance pay entitlement (Art I no. 10), provided that these employment periods subject to the Division of Severance Pay Regulation would form the basis of an entitlement to severance pay pursuant to the Workers' Severance Pay Act (Arbeiter-Abfertigungsgesetz) taking into account collective agreement regulations and provided that they were not yet apportioned for a severance pay.
With regard to workers who were not employed on 1 October 1987 but are re-employed by the previous employer as defined by Para 4 within 120 day after termination of the employment relationship, Para 4 shall apply correspondingly.
Employers that fall within the scope of the BUAG for the Division of Severance Pay Regulation pursuant to Art. I no. 2 lit. b and pursuant to Paras 2 and 3 of this Article shall be entitled to a refund of the severance pay they made from the Holiday and Severance Pay Fund, if:
The refund shall be claimed from the Holiday and Severance Pay Fund by means of an application, while simultaneously providing evidence on the severance pay amount and reporting the bases used for the computation. In each case, the refund must not exceed the amount of severance pay to which the worker would have been entitled taking into account Art. I.
In order to determine the number of hours for computing the monthly wage (Art I no. 10), the employment periods prior to 1 October 1987 shall be considered only for up to five calendar years.
Any express agreements on the extension of interruption periods under the collective agreement (Para 4) and of interruption periods pursuant to Para 5 concluded between the employer and the worker
The employers shall be obliged to report employment periods pursuant to Para 4 to the Holiday and Severance Pay Fund by 31 January 1988, as far as they concern types of business pursuant to Para 2 and enterprises pursuant to Para 3 within three months from the issue of the ordinance or the service of the decision on the inclusion, and employment periods pursuant to Para 5 within 13 weeks after re-employment. If, based on such a report for the computation of the severance pay entitlement pursuant to Art. I no. 10, employment periods are included that do not comply with the preconditions pursuant to Paras 4 and 5, the Holiday and Severance Pay Fund shall be entitled to demand reimbursement for the severance pay for these periods from the employer.
In the case of entitlements to severance pay arising from a termination of the employment relationship before 31 December 1989, the hourly wage under the collective agreement plus a 25% surcharge shall be used as a basis for computing the monthly wages (Art. I no. 10).
If an employment relationship falling within the substantive scope of the BUAG is terminated before 1 October 1987 and is not taken up again within the 120-day-period, the entitlements to severance pay shall be treated in accordance with the Workers' Severance Pay Act and the provisions under the collective agreement. The apportionment can no longer be governed by the provisions of the BUAG. The entitlements pursuant to the Workers' Severance Pay Act shall be claimed within six months after termination of the employment relationship.
If the employer is declared bankrupt or if there are circumstances that are deemed equivalent to bankruptcy pursuant to Section 1 Para 1 nos. 1 to 7 IESG (insolvency as defined by the IESG) between 1 October 1987 and 31 December 1992, the entitlement to severance pay at this point of time pursuant to this Federal Act shall fall due immediately in the case of the worker's justified premature resignation or notice by the employer owing to insolvency, in particular pursuant to Section 25 of the Bankruptcy Code (Konkursordnung, KO), Imperial Law Gazette no. 337/1914, and Sections 208 and 209 of the Composition Code (Ausgleichsordnung, AO), Federal Law Gazette no. 221/1934, as amended. The Holiday and Severance Pay Fund shall be notified of the termination of the employment relationship by the employer (administrator of the bankrupt's estate). The Holiday and Severance Pay Fund shall compute the entitlement of the eligible worker and pay it out to him/her upon application. Art. I no. 10 (Section 13d Para 1 second sentence, Section 13e BUAG) shall apply correspondingly. The aforementioned provisions shall also apply if the composition proceedings were converted into bankruptcy proceedings (Anschlusskonkurs) or if the composition proceedings pursuant to Section 69 Para 1 AO were discontinued after 31 December 1992 but the respective preceding composition proceedings were instituted prior to this date.
If the requirements set out in Para 13 have been met, the Insolvency Payment Insurance Fund (Insolvenz-Ausfallgeld-Fonds) has to reimburse the Holiday and Severance Pay Fund for the severance pay that the latter has paid, if the worker was previously employed with an employer that is insolvent as defined by Section 1 Para 1 IESG. If the Holiday and Severance Pay Fund has fully accounted for the severance pay of the workers of such an employer, it has to claim these paid amounts from the Insolvency Payment Insurance Fund every calendar quarter, enclosing the respective evidence. The aforementioned provisions shall also apply if the composition proceedings were converted into bankruptcy proceedings (Anschlusskonkurs) or if the composition proceedings pursuant to Section 69 Para 1 AO were discontinued after 31 December 1992 but the respective preceding composition proceedings were instituted prior to this date.
If the employer is declared bankrupt or if another insolvency as defined by the IESG exists prior to 1 October 1987, the entitlement to severance pay vis-à-vis the insolvent employer exists and is safeguarded within the framework of the provisions of the IESG, even if it arises after 1 October 1987. The aforementioned provisions shall also apply if the composition proceedings were converted into bankruptcy proceedings (Anschlusskonkurs) or if the composition proceedings pursuant to Section 69 Para 1 AO were discontinued after 30 September 1987 but the respective preceding composition proceedings were instituted prior to this date.
If an employer falling within the scope of the BUAG for the Division of Severance Pay Regulation pursuant to Art. I no. 2 lit. b and Paras 2 and 3 of this Article is declared bankrupt or if another insolvency as defined by the IESG exists after 30 September 1987, the entitlement to severance pay vis-à-vis the insolvent employer exists and is safeguarded within the framework of the provisions of the IESG, if the employment relationship pursuant to Para 13 first sentence of this Article is terminated subject to the proviso that the termination is effected by the date of promulgation of this Federal Act or the ordinance pursuant to Para 2 or the date of service of the decision on the inclusion pursuant to Para 3 at the latest. In this context, the provisions of the Workers' Severance Pay Act and the provisions under the collective agreement in force at the time of termination of the employment relationship shall apply with the proviso that the entitlement to severance pay falls due immediately. The Insolvency Payment Insurance Fund may not take recourse to the assets of this employer (to the bankrupt's estate) pursuant to Section 11 IESG because of such payments. If the employee of such an employer had had a higher entitlement to severance pay applying the provisions of the BUAG than he/she got awarded as insolvency payment, he/she shall be entitled to the differential amount vis-à-vis the Holiday and Severance Pay Fund; the latter can make a claim for the differential amount paid pursuant to Para 14 of this Article. However, if the worker had had no or a smaller entitlement to severance pay applying the provisions of the BUAG than he/she got awarded as insolvency payment, neither the employer nor the Insolvency Payment Insurance Fund shall be entitled to a refund. Article III of the Federal Act, Federal Law Gazette no. 835/1992 Transitional provisions
The ordinance to be issued pursuant to Section 12 Para 1 no. 5 of the Insolvency Guarantee of Remuneration Act (Insolvenz-Entgeltsicherungsgesetz, IESG) laying down a lower wage supplement shall be issued for the first time for the contribution period of 1996. Prior to the beginning of the contribution period of 1996, employers that fall within the scope of the BUAG concerning the Division of Severance Pay Regulation shall pay the full wage supplement pursuant to Section 12 Para 1 no. 5 IESG.
If the employer is declared bankrupt or if there are circumstances that are deemed equivalent to bankruptcy pursuant to Section 1 Para 1 nos. 1 to 7 IESG (insolvency as defined by the IESG) between 1 January 1993 and 31 December 1995, the worker shall claim the entitlement to severance pay pursuant to Section 13a Para 1 no. 5a BUAG within six months from the request by the Holiday and Severance Pay Fund pursuant to Section 13f Para 2 BUAG, otherwise it shall lapse. The aforementioned provisions shall also apply if the composition proceedings were converted into bankruptcy proceedings (Anschlusskonkurs) or if the composition proceedings pursuant to Section 69 Para 1 AO (Ausgleichsordnung, AO), Federal Law Gazette no. 221/1934, as amended, were discontinued after 31 December 1995 but the respective preceding composition proceedings were instituted prior to this date.
If the requirements set out in Para 2 have been met, the Insolvency Payment Insurance Fund (Insolvenz-Ausfallgeld-Fonds) has to reimburse the Holiday and Severance Pay Fund for the severance pay that the latter has paid, if the worker was previously employed with an employer that is insolvent as defined by Section 1 Para 1 IESG. If the Holiday and Severance Pay Fund has fully accounted for the severance pays of the workers of such an employer, it has to claim these paid amounts from the Insolvency Payment Insurance Fund every calendar quarter, enclosing the respective evidence. The aforementioned provisions shall also apply if the composition proceedings were converted into bankruptcy proceedings (Anschlusskonkurs) or if the composition proceedings pursuant to Section 69 Para 1 AO were discontinued after 31 December 1995 but the respective preceding composition proceedings were instituted prior to this date.
The wage supplement to be borne by the employer pursuant to Section 12 Para 1 no. 5 IESG, Federal Law Gazette no. 324/1977, last amended by the Federal Act, Federal Law Gazette no. 628/1991, shall be fixed at 0.1% for the contribution periods of 1993 and 1994. The Insolvency Payment Insurance Fund (Section 13 IESG) shall be reimbursed for the interest, loan agreement and account maintenance charges as well as any other expenses arising from loans pursuant to Section 13 Para 3 IESG from 1 January 1993 to 31 December 1994 by the Federal Government without delay. In the case of loans pursuant to Section 13 Para 3 IESG taken out by the Insolvency Payment Insurance Fund in 1993 and 1994, an agreement shall be reached with the Federal Minister of Finance.