Search
Contact
02.09.2016 | KPMG Law Insights

Tightening of registration and proof requirements for business trips to Austria

Tightening of registration and proof requirements for business trips to Austria

Employees of a company in Germany and especially German nationals probably do not think about possible regulations before business trips to Austria. This can have serious consequences for the employer: There is a risk of fines, exclusion from public procurement procedures and even economic activity bans for Austria.

Austrian law has already known for some time about registration obligations for posted foreign employees of companies based outside Austria. This also applies to companies based in other EU/EEA member states or Switzerland. Also affected by the registration requirements are assignments of employees with the nationality of another EU/EEA member state or with Swiss nationality.

The fact that the business travelers do not have an employment contract with a company in Austria does not exempt them from the registration requirements.

The existing regulations were significantly tightened effective January 1, 2015. This was done in two ways: previous exemptions from registration requirements were limited and economically more serious legal consequences were introduced.

If the employer of a business traveler fails to comply with the obligation to register, the company faces further sanctions in addition to the imposition of fines, depending on the type and severity of the violation of the legal requirements. Austrian authorities may prohibit fee payments by the contractor to the employer or place the employer in a “black book” and thus exclude it from public procurement procedures.

The registration requirements now also apply if a business trip to Austria is to last only a few hours.

Business meetings” in connection with service contracts concluded solely abroad (both contracting parties are domiciled outside Austria) also trigger registration obligations, for example when the next project phases are to be discussed.

Austria has also introduced proof requirements for documents that business travelers must also fulfill. In individual cases, this includes the submission of certain wage documents upon official request. If these obligations to provide evidence are violated, the company may even be banned from economic activity for a period of one to five years if the violation is severe enough.

Follow

German business travelers who travel to Austria for a German employer must also be registered by the employer with the Central Coordination Office of the Federal Ministry of Finance (ZKO). This must be done at least seven days before the start of the trip. Only in emergency situations may this deadline be exceeded by way of exception.

However, it is precisely the somewhat inconspicuous obligations to provide evidence that can cause enormous economic damage. These go far beyond the economic return or benefit from the employee’s use of a single business trip.

Services of KPMG Law

We provide comprehensive advice on work permit and residence law issues in Germany and abroad*. With regard to the obligations for business trips to Austria, we will be happy to assist you in particular with the following aspects:

  • Further explanations on the details of the registration obligations and proof requirements (content, scope, implementation, etc.)
  • Examination of whether and to what extent individual activities trigger a registration obligation and verification obligations must be fulfilled
  • Support in the implementation of the registration

*We provide consulting services in connection with issues relating to foreign legal systems with the support of member firms from the international KPMG network or foreign law firms.

Explore #more

26.02.2025 | KPMG Law Insights

First Omnibus Package to relax the obligations of the CSDDD, CSRD and EU taxonomy

The EU Commission has today published the draft of the first announced Omnibus Package. With the first directive as part of the omnibus initiative,…

24.02.2025 |

Digitization of administration – the digital driver’s license is a first step

The introduction of digital driver’s licenses and vehicle documents recently approved by the Federal Cabinet marks a significant milestone in the digitalization of modern administration.…

21.02.2025 | In the media

Guest article in Betriebs Berater: Overview of regulation for securities institutions

Since the Securities Institutions Act (WpIG) came into force on June 26, 2021, securities institutions have had their own supervisory regime. In addition to the…

21.02.2025 | KPMG Law Insights

Money laundering prevention: BaFin calls on financial sector to act

The German Federal Financial Supervisory Authority (BaFin) is calling on the financial sector to pay greater attention to money laundering prevention. In its report “Risks…

18.02.2025 | KPMG Law Insights

AI compliance: important legal aspects at a glance

Human intelligence draws on experience, emotion and intuition. Artificial intelligence (AI), on the other hand, processes vast amounts of data in fractions of a second.…

17.02.2025 | In the media

WirtschaftsWoche honors KPMG Law and Konstantin von Busekist

KPMG Law and Konstantin von Busekist were recognized as TOP Law Firm 2025 and Konstantin von Busekist as TOP Lawyer 2025 in the current WirtschaftsWoche…

17.02.2025 | In the media

Guest article in InfrastrukturRecht: Inability to charge the water concession levy

On 09.10.2024 (9 B 5.24), the BVerwG dismissed the appeal of the City of Kassel against the non-admission of the appeal in the judgment of…

13.02.2025 | Deal Notifications

KPMG Law and KPMG advise Windmöller & Hölscher on the sale of the textile machinery division to Starlinger

KPMG Law and KPMG are advising Windmöller & Hölscher KG (Windmöller & Hölscher) on the sale of its textile machinery division to Starlinger & Co…

13.02.2025 | Deal Notifications

KPMG Law advised LDA Legal Data Analytics GmbH on its cooperation with the publishing house C.H.Beck on the development of the chat book “Frag den Grüneberg”

Digitalization is changing the way legal knowledge is accessed and used. LDA Legal Data Analytics GmbH (LDA) develops AI solutions for the legal sector to…

11.02.2025 | KPMG Law Insights

Receipt of the notice of termination at the usual postal delivery times

In the opinion of the Federal Labor Court (BAG, judgment of June 20, 2024 – 2 AZR 213/23), a letter of termination sent by…

Contact

Dr. Thomas Wolf

Partner
Head of Employment Law

Heidestraße 58
10557 Berlin

Tel.: +49 30 530199300
twolf@kpmg-law.com

© 2024 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.

 KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.

Scroll