Austrian collective agreement for trade: New salary scheme. A transition to the new salary scheme is mandatory by January 1st, 2022 at the latest.

The collective agreement for trade provides for a new salary scheme. Retail companies must transfer their employees to the new salary system by January 1st, 2022 at the latest. Some trading companies have already made the changeover, and many are just about to change over. Depending on the individual company situation, a changeover before January 1st 2022 might be advisable.

When choosing the “right” point in time to switch, economic factors, e.g. pending investment or expansion plans, planned new hires, direct or indirect costs arising in the transition as well as internal organizational factors e.g. training of employees, adaptation of the payroll program or the creation of resources for administration should be taken into account. We will be happy to advise you on the best time to change for your company, support you with the changeover to the NEW salary system and bring in our practical experience from projects that  we have already been implementing.

The most important cornerstones for a successful transition

A change to the new salary system is possible at any time on the first of the month, but must be done by January 1st, 2022 at the latest. It should be noted that the old and new salary systems in a company cannot be used in parallel - rather, all employees must be upgraded to the new salary system at the same time. The old salary system therefore also applies to new employment relationships until the transition to the new salary scheme.

If there is a works council in the company, the transition date must be specified in a company agreement. If there is no agreement between the business owner and the works council, the transfer will take place no later than January 1st, 2022. In companies without a works council, the transition date has be set unilaterally by the company owner. In this case, the employees must be informed in writing 3 months before the intended transition date.

We have summarized the most important key points for your successful transition.

Company founded before December 1st, 2017:

• Changeover mandatory by January 1st, 2022 at the latest
• Changeover possible on the first of every month
• In companies with a works council: works agreement to determine the changeover date required
• In companies without a works council: unilateral determination of the changeover date by the company owner and mandatory written information for employees 3 months before the changeover
• It is necessary to issue a “transfer notice of employment” (“Umstiegsdienstzettel”) to employees with a new classification and adaptation of all-in agreements to the new formal requirements
• Critically question the previous classification of all employees and correct them if necessary

Company founded from December 1st, 2017:

• The new collective agreement has been applicable since December 1st, 2017
• Check whether the new collective agreement is actually being applied
• If yes, no further action is required

LBG tips from previous transition projects that you should definitely consider when switching to the new collective agreement:

• Check which time to switch is the best
• Check of the "old” collective agreement classifications
• Questions about crediting previous working hours - will there be any changes?
• Classification of employees in the new employment groups and clarification of related questions of delimitation with the participation of the works council (if available)
• Registration of employees based on the new salary table
• Preparation of “transfer notices of employment” (“Umstiegsdienstzettel”)
• Preparation of employee information
• Announcement to social partners (if more than 10 employees are employed in the company)
• Clarification of employee questions
• ...

Important questions:

• What applies in the event of a transfer of business?
• How are premiums / commissions to be taken into account during the changeover?
• How does the switch affect employed apprentices?
• What remuneration regulations apply to mandatory interns?
• What has to be taken into account in connection with the "black and white rule" and opening hours surcharges
• All-in contracts: what should be considered?
• Is the correct collective agreement used if there are several trade licenses or are several collective agreements to be observed?
• ...

We will be happy to advise you on the optimal time to switch, accompany you with the transition to the NEW salary system and bring in our experience from previous projects. Our experts will solve your individual questions.

August 24th, 2020 I LBG I Authors: Silvia Frasch, Sascha Springer

Contact & Advice: This information naturally shows basic aspects of the topic - for completeness and correctness no guarantee can be given despite careful preparation. LBG will gladly advise you in your individual situation. Please contact one of our 31 Austria-wide locations (www.lbg.at) or welcome@lbg.at - we will gladly bring you together with one of our experts, who is very familiar with your request.