Hire top talent in Austria—without legal roadblocks.
Austria presents exciting opportunities for your HR leaders: access to high-caliber talent and sophisticated workforce infrastructure. Its seamless connectivity to European markets and thriving fintech, pharmaceuticals, automotive, and technology industries, gives your HR leaders rich opportunities for talent acquisition and human capital deployment in line with ambitious global expansion goals.
Yet, establishing operations in Austria involves many legal, tax, and employment regulations: labor laws, collective agreements, mandatory social contributions, Austria’s structured apprenticeship system, and compliance-heavy employment mandates.
Establishing a local entity isn’t just costly—it demands time, expertise, and ongoing regulatory upkeep. But an Employer of Record (EOR) can transform your approach. With it, you can legally hire Austria’s top talent—without setting up a local entity.
The EOR is completely responsible for employment-related compliance. It will hire on your behalf, manage payroll and legal employment responsibilities, simplify your talent acquisition, and accelerate your market entry.
Simplify talent acquisition in Austria with an EOR partnership
Entering the Austrian market means dealing with complex labor laws, collective agreements, and tax obligations. An Employer of Record (EOR) simplifies the process, ensuring compliance while allowing businesses to scale efficiently.
How an EOR streamlines hiring in Austria:
Swift hiring
With an EOR, you do not need to set up a local entity or infrastructure in Austria. You can start hiring talent within days.
Effortless compliance
The EOR will comply with the latest Austrian labor laws, so you don’t have to. It will help you avoid misclassification errors and manage social security contributions, employee protections, and collective agreements.
All-inclusive payroll and benefits management
The EOR will ensure salary disbursement and adherence to Austria’s statutory benefits like the 13th and 14th-month salaries, vacation allowances, and pension schemes.
Simpler international talent management
When your Austria team needs to go international, the EOR will help you with work permits and visa processing for expatriates.
Reduced operational hurdles
Setting up a legal entity in Austria can be costly and time-consuming and will increase your administrative burdens. With an EOR, you avoid the hassles of company registration and automate many HR tasks like payroll, contracts, onboarding, and offboarding.
While an EOR can help your expansion into Austria, it isn’t the only option for managing hiring and payroll. In the next section, we help you evaluate whether an EOR or a PEO is better for your business.
Determine the best hiring strategy in Austria: EOR or PEO?
Selecting the right employment model is critical when expanding into Austria. You can either choose an Employer of Record (EOR) or a Professional Employer Organization (PEO) to assist with HR and payroll. Both these solutions have different requirements and advantages.
You must register your company in Austria before using a PEO. You take the onus for all employer responsibilities to you, making it viable for long-term operations but demanding active compliance management.
With an EOR, you can avoid company registration and the hassles of entity setup. It handles payroll, taxes, benefits, and labor law compliance—reducing your risks and administrative burden.
If your business prioritizes swift market entry and low-risk expansion, an EOR is the best solution. But you must carefully choose your EOR partner. The next section lists some key considerations for selecting the right EOR service provider.
Finding the right EOR partner for Austria
Growing your workforce in Austria requires a structured approach that ensures compliance, efficiency, and operational ease. Partnering with a trusted EOR is critical. An unreliable EOR can lead to payroll errors, legal penalties, and workforce instability—jeopardizing your expansion and business reputation.
Key considerations for selecting an EOR in Austria include:
Regulatory expertise for risk-free compliance
Austria’s employment landscape is highly regulated, with collective bargaining agreements, statutory benefits, and strict worker protections. An EOR must demonstrate expertise in navigating this regulatory landscape and guarantee 24/7 support.
Technology-driven efficiency and payroll precision
An EOR with automated payroll processing, real-time compliance tracking, and integrated HR platforms enhances accuracy, reduces errors, and optimizes operational efficiency—allowing businesses to focus on their core business.
Scalable workforce solutions for agile expansion
Business needs constantly evolve; hiring should adapt accordingly. A flexible EOR enables you to scale your workforce rapidly—or downsize— without entangling your business in complex labor laws or administrative delays.
Transparent pricing for predictable cost management
Hidden fees and unexpected costs can derail financial planning. A trustworthy EOR provides clear, upfront pricing, ensuring businesses can forecast expenses accurately and maintain control over their expansion budget.
Comprehensive employee lifecycle management
A full-service EOR streamlines every stage of employment, From compliant onboarding to structured offboarding, ensuring compliance while fostering a positive employee experience that supports retention and productivity.
Proven expertise in Austrian labor compliance
Navigating Austria’s regulatory framework requires an EOR with a strong local presence and a track record of compliance success. This minimizes legal risks, ensures smooth HR operations, and gives your business the confidence to expand sustainably.
Selecting an EOR is more than an operational decision—it’s a strategic investment. A strong EOR partnership should mean risk-free expansion, efficient workforce management, and long-term success in Austria’s competitive market.
Achieving seamless business growth in Austria with EOR: How it works
An EOR should genuinely reduce the hassles and risk exposure at every step of your expansion journey in Austria.
Here are what the key steps should be:
1. Managing legal employer responsibilities
An EOR will be your official employer in Austria. It should assume complete responsibility for employment contracts, workplace compliance, and labor disputes.
2. Enhancing employee engagement and retention
A reliable EOR should also support workplace satisfaction. It should help you tailor benefits in compliance with Austrian employment standards to foster positive employee relations. This could include professional development programs and structured compensation packages that contribute to long-term retention.
3. Staying ahead of evolving labor laws
On January 1, 2025, Austria’s Teleworking Act came into effect, providing a comprehensive legal framework for remote work. For employers in Austria, this meant quickly adapting to a tax-free €300 telework allowance, social security coverage, and clear remote work agreements. Changes like these are not uncommon. A proactive EOR will monitor legal changes and update contracts, payroll structures, and benefits to maintain compliance.
4. Supporting flexible and remote work models
As mentioned earlier, remote work is now firmly embedded in Austria’s labor landscape— businesses must align with Austria’s labor regulations regarding taxation, social security contributions, and remote work benefits. An EOR ensures compliance while enabling companies to implement flexible work policies.
5. Ensuring workplace compliance and employee well-being
From occupational health and safety regulations to employee welfare initiatives, an EOR ensures businesses meet Austrian labor standards. This includes guidance on workplace policies, employee support programs, and legal risk mitigation.
Breaking into the Austrian market involves more than hiring talent—it demands agility, compliance, and operational efficiency. An EOR should ideally take care of all your compliance and logistic hassles around employment in Austria so you can focus on strategy, market positioning, and long-term growth.
Expand into Austria—compliantly and effortlessly with Multiplier
Hiring in Austria can be simple, swift, and hassle-free. Here is how Multiplier’s Employer of Record (EOR) services can help.
- All-in-one solution
Multiplier manages everything—from candidate selection to onboarding—ensuring a smooth hiring experience backed by deep local insights. - Complete compliance
Multiplier automates payroll, taxes, and filings with 100% compliance to Austrian labor laws. No errors, no delays—just accurate, on-time payments. - Extensive benefits
Multiplier helps you tailor comprehensive benefits—helping you meet statutory mandates while positioning you as a competitive employer. - Built-in safeguards
Multiplier minimizes legal risks and eliminates compliance headaches. - Scalable growth
Multiplier’s EOR solutions are flexible. They adapt to business needs—whether you’re hiring one employee or building an entire team.
Multiplier takes complete care of compliance, payroll, and HR management so your business can focus on what matters—growth.
Book a demo today and discover a smarter way to grow in Austria.
