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An Enterprise Agreement sets the core working conditions between an Austrian company and its employees, similar to a collective bargaining agreement but at the individual business level. It's negotiated between management and the works council (Betriebsrat), covering key workplace terms like working hours, leave policies, and bonus structures.

Under Austrian labor law, these agreements hold special legal status and bind both current and future employees. They offer more flexibility than industry-wide collective agreements while maintaining worker protections, making them particularly valuable for medium and large organizations looking to tailor employment terms to their specific needs.

Companies need an Enterprise Agreement when standard collective agreements don't adequately address their unique operational needs. This often happens during major organizational changes, when introducing flexible work arrangements, or establishing company-specific bonus systems that differ from industry standards.

The agreement becomes especially valuable for Austrian businesses with more than 50 employees or those operating across multiple locations. It helps create consistent workplace policies while maintaining compliance with Austrian labor law. Many companies implement these agreements during expansion phases, mergers, or when establishing new departments with distinct working conditions.

• Standard Enterprise Agreements cover basic working conditions, wages, and benefits across the entire company
• Department-Specific Agreements focus on unique operational requirements for distinct business units, like IT or production
• Location-Based Agreements adapt terms for different company sites while maintaining core policies
• Project-Based Agreements set temporary conditions for specific initiatives or timeframes
• Framework Agreements establish broader principles while allowing individual departments to create detailed sub-agreements

• Works Council (Betriebsrat): Negotiates and signs the agreement on behalf of employees, ensuring their interests are protected
• Company Management: Represents the employer's interests, drafts initial proposals, and implements the final agreement
• HR Department: Manages day-to-day administration, ensures compliance, and handles related documentation
• Legal Advisors: Review terms to ensure compliance with Austrian labor law and provide guidance during negotiations
• Employees: Bound by the agreement's terms once ratified, regardless of when they joined the company

• Current Practices: Document existing workplace policies, benefits, and working conditions across all departments
• Employee Data: Gather workforce statistics, including job categories, working hours, and special arrangements
• Legal Framework: Review applicable collective agreements and Austrian labor laws that affect your industry
• Stakeholder Input: Collect feedback from department heads and works council on proposed terms
• Financial Impact: Calculate cost implications of proposed benefits and working condition changes
• Implementation Plan: Develop a timeline and communication strategy for rolling out the agreement

• Parties and Scope: Clear identification of the company, works council, and affected employees
• Working Hours: Standard hours, flexible arrangements, overtime rules, and break periods
• Compensation: Base salary structures, bonus systems, allowances, and performance-based pay
• Leave Entitlements: Annual leave, sick leave, special leave provisions, and public holidays
• Duration and Termination: Agreement validity period and conditions for amendments
• Dispute Resolution: Procedures for handling workplace conflicts and grievances
• Signatures: Authorized signatures from management and works council representatives

Enterprise Agreements and Consultancy Agreements serve different purposes in Austrian business operations, though they're sometimes confused because both govern working relationships.

• Scope and Coverage: Enterprise Agreements apply company-wide to regular employees, while Consultancy Agreements govern individual external service providers
• Legal Framework: Enterprise Agreements operate under collective labor law with works council involvement; Consultancy Agreements fall under commercial contract law
• Duration and Flexibility: Enterprise Agreements typically have longer terms and affect all future employees; Consultancy Agreements are usually project-specific and time-limited
• Rights and Benefits: Enterprise Agreements include statutory employee benefits and protections; Consultancy Agreements focus on deliverables and payment terms without employment benefits