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Worker displacement in Austria under surveillance.

According to the Austrian ministry of finance, in the last few years more and more inspections have been carried out on staff working on construction sites in Austria in order to uncover illegal workers and pseudo-displacements. Our German colleagues inform us that lately more and more company cars belonging to craft business are checked at the border and in areas near the border in order to establish where they are going and where the occupants are going to work. This naturally leads to increased fines from the financial and immigration authorities in Austria.

In this context we would like to remark that working in a country which is not one’s own country requires increased attention. Only by advice to a local ones in the relevant country or with a tax adviser familiar with the subject will it become clear if work is being carried out under a work contract, within the framework of a work posting or with one’s own company and if therefore an obligation arises to pay tax, social security, minimum wages or to join the Chamber of Commerce or not.

A breach of these obligations can lead to considerable difficulties, high fines and in some cases to withdrawal of the work permit. The range of penalties can in individual cases be up to Euro 5,000 per employee in the case of a missing posting notification, in the case of missing wage records up to Euro 10,000 and they can lead to financial criminal proceedings.

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