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January 2026 – Austria has adopted a reform aimed at improving the legal protection of freelance employees within the meaning of Section 4(4) of the General Social Insurance Act ("ASVG") (freie Dienstnehmer). The new rules, which are mainly implemented in the Austrian Civil Code ("ABGB") and the Labour Constitution Act ("ArbVG"), entered into force on 1 January 2026 and will have a significant impact on companies that rely on freelance employees.
Statutory termination rules introduced
A key change is the introduction of mandatory minimum notice periods for certain freelance employees.
For permanent (i.e., not concluded for a fixed-term) service contracts with freelance employees within the meaning of Section 4(4) ASVG, either party may terminate the contract on the 15th or the last day of a calendar month, subject to a four-week notice period, which is extended to six weeks after two years of service.
Contractual arrangements that are more favourable to the freelance employee remain valid, while less favourable terms are no longer permitted. In addition, a probationary period of up to one month may be agreed, during which either party may terminate the contract at any time.
These statutory rules apply to all freelance employee service contracts concluded from 1 January 2026. For contracts concluded prior to this date, any agreed termination provisions remain valid, even if they deviate from the statutory rules.
Collective bargaining agreements extended to freelance employees
The reform also breaks new ground by allowing collective bargaining agreements to cover freelance employees within the meaning of Section 4(4) ASVG.
Collective bargaining parties may conclude separate collective bargaining agreements specifically for freelance employees or explicitly include freelance employees in existing collective bargaining agreements.
There is no automatic inclusion and no obligation to cover freelance employees in collective bargaining agreements. This new regulation has no effect on the legal nature of freelance employees: freelance employees do not become employees, and personal dependence is not created. Further, freelance employees are not included in works council agreements.
Enhanced transparency requirements
The reform introduces enhanced information obligations. Where collective bargaining agreements, statutory extensions (Satzungen), or minimum pay regulations apply, freelance employees must be informed of their applicability in writing in line with existing information obligations.
Outlook
How far these reforms will reshape the landscape for freelance employees remains to be seen, in particular, to what extent collective bargaining parties will make use of the new possibility to conclude or extend collective bargaining agreements for freelance employees, and which minimum standards will ultimately be established in practice.
In addition, further changes can be expected, as Austria must implement the EU Platform Work Directive (Directive (EU) 2024/2831) by 2 December 2026. This directive introduces, among other things, a rebuttable presumption of an employment relationship for platform workers where direction and control criteria are met. Its implementation may significantly affect the classification of platform-based work, potentially also including freelance employee arrangements.
Against this background, the legal framework for freelance employees in Austria is likely to continue evolving. Businesses and service providers should therefore closely monitor legislative and collective bargaining agreement developments and regularly reassess their contractual models.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
