Austrian Court Rulings Reshape Overtime Pay: 1.8 Million Workers Gain New Entitlements
Published on 07/28/2026 at 02:53 | Redaktion boerse-global.de
A wave of landmark court decisions across Austria and Europe is forcing employers to rethink how they handle unpaid overtime, with millions of workers now eligible for back pay and stricter time-tracking obligations looming.
The rulings, spanning from local labor courts to the European Court of Justice, address long-standing ambiguities around travel time, termination disputes, and sick leave during compensatory time off. For businesses, the financial stakes are high.
Dental Assistant Wins €11,000 in Back Pay
A dental assistant in Linz secured a gross payment of €11,000 after her former employer failed to compensate 336 accumulated overtime hours over six and a half years. The Arbeiterkammer (Chamber of Labor) initiated legal proceedings, prompting the employer to settle before the scheduled court date.
AK President Stangl warned employees about forfeiture deadlines, urging them to have their claims reviewed promptly.
Keeping accurate records of working hours is essential to avoid disputes — and the same principle applies to workplace safety documentation. UK employers can face serious penalties if key health and safety records are missing or out of date. A free toolkit provides ready-to-use risk assessments, checklists, and templates that help you stay compliant with the Health & Safety at Work Act 1974. Download the free Health & Safety Toolkit
Sales Rep Awarded €17,800 After Unfair Dismissal
The Regional Court of Feldkirch awarded a field service employee approximately €17,800 after his employer terminated him without notice, citing absences documented in an ERP system. The court ruled the dismissal invalid, noting the employer lacked a proper recording obligation for the data used.
AK President Heinzle emphasized that data from internal company systems cannot be arbitrarily used to justify terminations.
ECJ: Commute Time Counts as Work
A landmark ruling from the European Court of Justice (ECJ) on October 9, 2025 (Case C-110/24) targets industries with rotating work sites. Travel to and from changing locations in a company vehicle now qualifies as full working time.
The decision affects roughly 1.8 million employees in construction and building cleaning alone. An additional 130,000 gardeners and 450,000 field-based nursing staff are also impacted. With an average daily commute of 80 minutes and a minimum wage of €13.90 per hour, workers could see monthly earnings rise by up to €400.
Sick Leave During Time Off: OGH Sets Clear Rules
Austria’s Supreme Court (OGH) clarified how illness during compensatory time off should be handled. Unlike annual leave, sickness does not interrupt compensatory time—the hours are considered used. The ÖGB (Austrian Trade Union Federation) advises affected workers to seek individual guidance.
The court also addressed negative hour balances: employers cannot simply deduct them from wages if the shortfall stems from a lack of work. Deductions are only permissible when the employee is at fault or a contractual agreement exists.
Court rulings on working time and employer duties are reshaping obligations across Europe. In the UK, your legal duties under the Health & Safety at Work Act 1974 are equally clear — and failing to meet them can lead to costly enforcement action. A free toolkit with 9 practical tools, including risk assessments and director liability guides, helps you protect your workforce and your business. Get the free Health & Safety at Work Act 1974 Toolkit
Planned Tax Exemption for Overtime Premiums
The federal government is proposing tax-free status for overtime premiums up to 25 percent of base pay. Originally slated for January 1, 2026, the measure has not yet taken effect.
Only full-time employees working 34 to 40 hours per week would benefit. Part-time workers—roughly 30 percent of the workforce—would be excluded under current drafts. For context, employees averaged 28.2 overtime hours in 2024.
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