Law

Reviewing the employment contract: What should be clear before signing

Before signing, it's worth taking a close look at the employment contract, the employment notice (Dienstzettel), pay, working hours and clauses. What applicants in Austria should check.

Applicant reviews employment contract and service slip with notes in a modern Austrian office

As of: 17 June 2026.A new job often only feels really secure once the most important points are clear in writing. Nevertheless, many applicants sign an employment contract under time pressure: the offer has been made, the start date is approaching, and excitement is high. It is precisely at this stage that a calm look at pay, working hours, place of work, probation period, fixed-term arrangements and possible contract clauses pays off.

An employment contract is not just a formality. It determines what actually applies in everyday work and what leeway employers and employees will have later. In Austria, employment contracts can also be concluded verbally or implicitly. In practice, however, a written contract or at least a complete Dienstzettel is clearly better, because commitments remain traceable later.

Employment contract or Dienstzettel: What's the difference

The Arbeiterkammer Oberösterreich sums up the key point briefly: concluding an employment contract in Austria is not bound to any particular form. If there is no written employment contract, the employer must provide a Dienstzettel. This Dienstzettel is a bullet-point overview of the agreements made as well as the essential rights and obligations.

The distinction is important: the Dienstzettel is not the employment contract itself, but an evidentiary document. The Arbeiterkammer explicitly points out that employees are not obliged to sign a Dienstzettel. It is intended to document what applies. A written employment contract, by contrast, has stronger probative value because both parties record the agreements directly.

Since the changes related to the EU Transparency Directive, written information has become even more important. The WKO lists expanded minimum details for employment relationships as of 28 March 2024, such as start date, fixed-term status, place of work, company headquarters, job, basic salary or basic wage, notice period, working hours and information on the termination procedure. For applicants this means: a contract or Dienstzettel should not be vague.

Pay: Check more than just the gross monthly salary

The first thing people usually look at is the salary. That is understandable, but not enough. What matters is whether the pay matches the collective agreement, the job classification, the working hours and any additional agreements. The contract should state clearly which base salary or basic wage applies to the normal working hours. If terms like overpayment, bonus, commission, allowance or All-in are mentioned, they require additional scrutiny.

The Chamber of Labour warns that although All-in agreements and overtime lump-sums are possible, such clauses are rarely automatically advantageous for employees. Applicants should therefore check which pay covers only the normal working hours and which extra work is meant to be compensated by it. Without this separation, a high gross salary can look attractive at first but may be relativized by a large amount of overtime.

Practical questions before signing: Does the salary apply to full-time or part-time work? Are special payments regulated? Which collective agreement and which job classification apply? Are overtime hours paid individually, compensated by a lump sum or handled with time-off in lieu? Are there variable components, and on what criteria are they payable? Anyone who clarifies these points properly will avoid costly misunderstandings later.

Working hours, home office and place of work

An employment contract should not only state the weekly hours. It is also important how those hours are distributed, which normal working hours apply, whether flexitime is provided, whether weekend or shift work is possible and how additional work is ordered. For part-time positions it is particularly important whether extra hours are regularly expected and how predictable the working times are.

The place of work also deserves attention. A precise address gives more clarity than a very broad formulation. If the contract contains a transfer clause, applicants should ask how far it extends. The Chamber of Labour explicitly names reassignment as one of the issues to watch out for before signing. A seemingly small wording can later mean that the workplace, the scope of duties or the organizational allocation change significantly.

Home office should also not be discussed only verbally. Anyone who agreed to two home office days per week in the job interview should check whether this can be found in the contract, in an addendum or in a company policy. The same applies to business trips, field work, on-call duty, company mobile phone or work equipment. Verbal promises are harder to enforce than written rules.

Do not overlook the probation period and fixed-term arrangements

A probationary period is customary when starting a job, but it should be clearly agreed. During the probationary period the employment relationship can generally be terminated at very short notice. Therefore it is crucial whether a probationary period is provided, how long it lasts, and whether the collective agreement contains its own rules. Applicants should also check whether the probationary period is combined with a fixed-term contract.

In fixed-term employment the employment relationship generally ends when the term expires. The USP points out that the contracting parties are generally free to decide whether to conclude a fixed-term or a permanent employment contract. For employees, however, it is important whether a possibility to terminate during the fixed term is provided. Without an appropriate rule, a fixed-term employment relationship can be less flexible than one might expect in advance.

Before signing, three questions should therefore be answered: Is the job fixed-term or permanent? Is there a probationary period? What notice periods and notice dates apply after the probationary period? Those who only look up these points once a conflict arises often find themselves under pressure.

Clauses that can prove costly later

Many problems do not arise from the main points but from clauses at the end of the contract. The Chamber of Labour lists, among unfair clauses, all-in contracts, working time, data protection, non-compete clauses, forfeiture clauses, reassignment, as well as contractual or conventional penalties. Applicants should not skip such sections.

A non-compete clause can prevent employees, after the end of the employment relationship, from working in the industry of the former employer. The Chamber of Labour describes it as an agreement that can apply for up to one year after the termination of the employment relationship. It is not effective in every case, but it can significantly hamper the next job search. Those who work in a specialized industry should read such clauses especially carefully.

Forfeiture clauses are also risky. They can shorten the deadlines within which outstanding claims—such as wages, salary, or overtime—must be asserted. The Chamber of Labour notes that such clauses can shorten the statutory limitation period. That means someone who reacts too late may lose money. Therefore you should know before signing which deadlines are set out in the contract or collective agreement.

What should not be missing from the contract

A good preliminary check is not a legal examination of every single sentence, but a structured review. It should at least include the employer and employee, the start of the employment relationship, place of work, duties, working hours, remuneration, collective agreement, classification, vacation, notice periods, probationary period, fixed term, special payments, and references to relevant company regulations.

In addition, applicants should compare their verbal agreements with the written text. Was a specific salary promised? A certain position? Home office? Training? A company car? A bonus after onboarding? If something was important, it should not only have been mentioned in conversation, but also documented. In case of uncertainty, a brief query before signing is more professional than a later dispute.

Those who are evaluating several offers in parallel should not only compare gross monthly pay. A comprehensive view makes sense: annual gross pay, working hours, commuting time, home office, special payments, fixed term, probationary period, development opportunities, business travel, all-in arrangements and notice periods. Correspondingly, the jobspot articles on Job interview and salary questions, Business travel and expense reimbursement as well as Part-time, salary and career.

When consulting is advisable

Not every contract needs immediate legal advice. For clear standard contracts, unambiguous classification and understandable working hours, a careful read is often sufficient. However, seeking advice is reasonable if the contract contains unclear or very far-reaching clauses, if an all-in arrangement cannot be justified, if a non-compete clause or contractual penalty is provided for, if the fixed-term or termination provisions seem unclear, or if verbal promises are missing from the text.

Even when changing industries, taking a first job in Austria, moving into management positions, working in field sales, having variable pay, or working at multiple locations, a second look is worthwhile. The responsible Arbeiterkammer can review contracts or at least point out which items could be problematic. It is important to allow enough time before signing. A contract is easier to clarify before it is concluded than to correct after starting work.

Conclusion: Don’t sign out of mistrust, sign prepared

Reviewing an employment contract does not mean fundamentally distrusting the new employer. It means taking the shared basis seriously. The clearer salary, working hours, place of work, probation period, fixed-term status and clauses are defined, the more stable the employment relationship will start. For applicants, this is part of professional career planning.

The best next step is simple: before signing, make a checklist, compare verbal promises with the contract, clarify open points in writing, and seek advice on sensitive clauses. Those who proceed this way start not only with a good feeling but with a reliable agreement.

Sources and further information