Freelance service contracts appear flexible at first glance: there are fewer conventional requirements than in a regular employment relationship, and clients can often organize services quickly. For the person affected, however, this flexibility does not automatically mean greater security. What matters are the contract terms, the actual way of working, insurance and the question of which rules actually apply in the specific case.
Since 1 January 2026 new legal framework conditions apply in Austria for freelance contractors. These include clearer notice periods and the possibility of including freelance contractors in collective agreements. Anyone who accepts such an offer or already works under a freelance service relationship should therefore not only look at the monthly amount. It is more important to review the entire package before signing and before terminating.
This guide explains what changed in 2026, how it differs from a regular employment contract and which points workers should record in writing with the client.
What is a freelance service contract?
A freelance service relationship typically exists when a person performs work personally but is not in a personal dependency relationship like a classic employee. The client side can specify which service is owed. However, it may not freely dictate every detail of how the work is carried out, the allocation of time and the place of work as it could in a normal employment relationship.
The label in the contract is therefore not decisive on its own. What matters is how the cooperation actually works in practice. Anyone who must adhere to fixed working hours, continually receives personal instructions, is integrated into another organization and has little scope for shaping their work should critically examine the contract form. A document labeled a 'freelance service contract' cannot automatically exclude that, legally, an employment relationship exists.
The Unternehmensserviceportal describes freelance contractors as persons who do provide work but are not in a relationship of personal dependency. This very distinction is important in practice because many protective provisions of classic labour law do not automatically apply.
What has changed since January 1, 2026
The most important change concerns open-ended freelance service relationships. If the contract does not provide a more favourable rule, since 2026 either party can terminate on the 15th or the last day of a calendar month. The statutory notice period is four weeks. After the completion of the second year of service it increases to six weeks.
This rule generally also applies to existing freelance service relationships. Existing agreements that are more favorable to the freelancer or that deviate from the statutory provision may, however, continue to take effect. Therefore you should not only read the current law. What is decisive is also what has been agreed in your own contract or service note regarding termination.
Additionally, the first month can be agreed as a probationary period. During a validly agreed probationary period, the freelance service relationship can usually be terminated at any time. The agreement should be clear and should not be added orally only after work has begun.
Also new is the possibility of including freelancers in collective agreements or of concluding separate collective agreements for this group. However, that does not mean that every freelance contract is automatically subject to a collective agreement. The specific collective agreement basis must be established and must not simply be assumed.
Termination: correctly check notice period, termination date and receipt
Two things matter in a termination: the notice period and the termination date. A four-week period does not mean that the service relationship ends on any arbitrary day. Under the statutory basic rule, the end is tied to the 15th or to the last day of the month.
Example: If a termination is given on August 10, it must first be calculated which permissible termination date is reached while complying with the four-week period. It is also decisive when the notice actually reaches the other party. Anyone who only sends an email should therefore check whether receipt can be proven and whether the contract requires a specific form.
A notice of termination must be distinguished from an immediate termination. Termination without notice requires special reasons. Likewise, a fixed-term freelance contract must be treated differently from an open-ended one. Before a termination, therefore, at minimum the contract duration, termination clause, probationary period, notice period, termination date and any special provisions should be laid out side by side.
The Chamber of Labour recommends seeking advice if in doubt. This is particularly important if the other party declares the termination to take effect immediately, fails to pay outstanding fees, or claims that there is no notice period at all.
No automatic vacation entitlement as with employees
A freelance service contract does not automatically carry all the entitlements of a standard employment contract. Without a corresponding agreement, in particular leave entitlements, the working hours law, overtime pay and continued payment of wages in the event of illness do not apply in the same way as they do for employees.
This can make a big difference in everyday life. In a regular employment relationship, paid vacation is a statutory entitlement. In a freelance service relationship, the question of absence and remuneration must be regulated differently or factored into the price. A 13th and 14th month’s salary is also not automatically owed, unless an applicable collective agreement or an agreement creates a claim.
Caution is also required in the event of sick leave. Independent contractors generally have no entitlement to continued payment of wages by the client. With sufficient insurance, however, they can receive sickness benefits from the responsible health insurance provider. That is a different benefit with different conditions and does not automatically replace the continued payment of wages in a normal employment relationship.
Collective agreement: a possibility, not a guarantee
Since 2026, collective agreements can be concluded for independent contractors or existing collective agreements can be extended to this group. This can create minimum pay, termination rules or other standards. However, this does not automatically result in equal treatment with all employees in the company.
Before agreeing you should therefore ask specifically:
- Which collective agreement, which statute or which minimum wage tariff applies?
- Does it expressly apply to independent contractors or only to conventional employees?
- What minimum pay threshold and what classification are applied?
- Are special payments, vacation, or expense reimbursement provided?
- Where can the applicable regulation be viewed within the company?
On Guide to the collective agreement We have already explained how minimum salary, classification and special payments should be checked before making a commitment. With a freelance service contract, an additional question arises: Is the collective agreement even applicable to this form of contract?
What should the 2026 employment statement contain?
A written freelance service contract is not always a given. However, expanded information obligations apply to new freelance service relationships. The employment statement should, among other things, list the contracting parties, the start date, any fixed term, the duties, the remuneration and its due date, as well as the notice period and the date of termination.
For new employment relationships concluded on or after 1 January 2026, it must also be stated which collective-law instruments apply. These include, for example, a collective agreement, statutes, or a minimum wage tariff. It should also be recorded where this regulation can be consulted within the company.
Anyone who only receives a verbal offer should at least request a written summary before starting. This should also regulate the scope of work, billing/payment, expenses, availability, use of work equipment, data protection, confidentiality, and termination. The less clear these points are, the higher the risk of later disputes.
Don’t overlook social security and taxes
The social security treatment depends, among other things, on the level of monthly compensation. For 2026, the threshold for marginal employment according to the USP is €551.10 per month. If this threshold is exceeded, there is generally a more comprehensive compulsory insurance, including health, pension, and unemployment insurance. Below the threshold, often only accident insurance is mandatory; voluntary health and pension insurance may be possible.
Freelance contractors are also subject to income tax, but not to payroll tax. For that reason, the client does not automatically withhold the full tax as in a normal employment relationship. Anyone with multiple sources of income or who regularly receives freelance fees should set aside reserves and review the tax treatment.
The USP cites a threshold of €13,539 of taxable annual income for 2026 if no other payroll-taxable income is present. With additional income from dependent employment or a pension, a different threshold applies. These figures are not a blanket tax exemption for every person: deductions, additional income, and the specific tax assessment can change the outcome.
Checklist before signing
Before accepting a freelance service contract, the agreement should not be reduced to just the payment amount. These points belong on your personal checklist:
- Contract type: Does the designation match the actual working relationship, or is the arrangement effectively carried out like employment?
- Services and remuneration: Which tasks are required, how is billing handled, and when is payment made?
- Work organization: Are there fixed hours, attendance requirements, directives, or freedom to organize the work?
- Absence: What applies for vacation, illness, public holidays, and short-term unavailability?
- Collective agreement: Is there an applicable regulation and what minimum standards arise from it?
- Termination: Which notice period, which deadline, and which form apply?
- Insurance: Which mandatory insurance is required and what benefits can be expected?
- Taxes: Who is responsible for which contributions and what reserves are necessary?
- Secondary employment: Are there non-compete, confidentiality, or reporting obligations?
Rules on multiple employments can also be relevant. Anyone who, in addition to a freelance service contract, has a main job or further assignments should not leave clarification of the effects on working hours, social security and taxes to verbal discussion alone. The article "Report a side job"shows which questions should generally be considered when multiple activities are involved.
When a consultation is useful
A brief consultation is particularly advisable when the contract form is unclear, the income secures one's livelihood, a termination has been issued, or the client suddenly requires new working hours and instructions. The situation should also be examined individually in cases of outstanding fees, illness, pseudo‑self‑employment, or a planned conversion into an employment contract.
The Arbeiterkammer points out that freelance contractors are members of the Arbeiterkammern and can make use of advisory and other services. For tax matters, it is also advisable to consult a tax advisor or the relevant tax information office. This article does not replace individual legal advice.
Conclusion: Flexibility only with clear ground rules
The 2026 independent service contract has become legally clearer, but not automatically as secure as a traditional employment contract. The new notice periods, the possible inclusion in collective agreements, and the additional information in the employment statement improve orientation. However, they do not relieve employees of the responsibility to carefully review pay, working arrangements, insurance and termination.
Anyone who receives an offer should, before starting, request a written agreement that honestly reflects the actual working arrangements and calculates the financial implications of vacation, illness, taxes and social security. That way, apparent flexibility becomes an informed decision.
