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Wage dumping - avoid risks: from wrong classification in collective agreement to deductions for employee contributions

LBG Austria - Summary: On January 1st 2017 the “Anti-Wage and Social Dumping Act” (LSD-BG) came into effect in Austria as a standalone act (previously it was included in the Labour Contract Adaptation Act, AVRAG). Wage dumping does not only refer to the act of offering (on purpose) excessively low wages, in fact there are several pitfalls lurking in daily payroll accounting practice that may lead to violations of law and significant penalties for entrepreneurs, managers, board members. A careful and competent check may prevent from unintended consequences. Special attention should be paid to those fields of daily payroll accounting: wrong classification of employment (contract for work, service contract, free service contract), wrong or no classification in collective agreement, wrong or no collective wage increase, unpaid or insufficient paid additional hours/overtime, accounting errors in all-inclusive overtime arrangements, no or insufficient working time records, late payments etc. We support you in planning and implementing the right measures and take a competent expert-look at your employments.

Contact & Advice: Our experts in the consulting field “payroll accounting, income tax, social security, labour law” will be pleased to advise you in your individual situation. Please contact our consultants either directly at LBG at our 30 locations in Austria (www.lbg.at) or email us welcome@lbg.at – we will connect you with the right expert at LBG who is very familiar with your concerns.