Verwaltungsgerichtshof zur grenzüberschreitenden Arbeitskräfteüberlassung

In dieser Folge des Arbeitsrechts-Podcasts von Wolf Theiss erörtern Hemma Elsner und Matthias Unterrieder eine aktuelle Entscheidung des Österreichischen Verwaltungsgerichtshofs (VwGH Ro 2024/11/0002) zur grenzüberschreitenden Arbeitskräfteüberlassung. Gegenstand war die Frage, ob die Überlassung von Arbeitskräften an ein Unternehmen mit Sitz in einem Drittstaat auch dann eine genehmigungspflichtige grenzüberschreitende Überlassung sein kann, wenn die Arbeitskräfte physisch nicht die Grenze überschreiten. Die Entscheidung hat besondere Auswirkungen auf Konstellationen, in denen Arbeitnehmer österreichischer Arbeitgeber ihre Tätigkeit von Österreich aus für Unternehmen mit Sitz in Nicht-EU-Ländern erbringen: Arbeitgeber konnten bisher zu Recht davon ausgehen, dass solche Fälle nicht genehmigungspflichtig sind.

Administrative Court on cross-border personnel leasing

In this episode of the Wolf Theiss Labour Law podcast, Hemma Elsner and Matthias Unterrieder discuss a recent decision by the Austrian Administrative Court concerning cross-border personnel leasing. The court case (VwGH Ro 2024/11/0002) centred on whether leasing employees to a foreign company constitutes cross-border personnel leasing requiring official authorisation, even if the leased employees do not physically cross the border.

The decision has notable implications for situations in which employees of Austrian employers work remotely from Austria for companies based in non-EU countries. Until now, employers had reasonably assumed that such arrangements did not require official authorisation.

Case summary

The case concerned an Austrian limited liability company that leased 44 employees to companies based outside the EU between July 2021 and April 2023. Notably, all employees remained physically in Austria and were covered by Austrian social insurance. Despite the absence of a physical border crossing, the authority classified the arrangement as a cross-border personnel leasing scenario requiring prior authorisation under Section 16 of the Austrian Personnel Leasing Act (AÜG).

Section 16 AÜG requires prior approval for both inbound and outbound cross-border personnel leasing. Failure to obtain such authorisation can lead to administrative fines.

The Administrative Court ruled that a physical border crossing is not necessary for a personnel leasing arrangement to fall under Section 16 AÜG. The Court’s reasoning relied on the wording of the provision, stating that the neutral language of Section 16(1) AÜG does not suggest that authorisation depends on whether the leased employee physically crosses a border. By contrast, the German wording “transfer from Austria to a foreign country” linguistically suggests  a physical relocation. If the most reasonable interpretation of the wording is exceeded, the fine was arguably imposed without sufficient legal basis.

The Court also highlighted the protective purpose of the law – not only for employees, but also for the domestic labour market. A permit must be denied if labour market or economic reasons argue against it.. According to the Administrative Court, such grounds may exist even where employees remain physically in Austria but work for companies based in third countries. This may be the case, for example, where the Austrian labour market lacks workers with the required qualifications.

Implications for employers

The decision is particularly relevant for arrangements in which employees of Austrian employers work remotely from Austria for companies located in non-EU countries. Scenarios previously considered unproblematic may now require formal authorisation. This is especially relevant for multinational corporations and matrix organizations, where employees in Austria may work  remotely under supervision by entities abroad (e.g., from the UK, USA, or Switzerland).

Where authorisation under Section 16 is not obtained, administrative fines may be imposed. These fines may apply to each managing director individually and thus may be cumulative, unless a responsible representative has been formally appointed. Importantly, the reverse scenario may also require authorisation –i.e. where foreign-based employees are virtually leased to Austrian companies.