The Anti-Wage and Social Dumping Act (Austria)

The Anti-Wage and Social Dumping Act

In implementation of Directive (EU) 2018/957 (amending Directive on the Posting of Workers Directive), the Wage and Social Dumping Act (LSD-BG) was amended. The Act is intended to ensure that employees that are posted to Austria receive the remuneration to which they are entitled for the work they perform and to enable fair competition between companies. The recent amendments of this Act brought improvement of working conditions for cross-border posted workers, a revision of the scope and penalty provisions in the LSD-BG, new regulation of the security deposit and a new regime of penalties. In connection with wage dumping, administrative fines can be imposed of up to 400,000.00 EUR.