EMCC European Monitoring Centre on Change

Austria: Redundant employees entitlement to public support

Austria
Phase: Management
Type:
Redundant employees entitlement to public support
Last modified: 27 August, 2021
Native name:

Arbeitsmarktservicegesetz (AMSG)

English name:

Public Employment Service Act (AMSG)

Article

32-34, 38a, 38c

Description

The public employment service (AMS) has to provide services to match job seekers with vacancies and to maintain employment. This comprises particularly the following activities (AMSG, § 32):

  • Provision of information on the labour market
  • Advice in selecting an occupation
  • Support in maintaining or creating employability of workers
  • Support in education and training of workers
  • Support of companies looking for suitable workers and in designing company internal human resource plans
  • Support of job seekers in their search and choice of a job
  • Support of companies and workers as regards the creation and retention of jobs

The public employment service can provide these services itself or through contractors (for example, training providers). The services have to be provided free of charge for workers and companies in general. For specific services an adequate fee can be charged on companies. Services towards workers, the unemployed and job seekers have to be provided free of charge in any case.

A particular focus of the regional public employment services should be the provision of measures fostering qualification and employment potentials in order to achieve sustainable and permanent employment. It should aim at offering individuals suitable employment within four weeks or if this is not possible, the participation in qualification or reintegration measures. Particular attention should be devoted to people wishing to reenter the labour market after periods of childcare. Furthermore, it should offer education and training measures to unemployed people that are younger than 25 or older than 50 if they cannot be offered adequate employment within three months (AMSG, § 38a).

For each unemployed person the regional public employment service has to draft a support plan, specifying the planned measures under consideration taking into account the specific characteristics of the unemployed person (such as qualifications). The public employment service should try to get the unemployed person's agreement regarding the support plan. If such an agreement cannot be reached, the public employment service can unilaterally decide upon it, taking into account the interests of the individual as far as possible. The support plan has to be communicated to the unemployed person (AMSG, § 38c).

If the above mentioned services are not sufficient, the public employment service has to provide one-time or recurring financial subsidies (Beihilfen, AMSG, § 34)  to:

  • overcome financial bottlenecks to take up employment;
  • support occupational education or training, also in preparation to take up a new job;
  • support (re)integration into the labour market;
  • support the retention of employability.

However, there is no legal entitlement to these additional subsidies as mentioned in AMSG, § 34.

Comments

In cases of insufficient unemployment compensation, the unemployed may apply for additional means-tested benefit, which guarantees an individual minimum income of €855 in 2019 (Bedarfsorientierte Mindestsicherung, BMS). In addition, the federal states of Austria may offer an extra benefit for coverage of housing costs (information from the Federal Ministry of Labour, Social Affairs and Consumer Protection).

From 2020 the minimum level will be replaced by maximum benefit rate.

Cost covered by
  • National government
Involved actors other than national government
  • Public employment service
  • Other
Involvement others
Contractors (for example education/training providers)
Thresholds
No, applicable in all circumstances
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