The Wage and Social Dumping Prevention Act (LSD-BG), which has been in force since January 1, 2017, brings some drastic innovations and creates further tightening measures in the construction industry.

 

Clients of construction work can now be held liable, regardless of fault, for the remuneration of employees of subcontractors who were sent to Austria or hired across borders to Austria. Furthermore, new regulations for reporting posting or hiring-out were introduced.

The law applies to all employment relationships that are based on a private law contract, to the employment of workers within the meaning of the Temporary Employment Act (AÜG) and to employment relationships to which the Home Work Act applies.

To put it simply, employment relationships with the public sector are excluded from the scope of the LSD-BG.

You can find further details in our current newsletter.

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