The interim supplement paid to unemployed construction workers prior to retirement has been the fifth area of the Construction Workers’ Annual Leave and Severance Pay Fund [Bauarbeiter-Urlaubs- und Abfertigungskasse] (BUAK) since 1 January 2014.
For the social partners working in the construction industry, the goal was to provide construction workers who have worked in construction for many years and cannot continue to work up until retirement age (old age, manual labour and “corridor pension”) with advance protection in the form of an interim supplement for the period of unemployment up to retirement age.
Information to the company
If an interim supplement is awarded to an employee, the employer at the time of the request will be informed in writing of the start date and duration at least one calendar month before the start of the interim supplement payments.
The employee’s employment contract legally ends on the day before the start of the interim supplement payments if terminated by the employee. In this case, “Termination due to interim supplement claim” (84) should be selected as the reason for cancellation in the report submission. A termination initiated by the employer due to an interim supplement claim before this termination date may be a wrongful termination.
In the notification letter, the employer is also informed of the possibility of an interim settlement and the relevant amount.
If, despite fulfilling all other requirements for the interim supplement, an employee remains employed under an employment contract subject to BUAG, both the employee and the company will receive a one-time interim settlement for periods in which the employee did not claim the interim supplement.
The interim settlement can be claimed for/by workers born in or after 1957.
The employer is entitled to a one-off settlement payment amounting to 20% of the interim supplement to which the employee would otherwise be entitled, as long as there have been no violations of reporting requirements under social security laws pursuant to § 33 ASVG in the previous five years.
The provisions for the employee can be found here.
To claim the interim settlement, a separate application must be submitted within six months after the employee starts receiving pension payments (old age, manual labour or “corridor pension”). When an application is made by the employee or by the employer, the other party’s claim to an interim settlement will also be verified. An interim settlement will be considered at the time the next supplement payment is due.
Postponement of the start of interim supplement payments
After recognition of the entitlement to interim supplement payments, the employer and the employee may choose to conclude an agreement that provides an option to postpone the start of interim supplement payments, and for the employee to continue working under an employment contract subject to BUAG. An interim settlement can later be requested for this period. In this case, the employer must inform BUAK of the postponement at least three work days before the original start of interim supplement allowance payments.
Please note that if BUAK is not informed in time, the amount of the interim settlements for the employee and the employer will each be reduced by 5 percentage points.