Wage and social dumping
Guaranteed remuneration in construction sector
On 1 May 2011, restrictions on the free movement of workers and services for the EU member states of Estonia, Latvia, Lithuania, Poland, Slovakia, Slovenia, the Czech Republic and Hungary came to an end. Since then, companies from the aforementioned member states can participate in the Austrian market without barriers to their workers. The Anti-Wage and Social Dumping Act [Lohn- und Sozialdumping-Bekämpfungsgesetz] (LSD-BG) came into effect at the same time. The purpose of the law is to prevent any circumvention of the Austrian minimum wages established by collective agreements, and thus to guarantee Austrian wage levels for workers employed in Austria. Since 1 January 2014, the EU member states Bulgaria and Romania also enjoy full freedom of movement for workers and services.
Pursuant to the LSD-BG, employers both within and outside of Austria must always pay their employees working in Austria the wage they are entitled to under Austrian law, regulations or collective agreements, and in compliance with all appropriate classification criteria, except for the remuneration components listed in § 49 (3) ASVG.
BUAK is the supervisory body for the construction industry. BUAK takes this role very seriously, and performs inspections on construction sites and in payroll offices within Austria. Their inspection authority covers both domestic and foreign employees subject to BUAG.
Information on suspected underpayment to BUAK
If you work in the construction industry and suspect that underpayment is being practiced, you can use the folder below to communicate the key information on the employment contract to us for review.
Of course, you can also come and speak to us in person at BUAK Customer Services. Please bring the available documentation for your employment contract (contract/statement of employment terms) and payment (records of worked hours, payslips/payroll documents, confirmation of payment/bank transfer records) with you to your appointment.
You can also e-mail your information to us anonymously at email@example.com. The submitted information is automatically anonymised and forwarded to the responsible person.
More detailed information can be found in the folder below.