Austria’s federal government has signed off on a major labor reform that will extend collective bargaining rights and new protections to freelance workers, long considered a gray zone in the country’s employment landscape, according to Austrian National Television ORF News. The law, passed Tuesday in the Council of Ministers, is set to take effect on January 1, 2026.
For the first time, freelancers—known locally as “freie Dienstnehmer”—will be able to benefit from collective agreements negotiated between employers’ associations and trade unions. Until now, no legal basis existed to include them in such agreements, leaving many freelancers without the protections enjoyed by salaried staff.
The reform also introduces clear rules for contract termination. Freelancers will gain a minimum four-week notice period, which increases to six weeks after the second year of service. Employers and workers may additionally agree on a one-month probationary period during which either side can end the arrangement at will. These new standards, however, will only apply to contracts signed after the law takes effect; existing agreements with their own termination clauses remain unaffected.
The debate over freelance rights came to a head earlier this year when food delivery company Lieferando announced it would lay off employees and convert all couriers to freelance contracts. The move drew criticism from unions and politicians who accused the company of exploiting legal loopholes to cut costs.
Officials say the reform aims to reduce such practices by making freelance arrangements less appealing as a means of avoiding labor law obligations. At the same time, the government framed the changes as a step toward fairness in a shifting labor market where freelance contracts are increasingly common.
By anchoring freelancers in Austria’s system of collective bargaining and codifying their basic rights, the government hopes to balance flexibility with security—closing a long-standing gap in the country’s employment protections.
