NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
2.2.1.6.Adaptation of Employment Contracts Act (Arbeitsvertragsrechtsanpassungs-gesetz - AVRAG)
The AVRAG stipulates that in the event of transfer of ownership of a firm (except in cases of bankruptcy) the new owner as employer by act of law "automatically" assumes all obligations and rights regarding the employment relationship which apply at the time of the transfer. Under certain circumstances employees may challenge such transfers of ownership.
The AVRAG also includes a stipulation that on commencement of employment the employer is obliged to immediately provide employees with written substantiation (notice of rights and duties) of the most important rights and obligations ensuing from the employment contract.
In addition, the AVRAG defines framework conditions which increase flexibility for both employers and employees, without weakening the position of the employees under labour law, especially as regards protection against dismissal and severance pay.
The regulations in question concern:
- leave for educational purposes;
- unpaid leave when claims are made on unemployment insurance or other AMS resources;
- working-time reduction within the framework of the solidarity bonus model and
- reduced normal working hours for employees entering gradual retirement, employees aged over 50 and employees with special custodial obligations.
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