NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
2.6.4.Extrinsic placement
The labour market authority's monopoly on placement (exceptions were only possible under extremely specific conditions, e.g. placement free of charge by charitable institutions or placement of artists against a fee) was first restricted in 1992 following the approval of private placement of executives against a fee. Commercial employment agencies could only be operated on the condition that they were associated with a management consultancy and management organisation business and were approved by the competent Land employment office, which ascertained whether the required conditions were met.
Only seven private head-hunter agencies were in operation at the end of 1997.
When the AMSG came into effect in July 1994, commercial, private job placement was approved for all jobseekers. The same conditions apply to private placement agencies as to the AMS (e.g. consent of the jobseeker, impartiality, suitability of employment, prohibition of placement in an enterprise affected by a strike or lock-out).
Operation of a private placement agency requires proof of a special business licence to place labour; the licence is issued by the district administrative office.
Persons wishing to engage in private placement must fulfil the following conditions:
- natural persons must be Austrian nationals and reside in Austria;
- legal entities must be located in Austria and the managing director an Austrian national residing in Austria.
The condition of Austrian citizenship does not apply to relatives from EU and EEA countries.
In addition, the person registering the business must show proof of his/her ability through having passed an examination. Business operations may not commence until the Federal Office for Social Affairs and the Disabled has been notified; this office has been charged since 1.1.1995 (instead of the AMS) with ascertaining that the required conditions have been met (possession of the appropriate business licence, independent business premises, qualified personnel, declaration of business location).
Placement agencies are obliged to provide records of their placement activities to the Federal Office for Social Affairs and the Disabled on a quarterly basis.
The Federal Office for Social Affairs and the Disabled exercises control and supervisory functions and can prohibit placement activities if the agency violates the legal obligations
Furthermore, damage claims can be brought against the agency in cases of false or inaccurate data about jobseekers or illegal disclosure of personal data.
Enterprises must pay a fee for placement, whereas the service must be provided absolutely free of charge to jobseekers; concurrent activities in the fields of temporary employment and job placement are prohibited by law.
At the end of 1997, 22 commercial placement agencies were in operation. Throughout 1997, a total of 1,330 persons (1996: 945) were placed by private agencies.
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