{"id":4226,"date":"2019-10-01T17:53:58","date_gmt":"2019-10-01T15:53:58","guid":{"rendered":"https:\/\/www.rihs.law\/?p=4226"},"modified":"2019-12-31T13:38:19","modified_gmt":"2019-12-31T12:38:19","slug":"posting-of-workers-by-foreign-companies","status":"publish","type":"post","link":"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/","title":{"rendered":"Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies"},"content":{"rendered":"<p>For <a href=\"https:\/\/www.rihs.law\/en\/services\/trade-and-cross-border-services-2\/\">foreign companies<\/a> performing contracts in Austria, the distinction between \u201ehiring out\u201c of workers and a works contract is essential: the legal relationship between contracting party and (sub-)contractor involves fewer administrative obligations and liabilities for the contracting party than the \u201ehiring out\u201c.<\/p>\n<p>In important precedents the European Court of Justice (18 June 2017, C- 585\/13, <em>Martin Meat<\/em>) and the Austrian Supreme Administrative Court (22 August 2016, <a href=\"https:\/\/www.ris.bka.gv.at\/Dokument.wxe?Abfrage=Vwgh&amp;Dokumentnummer=JWT_2017110068_20170822L00\">Ra 2017\/11\/0068<\/a>) ruled on the fundamental and legally relevant subject matters for the distinction between works contract and \u201ehiring out\u201c.<\/p>\n<p>For this distinction, essential matter is<\/p>\n<ul>\n<li>whether the remuneration varies in accordance with the quantity\/quality of the services,<\/li>\n<li>who is liable for services\/works inconsistent with the terms oft he contract,<\/li>\n<li>who determines the number of workers considered useful for the performance of a contract,<\/li>\n<li>who gives the precise and individual instructions fort he performance of the services concerned.<\/li>\n<\/ul>\n<p>As the Austrian Supreme Administrative Court demanded a comprehensive legal assessment on a case-by-case basis, there have been numerous decisions by the Austrian Administrative Courts on the details of the distinction.<\/p>\n<p>In many cases, the Administrative Courts have suspended penalty decisions against contractors, based on the assessment that the finance police or the administrative authority have been wrong in presuming a \u201ehiring out\u201c of workers rather than contracting (e.g. Administrative Court Nieder\u00f6sterreich, 10.12.2018, LVwG-S-523\/001-2018; Administrative Court Tirol 5.2.2019, LVwG-2018\/14\/0803-1; Administrative Court Wien 13.6.2019, VGW-041\/078\/7475\/201).<\/p>\n<p>Due to the considerable fines and the related legal consequences \u2013 for instance in the context of participation in public tenders \u2013 any case should be accurately legally assessed in accordance with the recent case law. This may lead to a suspension of administrative penalty proceedings or at least a reduction of the fines.<\/p>\n<p>[source image: <span class=\"figure-copyright\">\u00a9<a href=\"https:\/\/pixabay.com\/de\/photos\/schreiben-stift-mann-tinte-papier-1149962\/\">Pixabay<\/a><\/span>]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>For foreign companies performing contracts in Austria, the distinction between \u201ehiring out\u201c of workers and a works contract is essential: the legal relationship between contracting party and (sub-)contractor involves fewer administrative obligations and liabilities for the contracting party than the \u201ehiring out\u201c. In important precedents the European Court of Justice (18 June 2017, C- 585\/13, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4220,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[49],"tags":[60,87,59,61],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies &mdash; RIHS Rechtsanwalt GmbH<\/title>\n<meta name=\"description\" content=\"Dr. Georg Rihs, Attorney at Law in 1010 Vienna: Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies &mdash; RIHS Rechtsanwalt GmbH\" \/>\n<meta property=\"og:description\" content=\"Dr. Georg Rihs, Attorney at Law in 1010 Vienna: Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/\" \/>\n<meta property=\"og:site_name\" content=\"RIHS Rechtsanwalt GmbH\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-01T15:53:58+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-31T12:38:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.rihs.law\/wp-content\/uploads\/2019\/10\/Arbeitskr\u00e4fte\u00fcberlassung.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"RIHS Rechtsanwalt GmbH\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"RIHS Rechtsanwalt GmbH\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/\"},\"author\":{\"name\":\"RIHS Rechtsanwalt GmbH\",\"@id\":\"https:\/\/www.rihs.law\/#\/schema\/person\/2665d3d651ee80a56f3316852c21683b\"},\"headline\":\"Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies\",\"datePublished\":\"2019-10-01T15:53:58+00:00\",\"dateModified\":\"2019-12-31T12:38:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/\"},\"wordCount\":305,\"publisher\":{\"@id\":\"https:\/\/www.rihs.law\/#organization\"},\"keywords\":[\"contract\",\"cross border\",\"hiring\",\"worker\"],\"articleSection\":[\"news\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/\",\"url\":\"https:\/\/rihs-old.mycodingbase.at\/en\/news\/posting-of-workers-by-foreign-companies\/\",\"name\":\"Recent case law on the distinction between \u201ahiring out\u2018 and (sub-)contracting according to Directive 96\/71\/EC on the posting of workers by foreign companies &mdash; 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