Austria: Is trust-based working time possible?

In brief

“Trust-based working time” is not a distinct statutory working time model in Austria. It generally means that employees are largely free to determine when they start and finish work, while managers focus more on results than attendance. However, this concept can only be implemented in a legally compliant manner through a written flexitime arrangement under section 4b of the Austrian Working Time Act (Arbeitszeitgesetz AZG). The statutory maximum working time limits, rest periods and record-keeping obligations nevertheless continue to apply. Properly implemented flexitime not only gives employees greater autonomy over their working hours and more flexibility, but also enables employers to manage work capacity more effectively while reducing the risk of overtime.

Key points for HR

• Do not introduce informal trust-based working time: the desired degree of autonomy should be reflected in a valid flexitime agreement.
• Where a works council exists, a works council agreement is required; without a works council, flexitime must be agreed individually in writing.
• The agreement must contain certain minimum provisions.
• Autonomy does not mean dispensing with oversight: employers remain responsible for working time records and compliance with legal limits.
• Overtime, availability and time balances must be clearly regulated to avoid back payments and administrative penalties.
• Employees must retain genuine control over their working hours; mandatory meetings, work schedules and other time-related requirements must be limited to what is strictly necessary.

What “trust-based working time” means legally

Trust does not replace working time rules

Even under a results-oriented trust-based model, the hours actually worked must remain traceable. Accordingly, despite the high degree of autonomy over working hours, it must be clear when normal working time applies, when overtime arises, and how time credits and time deficits are treated. If there is no valid flexitime arrangement, hours worked beyond the daily or weekly normal working time may qualify as overtime subject to an overtime premium.

Flexitime as the legal foundation

Flexitime exists where employees may determine the start and end of their daily normal working hours themselves within an agreed time frame. Under a valid flexitime agreement, time credits are not forfeited but are initially recorded as credits in a flexitime account. Such credits may be reduced on a one-to-one basis through time off during the current flexitime period. Overtime attracting a premium may arise only where statutory or agreed limits are exceeded, work is performed outside the flexitime bandwidth, or overtime is ordered.

Minimum requirements for a flexitime agreement

A flexitime agreement must in any event regulate the following matters: 

Core hours are not mandatory. Instead, functional hours may be provided during which teams independently ensure the required staffing. Traffic-light systems that flag high balances and trigger mandatory countermeasures (e.g., compulsory discussions and reduction plans, temporary restrictions on flexitime, etc.) are also recommended. Employers may also specify the circumstances in which the flexitime agreement may be terminated or revoked, or a return to fixed working hours may occur.

How long may daily normal working hours be?

Whether and to what extent daily normal working hours may be extended under flexitime depends, among other things, on the applicable collective bargaining agreement. For the “extended” flexitime model (normal working hours of up to 12 hours per day), it must in particular be possible to use time credits for full days off, and their use in connection with a weekly rest period must not be excluded. Irrespective of this, the maximum working time limits of generally twelve hours per day and sixty hours per week, as well as an average of no more than 48 hours per week within the relevant averaging period, must be observed.

Overtime despite flexitime

Flexitime does not automatically prevent overtime. Typical cases of overtime include in particular:

• Work outside the agreed flexitime bandwidth
• Expressly ordered, or at least tolerated, additional work that does not serve autonomous time management,
• Exceeding statutory or collective bargaining agreement limits, and
• Time credits that cannot validly be carried over at the end of the flexitime period.

The agreement should therefore specify whether such overtime requires approval, how it must be documented, and who may order overtime.

Working time records and monitoring

Recording remains mandatory

Working time must also be recorded under flexitime. Simplified recording of daily working hours (“balance recording”) may, however, be permissible under certain narrow conditions. The employer generally remains responsible even if employees record their own hours.

Proportionate monitoring

Managers should in particular be able to identify and address unusual balances, repeated work outside the flexitime bandwidth, breaches of rest periods, and persistently high weekly working hours.

Practical note: Automated time recording, analyses, and performance or conduct monitoring may trigger works council participation rights and data protection requirements. The regulatory purpose, data access, retention and permissible analyses should be reviewed separately.

Practical implementation

Recommended steps

1. Review the current model: What working time model is actually practised? What causes excessive overtime, high balances or breaches of rest periods?
2. Clarify the legal framework: Review the collective bargaining agreement, works council competence, part-time work, travel time and special employee groups.
3. Select the model: Define the flexitime period, bandwidth, notional normal working hours, carry-over, availability and escalation process.
4. Conclude the agreement: Implement a legally compliant works council agreement or written individual agreement.
5. Align systems: Adapt time recording, approvals, reporting and data-protection-compliant permissions.
6. Train managers: Ensure a consistent response to overwork and rule breaches.
7. Review regularly: Evaluate balance trends, overtime, rest periods and genuine autonomy.

Common mistakes

• Flexitime is understood solely as a means of avoiding overtime.
• The agreement does not contain all statutory minimum provisions.
• No works council agreement is concluded despite the existence of a works council.
• The model promises autonomy, but in practice appointments and instructions determine the entire scheduling of working hours.
• Working time records are not kept or reviewed.
• Exceeding permissible working time has no consequences.

Conclusion

Trust-based working time works best in Austria when implemented as well-designed flexitime that is genuinely practised. The key is balance: employees receive genuine autonomy over the scheduling of their working hours, while the employer ensures clear limits, transparent records and an effective monitoring system. A robust framework reduces overtime risks while creating the desired flexibility.

Call to action

To review or design your flexitime or trust-based working time models, or to coordinate with the works council, please contact our Employment Law team.

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