Ending an employment relationship: notice, mutual termination and entitlements
8 tasks in suggested order
1. First identify how the employment relationship is ending
Distinguish in particular between notice given by the employee, notice given by the employer and mutual termination. Depending on the case, expiry of a fixed term, dismissal or a justified early resignation may also apply. The type of ending affects notice rules, outstanding entitlements, unemployment benefit and whether you can dispose of Abfertigung Neu.
Before signing an agreement or giving notice yourself; if you have already received notice, check this immediately after receipt.
Check your employment contract and applicable collective agreement and compare the type of ending with the official USP overview. The notice or agreement itself is between you and your employer.
Employment contract, collective agreement, any notice already received or draft mutual termination agreement, and the planned end date.
A mutual termination can generally be agreed at any time. However, special protection against termination or dismissal may require additional formalities. Sign only once the type of ending and the end date are clear.
Official source: Unternehmensserviceportal / Republik Österreich
2. Check the notice period and the correct termination date
For an ordinary termination, the notice period and the permitted termination date must fit together. Statutory baseline rules exist, but the employment contract and collective agreement may provide different periods or dates within the legal limits. Do not rely on one universal period; check the rule that actually applies to your employment.
Before giving notice or immediately after receiving it so that the correct final employment date can be determined.
Check the employment contract and collective agreement; the official baseline rules are published by the USP.
Employment contract, collective agreement, date the notice was delivered or received, and the intended or stated end date.
The notice period generally starts when the notice is legally received. Incorrect periods or dates can lead to further pay claims, so do not determine the end date by guesswork.
Official source: Unternehmensserviceportal / Republik Österreich
3. Check unused leave and verify any leave compensation in the final settlement
If leave is still outstanding when employment ends and is not taken, a leave compensation payment may be due. Outstanding leave from the current leave year is generally compensated proportionally, while non-expired leave from previous years is generally paid in full. Compare the leave balance with the final settlement.
Clarify the leave balance before the last day of work and check the payment in the final settlement.
With your employer, HR department or payroll.
Current leave balance, any leave already approved, and the later final settlement.
The exact amount depends on the number of unused leave days and your pay. Also check whether older leave entitlements have already expired.
Official source: oesterreich.gv.at
4. Make sure outstanding pay, overtime and special payments are fully settled
The final settlement must include outstanding pay claims. Depending on your case, this can include regular pay, overtime or additional hours, proportional special payments under the collective agreement or employment contract, and further claims such as compensation for an improper termination. Compare your own records with the settlement.
Keep your own time and pay records before leaving and check the final settlement when employment ends.
With your employer, HR department or payroll.
Payslips, working-time records, overtime approvals, employment contract, collective agreement and any agreements on bonuses or special payments.
Check any forfeiture or exclusion periods in the collective agreement or employment contract. Lili tip: before your final access day, keep your own permissible time and pay records. This is practical precaution, not an additional legal duty.
Official source: Unternehmensserviceportal / Republik Österreich
5. Check the final settlement and employment documents and request a service certificate
When you leave, you are entitled to a complete settlement and payment of outstanding pay claims. Depending on the case, employment documents include an employment confirmation for unemployment purposes, confirmation of social-insurance deregistration, and work/pay confirmation. Your employer must issue a basic service certificate at the end of employment if you request one.
The settlement is due when you leave the employment relationship. Request the service certificate around the end of employment if you need it.
From your employer, HR department or payroll.
Final settlement, employment documents and, if desired, a short written request for the service certificate.
A basic service certificate must be issued on request. There is no statutory entitlement to a qualified certificate containing a performance assessment. Lili tip: keep the final settlement, deregistration confirmation and certificate together; this is practical precaution, not an additional legal duty.
Official source: Unternehmensserviceportal / Republik Österreich
6. Check the social-insurance deregistration
Your employer generally handles deregistration from compulsory social insurance. It must be submitted within seven days after compulsory insurance ends. The report includes, among other things, the end of entitlement to pay and the legal end of the employment relationship. You receive a copy and should check the reported dates; you can also review your insurance history in the insurance-data extract.
Check the copy as soon as you receive it. The seven-day deadline applies to the employer’s report after compulsory insurance ends.
The employer submits the deregistration electronically to the competent health-insurance carrier. You check your copy and can also review your insurance history using the insurance-data extract.
A copy of the deregistration or your access for the insurance data extract; compare the date with the employment-law end date and final settlement.
In special cases the end of employment and the end of the pay entitlement may differ, for example because of leave compensation or termination compensation. Check the reported dates rather than relying only on the last day actually worked.
Official source: Österreichische Gesundheitskasse
7. Register with the AMS in time and apply for unemployment benefit
If the end date is known, you can apply for unemployment benefit from 3 weeks before unemployment starts; in general the application must be made no later than the 1st day of unemployment, or the next working day if that day is a weekend or public holiday. If you resign yourself, the AMS generally examines a four-week blocking period. Employer notice generally does not trigger this block unless the ending is due to the employee’s culpable conduct; mutual termination also generally does not trigger the four-week block. Important reasons can lead to a partial or complete waiver.
Once the end date is known: from 3 weeks before unemployment starts; in general no later than the 1st day of unemployment or the next working day.
Online via MeinAMS or in person at the regional AMS office responsible for your residence.
The employment end date and the documents the AMS requires for your case; in particular keep the notice or agreement and employment documents available.
The four-week blocking period after resigning yourself is not an automatic fine: the AMS examines the reason for ending the employment. It generally does not reduce the total benefit duration; it delays the start of payment. If you apply in time, health-insurance coverage continues during the blocking period. State and document any important reasons fully.
Official source: Arbeitsmarktservice Österreich
8. Abfertigung Neu: check your BV fund and whether you may dispose of the balance
For employment relationships that started on or after 1 January 2003, Abfertigung Neu generally applies. The accumulated capital is preserved regardless of how employment ends. However, an immediate right to dispose of it is not automatic: as a rule, at least 3 contribution years since the first contribution or last disposal and a qualifying ending such as employer notice, mutual termination or expiry are required. If you resign yourself, there is generally no immediate disposal right; the capital remains invested in the BV fund.
Check after employment ends. If you have a disposal right, you must notify the BV fund in writing of your chosen option within 6 months.
With your responsible occupational provision fund (BV fund). The responsible fund is the one selected for your employer’s occupational provision.
Documents or letters from your BV fund, details of the ended employment and, if you may dispose of the balance, your chosen option such as payout or continued investment.
Do not assume an automatic payout: if there is no disposal right, for example after your own resignation or if 3 contribution years have not yet been reached, the capital is not lost; it generally remains invested without further contributions. For older employment relationships or a transfer, Abfertigung Alt may instead or additionally be relevant.
Official source: Unternehmensserviceportal / Republik Österreich
