Austria's Home Office Act 2021 – "Telework" Since 2025

With the home-office package (BGBl. I Nr. 61/2021), Austria created a comprehensive statutory basis for working from home for the first time in April 2021 – with rules on the agreement, work equipment, accident insurance and tax. Since 1 January 2025, the law refers to telework: it now covers not only the employee's own home but also regular work at other places outside the business premises, such as a coworking space.

This article summarises what employers and employees in Austria should know: from the agreement to cost reimbursement and the tax flat rate for working from home.

The Most Important Rule: Home Office Only with a Written Agreement

In Austria, home office may not be ordered or demanded unilaterally – neither by the employer nor by the employee. It is based on an agreement that must be recorded in writing (§ 2h AVRAG). If there is good cause, either party can end the agreement with one month's notice to the last day of a calendar month – unless something else has been agreed (e.g. a fixed term).

This agreement should cover at least the following points:

  • ✅ Extent and allocation of home-office days (fixed or flexible)
  • ✅ Provision of or cost reimbursement for work equipment
  • ✅ Availability hours and communication obligations
  • ✅ Data protection and IT security
  • ✅ Provisions for terminating the home-office agreement

Important: The framework for home office can also be set out in a works agreement under the Austrian Labour Constitution Act (ArbVG) (§ 97(1) no. 27 ArbVG). This does not, however, replace the agreement with the individual employee.

Working Hours Act in the Home Office: Fully Applicable, Even at Home

The Austrian Working Hours Act (AZG) also applies to employees working from home. The following key points are particularly relevant in practice:

  • ✅ Normal working time: In principle 8 hours per day, 40 hours per week.
  • ✅ Maximum working time: Including overtime, no more than 12 hours per day and 60 hours per week; on average over 17 weeks no more than 48 hours per week (§ 9 AZG).
  • ✅ Rest period: At least 11 hours of uninterrupted rest after the end of the working day – even if a brief reply is sent in the evening.
  • ✅ Mandatory breaks: At least 30 minutes' rest break for more than 6 hours of working time.
  • ✅ Recording obligation: Employers must document working time in the home office too. For employees who work mainly from their own home, records of the duration of daily working time are sufficient under § 26(3) AZG.

Cost Reimbursement: What Must the Employer Pay?

One of the most practically relevant rules concerns cost allocation. The employer must in principle provide the digital work equipment needed for regular home-office work – such as IT hardware, software and a data connection.

When Employees Use Their Own Devices

If the employee provides their own digital work equipment with the employer's consent, they are entitled to reasonable reimbursement, which may also be paid as a flat rate. The exact amount is not defined by law – it is to be agreed between the parties or regulated by collective agreement or works agreement.

Ergonomic Equipment

The Austrian Employee Protection Act also applies in the home office – including the principles of ergonomics for screen work. In practice, this is difficult to monitor directly – it is therefore common for the employee to complete a self-assessment of their home workstation, supplemented by advisory services from the employer (e.g. ergonomic training or subsidies for a suitable office chair).

The Tax-Deductible Home-Office Flat Rate in Austria

Since 2021, Austria has had a home-office flat rate for tax purposes (since 2025 as a telework flat rate):

  • ✅ Employers can pay an amount per home-office day tax-free – capped at a maximum amount per day and a maximum number of days per calendar year
  • ✅ If the employer pays less than the maximum, employees can claim the difference as income-related expenses
  • ✅ Prerequisite: the employer states the home-office days on the annual wage slip (L16)
  • ✅ Current amounts and conditions – including any deductibility of ergonomic furniture – are available from the Austrian Federal Ministry of Finance or your tax adviser

Tip for employers: Enter the home-office days correctly on the annual wage slip – without this information, your employees cannot claim the flat rate. Proper time tracking gives you the number of days at the touch of a button.

Accident Insurance: Am I Covered in the Home Office in Austria?

Yes – since the 2021 home-office package, accidents at work in the home office have been covered by statutory accident insurance, provided the accident is causally connected to professional activity. Since 2025, cover also applies to certain forms of telework outside the employee's own home. The insurer is generally the AUVA (General Accident Insurance Institution).

Covered, for example:

  • Falls at the desk or within the immediate work area
  • Accidents during work-related activities at home, such as fetching work documents
  • Certain journeys connected with working from home

Not covered:

  • Private activities during working hours (e.g. cooking, shopping)
  • Leisure activities during the lunch break

Data Protection and IT Security in the Home Office

The GDPR naturally also applies in the home office – and employers bear responsibility for the data-protection-compliant handling of company data, even when it is processed at home. In practice, the following has proven effective:

  • ✅ Clear written data protection instructions for the home office
  • ✅ Secure access to internal systems (e.g. via VPN)
  • ✅ No use of private, unsecured cloud services for work documents
  • ✅ Screen not visible to third parties (flatmates, family members)
  • ✅ Physical documents stored securely and not left lying around openly
  • ✅ Update of the record of processing activities and, where applicable, a data protection impact assessment

Employee Protection: What Applies to the Home Workstation?

The Austrian Employee Protection Act (ASchG) requires employers to carry out a workplace risk assessment – and this also covers home-office workstations. Since neither employers nor the Labour Inspectorate have access to employees' private homes, this is usually done in practice by means of a structured self-assessment questionnaire completed by the employee. This documents, among other things: lighting, ergonomics, noise levels and safety at the home workstation.

Conclusion: Austria Has Clear Rules – Make Use of Them

Austria's home-office rules have simplified and clarified a great deal. Anyone who knows and implements the legal requirements – written agreement, cost reimbursement, time tracking, data protection – creates a foundation on which home office truly works: legally sound, transparent and fair for both parties.

Invest a few hours now in well-structured agreements and a digital time-tracking system – and save yourself conflicts, penalties and uncertainty in the future. Your team will thank you for it.