What are Cross-Border Permits in Austria 

Under EU law, cross-border commuters are individuals residing in one EU Member State and working in another. They must travel to their workplace daily or at least once a week. For third country national cross-border commuters who hold a permit in another EU state, a work permit from Austrian labor authorities is required. 

Last December, Austria’s labor authorities stopped accepting new work permit applications from cross-border commuters until further notice. This measure follows instances of unlawful residence among cross-border workers and is part of broader government efforts to improve compliance. However, extension applications for existing work permits are still being accepted, though they will not be approved until additional guidance is issued. 

The decision aligns with the government's efforts to tighten compliance with labor laws and to ensure that the cross-border employment system operates transparently and effectively.  

Key Developments with Austria’s New Cross-Border Regulations 

These measures aim to create a more transparent and effective system for cross-border commuters and their employers. Below are the key updates shaping the new regulatory landscape. 

Suspension of New Work Permit Applications 

Effective December 4, 2024, Austrian labor authorities no longer accept new work permit applications for cross-border commuters. This decision was made after several instances where cross-border workers with permits were found residing unlawfully in Austria. 

Existing work permits remain valid, and extension applications are being accepted. However, these extensions will not be processed until further notice. Workers who file for extensions before their current permits expire can continue working in Austria until a decision is made. 

Government Proposal for Special Permits 

To address unlawful residence issues, the government has proposed creating special permits for cross-border commuters. These permits would allow legal residence in Austria for longer than the current 90-day limit. 

Enforcement Measures 

Employers and employees found non-compliant with work permit regulations may face penalties. It is crucial for companies to ensure their cross-border workers adhere to Austrian immigration laws. 

Implications for Austrian Employers 

With new work permit applications for cross-border commuters no longer being processed, this could impact hiring plans. Companies must be prepared for potential delays in workforce onboarding and ensure strict compliance with immigration and labor regulations to avoid penalties.  

Employers should proactively communicate these changes to affected employees, provide guidance on maintaining compliance, and explore alternative workforce management solutions, such as engaging an Employer of Record (EOR), to navigate this evolving landscape effectively. 

Employers can take proactive steps to address any issues, such as reviewing workforce plans by assessing the impact of these changes and building a robust global mobility program; strengthening their compliance practices to align with Austrian labour laws, and partner with experts.  

How Atlas Can Provide Support to Cross-Border Employment 

Atlas, as a trusted Employer of Record (EOR), can help businesses navigate Austria’s changing cross-border employment landscape with ease. By staying updated on the latest regulatory changes, Atlas ensures your business remains compliant with Austrian immigration and labor laws.  

From managing pre-employment notifications and maintaining documentation to handling payroll and tax filings, Atlas streamlines administrative tasks and mitigates risks of non-compliance. Additionally, with the updated double taxation agreements and remote work provisions, Atlas can assist in setting up and managing cross-border remote work arrangements, enabling your workforce to operate smoothly and effectively.