Hiring employees from other countries presents several pitfalls. Many employers assume that a residence permit alone already grants permission to work in Austria. However, this is not the case.
Citizenship: The First Step
When hiring a foreign national, it is crucial to check the To check citizenship. Whilst EU, EEA and Swiss citizens benefit from free access to the labour market in Austria, third-country nationals are subject to special regulations regarding work permits.
Residence permit vs. work permit
A residence permit does not automatically grant permission to work in Austria. Non-Austrians who possess such a permit must also have a Employment permit to legalise their employment in Austria. For example, students also require a work permit according to the Foreign Nationals Employment Act, but can benefit from simplified conditions.
Title for labour market access
There are certain Residence permit, which signify a work permit in Austria, such as the „Red-White-Red Card“, the „Red-White-Red Card Plus“, the „EU Blue Card“, the „Displaced Person's ID“ (for Ukraine), and the „Settlement Permit - EU“. These titles must be carefully checked.
Checking the maps
On the front of the card is the Period of validity noted, on the back of the Access to the labour market. Without such a card, an employment permit must absolutely be applied for from the AMS. This application must in any case be submitted by the employer before starting employment to be submitted. Please note, the procedure can take several weeks!
Massive consequences of errors
Infringements of the above employment regulations, such as registering a third-country national without the correct Austrian employment permit, can lead to high administrative fines under § 28 para. 1 AuslBG. Delays in reporting or an employment permit applied for retroactively do not change the illegality of the employment. The principle applies: a rule is a rule. This means that a penalty or the initiation of proceedings will automatically follow.
The correct procedure
A correct, planned approach protects you from such consequences. Before employing a person, it is essential to carefully check their citizenship and, if applicable, their residence permit. In the case of a third-country national, it must be verified whether the permit directly allows access to the labour market or if an employment permit is required. Should you be unsure, our experts in labour law and payroll are available to answer your questions regarding work permits and will be happy to assist you with correct and careful processing.
Created: 27.05.2026
Source: Company Service Portal, AMS
Photo: Mikael Blomkvist
