New Regulations for Freelancers Starting in 2026
Freelance work is on the rise: New forms of work organization and technological advancements mean that tasks which were previously performed under a traditional employment contract can now often be carried out through freelance service contracts. For those affected, however, this often means significantly less protection under labor law, as statutory entitlements to vacation, continued pay during illness, or minimum notice periods have not existed until now.
What is a “Freelance Contract”?
The freelance contract differs from an employment contract primarily in the absence of personal dependence. The following criteria are particularly characteristic: no personal, but merely professional subordination to instructions; no binding to fixed working hours; and no integration into a company’s organizational structure. What is decisive here is not economic dependence, but personal independence in the provision of services. However, an assessment must always be made on a case-by-case basis; distinguishing such contracts from employment contracts, in particular, often proves very difficult in practice.
It is precisely this distinction, however, that has had significant consequences to date: Labor law protection rules and collective bargaining agreements did not apply to contractual relationships with freelance contractors. As a result, freelance workers were generally subject only to the general provisions of civil law, which in practice led to gaps in protection, particularly in situations resembling employment relationships.
Collective Agreements for Freelance Workers Starting in 2026
As of January 1, 2026, the personal scope of application of the Labor Constitution Act (ArbVG) was expanded. Freelance Workers within the meaning of Section 4 (4) of the General Social Insurance Act (ASVG) will henceforth be subject to the first part of the ArbVG. This covers those persons who essentially provide services personally in exchange for remuneration and do not have significant operational resources of their own.
This creates, for the first time, the possibility of concluding collective agreements for independent contractors as well. It now remains to be seen whether this option will be utilized in practice.
In addition to the conclusion of collective agreements, this reform also makes it possible to extend existing collective agreement provisions to independent contractors. Collective agreement provisions regarding minimum wages and reimbursement of expenses may, under certain conditions, be extended to independent contractors through so-called “bylaws”; other labor law provisions remain excluded.
Notice Periods for Freelance Contracts
The new provisions in the ABGB regarding the termination of independent contracts are particularly relevant in practice: Section 1159 (6) of the ABGB establishes standard notice periods and termination dates for the first time. Going forward, the notice period for both parties will be four weeks and will be extended to six weeks after the second full year of service. The only permissible termination dates (end of the freelance employment relationship) are now the 15th or the last day of the month. The first month may be agreed upon as a probationary period; during this time, the freelance contract may be terminated by either party at any time. As with employees, deviations from these regulations are only permissible in favor of the freelance workers.
In practice, these new legal rules mean, among other things, that even more attention should be paid to contract drafting than before.