Handling Amount, Claim, Payout { Credit Online

 

The old handling refers to the old severance pay in Austria. Even today, it has an important significance for a variety of employment relationships.

The old severance pay law applies to all employees in an employment relationship that already existed before January 1, 2003 and continues to this day. It is also important that the employment relationship was not interrupted.

Anyone who interrupted it before 1 January 2003 and resumed it after that day, whose employment relationship is no longer subject to the old rules, but to new regulations.

 

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Important: Inform in advance about the amount of their clearance!

Even those who have started employment after this deadline have a claim for severance pay. However, this is based on the new rules on clearance.
The severance payment is a one-off payment that the employer must pay the employee if he or she dissolves the employment relationship and if certain conditions are met.

Under what circumstances will the check-in be paid?

Under what circumstances will the check-in be paid?

The clearance will be paid if …

  • the employer terminates the employee’s employment.
  • there is an unjustified and involuntary dismissal.
  • the employee prematurely but legitimately leaves the company.
  • a temporary employment relationship ends.
  • a employment relationship is resolved amicably.
  • the employee leaves the company for reasons of paternity or maternity leave. In this case, there is a claim to half of the severance pay old with a maximum of three months salary if the employment has existed for at least five years.

How high is the severance pay?

How high is the severance pay?

The amount of the claim for severance pay is calculated in the sense of the gross salary of the employee.

Anyone who has completed an uninterrupted service of three years is entitled to a compensation of two months’ salary. Five years of service equate to three months’ pay, while four years are four. If you have 15 years of age, you will be legally promised six monthly salaries as a severance pay.

While 20 years of service are converted into nine monthly payments, there are even twelve at the age of 25.

The monthly salary is defined as the earnings, which are calculated from the monthly recurring payments plus the aliquot of Christmas and holiday pay. If fees also occur at regular intervals, but at varying amounts, then the average earnings, either of the past year or the last 13 weeks, to calculate. Examples of such a change in earnings are the remuneration for overtime and commissions.

sample calculation

sample calculation

An employee has a continuous service of five years and then receives the termination. Their salary amounts to 1,500 euro, special payments, thus holiday and Christmas money fall off in the amount of a monthly salary.
Thus, she is entitled to a three-month equivalent compensation.

  • 1,500 x 14: 12 = 1,750 (= one month’s salary plus special payments) or
  • 1,500 + 1/12 UG + 1/12 WG = 1,500 + 125 + 125 = 1,750
  • 1,750 x 3 = 5,250 euros

Thus, the employee is entitled to a severance payment of 5,250 euros.

Industries with special regulations

 

Construction workers are subject to a special regime with regard to handling. You are entitled to a clearance if …

  • there is an uninterrupted employment relationship with a minimum length of 156 calendar weeks or
  • has an employment relationship with the same employer / employer that has held for at least 92 calendar weeks within a period of 156 calendar weeks, with interruptions. These interruptions must never have lasted longer than 22 weeks at a time.

Again, the amount of severance pay depends on the length of employment.

  • Employment over 156 weeks: 2 monthly salaries
  • Employment over 260 weeks: 3 monthly salary
  • Employment over 520 weeks: 4 months’ pay
  • Employment over 780 weeks: 6 months of severance pay
  • Employment over 1040 weeks: 9 months of severance pay
  • Employment over 1300 weeks: 12 months pay

The payment methods of the check-in old

If the amount of the severance payment corresponds to a maximum of three months’ salary, the payment is due immediately upon termination of the employment relationship.

On the other hand, if the amount exceeds three months’ salary, it is permissible to pay the other fees in equal monthly installments from the fourth month after the termination of the relationship. The exception to this is a different collective bargaining rule, such as an immediate due date of the total clearance upon termination of the employment relationship.

How is the clearance taxed old?

How is the clearance taxed old?

The clearance old falls under the payroll tax. Regarding their exact taxation, there are two variants:
First of all, clearance can be taxed at a fixed rate of six percent. Furthermore, the so-called multiplier method offers a possibility of taxation.

To do this, you divide the check-in by the buzzer of the current payments and determine the multiplier. This is then multiplied by the wage tax of the current subscription.

The latter method is particularly suitable for the lower income classes, since only a small or even no payroll tax has to be assigned. Thus, this option is usually cheaper than with a fixed payroll tax of six percent.
In any case, it is mandatory to always use the cheaper option of taxation.

 

How will the changeover to clearance be redone?

 

Here, too, there are two possibilities: On the one hand, the claims that arise from the severance pay can be frozen.

How to preserve these claims. With the transition to the deadline of clearance, then this also applies. All frozen claims are subject to severance pay, but after the deadline reimbursement is made.
On the other hand, the claims can also be transferred. The exact amount of the transfer amount can be freely negotiated by the employer and the employee.

In what exactly are severance pay old and severance pay different?

In what exactly are severance pay old and severance pay different?

While employees receive their entitlements after having worked for at least three years, this entitlement already accrues after two months according to the new version. In addition, it allows the severance pay to transfer the claims from one employer to another. In addition, they do not expire if the employee quits himself.

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