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In its ruling dated September 12th, 2019, the European Court of Justice found in the joined cases C 64/18, C 140/18, C 146/18 and C 148/18, that essential provisions of the Austrian Law on Wage and Social Dumping are incompatible with the law of the European Union. The ECJ ruled, that Article 56 of the Contract on the functioning of the European Union must be interpreted as precluding the national regulations which provide for the imposition of fines, which may not be less than an amount determined in advance, in respect of formal offences relating to the obligation to keep wage records available and to compliance with administrative permits, which are imposed cumulatively and without limitation on each worker concerned, which provide for additional procedural costs in the amount of 20% of the fine imposed in the event of the rejection of appeals against first instance penal orders, and which may be converted into custodial sentences in the event of the uncollectibility of the fines imposed.
The dispute arose from the imposition of penalties amounting to millions of euros on the executive bodies of an Austrian company and on the responsible officers of the contracting Croatian company in connection with repair work at a pulp mill in Austria. The exorbitantly high fines were imposed only because for the 217 Croatian employees not all wage documents were kept available and the employment permits had not been obtained on account of a legal classification which deviated from the opinion of the authorities. The attorneys of the companies involved (Oberhammer Rechtsanwälte for the Austrian company, Grilc Vouk Škof for the Croatian company) have lodged complaints against this, and the Styrian Regional Administrative Court (Landesverwaltungsgericht Steiermark) has fortunately initiated the preliminary ruling procedure at the ECJ.
The attorneys Mag Ewald Oberhammer and Mag Rudolf Vouk, who represented their clients before the European Court of Justice, declare that today’s ruling of the European Court of Justice is a landmark decision. The existing Austrian legal situation has been unanimously criticised for years; it has been repeatedly argued that the absurdly high penalties that Austria imposes for formal offences are contrary to the European freedom to provide services. Unfortunately, the Austrian Supreme Courts have so far not been willing to accept this criticism and to initiate preliminary rulings or to conclude that the penalties are incompatible with the principle of proportionality of the sanctions.
The ruling has far-reaching consequences for all pending proceedings in connection with the Austrian Law on Wage and Social Dumping, since according to the findings of the European Court of Justice, essential provisions of this law are inapplicable as of today. These proceedings also concern many foreign companies, including Czech ones. The law firms Oberhammer and Grilc Vouk Skof are very pleased with this judgement, as it sets a clear course for the future understanding of the common market in Austria and fully confirms the opinion that has been expressed by the attorneys in numerous proceedings.
https://www.sgz.at/news/detail/de/sodishche-eu-ovrglo-protidumpinshke-kazni
https://volksgruppen.orf.at/slovenci/meldungen/stories/3012550/
https://steiermark.orf.at/stories/3012523/
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Show less...On Monday, May 6th, 2019 an oral hearing was taking place at the European Court of Justice in Luxemburg regarding the question, whether the sanctions provided for in the Austrian Wage and Social Dumping Law are compatible with the European Law. The case was addressing penalties amounting to millions for purely formal offences, such as for incomplete wage documentation. Such penalties can ruin the economic existence of entrepreneurs and bear no proportion to the seriousness of the offence, whereas underpayment has not even occurred.
During the hearing the European Commission as well as the Judges voiced their criticism about the current Austrian legislation. The attorneys Grilc Vouk Škof have been calling attention to this issue in numerous cases for years, and they are also involved in this particular case. The proceedings have been closed, the date for the rendition of judgement will be announced. The attorneys Grilc Vouk Škof are optimistic that the European Court of Justice will overturn the Austrian legislation regarding the amount of minimum penalties, the accumulation of penalties without maximum limits as well as flat-rate reimbursements of costs based on the amount of the penalty for being incompatible with the free movement of services.
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The main practice areas of the law firm Grilc Vouk Škof are commercial and corporate law in Austria, Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro. Furthermore, we also provide all “standard legal services” – handling everything from purchase agreements to the recovery of debts, from divorces to traffic accidents. Years of professional experience guarantee the quality of our legal advice.
All partners, lawyers and assistants at the law firm Grilc Vouk Škof are multilingual, which enables us to communicate with clients in their own language and without consulting translators. Our main goal is to tender our clients with tailor-made solutions - promptly, innovatively and effectively.
Naturally, our clients expect only the best performance and the best results. A reliable and qualified team is hereby of essential importance. Flexibility, commitment and an extensive knowledge of languages can guarantee customized and efficient solutions.
Situated on the intersection of several countries, the mastery of the European law is most essential. On a daily basis we deal with fundamental...
Situated on the intersection of several countries, the mastery of the European law is most essential. On a daily basis we deal with fundamental questions regarding jurisdiction, applicable law and feasibility of EU directives. The law firm Grilc Vouk Škof has successfully represented clients in numerous proceedings before the European Court of Justice (preliminary rulings).
In the field of Commerical Law law we provide our clients a “full legal service” in Austria, Slovenia, Croatia, Bosnia and Herzegovina, Serbia...
In the field of Commerical Law law we provide our clients a “full legal service” in Austria, Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro.
We assist clients in setting up business enterprises, acquiring assets, obtaining licenses, providing advice in relation to entering into the aforementioned markets, addressing real estate issues, handling financing and securitizations, processing building projects, recovering debts, and managing the commencement and termination of employment relationships.
There are fundamental differences between the Austrian labour law and the labour law in Slovenia, Croatia and Serbia, e.g. with regard to the...
There are fundamental differences between the Austrian labour law and the labour law in Slovenia, Croatia and Serbia, e.g. with regard to the termination of employment contracts, the calculation of remuneration, as well as the conclusion of contracts for an indeterminate period of time.
We advice our clients in Slovenia, Croatia and Serbia while bearing in mind these fundamental differences.
Furthermore, the law firm Grilc Vouk Škof regularly advises clients in relation to posted workers, related social insurance and tax issues.
The partners at the law firm Grilc Vouk Škof often represent Austrian, Slovenian and Croatian companies in arbitration proceedings.
The partners at the law firm Grilc Vouk Škof often represent Austrian, Slovenian and Croatian companies in arbitration proceedings.
We also advise clients in the following areas of expertise:
We also advise clients in the following areas of expertise:
We represent clients also in the following areas:
Furthermore, we advice...
We represent clients also in the following areas:
Furthermore, we advice clients on inheritance issues
in Austria, Slovenia, Croatia, Bosnia and Herzegovina, Serbia and
Montenegro.
The partners and lawyers of Grilc Vouk Škof have specific knowledge of issues regarding human rights and fundamental freedoms.
The law firm Grilc...
The partners and lawyers of Grilc Vouk Škof have specific knowledge of issues regarding human rights and fundamental freedoms.
The law firm Grilc Vouk Škof has successfully argued many cases before the Austrian Constitutional Court and the European Court of Human Rights. Thereby we place great emphasis on transparency towards our clients and inform them about their specific prospects of success.
All partners and several employees of the law firm Grilc Vouk Škof are members of the Slovenian ethnic minority in Carinthia. Therefore, particular...
All partners and several employees of the law firm Grilc Vouk Škof are members of the Slovenian ethnic minority in Carinthia. Therefore, particular attention is also paid to minority rights.
The law firm Grilc Vouk Škof has successfully brought a wide range of actions before the Austrian Constitutional Court and achieved numerous groundbreaking decisions, e.g. the decision on bilingual place-name signs and the decision regarding the use of Slovenian as an official language in Carinthia.
The law firm Grilc Vouk Škof frequently represents clients in criminal law proceedings before Austrian courts. Particularly in this field of law...
The law firm Grilc Vouk Škof frequently represents clients in criminal law proceedings before Austrian courts. Particularly in this field of law direct communication with clients and familiarity with their mentality are of inestimable value and pose a significant advantage.
For over 25 years, the partners of the law firm Grilc Vouk Škof have regularly been holding lectures and workshops on issues in the fields of...
For over 25 years, the partners of the law firm Grilc Vouk Škof have regularly been holding lectures and workshops on issues in the fields of commercial and corporate law in Austria, Slovenia, Croatia, Serbia, Bosnia and Herzegovina and Montenegro.
Founded by dr. Matthäus Grilc in the year 1979, the law firm Grilc Vouk Škof has vast knowledge of the commercial law and political relations in Slovenia, Croatia, Bosnia and Herzegovina, Serbia and Montenegro.
Since the early 1980ies, the law firm Grilc Vouk Škof has advised many companies from the former Yugoslavia now carrying out their business activities in Austria.
Since the independence of Slovenia, Croatia, Bosnia and Herzegovina and Serbia in the 1990ies, our law firm has regularly advised German and Austrian entities on their business activities in the successor states of the former Yugoslavia.
The law firm Grilc Vouk Škof was shareholder of the first private limited liability company with foreign shareholders established in the former Yugoslavia after 1945.
Furthermore, the law firm Grilc Vouk Škof is one of the founders of the SLG Slavia Law Group, a European association of lawyers specializing in the legal systems of Central and Eastern Europe.
The law firm Grilc Vouk Škof has four locations: the home office in Klagenfurt and offices in Graz, in Ljubljana and in Vienna. This enables us to provide direct and effective services in the heart of Europe.
A-9020 Klagenfurt/Celovec
Karfreitstraße 14/III
Phone: +43 (0)463 542 67
Fax: +43 (0)463 542 67 77
office@gvs3.at
facebook.com/grilc.vouk.skof
Rechtsanwaltskammer für Kärnten
A-8020 Graz/Gradec
Grieskai 76
Phone: +43 (0)316 72 22 20
Fax: +43 (0)316 72 22 20 330
office@gvs3.at
facebook.com/grilc.vouk.skof
Steiermärkische Rechtsanwaltskammer
SI-1000 Ljubljana
Komenskega ulica 12
Phone: +386 (0)129 270 68
office@gvs3.at
facebook.com/grilc.vouk.skof
Odvetniška zbornica Slovenije
A-1010 Vienna
Zelinkagasse 6
Phone: +43 (0)1 397 94 05
Fax: +43 (0)463 542 67 77
office@gvs3.at
facebook.com/grilc.vouk.skof
Wiener Rechtsanwaltskammer
