Work meets vacation

7. July 2025

From vacation apartments to beach cafés—the Telework Act makes it possible to work from anywhere. But what does labor law say about workations?

There are no longer any limits to the world of work: since January 1, 2025, employees have been allowed to do their office work practically anywhere. This is because the new Telework Act covers everything that does not take place in the office,” explains Nicolaus Mels-Colloredo, labor law expert and partner at PHH Rechtsanwältinnen. The big difference to the previous home office regulation: since then, employees have been able to work not only at home, but also in vacation apartments, on trains, or in beach cafés, for example. For many employees, it now seems obvious to take advantage of the new legal framework to get more rest during the summer months. But be careful—not everything that is now legally possible is automatically permitted.

Agreement remains mandatory

Even with the amendment, there is still no legal entitlement to remote work. “A written agreement between employees and companies on when and where work may be performed must still be concluded,” clarifies the labor law expert. At the same time, companies cannot unilaterally mandate working from home, even if, for example, there are more employees than desks in the office.

In practice, Mels-Colloredo observes a high density of regulations for many reasons. “When it comes to data security in particular, this cannot be guaranteed in a coffee house if someone could be looking at your screen from the left or right or if a public Wi-Fi network is being used,” he says. In a coworking space, at a partner’s home, or in a vacation home, the situation is different, the expert emphasizes. “There is nothing to prevent this, and it is often agreed upon in this way – especially within Austria.”

Another new feature is the distinction between so-called teleworking in the narrower sense – i.e., in one’s own home, at relatives’ homes, or in coworking spaces – where the commute to work is protected under insurance law. The prerequisite for this is that the new place of work is located near one’s own home or workplace and the distance therefore corresponds to the usual commute.

In the case of teleworking in the broader sense, i.e., at all other locations, employees are covered by insurance in the event of an accident at work while performing their duties. However, there is no accident insurance coverage on the way there, for example, to a coffee shop or hotel.
When it comes to combining work and vacation, according to the expert, there are a few other aspects to consider. It is important to find out in advance about the tax and social security framework conditions and to clarify the workation with your employer. You can’t just work abroad if there is no agreement in place,” warns Mels-Colloredo.

Working in a hotel room and then ending the day with a walk on the beach is therefore only possible for those who have specifically agreed this with their employer. The same applies to compliance with working hours: if you are in Bali instead of your office in Vienna,
it can be difficult to be available – even with flexitime. The lawyer says he has not yet had a workation agreement on his desk due to the difficulty of implementation. “On the other hand, I have had many teleworking agreements,” he says.

Both sides consider

The demand here is significantly greater, and workation remains the exception, according to his observations. What needs to be considered when teleworking? Both sides should think carefully about what I need as an employer, what I want as an employee, and how we can come together,” advises the expert.

Measures to ensure data protection should also be taken by the company: for example, by using a darkening screen film so that not everyone can see what is on the screen, or discussing in advance how sensitive data should be handled.
And there should be no hesitation in discussing different scenarios. Teleworking agreements are usually not that short. If you give it some thought, you can easily end up with five or six pages,” he says. If no such agreement has been concluded under the new legal situation, the old home office agreement remains in force unchanged – and at least a cold shower is possible on hot days.

“It must be agreed in writing when and where work may be performed.” – Nicolaus Mels-Colloredo, labor law expert

 

First published: Der Standard, July 5, 2025
Author: Anika Dang