Immigration advisers Fragomen report that sweeping amendments to Austria’s Settlement and Residence Act entered into force on 7 August 2026 and were formally published on 6 October. The reforms align national law with the revised EU Single-Permit Directive and respond to labour-shortage pressure in sectors such as IT, engineering and health care. The headline change allows most single-permit holders—including Red-White-Red Card and standard work-permit categories—to switch employers once the authorities have approved the move. Crucially, if no decision is issued within 45 days, the foreign national may legally start with the new company. Intracompany-transfer (ICT) permit holders are excluded, while EU Blue Card rules remain unchanged. Austria has also introduced a six-month unemployment grace period: foreign workers who lose their job may retain their residence title while they look for new employment, provided they inform the authorities promptly. Previously, only EU Blue Card holders benefited from such security. The measure is expected to reduce costly "flight risk" for multinational HR teams and make Vienna more attractive relative to other EU talent hubs. Processing times receive a statutory cap of 90 days for most applications, bringing predictability to project staffing. Existing shorter deadlines (e.g., 60 days for Red-White-Red Cards) continue to apply. Government IT upgrades and additional staffing are planned to meet the new service standard. Practical take-aways for employers: build the 45-day deemed-approval rule into onboarding timelines; update policy handbooks to reflect the six-month job-seek period; and monitor whether regional labour offices apply the new 90-day limit consistently. Foreign nationals currently in Austria should review contract clauses on termination and ensure they understand the notification obligation to immigration authorities.
Source: Fragomen Immigration Alert
