A change to Austria’s Ausländerbeschäftigungsgesetz (Foreign Nationals’ Employment Act) that quietly entered into force this summer is now having tangible effects: asylum seekers whose first-instance claim has been rejected can no longer receive or renew a Beschäftigungsbewilligung (work permit). A Tirol ORF investigation published on 16 October highlights dozens of cases in which long-time employees—many in agriculture, logistics and tourism—have suddenly lost authorisation to work. Employers quoted in the report say the move exacerbates an acute labour shortage. Michael Schwemberger, owner of a 60-horse riding stable near Innsbruck, told reporters he has already lost one of his five full-time grooms, a Syrian teacher who has worked legally for four years and paid social insurance. The regional chamber of commerce estimates at least 50 renewal requests have been denied since June in Tyrol alone. The Labour Ministry argues the restriction merely implements the EU Reception Conditions Directive, under which member states may limit access to the labour market once an asylum application is finally rejected. Yet refugee-support NGOs point to court decisions that interpret the directive more liberally and allow continued employment until a case is definitively closed. Multiple appeals have been filed with the Constitutional Court; a landmark ruling is expected in early 2027. Global-mobility teams should note that hiring asylum applicants—even under an existing permit—now carries higher compliance risk. Companies should verify the procedural stage of every third-country national’s asylum file and budget for possible replacement or regularisation costs. Those wishing to retain key staff may explore conversion to Red-White-Red Cards for shortage occupations, though language and salary thresholds apply.
Source: ORF Tirol
