The Red-White-Red Card: New Rules for Employing Foreign Nationals

According to migration statistics published by Statistics Austria on 19 May 2011, there were a total of 114,398 people moving to Austria in 2010. Around 70% of the immigrants came from the EU. Immigrants from non-EU countries came mainly from the rest of Europe, such as the former Yugoslavia, Turkey or Russia. 47,259 people settled in Vienna alone. Around one third of people living in Austria with a migrant background have only completed compulsory schooling. To raise the skill levels of migrants, new provisions in the Foreign Nationals Employment Act will come into force on 1 July 2011. The key concept is „criteria-based immigration“ in the form of a „Red-White-Red Card“ for migrants from third countries.

The Red-White-Red Card works on a points system: the migrant must achieve a certain minimum number of points to be admitted to the Austrian labour market. The points mainly consist of professional qualifications that must be proven. The card is issued in two forms: the „Red-White-Red Card“ for employment with a specific employer, and the „Red-White-Red Card plus“ for unrestricted access to the Austrian labour market.

Highly qualified

To fall under this category, an immigrant must demonstrate very high qualifications, such as:

• Degree completion;
• Leadership position within a company;
• Awards;
• Work experience;
• German or English skills;
• Age up to 45 years;
• Studying in Austria.

The scoring system comprises 100 points in total, of which at least 70 must be achieved. Bonus points are awarded for so-called „STEM subjects“ (Science, Technology, Engineering, and Mathematics). The AMS must confirm that all required points have been attained. A labour market check (see below) will not take place.

2. Skilled workers in shortage occupations

The designation of shortage occupations will be made through statutory instruments. Such statutory instruments may only be enacted from 2012 and may not come into force before 1 May 2012. Again, there is a points system. The relevant qualification thresholds include, for example, completed vocational training in the shortage occupation or university entrance qualification. In addition, professional experience, language skills and age under 40 years are taken into account. At least 50 out of a maximum of 75 attainable points must be achieved.

3. Other Key Strengths

Any other key employee must meet the following remuneration rules:

• Minimum gross wage (2011: £2,100 € = Half of the ASVG maximum contribution base) plus special payments (under-30s) respectively.
• Minimum gross wage (2011: 2,520 € = 60% (the ASVG maximum contribution base) plus special payments (for those aged over 30).

Furthermore, a Labour market test through the AMS, meaning there must be no equally qualified jobseekers already registered with the AMS. Again, there is a points system with a maximum of 75 points that can be awarded. The required minimum number of points is 50 points. Professional athletes and professional sports coaches receive 20 bonus points.

4. Graduates

The following individuals are considered graduates:

• Graduates of a Master's degree from an Austrian university, university of applied sciences or private university or
• Students of a diploma degree programme from the second section onwards
  A bachelor's degree isn't enough.

In addition, graduates must provide the following proof:

• Proof of an employment contract at the appropriate training level;
• Minimum gross wage (2011: 1,890 € = 45% (the ASVG maximum contribution base) plus special payments.

There is neither a points system nor a labour market test.

5. Family members

Members of the core family (spouse, registered partner, children up to the age of 18) can receive a Red-White-Red Card plus. There are no quotas for these family members.

EU Blue Card

Under this title, employment as a key worker is possible if

• successfully completed a higher education course (minimum duration of study: 3 years),
• a gross annual salary of at least £50,100 € paid at gross (= average gross annual salary x 1.5) as well as
• a positive labour market test from the AMS is available.

For the employment of foreign nationals Pupils and students gold: no labour market check is carried out as long as the weekly working hours do not exceed 10 hours. If the student is in the second phase of a diploma course or has completed a Bachelor's degree, this weekly working time increases to 20 hours.

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