The following types are possible:
Contract of employment: A (fixed-term) contract of employment (cost category: personnel costs) is the usual type of employment for regular work on the project. In the case of projects whose research institutions are subject to the Universities Act 2002 (UG 2002) as well as research institutions with a relevant agreement with the FWF, the research institution is the employer and is thus responsible for the payroll accounting. In all other cases, the principal investigator is the employer. In this instance, the FWF prescribes the mandatory involvement of the FWF’s tax consulting firms as a kind of payroll office for handling financial matters (i.e., payroll accounting) to relieve the principal investigators of this task and to avoid mistakes in terms of wage taxes and social insurance contributions. The principal investigator is responsible for reporting any changes made during the ongoing project (interruption or extension) to the office responsible for payroll (payroll office, human resources department). It should be ensured that any holiday leave is consumed during the course of the project. In exceptional cases, compensation for unused holiday leave can be paid out, provided that the project has sufficient funds.
Marginal employment: Marginal employment is a part-time employment relationship up to a specific amount defined annually by the Austrian Social Insurance Authority. The number of hours of marginal employment depends on the applicable wage rate. In this instance, the non-wage labour costs are low.
Freelance service contracts: In this case, a person agrees to perform recurring services for an employer without officially becoming a part of the organisation (the employer is responsible for the “employer’s share” of the social insurance contributions to the regional health insurance fund, as in the case of a contract of employment; however, the employee is liable to pay taxes on his/her income). FWF projects seldom meet the requirements in terms of labour law and social insurance needed to exercise this option. A freelance service contract must be justified on solid legal grounds and is only possible after this justification has been reviewed and approval has been granted to conclude a freelance service contract. Financial matters are handled by the payroll accounting offices.
Research grants for undergraduate students (i.e., without a master’s/diplom degree): Research grants are a kind of work stipend offered by the FWF to undergraduate students (i.e., without a master’s/diplom degree) who work on a project without a contract of employment or a contract for work and services. Research grants may only be paid out in the amount prescribed by the FWF in equal monthly instalments.
As this stipend is not an employment relationship, the amount of payment is appropriate recognition for work which is also performed in the student’s own educational interests. Thus, the scope of their work on the research project is reduced accordingly.
The following requirements must be met to receive research grants:
- The student does not or has not had an employment relationship with the principal investigator or the research institution. (This does not include employment exclusively as part of an apprenticeship.)
- The student has not entered into any contractual agreements with the principal investigator.
- The student has not entered into any contracts for works and services as part of the project in addition to the research grant.
- The student has not finished his/her university studies with the respective master’s/diplom degree at the beginning of the student’s work on the research project. (The student is to inform the FWF immediately if he/she receives his/her diplom during the course of the project. Payment of the research grant is to stop within one month’s time.)
Grant-salaried principal investigator: Grant-salaried principal investigators are principal investigators whose salary is to be paid entirely or partially from the funding provided for the project. Most grant-salaried principal investigators are employed through a contract of employment and thus the regulations governing employment relationships in FWF projects are generally applicable. Grant-salaried principal investigators may only be paid a salary higher than that defined in the FWF’s standard personnel costs if this is prescribed by a collective bargaining agreement or another collective standard. A research subsidy is available for grant-salaried principal investigators who are not affiliated with a research institution or are affiliated with a research institution that is not subject to the Universities Act 2002 (UG 2002) and has not concluded a relevant agreement with the FWF. This is self-employment income that is paid out by a payroll office commissioned by the FWF and is equivalent to the salary rate of grant-salaried principal investigators. The researcher is insured by the Health Insurance Fund for the Self-Employed and the required contributions are paid by the FWF payroll office. The principal investigator is liable for paying the income tax.