European snow holidays in jeopardy: Austria set to pass new minimum wage laws for chalet workers (and British ski companies are not happy)

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British ski operators could pull out of Austrian resorts en masse as a new minimum wage law is set to be passed this week.

The Austrian government is expected to approve an amendment to the Austrian Anti Wage Dumping Act on Thursday, ensuring that non-resident workers be paid the same wages as Austrian employees.

The changes to the act would be enforced from January 1, 2015 - midway through the imminent season.

Ski companies face substantial losses if a new Austrian minimum wage law comes into effect on January 1

Foreign travel companies will have to pay employees a minimum wage of approximately 1,000 euros - around £800 -  per month, and will face fines of up to 10,000 euros (around £8,000) per employee if they do not adhere to the amended legislation, rising to 20,000 euros (around £16,000) for more than three employees or if it is a recurring violation.

The operators currently are able to pay staff lower hourly wages because their salary packages often include accommodation and food, flights, insurance, ski hire and passes, as well as compensation for working over holidays and evening shifts.

With the ski season kicking off in the next couple of weeks, companies including Powder White, who manage nine chalets in Austria, will be forced to absorb the loss in profit if the changes come into effect on January 1, with ski holidays already sold and staff employed for the 2014/15 season.

Fraser Ewart-White, co-founder of Powder White, told MailOnline Travel: 'These highly damaging proposals would lead to a large increase in employment costs, which could see the cost of a family ski holiday to Austria rise by up to £140, jeopardising Austria's position as a value destination. 

Ski resort staff are often paid lower wages, but given accommodation, food, flights and ski passes

British operator Powder White are fighting the changes, saying the cost of a family holiday could rise by £140

'We are working with other ski operators to challenge these plans which, if passed, will affect the viability of providing good value chalet holidays in Austria and would hurt the Austrian tourism industry immensely.' 

Similiar legislation changes in Switzerland in 2013 resulted in a number of major British ski operators pulling out of the region, with mainly high-end chalets remaining, where the wage increase could be absorbed.

The affected chalets were allowed to continue paying staff previously-agreed wages throughout the 2013/14 season. Many of the chalet operators did not renew contracts for this season.

Of the Swiss legislation, Andy Perrin, of holiday firm Inghams and its sister companies Ski Total and Esprit Ski told The Mail on Sunday last month: ‘There are no winners with this legislation.’