DR. GEORG RIHS
Attorney at Law, 1010 Vienna

Our office has achieved another groundbreaking victory for the rule of law in Austria: With its decision dated 20 July 2021, Ra 2019/04/0231, the Austrian Supreme Administrative Court has ruled that the award of contracts for tobacco shops and tobacconists falls within the scope of the Federal Law on Public Procurement for Concessions.The award of contracts for tobacco shops in Austria has regularly been administered by the Monopoly Administration ltd, a state-hold body. In the past, the practice of this body has been intransparent. Austrian media also covered and criticized the administrative decisions of this body. Highly-frequented tobacco shops on public places generate seven-digit turnovers in the sale of cigarettes and tobacco alone. Additionally, the operation of a tobacco store allows for lucrative side-businesses like sales of lottery tickets etc. Presently, all tobacconists are awarded life-long. Consequently, traceability and transparency in the award of tobacco shops is crucial. The decisive factor for this decision was the incorrect classification of an employee of the Austrian National Bank in the internal salary scheme. The employee had studied at a German university and obtained the title of Master of Science (MSc) there. However, as this was not a degree from a domestic college or university, the employer did not recognise his education as a fully-fledged course of study. The employer only classified him in his salary scheme as a high-school graduate (in Austrian German: Maturant) and not as a university graduate. This resulted in a large difference in salary over the years. The Supreme Court considered this disadvantageous position as discrimination against graduates of studies within the framework of cross-border inter-European cooperation studies, which is why a reclassification of the employee was necessary and the salary difference had to be paid to him by the Austrian National Bank.