Guide to employment, payroll and benefits in

Liechtenstein

Rivermate offers complete payroll, benefits and compliance services for

Liechtenstein

01. Overview

Last updated: 

August 19, 2021

Currency
Swiss Franc
Capital
Vaduz
Ease of doing business
Language
German
Population
38128
GDP growth

02. Grow your team in

Liechtenstein

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Liechtenstein

, particularly if you don't have established local relationships. You can hire employees in

Liechtenstein

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Liechtenstein, formally the Principality of Liechtenstein, is a German-speaking microstate in Central Europe's southwest corner, nestled in the Alps. The Principality of Liechtenstein is a semi-constitutional monarchy led by the Prince of Liechtenstein, who has broad powers comparable to those of a President in a semi-presidential republic. Liechtenstein is bordered on the west and south by Switzerland, and on the east and north by Austria. With an area of just over 160 square kilometers and a population of 38,744, it is Europe's fourth smallest nation. It is divided into 11 municipalities, with Vaduz as the capital and Schaan as the largest. It is also the tiniest country to share borders with two other nations. Liechtenstein is one of only two countries in the world that is both landlocked. When adjusted for purchasing power parity, Liechtenstein has one of the highest gross domestic products per person in the world. The country's financial sector, which is centered in Vaduz, is powerful. It used to be regarded as a billionaire tax haven, but it is no longer on any official blacklists of uncooperative tax havens. Liechtenstein is a mountainous Alpine country, making it a popular winter sports destination. The United Nations, the European Free Trade Association, and the Council of Europe are also members of Liechtenstein. It is a member of both the Schengen Area and the European Economic Area, despite not being a member of the European Union. With Switzerland, it has a customs union and a monetary union.

04. Public holidays

05. Types of leave

Paid time off

Employees who work a five-day week are entitled to 20 days of paid annual leave, whereas those who work a six-day week are entitled to 24 days. Employees under the age of 20 are entitled to a minimum of 25 days off each year. Employees with disabilities are entitled to an extra five days. An employee may be entitled to supplementary leave under a collective bargaining agreement or contract.Employees notify their bosses when they want to take time off, and the bosses plan the time off. The employer is required to consider the employee's requests and may only deny a request if the employer's requirements need the employee to be at work at the time they have sought leave or if another employee's request for leave at the same time must take precedence.Unused leave may be carried over to the next year only if there is a compelling cause, and it must be used before March 31 of that year. When an employee's working relationship ends, the employer must compensate them for wasted vacation time.

Public holidays

Liechtenstein observes the following holidays:New Year’s DayEpiphanyCandlemasSt. Joseph’s DayEaster MondayLabor Day/May DayAscension DayWhit MondayCorpus ChristiLiechtenstein National DayNativity of Our LadyAll Saints’ DayFeast of the Immaculate ConceptionChristmas DaySt Stephen’s Day

Sick days

Employees in Liechtenstein are entitled to sick pay from the second day of their sickness until they return to work, with the exception of those who work fewer than eight hours per week or for fewer than three months. In Liechtenstein, employers must acquire insurance from a government-approved insurer to cover the expense of per diem sick pay. The employer is obligated to cover half of the insurance expenses and may cover more than half. Employees are also allowed to take up to three days off to care for a sick family member.An employee must notify their employer and produce a medical certificate while taking sick leave for oneself or a family member. It is the employer's responsibility to notify the insurance of the sickness.

Maternity leave

Female employees are entitled to 20 weeks of maternity leave, of which 16 must be used following the birth of their child.Residents who are unemployed may be eligible for a maternity benefit based on their spouse's earnings and the number of children they have.

Paternity leave

Paternity leave is not specified in Liechtenstein labor laws. However, a general parental leave is detailed in the parental leave section.

Parental leave

Employees are also entitled to up to four months of unpaid parental leave. This leave is available to biological parents until the kid becomes four years old. This leave is available to adoptive parents, foster parents, and stepparents until the kid turns six. Parents who want to take parental leave must provide their employer three months' notice. Due to business requirements, the employer may insist that the parental leave be taken at a different time than desired.The parent is entitled to return to their prior employment or, if that is not practicable, to an equal post following maternity or parental leave.

Other leave

06. Employment termination

Termination process

Employment contracts in Liechtenstein may be oral or written, although it is best practice to have a robust, written contract in German that details the employee's remuneration, perks, and termination criteria.

Notice period

Between one and four weeks' notice is required.

Severance pay

If an employee is laid off for economic reasons, they are entitled to four weeks of severance pay for each year worked.

Probation period

Probation periods in Liechtenstein are usually roughly one month long, but may be as long as three months.

07. Working hours

General

The typical work week for the majority of professions is 45 hours per week, Monday through Friday. Saturday is also a workday in some jobs. For those between the ages of 15 and 18, the work week is 40 hours. All work hours must be documented and tracked.

Overtime

Employers may require employees to work "extra hours" in emergency situations. Employees may not be required to work more than two additional hours per day and may not work more than 48 hours per week on average over a four-month period.


Employees may work overtime in non-emergency situations if they consent. As with overtime, an employee may not work more than 48 hours per month on average. Sunday is a non-working day in Lichtenstein.


Work between the hours of 11 p.m. and 6 a.m. is also not permitted without prior approval from the Office of Economic Affairs. Pregnant women are not permitted to work between the hours of 11 p.m. and 6 a.m.

08. Minimum wage

General

Liechtenstein has no government-set minimum wage.

09. Employee benefits

General

All legal inhabitants of Liechtenstein, including non-citizens, are required to get health insurance via one of many government-approved insurers. All applicants must be accepted by the insurers, and all must provide the same basic plan. Some people additionally buy supplementary coverage, which does not always come from the same insurer.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Liechtenstein

to hire a team takes time, money, and effort. The labor law in

Liechtenstein

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Liechtenstein

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Liechtenstein

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Liechtenstein

via our Employer of Record / PEO solution.

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