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Liechtenstein is a German-speaking microstate in the Alps between Austria and Switzerland. It is formally known as the Principality of Liechtenstein. The Prince of Liechtenstein is the head of the constitutional monarchy.
Liechtenstein is bounded to the west and south by Switzerland, and to the east and north by Austria. With an area of little over 160 square kilometers (62 square miles) and a population of 38,749, it is Europe's fourth-smallest nation (in 2019). It is divided into 11 municipalities, with Vaduz as the capital and Schaan as the biggest. It is also the smallest nation with two borders. Liechtenstein is one of the world's only two doubly landlocked nations, the other being Uzbekistan.
When adjusted for purchasing power parity, Liechtenstein has one of the highest gross domestic products per person in the world. The nation has a robust financial industry, which is centered in Vaduz. It was originally recognized as a wealthy tax haven, however, it is no longer on any official blacklists of tax haven nations. Liechtenstein is a hilly Alpine country that is popular for winter sports.
The Principality of Liechtenstein is a member of the United Nations, the European Free Trade Association, and the Council of Europe. Despite not being a member of the European Union, it is a member of both the Schengen Area and the European Economic Area. With Switzerland, it has a customs union and a monetary union.
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.
Liechtenstein observes the following holidays:
New Year’s Day
Epiphany
Candlemas
St. Joseph’s Day
Easter Monday
Labor Day/May Day
Ascension Day
Whit Monday
Corpus Christi
Liechtenstein National Day
Nativity of Our Lady
All Saints’ Day
Feast of the Immaculate Conception
Christmas Day
St Stephen’s Day
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.
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 is not specified in Liechtenstein labor laws. However, a general parental leave is detailed in the parental leave section.
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.
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.
Between one and four weeks' notice is required.
Probation periods in Liechtenstein are usually roughly one month long, but may be as long as three months.
If an employee is laid off for economic reasons, they are entitled to four weeks of severance pay for each year worked.
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.
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.
Liechtenstein has no government-set minimum wage.
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.
Liechtenstein requires its companies to pay a corporate tax rate of 12.5 percent.
Taxable persons in Liechtenstein are imposed a personal income tax rate between 3 percent and 24 percent. The actual percentage depends on the income bracket the individual belongs to.
The standard VAT rate in Liechtenstein is 7.7 percent. However, lodging services are only imposed a 3.8 percent VAT rate. Some other services also receive a reduced rate of 2.5 percent.
Liechtenstein's visa policy is based on the criteria for tourists seeking a visa to Liechtenstein. The Liechtenstein visa policy stipulates that you must have a Liechtenstein visa in order to enter, reside in, or exit the country.
Certain conditions must be completed by a visitor who wishes to apply for a Liechtenstein visa in order for the visa to be filed, processed, and accepted. A visa application will be deemed complete and granted by authorities if the following information is provided: the nation from which the passport was issued, the amount of time the tourist intends to remain in Libya, and the purpose for the visit.
The Liechtenstein visa was developed by Liechtenstein and is accessible to inhabitants of nations all around the globe. This visa permits tourists to enter Liechtenstein for the purpose of tourism and allows them to stay for up to 90 days each entry.
Travelers may simply apply for a visa online and obtain it quickly. Once issued, this visa must be shown to immigration officers when a passenger arrives in Liechtenstein.
Agreements have been struck between Liechtenstein and numerous nations, making some countries eligible for visa exemption and therefore not necessary to seek a visa before coming to the country. Liechtenstein joined the Schengen Agreement for passport-free travel with 25 other European nations, which have a single Schengen Area visa regime that is similar to Liechtenstein's. This implies that if a tourist has a passport from one of the Schengen nations, he or she does not need a visa to enter any of the Schengen countries.
The Liechtenstein visa policy now allows for the use of one visa. Travelers who wish to visit Liechtenstein but do not have a passport that qualifies for visa exemption under the Liechtenstein visa policy must acquire authorization from the Liechtenstein government before arriving and attempting to cross the border.
In Lichtenstein, employment contracts may be either oral or written, however formal contracts are highly advised. Even if the agreement is oral, the employer must nonetheless disclose the most critical aspects of the job in writing. The contract or disclosures must include the following information:
The employer's name and address
The start date of employment (and the end date if applicable)
Working hours and relaxation periods on a daily or weekly basis
Workplace specific information
Information regarding the employee's responsibilities
The job title and rank of the employee
Data about the employee's leisure time and leave
Information on pay (including any supplements or non-monetary compensation)
Contract termination notice periods
Information about any applicable collective agreement or standard contract
In Liechtenstein, employment contracts might be indefinite or fixed duration. There is no legislative restriction on the period of a fixed contract, although shorter term contracts may be renewed three times and have a cumulative term of no more than five years; if the term surpasses five years, the connection is automatically transformed to an indefinite contract.
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