In Andorra, the Labor Relations Act (Llei de relacions laborals) outlines several types of employment contracts. These contracts vary in terms of duration, purpose, and the specific conditions they stipulate.

Indefinite-Term Contract (Contracte indefinit)

This is the most common type of employment agreement in Andorra. It provides no specified end date, assuming a permanent employment relationship. The legal basis for this type of contract is found in Articles 4 and 5 of the Labor Relations Act.

Fixed-Term Contracts (Contracte de durada determinada)

Fixed-term contracts have a specific end date, tied to the completion of a project or a defined period of time. There are two main subtypes:

• Specific Work or Service Contracts (Contracte d'obra o servei determinat): These contracts are tied to the completion of a specific task or project.
• Temporary Contracts (Contracte eventual): These contracts are tied to a specific timeframe to cover temporary needs of the employer, such as seasonal work or replacing an absent worker.

The legal basis for fixed-term contracts is Article 6 of the Labor Relations Act.

Part-Time Contracts (Contracte a temps parcial)

Part-time contracts are agreements where the working hours are less than a standard full-time position. They can be either indefinite-term or fixed-term. The legal basis for part-time contracts is Article 8 of the Labor Relations Act.

Apprenticeship Contracts (Contracte de formació)

Apprenticeship contracts are designed for young workers, typically between the ages of 16 and 25, that combine work with vocational training or apprenticeship. The legal basis for apprenticeship contracts is Article 7 of the Labor Relations Act.

Internship Contracts (Contracte de pràctiques)

Internship contracts are limited-duration contracts for individuals holding a university degree or equivalent. They are focused on providing hands-on work experience related to the field of study of the individual. The legal basis for internship contracts is the Law of Regulation of Internship Agreements (Llei de regulació dels contractes en pràctiques).

While employment contracts in Andorra can be verbal, it is highly recommended to formalize all agreements in writing. This protects both the employer and the employee. Notice periods for termination of employment agreements depend on the type of contract and the reason for the termination. Collective agreements (convenis col·lectius) may apply to specific sectors or businesses and can impact elements within employment contracts.

In Andorran employment agreements, the following essential clauses are typically included:

Identification of the Parties

This involves a clear and complete identification of the employer and the employee, including full names, addresses, and national identification numbers.

Job Description and Duties

This clause provides a detailed outline of the employee's position, responsibilities, tasks, and reporting structure.

Place of Work

The specific location(s) where the employee will primarily perform their duties is stated. This can include provisions for potential work location changes in the future.

Commencement Date and Duration

The start date of the employment relationship is stated. For fixed-term contracts, the specific end date or the criteria for determining that date is included.

Remuneration

This clause details the components of the employee's salary – base pay, bonuses, commissions, benefits-in-kind. It also includes the payment schedule (e.g., monthly).

Working Hours

The regular work schedule – daily hours, weekly distribution, overtime arrangements, rest periods, and any applicable shift system specifications are outlined.

Vacation and Holidays

This clause outlines the entitlement to annual paid leave (minimum 30 calendar days per Andorran law) and recognition of official public holidays.

Termination

This clause outlines the conditions and procedures for termination by either party, including required notice periods and any severance pay stipulations.

Governing Law and Jurisdiction

This clause specifies that Andorran law governs the contract and the designated courts for resolving disputes.

Other important clauses that may be included are data protection, health and safety, social security, and references to any applicable collective bargaining agreements.

Probationary periods, known as període de prova in Andorra, serve as an initial assessment phase within an employment relationship. They provide employers with an opportunity to evaluate an employee's skills, suitability, and overall fit for the position before committing to a long-term contract. From the employee's perspective, it's a chance to assess if the job and the company culture align with their expectations and career goals.

Key Aspects of Probationary Periods in Andorra

The Labor Relations Act (Llei de relacions laborals) permits the inclusion of probationary periods in employment contracts, specifically within its provisions regarding indefinite-term contracts. Probationary periods must be expressly agreed upon in writing as part of the employment contract.

The length of probationary periods in Andorra is limited by law. This maximum duration varies based on the employee's professional classification:

• Technical and Management Staff: Up to 6 months
• Skilled Workers: Up to 3 months
• Unskilled Workers: Up to 15 days

Both the employer and the employee have the right to terminate the employment relationship during the probationary period with shorter notice periods compared to standard terminations. Specific sectors or companies may have collective bargaining agreements (convenis col·lectius) that further define terms related to probationary periods.

Considerations

Probationary periods are primarily associated with indefinite-term contracts. Fixed-term contracts may have shorter or no probationary periods. Completion of the probationary period does not automatically guarantee conversion to permanent employment.

In Andorra, companies often safeguard their business interests by incorporating confidentiality and non-compete clauses in their employment contracts.

Confidentiality Clauses

Confidentiality clauses obligate employees to keep sensitive company information secret. This information can range from trade secrets and client lists to financial data, technical processes, and strategic plans. The legal basis for these clauses in Andorra is the Labor Relations Act (Llei de relacions laborals), which recognizes an employer's legitimate interest in protecting confidential information. However, these clauses must be reasonable in their scope and duration. Overly broad or indefinite restrictions may be deemed unenforceable. The obligation to maintain confidentiality often extends beyond the employment relationship.

Non-Compete Clauses

Non-compete clauses restrict an employee's ability to work for competitors or start a competing business within a specified period after termination of employment. This is generally limited to a certain geographic area. The Labor Relations Act permits non-compete clauses with specific limitations designed to protect the employee's right to work. For a non-compete clause to be valid in Andorra, it must be in writing as part of the employment contract, be limited in time (generally a maximum of two years), be limited in geographical scope, and provide the employee with financial compensation during the non-compete period.

Important Considerations

Andorran courts will assess the reasonableness of both confidentiality and non-compete clauses. Overly restrictive clauses may be invalidated. Clauses must clearly define what is considered confidential information or a competitive activity. Some sectors may have collective bargaining agreements that impact the terms of confidentiality and non-compete clauses.

Enforcement

If an employee breaches a valid confidentiality or non-compete agreement, Andorran employers can seek legal remedies. This might include injunctions, which are court orders to prevent the employee from continuing to violate the agreement, and damages, where the employer may claim financial compensation for losses suffered due to the breach.