- Overview: Andorra
- Global PEO and payroll
- Global HR Compliance
- Work permit for hiring expats via PEO
- Expand without a company set up
- Contractor vs. employee: which is better?
Global HR Compliance in Andorra
If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Andorra Guide below will help you understand the nuances of labor legislation in the country.
There are two main reasons for companies hiring foreign workforce:
- Expanding into foreign markets to sell company product or products there. In this case, companies hire sales representatives who would exclusively represent their product in the target market and sell it to their local client base.
- Hiring the right foreign talent with a unique expertise, often related to IT sphere that cannot be found in the home country or that costs less compared to local specialist with similar skills.
After you have found the right candidate, the question is how to hire and provide compensation to this person so you as a business remain 100% compliant when working with global workforce. Another thing to consider is whether you want to keep the talent long-term and how you can do that.
If you need to hire foreign workforce in Andorra so you can expand there, then our Global Employer of Record solution may be of help. We help you legally hire and reward your foreign workforce by making them employees via a global employment outsourcing service. This is simple as employ your in-house workforce with the only difference that workers can live anywhere in the world and Acumen International would be their legal employer on your behalf. This means we would bear all employment risks, not you. Also, we manage bonuses, vacations, sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.
With our solution, you can test new foreign markets before deciding whether you are going to get established there. You gain flexibility and expand with reduced costs, and easily withdraw from the unattractive countries.
We are experts in global workforce employment in Andorra, and our goal is to become your single provider. Instead of working with numerous local staffing agencies and legal advisors, Acumen International can solve your global business challenges and save you time, costs, and resources.
Our team of English-speaking professionals frees you from working through language nuances. Acumen International works 24/7 and can assist you whenever you need, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with the local employment laws.
With our knowledge and deep understanding of local nuances, you easily satisfy your need for skilled professionals in your global industry. With our qualified local partners, you can trust that your global workforce satisfies all local tax, social security, and immigration requirements in Andorra.
Hiring and Firing Workforce in Andorra
# Employment Contracts
Contract of employment may be executed orally or in written form for a definite period or for an indefinite period. Whilst written contract is not mandatory, it is always best to draw up a written contract stating all the necessary terms and conditions of the employment relationship in the official language.
# Minimum statutory employment contracts
# Hours of work
The maximum work time limit is 8 hours per workday or 40 hours per workweek.
# Probation period
The probation period must be agreed in writing, both for contracts of indefinite and definite duration and cannot exceed one month.
On the managerial positions in which the agreed remuneration exceeds three times the minimum salary, the probation period may be up to three months. If the reward is five times more than the minimum salary, the period of probation may take up to six months. The maximum times foreseen for the duration of the probation period can be modified by collective agreement.
It is not possible to agree a trial period if the worker had already been previously hired by the company in a workplace similar to the one of the new contract in a term less than 5 years.
# Annual leave
Employees in Andorra are entitled to a minimum of 30 calendar days of paid annual leave after completing one year of employment with the company. Employees who have not worked for one year in the company are entitled to leave calculated on pro rata basis at two and a half days for each month worked. In addition to annual leave, employees shall be granted 14 paid public holidays yearly.
# Parental leave
Working mothers are entitled to 16 weeks of maternity leave with full pay from the social security for childbearing. In case of multiple births the period is extended in two more weeks by every child.
# Sick leave
The work contract is suspended while the working person is in a sick leave, either because of an illness or because of an accident of work.
The term is computed by the following way:
a) In case of medical discharge due to accident of work, the whole period is computed;
b) In case of sick leave due to illness, no period is computed that is more than four months in a natural annuity.
Employees are entitled to compensation in cash or extra day off for every hour they work above the standard time limit of work.
# State minimum salary
As of 1 Jan 2018, the national minimum wage is 1045.33 euros per month.
# Employment termination
The contract might be terminated in the following cases:
a) Expiration of the term or termination of the work for which employee has been agreed upon.
b) Mutual agreement of the parties.
c) Death or permanent disability of the person worker to carry out the work contracted.
d) Death, incapacity or retirement of the employed person.
e) When the worker is deprived of freedom by court.
f) Declaration of bankruptcy of the employer.
g) An objective need to amortize the job places due to economical, technical, organizational or other causes.
The contract might be terminated by the employer by means of a notice communicated with terms calculated as one day per month worked up to a maximum of 90 days and with the payment of compensation.
An employee might terminate the contract in the following cases:
a) During the trial period, without prior notice.
b) By means of a ten-day notice, if it’s been less than a year of work for the company, and ten days plus one day per every month worked, up to a maximum of thirty days, if there is more than one year of work for the company.
c) Without prior notice if an accident or force majeure makes it impossible to continue to work.
d) In case of retirement age, by means of the corresponding communication to the employer with a minimum of three months’ notice.
Acumen International can help you fast-track your possibilities of entering and expanding your business in Andorra by providing you with our Employer of Record services. Our unique mix of PEO/EOR solutions will enable you to jumpstart your global operations almost immediately, cost-effectively and compliantly without any need to set up a legal entity first or afterwards.