Employ Candidates Compliantly in Andorra

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  1. Overview: Andorra
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Visa, Work Permit for Hiring Expats via PEO
  5. Expand without a company set up
  6. Contractor vs. employee: which is better?
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Global HR Compliance in Andorra

The 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 to hire foreign workforce:

  • Expanding into foreign markets to sell company products or products there. In this case, companies hire sales representatives who exclusively represent their product in the target market and sell it to their local client base.
  • Hiring the right foreign talent with unique expertise, often related to the IT sphere, that cannot be found in the home country or that costs less compared to local specialists 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 a 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 a 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 employing your in-house workforce, with the only difference being 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, and sick leave and can rent the office and a car for your foreign sales representatives if that is what you need.

Our solution allows you to test new foreign markets before deciding whether you will get established there. You gain flexibility, expand with reduced costs, and easily withdraw from 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 it, regardless of time zones. Our goal is to create tailored labor solutions for you that are managed legally and in full compliance with 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.

Employment Contracts in Andorra

Contract of employment may be executed orally or in written form for a definite or indefinite period. Whilst a 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.

Working Hours 

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 for contracts of indefinite and definite duration and cannot exceed one month.
In managerial positions where 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 probation period may take up to six months. The maximum times foreseen for the probation period can be modified by collective agreement.

It is impossible to agree to a trial period if the company had previously hired the worker in a workplace similar to the new contract in a term of fewer than five 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 a 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 social security for childbearing. In multiple births, the period is extended to two more weeks for every child.

Sick Leave

The work contract is suspended while the working person is on sick leave because of an illness or an accident at work.

The term is calculated in the following way:
a) In case of medical discharge due to an accident at 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.

Overtime

Employees are entitled to compensation in cash or an extra day off for every hour they work above the standard time limit.

Employment Termination

The contract might be terminated in the following cases:
a) Expiration of the term or termination of the work for which the 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 the court.
f) Declaration of bankruptcy of the employer.
g) An objective need to amortize the job places due to economic, technical, organizational, or other causes.

The contract might be terminated by the employer through 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) Using 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, use 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 immediately, cost-effectively, and compliantly without needing to set up a legal entity first or afterward.

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