Employ Candidates Compliantly in Liechtenstein

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  1. Overview: Liechtenstein
  2. Global PEO and Payroll
  3. Global HR Compliance
  4. Expand without a company set up
  5. Contractor vs. employee: which is better?
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Global HR Compliance in Liechtenstein

If you hire international workforce, or plan to hire, then Hiring and Firing Workforce in Liechtenstein Guide below will help you understand the nuances of labor legislation in the country.

Companies hire international workforce for various reasons but in most cases they are:

  • entering the foreign markets to sell company products. To do so, the company hires sales representatives who would represent their product and sell it to their local client base.
  • hiring a global talent with unique skills that is unavailable in the local market or costs the company less than the talent with similar skills hired in the home country.

Before entering a certain foreign market or engaging a global talent, it is crucial for the company to understand how it can make local hires and reward its workers on a monthly basis. Growing companies often face a challenge of paying benefits and bonuses to the commission-based independent sales representatives they are working with.

If you intend to hire employees and pay them in full compliance with labor laws and regulations of Liechtenstein, then the Global Employer of Record service from Acumen International may be the best way for you to go. We are an International PEO company and we specialize in global employment, meaning we can employ your employees in Liechtenstein and act as their legal employer on your behalf. We will payroll your foreign workforce monthly and provide benefits to them through our global network so you don’t have to set up your own legal entities there.

We are experts in global workforce employment in , 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 Liechtenstein.

Hiring and Firing Workforce in Liechtenstein Guide

# Employment contracts
The convention between two parties, the employee, and the company is known as the employment contract with specific terms and conditions, where the rights of a worker and the remuneration are mentioned. There are two types of work contracts in Liechtenstein, as follow:

  • the indefinite employment contract, where there is no end date mentioned;
  • the definite employment contract where a particular period of time is stated.

If a company needs to hire employees for a short period of time only to replace an employee, then a part-time or a definite work contract will be offered. As for the indefinite work contracts in Liechtenstein, these are offered as soon as the trial period has ended and if the employer wishes to hire the individual. We remind that such contract may end if both parts agree or if the company is no longer satisfied by an employee and wants to end the collaboration.

# Annual leave:
Employees are entitled to a minimum of four weeks of annual leave per year.

# Parental leave:
According to Article 15 of the Sickness Insurance Act (KVG) maternity leave is 20 weeks and at least 16 of the 20 weeks of maternity leave have to be taken after childbirth. Four weeks can be taken before childbirth. It is also possible to take all 20 weeks after childbirth. Women having given birth are not allowed to work for 8 weeks after childbirth.

The total duration of parental leave is four months. The right to parental leave is individual and not transferable from one parent to the other.

# Sick leave:
A compulsory insurance operates for all workers aged over 15 who work in Liechtenstein for an employer with a registered office or branch in the country for at least eight hours per week.

# State minimum salary:
Liechtenstein has no government-set minimum wage.

# Employee dismissal:
Litigation on employment matters is fairly rare in the principality. If the employer dismisses the employee immediately without good cause, it constitutes unjustified dismissal. If an employer intends to make 20 or more people redundant during any period of 90 days, they must declare a ‘mass redundancy’.

The employment relationship may be terminated unilaterally by either the employer or employee by giving notice. An employee and their employer may enter into a termination agreement to terminate the employment relationship at a specified time.

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