Employer of Record in Liechtenstein: Hire, Manage, and Pay Talent Seamlessly

Agreements in Liechtenstein

• There is no statutory requirement in Liechtenstein that agreements have to be in writing it can be oral also.
• It is a common practice is to have a written agreement. The language of the contract/agreement should be German.
• A written agreement usually includes:-

  • Personal details of the employer and the employee- name, residence, office address.
  • Date of commencement of employment.
  • Details of employment type- full-time, part-time, consultant.
  • Working hours, breaks, overtime details.
  • Workplace information- the type of everyday work, and performance expected from employees.
  • Functional title/rank of the employee.
  • Wages, including details of payroll cycle, gratuities, and expenses.
  • Terms of termination, notice period, and severance pay.
  • Holidays- annual day-offs, sick leaves, and maternity leave.
  • Details of social benefits-contributions, eligibility.
  • Details of health insurance- kind of insurance will be accepted.

Visa in Liechtenstein

• Schengen Visa(Short stay): Schengen Visa applies to the Schengen area, which comprises 26 European states. This type of visa is applicable for 90 days visits and has to be renewed every 6 months.
• Airport transit Visa: For those, who are just traveling through Liechtenstein and need a visa for connecting flights.
• National Visa(long stay): If anyone intends to stay longer than 90 days either for work or for residence, then they would require a type of National Visa- Lichtenstein Employment National Visa. To require this type of visa, an applicant must have the following documents:
• Application forms in English and German
• Valid passport
• I.D. Card
• Resident Permit/ Visa Copy
• Proof of employment such as a job offer or employment contract
• Proof of qualification
• Detailed CV- dealing qualifications, experience, and professional area.
• Police verification
• Financial statements
• Medical insurance

Minimum Wage in Liechtenstein

Annual Bonus in Liechtenstein

Health Benefits in Liechtenstein

• The Federal office of Public health monitors the healthcare system in Liechtenstein. Although it outsources some part of the health insurance as its a small country with only one Hospital.
• Each resident above the age of 16 years is constitutionally guaranteed to the health care system.
• Health insurance in Liechtenstein is either provided by private insurance, employers, or government health insurance.
• Each resident must register individually with their choice of the insurance provider and make contributions as per their requirement.

Working hours and overtime in Liechtenstein

• Work hours: There is a statutory requirement of 45 hours of work per week in Liechtenstein from Monday to Friday. Employees are not required to work the night shift, from 11 PM to 6 AM. If the employers want their employees to work during the night shift, then they would require authorized permission from the office of Economic affairs.
• Break: If employees have worked for 7 hours a day, then they are entitled to 30 minutes of break, and if they are working for more than 8 hours, then they are entitled to 1 hour of break. It is a general practice to give a 1-hour break.
• Overtime: Overtime is allowed only in extraordinary circumstances- not more than 48 hours a week. Also, employees cannot work overtime for more than 2 hours a day. In overtime cases, the employee is paid 25% extra of their hourly wage.

Leaves in Liechtenstein

Social Security in Liechtenstein

Taxes for Employers in Liechtenstein

• The employers in Liechtenstein are obligated to contribute to various funds:

  • 4.9% for old age, survivor's fund, and disability insurance
  • 1.9% for family and compensation fund
  • 0.5% as unemployment insurance
  • 1% as occupational accident insurance

Probation in Liechtenstein

Termination in Liechtenstein

Severance Pay in Liechtenstein

• There is no legal obligation on the employer to pay any severance pay to the employee.
• Nevertheless, most organizations mention the conditions of severance pay in their employment contract.

Employees or Contractors in Liechtenstein

• In Liechtenstein, the differentiation between the employee and contractor is clearly exhibited through the 'statement of work' (SOW) contract.
• It should be mentioned in the SOW whether the organization is hiring a contractor or an employee.
• Liechtenstein's labor laws are on the lines of EU rules and regulations.
• EU rules state that any misclassification of an employee or contractor invites serious penalties. And it is the companies that have to pay the fine.