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Last updated on: February 24th, 2023

Labor Requirements

Liechtenstein employment law is liberal and allows companies considerable flexibility. Employment contracts can be individually configured in accordance with the legal requirement.

 

The General Civil Code together with the Law on Labor in Industry, Manufacturing and Trade or Law (ArG) i.e. The Employment Act, 1967 governs the terms and conditions of employment such as working hours, holidays, rest periods, wages, overtime, leave and termination of employment, etc.

Hours & Pay Regulations

Normal Working Hours

The maximum working hours per week are:

      • 45 hours for employees in industrial enterprises, for office personnel, for technical and other employees including sales personnel in major retail businesses (retail sector).
      • 40 hours for young persons aged between 15 and 18.
      • 48 hours for all other employees.

Employees are not required to work between 11 pm and 6 am. In case of an extension of time, it can only be granted with authorization from the Office of Economic Affairs.

 

The start and end of the day work in the company can be determined between 5 am and midnight with the consent of the company’s employee representatives, or, in the absence of such representation, the majority of the affected employees. In this circumstance, the maximum number of hours that may be worked is 17 hours.

 

The daily work of the individual employee must be within 13 hours, including breaks and overtime. The weekly working hours may temporarily be extended by up to 4 hours for specific groups and enterprises.

 

Compensation for Lost Working Hours

If work is suspended for a relatively short period of time due to operational disruptions, company holidays, between days off or under similar circumstances, or if an employee is granted days off at their request, the employer may, within a reasonable period of time, compensate for this by modifying the maximum weekly working hours.

 

An employee shall not exceed 2 hours more than the permissible limit of working hours ( including overtime) for compensating the suspended working hours due to operational disruptions, company holidays, between days off, or days off granted at the employee’s request.  Such compensatory work for suspended working hours shall not be done on holiday days or on half days.  In the case of night work, shift work, and uninterrupted operation, lost working time can only be compensated at the permissible limit.

 

Compensation for lost working hours must be made immediately before or after the loss of work within a maximum of 14 weeks unless the employer and employee agree on a longer period which shall not exceed 12 months. The absences from work over Christmas and New Year count as one period of absence.

 

Statutory rest periods and compensatory rest periods do not constitute lost working hours, and shall not be taken beforehand or later.

 

On-Call – In the case of on-call services, the employee works addition to their normal work, shall be ready for any work assignments to rectify faults, and provide assistance in emergency situations, patrols, or similar special events. 

 

The on-call service can be provided both in the company (readiness to work) and outside of the company (on-call duty).

 

The individual employee may be on-call or perform on-call assignments for a maximum of 7 days within a period of 4 weeks. After the end of the last on-call duty, the employee may no longer be summoned to the on-call duty for the 2 following weeks.

 

As an exception, an employee can be on-call for a maximum of 4 weeks over a period of 8 weeks provided that the number of days on which on-call work actually took place does not amount to more than 5 days per month on average in a calendar year.

 

If the on-call service is provided in the company (readiness to work), the entire time made available represents working time.

 

If the on-call service is provided outside the company (on-call duty), the time made available shall be counted towards the working time to the extent that the employee is actually called upon to work. In this case, the travel time to and from work is to be counted towards the working hours.

 

Shift Work – Shift work occurs when 2 or more groups of employees work alternately at the same workplace according to a specific schedule.

 

The working time shall be divided such that individual employee does not have to work the same shift for more than 6 consecutive weeks. In the case of two-shift day work, the employee must have an equal share in both shifts and in the case of night work, in day and night work. In a working time system that does not fall during the night period, the employee’s shift length including breaks shall not exceed more than 11 hours.

 

In the case of 3-shift and multi-shift working time systems in which the employee usually works through all shifts, the following applies:

        • the duration of each shift may not exceed 10 hours including breaks;
        • the shift change must be from the early to the late shift and from this to the night shift (forward rotation). Backward rotation is permitted in exceptional cases if the employee regularly receives longer weekly rest periods of 3 or more days.
        • the performance of overtime work is only permissible on non-working days and to the extent that statutory rest or compensatory rest periods are not taken on these days.

    The shift change in a two-shift working time system can be waived if:

        • employees can only work in the morning or in the evening for special personal reasons, or
        • one of the two shifts is significantly shorter and does not exceed 5 hours.

    Uninterrupted Operation – A working time system is deemed to be an uninterrupted operation where shift work is performed 24 hours a day 7 days a week; and which consists of several shifts with the individual employee usually working all shifts.

     

    Working time – The maximum weekly working time i.e. 45/ 48 hours per week must be observed for uninterrupted operation on an average of 16 weeks.

     

    The maximum weekly working time can be extended to 52 hours for individual periods of 7 consecutive days. In exceptional cases, it can be extended to 60 hours if a large part of the working time consists of pure presence time and the employee is not exposed to any physically, psychologically, or mentally demanding activities. However, the maximum weekly working time must be observed in any case, with an average of 16 weeks.

     

    For the individual employee, the working time within 24 hours must not exceed 9 hours and shall include breaks within a period of 10 hours. If two shifts are worked between Friday evening and Monday morning, the working time can be extended to 12 hours, but in this case, a 2-hour break must be granted which can be divided equally within the shift.

     

    Rest day – Employees shall be granted at least 65 days off per calendar year along with the daily rest period comprising at least 35 consecutive hours where at least 26 rest days must fall on a Sunday and include at least the time from 6 am to 4 pm. Employment Act, Art. 9,25 Ordinance I of March 22, 2005, on the Labor Act (ArGV I) 14, 15, 34.

     

    Recording Requirements – The employers shall maintain records that are necessary, such as personal details of employees, type of employment and entry and exit of employees; the weekly working hours including compensatory and overtime work; the weekly rest day or substitute rest days, breaks, and rest periods; medical details for employees working in night shifts. The employers shall maintain such information and documentation for at least 5 years. Ordinance I of March 22, 2005, on the Labor Act (ArGV I), Art 59.

    Overtime

    Overtime work is defined as any work performed outside of the regular working hours i.e. 45/48 hours per week and in excess of the permitted maximum time limit.

    Weekly Maximum Overtime Threshold is as follows –

        • 45 hours for employees in industrial enterprises, for office personnel, for technical and other employees including sales personnel in major retail businesses (retail sector).
        • 48 hours for all other employees.

    There are two situations in which employers can ask their employees to work extra hours.

          • If there is an urgent requirement
          • If employees want to, in cases when there is no urgent requirement.

    However, the extra time may not exceed more than 2 hours in a day, except on non-workdays or in emergencies. The average weekly working time including overtime within 4 months may not exceed 48 hours. 

     

    Overtime work is only permitted as daily work prior to 11 pm and after 6 am, and only on working days.

     

    Limit – For certain groups of companies or employees, the maximum weekly working time can be extended by a maximum of 4 hours by ordinance, provided that on average it does not exceed the reference periods of 4 months. 

     

    Further, employees opting for overtime work should not be required to work for an average of more than 48 hours in one month.

     

    Pay – If the overtime hours don’t exceed 60 hours in the calendar year then the employee shall be compensated by rest time of the same duration within a reasonable period of time i.e. 14 weeks (unless the employer and employee agree on a longer period, which, however, may not exceed 12 months) with the consent of the individual employee, no premium shall be paid for overtime work.

     

    The employer shall pay employees a premium for overtime work of at least 25% only for overtime work that exceeds 60 hours in the calendar year. (only for office staff and technical and other employees, including sales staff in large retail businesses). Employment Act, Art. 12, 13, Ordinance I of March 22, 2005, on the Labor Act (ArGV I), Art 25.

    Night Work

    The employment of employees outside of the company’s daily working hours is prohibited. Exceptions to the ban on night work require the approval of the Office of Economic Affairs.

     

    Temporary night work may be granted if an urgent need can be demonstrated. Permanent or regularly recurring night work may be approved if it is indispensable for technical or economic reasons. Night work between 5:00 a.m. and 6:00 a.m. and between 11:00 p.m. and 12:00 a.m. is permitted if an urgent need is demonstrated by the employer. The employer may not use the employee for night work without the employee’s consent.

     

    In the case of night work, the daily working time for the individual employee must not exceed 8 hours including the breaks, it must be within a period of 9 hours.

     

    If the employee is employed for a maximum of 3 out of 7 consecutive nights, the daily working time maybe 10 hours; however, including the breaks, it must be within a period of 12 hours.

     

    If the employee is employed at least 3 hours of their daily working time or more than 600 hours per calendar year at night, the daily working time may in any case not exceed 8 hours on average over a year.

     

    Night work without alternation with day work

    Night work of more than 6 weeks without a change to day work is permitted, provided the employee gives his consent in writing and shall  declare in writing that during the remaining time they shall not engage in any other gainful employment that results in the maximum working hours being exceeded or the rest periods being reduced; and within 24 weeks, the daily work periods are at least as long as the night work periods.

     

    Night work of more than 12 weeks without a change of day work is permitted, provided there are no increased risks for the employee with regard to chemical, biological and physical effects,  the employee is not exposed to any physical, psychological or mental stress and the work assignment is organized in such a way that the employee’s ability to perform is maintained and the emergence of dangerous situations can be avoided. The suitability of employees shall be determined by medical examination along with a signed written consent given by the employee and also a declaration in writing that during the remaining time, they will not be engaged in any other gainful employment that results in the maximum working hours being exceeded or the rest periods being reduced.

     

    Employees in night work may at the most work 5 out of 7 consecutive nights; or on 7 out of 10 consecutive nights, and do not perform overtime on their days off. These prerequisites and conditions shall not apply to employees who perform night work continuously for a maximum of one off-peak hour between 5 a.m. and 6 a.m. or 11 p.m. and midnight.

     

    Employee who performs night work for a long period of time has the right to an examination of their health and to advice on how to reduce their health issues. The costs of the medical examination, including the fee for the health insurance certificate and the consultation, are borne by the employer unless the health insurance company or another insurer of the employee pays for them.

     

    The employer shall transfer the employee who is declared unfit for night work for health reasons to a similar day job.

     

    PayEmployees who perform night work are entitled to a premium of 25% on the hourly wage. Employment Act, Art. 16, 17.

    Breaks

    Work is to be interrupted by breaks of the following minimum duration:

        • 15 minutes in the case of a consecutive working period of more than 5 1/2 hours
        • 30 minutes in the case of a consecutive working period of more than 7 hours
        • 1 hour in the case of a consecutive working period of more than 9 hours

    Breaks are deemed to constitute working hours if employees are not permitted to leave their workplace. Breaks lasting more than 30 minutes may be subdivided in accordance with the employee. Employment Act, Art 15.

     

    Daily Rest – Employees shall be granted a daily rest period of at least 11 consecutive hours. The rest period for employees can be reduced to 8 hours once a week when changing shifts, provided that the duration of 11 hours is observed on average over two weeks. Employment Act, Art. 15a.

     

    Weekly Rest/ Sunday work – Sunday work is essentially prohibited. If Sunday work is however necessary for an enterprise, this may be approved by the Office of Economic Affairs. 

     

    The weekly rest day is always Sunday. The weekly rest day and the daily rest period must add up to at least 35 consecutive hours. If work is to be carried out on Sunday, the employee may not be employed for more than 6 consecutive days. The provisions on uninterrupted operation remain can be an exception.

     

    Rest Days – In the case of uninterrupted operation, employees must be granted at least 65 days off per calendar year, which together with the daily rest period comprises at least 35 consecutive hours. Of these, at least 26 rest days must fall on a Sunday and include at least the time from 6 a.m. to 4 p.m.

     

    Provided that Sunday covers the period from Saturday 11 p.m. to Sunday 11 p.m., the number of days off falling on a Sunday can be reduced as follows:

        • to 17 days if the daily working time of the individual employee does not exceed 8 hours;
        • to 13 days if the average weekly working time including breaks does not exceed 42 hours.

      If for operational or organizational reasons, a weekly rest day cannot be granted every week, this must be granted in the following week at the latest. This rest day can be combined with other weekly rest days. After seven days at the latest, the employee must be granted a weekly rest period of 24 hours plus a daily rest period of 11 hours.

       

      Temporary Sunday work may be granted if an urgent need is demonstrated. Permanent or regularly recurring Sunday work may be approved if it is indispensable for technical or economic reasons. The employer may not involve the employee in Sunday work without the employee’s consent.

       

      Within 2 weeks, at least one full Sunday must be released as a weekly rest day immediately before or after the daily rest period.

       

      During the calendar year, retail store or service station employees must be granted at least 26 free Sundays. These may be distributed unevenly throughout the year.

       

      The number of free Sundays may be reduced to a minimum of 4 if the weekly working hours of the employee do not exceed 18 hours on average over a 4-week period.

       

      Weekly half-day off – If the weekly working time is spread over more than five days, the employees are to be granted a half-day off each week, with the exception of weeks in which a day off falls. In agreement with the employee, the employer may grant the weekly free half-days for a maximum of 4 consecutive weeks; the maximum weekly working time is to be adhered to on average. Employment Act, Art 20.

      Work On Rest Days

      If the employee works temporarily on Sunday, they shall be entitled to a premium of 100 % on the hourly wage payable along with a compensatory rest day. In the case of retail stores and service stations, a premium of 50 % on the hourly wage must be paid.

       

      Compensatory Rest – An employer who works on rest day is entitled to another rest day preceding or following week. Sunday work lasting up to five hours must be compensated for by free time. If it lasts longer than five hours, a substitute rest day of at least 24 consecutive hours that falls on a working day must be granted during the preceding or following week following the daily rest period. The employer may temporarily call the employees to work during the compensatory rest, insofar as this is necessary to prevent the deterioration of goods or to avoid or eliminate operational disruptions; however, the compensatory rest must be granted in the following week at the latest.

       

      Employees who work on Sundays may not count Sundays that fall within their vacation time as statutory free Sundays. The substitute day of rest, together with the daily rest period, is 35 consecutive hours; in any case, it must cover the period from 6 a.m. to 11 p.m.

       

      The substitute day off must not fall on a day on which the employee usually takes their day off. Compensatory time off for up to 5 hours of work done on Sundays must be made within 4 weeks.

       

      Overtime Work on Sunday – Overtime work may be performed on Sundays and in excess of the permissible daily working time if it is temporary work in emergencies that occur independently of the will of the person concerned and the consequences of which cannot be eliminated in any other reasonable way. Overtime work that exceeds the permissible daily working time must be compensated for by the free time of the same duration within 6 weeks. Employment Act, Art 20.

      Public Holidays

      The following are 13 paid public holidays –

          • New Year’s Day (January 1)
          • Epiphany (January 6)
          • Easter Monday (April 5)
          • Labor Day/May Day (May 1)
          • Ascension Day (May 13)
          • Whit Monday (May 24)
          • Corpus Christi (June 3)
          • Assumption of Mary
          • Birth of Mary
          • All Saints’ Day (November 1)
          • Feast of the Immaculate Conception (December 8)
          • Christmas Day (December 25)
          • St. Stephen’s Day (December 26)

      In addition to public holidays, there are church holidays. They are Maria Candlemas, St. Joseph’s Day as well as Good Friday, Christmas Eve, and New Year’s Eve.

       

      If two or more public holidays fall in one week, the consecutive weekly rest period of 35 hours can be reduced once to 24 hours. If a public holiday falls on an annual leave or day off, employees are not entitled to another day off.If public holidays fall on your days off, you are not entitled to make up for the public holidays. This applies to full-time and part-time employment.

       

      Pay – If the employee works on a public holiday, they shall be entitled to a premium of 100 % on the hourly wage payable along with a compensatory rest day. In the case of retail stores and service stations, a premium of 50 % on the hourly wage must be paid.

       

      Compensatory Rest – An employer who works in public is entitled to another rest day preceding or the following week. Employees who work on Public Holiday may not count such Holidays that fall within their vacation time as statutory leave.

       

      Employees who work on a public holiday equivalent to a Sunday are to be credited with the proportional reduction in the maximum weekly working time in the week in which the substitute day off for the holiday is granted.

       

      Overtime Work on Public Holiday – Overtime work may be performed on a public holiday and in excess of the permissible daily working time if it is temporary work in emergencies that occur independently of the will of the person concerned and the consequences of which cannot be eliminated in any other reasonable way. Overtime work that exceeds the permissible daily working time must be compensated for by the free time of the same duration within 6 weeks. Labor Act, Art 19, Employment Act, Art 18.

      Annual Leave

      Employees who work for 5 days a week are entitled to receive at least 20 paid leaves annually. Employees who work for 6 days a week are entitled to 24 paid leaves annually.

       

      Employees aged 20 years or below are entitled to receive at least 25 paid and annual leaves. Disabled employees are entitled to 5 additional leaves.

       

      Apart from the paid leaves, employees are allowed to request additional leave. The employers are required to consider the request. They might only reject this request if the company needs a particular employee at work during that period or if another employee’s request for leave is more urgent.

       

      If an employee falls ill during the course of annual leave, the sick days shall be counted as vacation days. Unused paid leaves can only be transferred to the following year if there is a strong reason. In the next year, the employee is required to use up those leaves by March 31.

       

      Termination: A company is required to compensate the employee for unused paid leaves if the latter decides to leave the company.

      Special Leave

      Sick Leave

      Employees are entitled to receive leaves from the second day of being sick to the day they get back to work. However, sick allowance is paid for up to 720 days in 900 consecutive days. Employees are also allowed to take up to 3 days of leave in case they want to look after an unwell family member. Law of November 24, 1971, on Health Insurance (KVG), 14.

       

      Family Responsibility Leave

      When determining working hours and rest periods, special consideration must be given to employees with family responsibilities. Family responsibilities include bringing up children up to the age of 15 and caring for relatives or people close to you who are in need of care.

       

      These employees may only be used for overtime work with their consent. At their request, they are to be granted a lunch break of at least one and a half hours. Employment Act, Art 36.

       

      Maternity Leave

      Pregnant employees are entitled to receive 20 weeks of sickness benefit. However, at least 16 weeks out of this should be taken after childbirth.

       

      Women who have recently given birth may not be employed for 8 weeks after the birth. Pregnant women may not be employed between 8 p.m. and 6 a.m. from the eighth week before birth. The employer is obliged, if possible, to offer pregnant women who are employed between 8 p.m. and 6 a.m. equivalent work between 6 a.m. and 8 p.m. starting in the 8th week before the birth. This obligation also applies to the remainder of the pregnancy and to the period between the 8th and 26th week after the birth if the employee certifies with a medical certificate that this is necessary for the employee’s health or the health of the child.

       

      Pregnant employees are entitled to receive income-related benefits of up to 80% of the lost wage provided that the mother at least 9 months before the birth is insured. Employment Act, Art 35, Law of November 24, 1971, on Health Insurance (KVG).

       

      Parental Leave

      Employees are entitled to unpaid parental leave of 4 months. It can be full-time, part-time, part-time or hourly. The employment relationship must have lasted more than 1 year to be eligible for the leave. The employee can take parental leave up to the full of the child’s 3rd year of life. For adoptive or foster parents, parental leave can be claimed until the child reaches the age of 5. Parental leave must be given to the employer within a period of at least 3 months. The employer can request that parental leave be postponed for legitimate operational reasons. https://www.llv.li/files/onlineschalter/Dokument-2024.pdf

       

      Care Leave

      In the event of illness or an accident involving family members living in the same household, the employee has the right to take up to 3 days off per nursing case upon presentation of a medical certificate. These days are paid. https://www.llv.li/files/onlineschalter/Dokument-2024.pdf

      Disclaimer: The material provided above is for informational purposes only and is subject to change. We endeavor to keep all material up-to-date and correct but make no representations about the information's completeness, accuracy, or reliability. Laws vary by jurisdiction and are subject to change and interpretation based on individual factors that may differ between organizations. The material is not meant to constitute legal advice and we suggest you seek the advice of legal counsel in connection with any of the information presented.