Last updated on: February 24th, 2023
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
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.
There is no fixed minimum wage that employers need to provide to the employees in Liechtenstein. However, bonuses are a common part of the work culture. Generally, employees receive an extra month’s salary as a bonus.
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.
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.
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).
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
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