Liechtenstein has liberal labour laws offering companies flexibility and workers challenging positions with attractive working conditions and excellent development potential.
Liechtenstein offers companies interesting framework conditions to do business. These are characterised by low associated labour costs and high levels of productivity resulting from the above-average number of working hours per week in Liechtenstein. Unlike other countries, the right of workers to participate in administration is implemented in a business-friendly manner.
Employing members of staff who do not live in Liechtenstein but in one of the border regions is simple and not bureaucratic. Swiss citizens do not require a permit issued by the immigration authorities and do not have to register in Liechtenstein. Workers from EEA states must register with the Migration and Passport Office, which will then issue a document confirming their status as cross-border commuters. Citizens of other countries must apply to become cross-border commuters. This status as a cross-border commuter from a third country is valid for a year and is also issued by the Migration and Passport Office.
Labour provisions in Liechtenstein are based on the General Civil Code (ABGB) and the Law on Labour in Industry, Manufacturing and Trade, abbreviated to Labour Law (ArG). They set out the rights and duties of employers and employees when it comes to working hours, pay, gender equality, holiday, leisure time, pensions, insurance, protective measures, dismissal and other issues. Labour provisions are divided into three main categories: provisions on individual employment contracts (individual labour law), provisions on collective agreements (collective labour law) and provisions on public labour law.
Collective agreements (Gesamtarbeitsverträge, GAV) form the legal basis for all working relationships in a specific sector. They normally determine working hours, holidays, periods of notice and minimum wages. Such agreements are negotiated for a specific duration between, on the one hand, the Liechtenstein Chamber of Commerce and Industry and the Liechtenstein Chamber of Trade and Commerce and, on the other hand, the Liechtenstein Employees Association. The government has the power to declare collective agreements to be generally applicable, meaning that all employers must adopt the provisions set out in them. The foundation SAVE and its associated ZPK commission is responsible for monitoring and implementing such generally applicable collective agreements