Labor law in Liechtenstein

An employment relationship begins when employer and employee agree on work in return for pay. The parties can generally agree the contract freely, but mandatory provisions of the ABGB, public labor law, an applicable collective agreement, a generally binding collective agreement or a normal employment contract take priority. The employer should document the essential conditions in writing, including the work, pay, working time, start date, holidays, notice rules and any applicable collective agreement. The statutory probation period is one month; a written extension can last up to three months. A competition restriction is valid only when its legal requirements are met. The employee owes the agreed work, follows lawful instructions, works carefully, protects confidential information and reports an inability to work. The employer owes pay, care, equal treatment, health protection, correct payroll processing and the required insurance and social insurance notifications. The employer also has duties concerning accident insurance and working-time records. The Labor Act and its regulations limit working time and protect rest periods. The maximum weekly working time is 45 hours for industrial employees, office staff, technical employees and large-scale retail employees, and 48 hours for other employees. Employees aged 15 to 17 generally have a 40-hour limit. Rules also cover breaks, daily and weekly rest, overtime, night work, Sunday work, shift work, on-call duty and required permits. Day work generally falls between 6:00 and 23:00. Including breaks and overtime, individual daily working time may not exceed 13 hours under the applicable rules. Special protection applies to young employees and to pregnant or breastfeeding employees. Liechtenstein has no general statutory minimum wage. Pay is generally agreed by the parties, but a collective agreement or generally binding collective agreement can set binding minimum wages and working conditions for a sector. Where no generally binding collective agreement applies, the Tripartite Commission can examine locally and sectorally customary pay when it suspects abusive undercutting. A thirteenth-month payment exists only where the contract, collective agreement or another applicable rule provides for it. For 2026, employee and employer contributions include AHV at 4.025% and 4.225%, IV at 0.675% each, FAK at 0.2% for employees and 1.9% for employers, and an employer contribution to the prevention contribution at 0.585%. ALV contributions are 0.5% for each side up to a salary share of CHF 126,000. The employer records deductions, prepares the payslip and submits the required notifications. Employees receive at least four weeks of annual holiday per year and five weeks until the end of the calendar year in which they turn 20. At least two holiday weeks should be taken together. Holiday pay remains due, while a longer absence can lead to a statutory reduction under the applicable rules. Public-holiday pay differs according to the form of pay and the applicable agreement. Continued pay during illness, accident or another involuntary absence and short absences depend on the ABGB, the contract and any collective agreement. The employer has to protect health and safety, provide suitable working conditions and manage risks connected with work equipment, the work environment and personal protective equipment. Psychosocial risks, monitoring, bullying and sexual harassment also fall within workplace protection. The statutory accident insurance system covers occupational risks under its applicable conditions. The Gender Equality Act prohibits discrimination based on sex, including pregnancy and maternity, in access to work, working conditions, pay and termination. The rules also protect equal pay. Measures supporting integration and work capacity under disability insurance can be relevant, but they do not create a general protection against dismissal. Workplace monitoring and employee data processing require proportionality and compliance with data-protection rules. The Employee Participation Act provides information, consultation and participation rights through employee representation. Where no representative exists, employees may have direct participation rights in some matters. Trade unions and employer associations act as social partners and negotiate collective agreements. A collective agreement can provide for a conciliation or arbitration body, but representation is not automatic in every company. An ordinary dismissal follows the ABGB, the contract and any applicable collective agreement. During probation, the notice period is seven days to the end of a working week. After probation, the period generally begins on the first day of the following month and ends at the end of a month, but the exact period depends on length of service and the applicable rule. Immediate termination requires a serious reason. Blocking periods can restrict dismissal during illness, an accident, pregnancy and other legally protected situations. An abusive dismissal generally leads to compensation rather than automatic invalidity. The final settlement should address pay, holiday, public-holiday, overtime and extra-hours balances, and the employer should provide an employment certificate. An termination agreement should be checked for outstanding claims, insurance effects and notice consequences before signing. A mass dismissal covers at least 20 employment relationships within 90 days for operational reasons; the employer has to consult employees or their representation early, notify the Amt für Volkswirtschaft in writing and generally observe at least 30 days after notification before the dismissals take effect. Private pay and contract claims belong before the ordinary courts, normally the Landgericht. The Amt für Volkswirtschaft and its Labour Inspectorate handle public labor law, working and rest time, workplace protection, permits and generally binding collective agreements. The AHV-IV-FAK institutions handle social insurance affiliation, contributions and notifications. Discrimination disputes under the Gender Equality Act and participation disputes under the Employee Participation Act may involve special conciliation requirements or contractual conciliation and arbitration bodies. Supervision by the Labour Inspectorate does not replace a court claim for unpaid wages. Preserve the contract, collective agreement, payslips, working-time records, holiday records, illness or accident evidence and the dismissal letter. Notice, conciliation, court, exclusion and limitation periods vary by claim, so no single deadline applies to every labor dispute. Authorities may handle some contacts without fees, while court, legal and procedural costs can arise; legal aid may be available under civil-procedure rules. Liechtenstein is part of the EEA and EFTA. A cross-border employee, posted employee, person working from home across a border or person working in several countries may require separate checks of applicable labor law and social insurance law. The coordination rules under Regulations 883/2004 and 987/2009 or relevant agreements can determine AHV, IV, FAK and other social insurance affiliation. Posted workers must observe Liechtenstein minimum conditions, generally binding collective-agreement wages, working and rest times, notification and documentation duties. Residence and work permits and tax law are separate questions from labor law. Liechtenstein has no separately established labor court as the standard institution; ordinary courts, the Amt für Volkswirtschaft and the relevant conciliation bodies perform the documented functions. A reform proposal on ABGB transparency and predictability dated 7 July 2026 is not currently applicable law.