Liechtenstein (LI)
Liechtenstein is a tiny constitutional principality nestled between Switzerland and Austria — one of only two doubly landlocked countries in the world — yet it punches far above its 39,000-person weight as one of the wealthiest nations on earth per capita.
Employment Rights
Sick leave, dismissal protection and red flags in Liechtenstein.
Employment in Liechtenstein is governed by the Gesetz über das Dienstverhältnis des Privatpersonals (Dienstvertragsgesetz — DVG), aligned closely with Austrian and Swiss labour law. The labour market is small — approximately 38,000 jobs for a population of 39,000 (many held by cross-border workers from Austria and Switzerland). Trade unions exist but union density is lower than in Austria or Germany. The Gewerbe- und Wirtschaftskammer Liechtenstein (Chamber of Commerce) and the Arbeiterkammer Vorarlberg (for Austrian cross-border workers) provide employment advice. Minimum standards are strong and employer compliance is high in this reputation-conscious principality.
Sick leave
Rules: Employees who cannot work due to illness (Krankheit) must notify their employer immediately on the first day of absence. A medical certificate (Arztzeugnis) is required from day 1 at most employers (some allow 3 days before requiring a certificate — check your employment contract). Sick leave rights escalate with tenure.
Doctor note: Day 1 (immediate notification required; certificate typically required by day 1 or day 3 — as specified in employment contract)
Employer pay: During probation: no sick pay beyond what Krankenpflegeversicherung covers. After 1 year of employment: employer pays full salary for a minimum of 3 weeks during sickness. After multiple years: progressively longer periods (typically 30 days after 5 years, 60 days after 10 years — check collective agreement or contract). After employer's obligation ends: Krankentaggeld (daily sickness allowance) from health insurance if you have Zusatzversicherung.
Long-term: For long-term illness beyond employer's sick pay period: Krankentaggeld insurance (if held) covers up to 80% of salary. After 720 days of incapacity: IV (Invalidenversicherung — disability insurance) assessment and potential disability pension from AHV/IV-Anstalt.
Dismissal protection
Law: Employees have protection against arbitrary dismissal under the Liechtenstein Dienstvertragsgesetz (DVG). Dismissal must comply with notice periods. "Abusive dismissal" (missbräuchliche Kündigung) — dismissal motivated by protected characteristics (illness, pregnancy, union activity, disability, exercising a legal right) — entitles the employee to compensation of up to 6 months' salary even if dismissal is technically valid. Immediate termination (fristlose Kündigung) without notice is only lawful for serious cause (Wichtiger Grund — theft, serious breach of trust, etc.).
Deadline to sue: Challenge to abusive dismissal: must be raised in writing to the employer within 30 days of dismissal notice. Employment court claim: within 3 months of termination. Wage claims (unpaid salary): 5-year limitation period.
Probation
Standard probation period (Probezeit): 1 month. Can be extended to maximum 3 months by written agreement in the employment contract. During probation: 7 calendar days notice on either side (employee or employer), without stating reasons. After probation ends: full statutory notice periods apply.
Notice periods
Year 1: 1 month. Years 2–9: 2 months. Year 10+: 3 months. All notice periods calculated to end of calendar month (not a date within the month). Employer and employee may agree longer notice periods in the contract. Shorter notice during probation: 7 calendar days.
Working time
Max hours: 45 hours/week for white-collar workers; 50 hours/week maximum with overtime. Standard working week in most industries: 40–42 hours. The Arbeitsgesetz (ARGB) governs maximum working time including overtime.
Min rest: 11 consecutive hours of daily rest required between shifts. Minimum 36 hours uninterrupted weekly rest (typically Sunday in most sectors).
Overtime: Overtime (Überstunden) above the contractual hours must be compensated either as time off in lieu (1:1 or 1:1.5 rate) or as salary supplement (typically +25%–50% above regular hourly rate). Check your employment contract and applicable collective agreement (GAV) for specific rates. Many salaried professional employees have an "all-in" salary that includes reasonable overtime.
Vacation
Minimum statutory annual leave: 20 working days (4 weeks) per year. Most employment contracts in Liechtenstein provide 25 days (5 weeks) — standard for most professional and technical roles. 13 public holidays apply additionally. Holiday pay: all annual leave must be paid at full salary. Unused leave carries over to the following year (maximum carryover limited by agreement, typically 10 days). On termination, accrued unused leave must be paid out.
Anti-discrimination
The Liechtenstein Gesetz über die Gleichstellung von Frau und Mann (Gender Equality Act) prohibits gender-based discrimination in hiring, salary, and promotion. The Allgemeines Gleichbehandlungsgesetz (AGG — General Equal Treatment Act) prohibits discrimination on grounds of ethnicity, religion, disability, age, and sexual orientation. Workplace harassment (Mobbing) is addressed under civil law obligations. Enforcement: through the Arbeitsgericht (employment court) and complaints to the Gleichstellungsbüro (Office for Equality).
Contract red flags
- !No written employment contract — legally required in Liechtenstein; verbal contracts are valid but provide insufficient evidence in disputes.
- !"All-in" salary clauses that make unlimited overtime effectively unpaid — should specify a reasonable maximum or compensated threshold.
- !Probation period longer than 3 months — illegal in Liechtenstein.
- !Non-compete clauses (Konkurrenzverbot) that are overly broad in time (more than 2 years), geography (entire industry), or subject matter — challengeable in court.
- !Absence of 13th month salary for positions where it is standard in the industry (most Liechtenstein/Swiss professional roles).
- !Vague or absent sick leave provisions — employer obligations must be clear.
- !Clause requiring repayment of training costs even for standard induction training — only specialist education with significant investment is legally recoverable.
Employment Rights
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