In Liechtenstein, the law stipulates minimum notice periods that employers must follow when terminating an indefinite employment contract. These notice periods are determined by the employee's length of service.

Notice Periods According to Length of Service

During the probationary period, the employment relationship can be terminated with a seven-day notice period, effective at the end of a workweek. However, during this period, there's no protection against dismissal due to illness, accident, or pregnancy.

After the probationary period, the following minimum notice periods are applicable:

• 1st Year of Service: One month, ending at the end of a month.
• 2nd to 9th Year of Service: Two months, ending at the end of a month.
• 10th Year and Beyond: Three months, ending at the end of a month.

Alterations to Minimum Notice Periods

The statutory notice periods can be lengthened through an employment contract, but they cannot be reduced below the legal minimums. Collective bargaining agreements may also stipulate different notice period requirements.

In Liechtenstein, there is no general legal requirement for employers to provide severance pay when terminating an employment contract. This is because the Labor Act of Liechtenstein does not mandate severance pay upon termination of employment.

Possible Exceptions

However, there are some exceptions to this rule:

• Contractual Agreements: Employment contracts may contain provisions for severance pay. These agreements would be legally binding on both the employer and the employee.
• Collective Bargaining Agreements: Collective bargaining agreements may stipulate severance pay entitlements in specific sectors or industries.
• Specific Circumstances: In rare instances, courts might award limited severance pay in cases of particularly unfair dismissals, but this is not a guaranteed entitlement by law.

Considerations

Employees in Liechtenstein should carefully review their employment contracts and understand any provisions related to severance pay upon the termination of employment.

In Liechtenstein, the termination of an employment relationship can be initiated by either the employer or the employee, provided they adhere to the correct procedures.

Types of Termination

There are three types of termination:

• Ordinary Termination: This occurs when either party decides to terminate the employment contract by providing written notice.

• Termination Without Notice: This type of termination can be initiated by either the employer or the employee without any notice if there's a legally justified "good cause". Good cause exists when the terminating party can no longer be reasonably expected to continue the employment due to reasons such as serious misconduct or contractual violations.

• Mutual Agreement: In this case, both the employer and the employee mutually agree to terminate the employment contract. This agreement is usually written and can specify a termination date earlier than the standard notice period.

Notice of Termination

The termination notice must be in writing to be effective. The content of the termination notice does not generally require a statement of reasons unless specifically requested by the other party.

Protection Against Dismissal

Employees in Liechtenstein are protected against dismissal in certain circumstances. These include during protected periods such as illness, accident, pregnancy, military service, and other periods as defined by law. A dismissal can also be considered abusive if it violates good faith principles, such as discrimination, retaliation, or reasons stemming from the employee's personality.

Important Considerations

Employment contracts and collective bargaining agreements may contain additional provisions and requirements regarding employment termination. Therefore, employers should consult legal professionals to ensure compliance with all applicable laws and regulations when terminating an employee in Liechtenstein.