Liechtenstein's employment laws govern the termination of employment contracts, outlining the rights and responsibilities of both employers and employees. Understanding these regulations is crucial for ensuring compliance and avoiding potential disputes. The termination process, including notice periods, severance pay, and grounds for dismissal, must adhere to specific legal requirements to be considered lawful.
Terminating an employment relationship in Liechtenstein requires careful attention to detail. Employers must follow established procedures, provide adequate notice, and, in some cases, offer severance pay. Employees, on the other hand, are protected against unfair dismissal and have the right to challenge terminations that do not comply with the law.
Notice Periods
The required notice period for terminating an employment contract in Liechtenstein depends on the employee's length of service. The law specifies minimum notice periods that employers must observe. These periods ensure that employees have sufficient time to find new employment.
| Length of Service | Notice Period (Employer) |
|---|---|
| Less than 1 year | 1 month |
| 1 to 9 years | 2 months |
| 10+ years | 3 months |
These notice periods are generally reciprocal, meaning they apply to both employers and employees. However, the agreement may specify longer notice periods for the employer. Notice must be given in writing.
Severance Pay
Severance pay is not generally mandated by law in Liechtenstein. However, it may be required under certain circumstances, such as when an employee is terminated after many years of service or when it is stipulated in the employment contract or a collective bargaining agreement.
- No statutory entitlement: There is no general legal requirement to pay severance.
- Contractual or collective agreements: Severance may be required based on the employment contract or applicable collective agreements.
- Long service: In some cases, courts may award severance based on long service and the specific circumstances of the termination.
Grounds for Termination
An employment contract can be terminated with or without cause. Termination with cause (also known as "summary dismissal") is permitted only under specific circumstances, while termination without cause requires adherence to the applicable notice periods.
Termination With Cause
Termination with cause is permitted when an employee commits a serious breach of contract that makes it unreasonable to continue the employment relationship. Examples include:
- Theft or fraud
- Gross misconduct or insubordination
- Disclosure of confidential information
- Repeated failure to perform job duties
The employer must provide written notice of the termination with cause, clearly stating the reasons for the dismissal. The employee must be given an opportunity to respond to the allegations.
Termination Without Cause
Termination without cause is permitted as long as the employer complies with the applicable notice periods. The employer does not need to provide a specific reason for the termination, but it must not be discriminatory or otherwise unlawful.
Procedural Requirements
To ensure a lawful termination, employers must follow specific procedural requirements:
- Written Notice: The termination notice must be in writing and delivered to the employee.
- Reason for Termination (With Cause): If the termination is for cause, the notice must clearly state the reasons for the dismissal.
- Opportunity to Respond (With Cause): The employee must be given an opportunity to respond to the allegations before the termination takes effect.
- Compliance with Notice Periods (Without Cause): The employer must comply with the applicable notice periods.
- Consultation (If Applicable): If a collective bargaining agreement applies, the employer may be required to consult with the employee's representative before the termination.
Employee Protections
Liechtenstein law provides employees with several protections against wrongful dismissal:
- Protection Against Discrimination: Termination based on discriminatory grounds (e.g., race, gender, religion, sexual orientation) is unlawful.
- Protection During Illness or Accident: Employees are generally protected from termination during periods of illness or accident, subject to certain limitations.
- Protection During Pregnancy: Pregnant employees are protected from termination during pregnancy and for a certain period after childbirth.
- Right to Challenge Termination: Employees have the right to challenge a termination in court if they believe it was unlawful.
Employees who believe they have been wrongfully dismissed can file a claim with the court. The court may order the employer to reinstate the employee, pay compensation, or both.
