Posting of employees

Overview

Existence of a posting

A posting exists if  an enterprise with its registered office abroad posts employees to the Principality of Liechtenstein within the framework of a cross-border provision of services and, in so doing, an employment relationship exists between the posting enterprise and the employee for the duration of the posting and the work performance takes place:

a) in the name, for the account and under the direction of the posting employer under a contract concluded between him and the recipient of the service in the Principality of Liechtenstein; or

b) in an establishment owned by the posting employer or with which the employer is economically linked; or

c) within the framework of a temporary employment relationship or a legal relationship for the supply of temporary workers with place of employment in the Principality of Liechtenstein.

Obligations of the Employer

According to the Posted Workers Act, the posting employer must comply with the following obligations in particular:

• Duties to report: In principle, the posting employer must report each individual posting.
• Further duties to cooperate: The dispatcher has to ensure that for the attention of the control bodies for the duration of the posting at the place of deployment certain documents are carried. He has to submit documents for further controls and to cooperate with the control organs.
• Duty to comply with provisions on working and employment conditions: The sending party must grant the posted workers at least certain working and employment conditions applicable in Liechtenstein. This concerns, among other things, in particular the minimum wages stipulated in generally binding declared collective labor agreements (aveGAV) as well as provisions on working and rest times.

Control bodies

In the industries in which aveGAV applies, the Central Joint Commission (ZPK) is responsible for monitoring the above-mentioned obligations to cooperate and the provisions of the aveGAV to be complied with. The ZPK acts in a sovereign capacity and reports any infringement to the Office of Economic Affairs (AVW). The AVW is responsible for the remaining enforcement of the Posted Workers Act.

Duties and liability of the principal

The client - if he is for his part - an entrepreneur, is likewise obligated by the Posted Workers Act: If a posting party violates obligations under posting law, the principal may also be held liable under administrative criminal law under certain circumstances. He is also liable as guarantor and payer for the payment of the minimum wage to the posted employee. In the case of a transfer to a subcontractor, etc., the liability and criminal responsibility extend to each client as an entrepreneur in the order chain.

Sanctions and Procedures

Violations of the Posting of Workers Act result in administrative criminal proceedings at the Office of National Economy.

The posted employee may assert claims against his employer or the employer's principal as an entrepreneur under civil law before the ordinary Liechtenstein courts.

Note

In addition to the obligations under the law on the posting of workers, the obligations under the law on the registration of foreign nationals and the licensing requirements in particular must be observed. The Migrations and Passport Office is responsible for this.