The posting of employees whose employer is based abroad to Liechtenstein is governed by the Act of 15 March 2000. It regards the posting of workers in the context of cross-border service contracts (Entsendegesetz; EntsG). Moreover, there is the Ordinance of 10 December 2019 on the Posting of Workers Act (Entsendeverordnung; EntsV).
Although Liechtenstein is not a member of the European Union, its legislation on transnational posting reflects the European standards. They are laid down in the EU Posting of Workers Directives and, in particular, in Directive 96/71/EC.
Preliminary obligations for the posting of workers in Liechtenstein
In Liechtenstein, the notification procedure is divided into two steps.
Step 1
On 1 January 2021, the new Trade Act (Gewerbeverordnung; GewV) entered into force in Liechtenstein. It contains, among other things, the innovation that only “qualified” professions must be notified.
According to Article 28 of the Trade Act, service providers of a qualified trade activity must notify the Office of Economic Affairs in writing before providing a service in Liechtenstein for the first time.
In order to proceed with this authorisation for qualified activities, an employer must enclose:
- a copy of the company’s Chamber of Commerce certificate, not older than 3 months, translated and legalised in English/German,
- a copy of an identity document of the person responsible (owner of the business/delegated manager/other person with signatory powers) and
- proof of the professional qualification of the person responsible.
Qualified professions
Pursuant to Section 15 of the Trade Act, the professional qualification is held by a person who meets one of the following requirements:
- has successfully completed a specialised higher education closely related to the trade exercised. Higher technical education is defined as study and training courses at universities or technical colleges;
- has successfully completed two to four years of basic vocational training in the relevant trade, followed by two years of practical work in the relevant trade;
- has completed three years of practical work in the relevant trade followed by the successful completion of two to four years of basic vocational training in the relevant trade;
- has passed the matura examination followed by five years of practical work in the relevant trade; or
- has at least eight years of practical experience in the relevant trade.
In addition to the above, a copy of the certificate of registration with the municipality of residence of the person responsible (owner of the business/managing director/other person with signatory powers) must be attached to the notification.
Step 2
The posting company shall notify the assignment at the latest one day before the commencement of work in Liechtenstein. The EMS portal (Elektronischen Meldesystem – “EMS”) is the means of transmission. The posting company has a quota of 90 days within a year to use for transnational posting notifications in Liechtenstein.
Companies domiciled in the European Economic Area must notify all services prior to the commencement of activities. The notification obligation applies from the first day.
Additional obligations for the posting of workers to Liechtenstein
Foreign posting companies that provide services in Liechtenstein and achieve a total turnover of more than CHF 100,000 from non-tax-exempt services per calendar year (e.g. from installation activities or services within the scope of a labour and service contract) are subject to VAT and must complete a questionnaire for registration as a VAT taxpayer for foreign companies (Section 10 Mehrwertsteuergesetz; MWSTG).
It should be noted that Switzerland and Liechtenstein form a common VAT country. Foreign companies providing services in both Switzerland and Liechtenstein are registered in the VAT register of the Federal Tax Administration in Berne. Only companies that exclusively provide taxable services in Liechtenstein are registered in the Liechtenstein VAT register.
Working and wage conditions applicable during the posting of workers in Liechtenstein
During the posting in Liechtenstein, workers shall be guaranteed the national provisions concerning:
- maximum working hours and minimum rest periods,
- safety, health and hygiene at the workplace.
The Labour Act (ArG) and the relevant ordinances regulate these matters.
Minimum rates of pay, including overtime rates and reimbursement of expenses, must also be applied to posted workers.
Social security for workers posted to Liechtenstein
Workers posted to Liechtenstein may continue to be covered by the social security of the employer’s Member State.
The posting company must apply for an A1 certificate. The competent social security institution will issue it once it has received all the necessary information.
Sanctions for non-compliance with the law on the posting of workers to Liechtenstein
If a violation of the Posted Workers Act is suspected, the Office of the National Economy (AVW) initiates proceedings against the foreign company. If the violation is confirmed, the AVW issues an administrative penalty order or an administrative penalty decision.
In the event of repeated violations, the AVW may impose a posting ban and thus prohibit the posting party from posting employees to Liechtenstein for a period of up to five years.