Labor legislation in Andorra

Have you wondered what labor legislation in Andorra offers to foreigners? According to Law 31/2018 from December 2018, both contract parties have equal rights and obligations. Keep in mind that Andorra’s economy mainly focuses on tourism and trade – something that generally has favorable results concerning working legislation. We have outlined an overview of the most decisive factors for you to consider.

Andorra has become an attractive place for relocation. Due to its low corporative taxes and low VAT regulations, plenty of foreign companies have already settled their headquarters in the Principality. Their benefits range from having favorable tax conditions, but also profiting from low infrastructure costs as well as enjoying a privileged location in the middle of Europe. Though moving to Andorra is also a decision that merits an in-depth analysis on working conditions, rules and obligations. Here are the four most important things to know about the current labor legislation for foreigners.

As most countries Andorra’s ordinary statutory working time for employees is 40 hours of actual work per week. A prior seven calendar days’ notice is due upon any weekly hour adjustment related to operational reasons. This does not necessarily apply to managers or executives who have agreed upon different arrangements with their company. Additionally, during a working day of six uninterrupted hours or more, every employee is entitled to at least a 30-minute paid break. For working days of six or more hours with interruptions, the rest period must be at least one hour and unpaid. A maximum of 10 working hours per day and a maximum of 48 hours per week are established. Annually working hours must be kept under 1800. In case of overnight work, the payment increases 20%, if no other agreement with the employer has been agreed upon.

In 2023 the minimum wage is at € 1286.13 per month. Amongst the employee deductions, there is a 6.5% Social Security payment. The employer pays 15.5%. Agreeing upon other bonuses, incentives or commissions with the company is always a possibility – depending on the job.

Employees may agree to overtime up to a maximum of 12 hours per week, 48 hours per month and 426 hours per year. For general overtime, if there is no company agreement or collective bargaining agreement, there is a minimum 40% surcharge of the fixed salary for each hour.Keep in mind, that the normal length of a working day should not exceed 12 hours.

There are only four mandatory bank holidays in Andorra: New Year’s on 1 January, the Andorran Constitution Day on March 14, the Feast of Our Lady of Meritxell on September 8 and Christmas on December 25 (These days do not apply to the touristic and medical sector). Additionally,  the company is responsible for setting parish holidays, depending on the company’s registered office or the employee’s place of work. In any case, the annual total of parish holidays may not be less than the number of days set by the Comú of the parish where the company is based.

Should the employee work on a mandatory bank holiday, he or she is entitled to two days off for compensation.

The employee has the right to a minimum of 30 calendar days of holidays per year, always calculated in relation to annual working hours. By company agreement or collective bargaining agreement, or if agreed between employer and employee, the 30 calendar days per year can be converted to 22 working days per year. He or she is obliged to take his/her holidays during the same year. In some cases, free days can be transferred to the first quarter of the next year.