Labor legislation in Andorra
Have you wondered what labor legislation in Andorra offers to foreigners? According to Law 35 from December 2008, 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.
1. Working hours
As most countries Andorra’s working week comprises 40 hours. A prior fifteen-day 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, every employee is entitled to a 30-minute break on every 6-hour-working-period. Weekly working hours, including overtime, can never surpass a weekly amount of 60 hours. Also, the maximum hour’s length per day being 12 hours. Annually working hours must be kept under 1800.
In 2020 the minimum wage stood at € 1083.33 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.
In case of overnight work, the payment increases 20%, if no other agreement with the employer has been agreed upon. For general overtime, the following rule applies. 25% surcharge for up to four hours, 50% for hours ranging between four and eight and 75% for any other hour afterwards. 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). Should the employee work on a mandatory bank holiday, he or she is entitled to two days off for compensation. If compensation days are not given, the employer needs to provide triple remuneration.
The employee has the right to 23 days of holidays, always calculated in relation to annual working hours. 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.
Do you have any questions regarding labor legislation in Andorra? Then please do not hesitate to contact us.