LIECHTENSTEIN Law and Practice Contributed by: Hannes Arnold, Thomas Nigg, Christina Pointner, Sebastian Auer, Johannes Sander, René Saurer and Marta Baftiaj, Gasser Partner
4.3 Working Time Working time in Liechtenstein must be considered on two levels: the employment contract determines the contractually owed scope of work, while public-law occupational health and safety regulations safeguard maximum limits, breaks and rest periods. Working time may be defined contractually “by unit of time”, “by output” or “by area of work”. In addition, statutory employment law rules protect against overexertion (for example through provisions on maximum dura - tion and mandatory breaks) as well as social contacts, such as the prohibition of Sunday work and the prohi - bition of night work. For the purposes of Liechtenstein law, a distinction should therefore be drawn between contractual normal working hours, overtime ( Übers- tunden ) and public-law excess hours ( Überzeit ). The ABGB regulates overtime as work performed beyond the agreed, customary or collectively agreed scope. Under the ABGB, an employee is only obliged to work overtime insofar as they are able to do so, and it can reasonably be expected of them in good faith. This rule is of considerable practical importance: employers cannot order additional work without limit; reasonableness, capacity and good faith constitute the boundary. Responsibility for compliance with working time law remains with the employer. Overtime may be compensated either by time off in lieu or by monetary payment. The ABGB permits, with the employee’s consent, compensation “by time off of at least equal duration”. Where no time off in lieu is granted and nothing to the contrary has been agreed in writing or regulated by a standard or collec - tive employment agreement, the employer must pay “wages” calculated on the basis of the normal wage plus a supplement of at least one quarter. 4.4 Termination of Employment Contracts Liechtenstein does not operate an “employment at will” system. Although an indefinite employment rela - tionship is subject to relatively free ordinary termina - tion, it is bound by statutory notice periods, protection against abusive dismissal and blocking periods. An indefinite employment relationship may be terminated by either party. A statement of reasons is not auto - matically required but must be provided upon request.
to align its own law with the legal position actually prevailing there. However, Liechtenstein is not rigidly bound to the interpretation of the country of reception and may adopt its own interpretations where compel - ling reasons so warrant. In addition, European law provisions in the field of social security influence substantive Liechtenstein employment law, particularly with regard to continued payment of wages. These provisions have an autono - mous character that takes precedence over the Act on Private International Law (IPRG). The sources of Liechtenstein employment law thus comprise statutory law (§ 1173a FL-ABGB as the cen - tral provision), case law (both domestic and Swiss and Austrian jurisprudence as interpretive aids), European law requirements, and, additionally, individual employ - ment agreements and, where applicable, collective bargaining agreements. 4.2 Characteristics of Employment Contracts The employment contract is directed at the perfor - mance of personal work in return for remuneration. The law also makes clear that regular part-time work is covered. An employment contract does not, in principle, require any particular form and may therefore also be con - cluded orally or by implied conduct. In practical terms, this means that an employment relationship can come into existence even without a written contract where a person actually works in the service of an employer and remuneration is to be expected. The ABGB pro - vides in this regard that the contract is also deemed concluded “where the employer accepts work in his service for a period of time, the performance of which, in the circumstances, is only to be expected in return for remuneration”. Nevertheless, the employer is subject to written infor - mation obligations. Employees who are employed for at least one month or who work part-time for at least eight hours per week must be informed within two months of commencement of the employment rela - tionship of the conditions applicable to it.
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