Andorra: An Overview of Labor Laws and Employment Policies

Overview of Employment Law

• Key Legislation:
  • Labor Relations Act (Llei de relacions laborals)
  • Social Security Act (Llei de la Seguretat Social)
• Legal Characteristics:
  • Aims to protect employee rights and promote employment.
  • Sets standards for minimum wage, working hours, vacations, and severance pay.

Employment Contract Requirements

• Contract Types:
  • Fixed-term contracts
  • Indefinite-term contracts
• Contractual Clauses:
  • Must include provisions on job description, remuneration, working hours, vacations, and termination conditions.
• Language and Currency:
  • Contracts must be in Catalan and denominated in Euros.

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: At least 1 rest day per week, and at least 12 hours of rest after each workday.

Vacation Policy

• Annual Leave: 30 days of paid annual leave per year.
• Public Holidays: 15 statutory public holidays.
• Special Leaves:
  • Sick leave: 12 months, extendable up to 3 years.
  • Maternity leave: 16 weeks, extendable to 18 weeks for complications or multiple births.
  • Paternity leave: Up to 14 days within 6 months.

Employee Severance and Contract Termination

• Notice Period:
  • 1 day of notice per month of service after 6 months, up to a maximum of 90 days.
• Severance Pay:
  • 1.5 days of salary per month of service after 6 months, up to a maximum of 270 days.
• Protection Against Unfair Dismissal:
  • Employers must have a valid reason to dismiss an employee.

Taxation

• Personal Income Tax:

  • Salary Range (Euros)	Tax Rate
    0 - 24,000	0%
    24,001 - 40,000	5%
    40,000 and above	10%

• Social Security Contributions: 15.5%

Health Insurance

• Insurance Policy: State-funded universal healthcare.
• Coverage: Basic medical services.

Compensation and Benefits

• Minimum Wage: €5.63 per hour.
• Salary Structure: Typically includes base salary, bonuses, and allowances.

Work Permits and Visas

• Permit Requirement: Non-Andorran citizens require a work permit.
• Application Process: Apply through the Andorran Immigration Department.

Confidentiality and Non-Compete Clauses

• Enforceability: Enforceable, but must be reasonable and related to the job.
• Common Clauses: Confidentiality, non-competition, and non-solicitation.

Training and Development

• Legal Requirements: Safety training and skills enhancement.
• Government Support: Government-funded training programs available.

Workplace Diversity and Inclusion

• Legal Requirements: Prohibits discrimination based on race, gender, religion, or disability.
• Enforcement: Equal Opportunities Commission responsible for enforcement.

Remote Work Policy

• Legal Framework: Remote work is permitted, but must comply with labor laws.
• Tax and Insurance Implications: Remote work may impact taxation and social security.

Key Website Addresses

• Andorran Ministry of Labor: https://www.treball.ad/