Companies aren’t limited by physical borders anymore. You can hire from anywhere and expand your team with fresh perspectives from all over the world. In recent years, companies have been hiring from countries off the beaten track, such as Liechtenstein. However, finding the talent you need legally can be challenging.
An Employer of Record (EOR) offers a simple and straightforward way to hire and pay global talent legally. It provides everything you need to hire, onboard, and pay employees compliantly. Read on to learn all about hiring employees from Liechtenstein through an EOR.
Why Hire Talent in Liechtenstein?
Liechtenstein may be small, but what it lacks in size, it makes up for in talent. As one of the world's wealthiest countries and a member of the European Economic Area, Liechtenstein boasts a stable economy and a low unemployment rate. As a result, citizens have valuable work experience under their belt, and the country as a whole hasn’t been hit very hard by the worldwide skills shortage.
Liechtenstein’s thriving economy and geographical location enable citizens to travel to Switzerland, France, and Germany for higher education free of charge. Exposure to these prosperous European nations and the opportunity to study at their universities provides the people of Liechtenstein with valuable insight and a first-rate education.
The tech scene in Liechtenstein is also on the rise. Initiatives like Impuls Liechtenstein have helped strengthen the country's position as a tech hub and provided professionals with the resources they need to drive innovation. As a result, the tech talent pool in Liechtenstein is growing. If you’re in the market for skilled tech professionals, consider setting your sights on Liechtenstein.
How Can I Legally Hire an Employee in Liechtenstein?
If you want to hire talent in Liechtenstein on your own, things can get complicated. To hire in Liechtenstein, businesses must establish a local entity. The process can be a headache and is only worthwhile if you intend to practice business in Liechtenstein long-term.
EORs offer an easy, straightforward way to hire full-time employees from Liechtenstein. An EOR, like Borderless, serves as a middle person and facilitates the processes involved in global hiring. EORs already have an entity in place capable of hiring talent, onboarding them, and ensuring local compliance.
What Does an EOR Do?
EORs ensure you maintain strict compliance with local laws and regulations anywhere in the world. They remove the legal roadblocks involved in hiring globally so that you can focus on growing your business.
Hiring laws vary considerably around the world, and it’s critical to comply with them to avoid legal implications. EORs handle the following processes and ensure they’re fully compliant:
- Work visas and permits
- Employment contracts
- Onboarding
- Tax documentation and filing
- Payroll processing
- Employee benefits
- Intellectual property protection
- Termination
EORs handle all of the tedious administrative tasks associated with these processes. They generate compliant employment contracts, collect tax documentation, file it per local laws, and much more.
Employee Insurance and Benefits
It’s always important to stay competitive, especially in a tight labor market. An EOR will help you stand out from the crowd with a comprehensive benefits package, including generous health and wellness benefits, time off, financial security, and much more. It will ensure you provide your team members with what they’re legally entitled to and help you attract top talent with attractive offerings.
Vacations and Public Holidays
Employment laws in Liechtenstein are nuanced. When it comes to vacation, employees are generally entitled to 20-25 days of paid leave off per year and can request more. However, there are details employers need to keep in mind. For example, employees with a six-day workweek are entitled to 24 paid leaves per year, and disabled employees are entitled to five additional leaves. An EOR, like Borderless, will ensure you provide your employees with exactly what they deserve.
In addition to other forms of paid leave, such as sick leave and compassionate care leave, employees in Liechtenstein are also entitled to take the following national holidays off.
- January 1: New Year's Day
- January 6: Epiphany
- February 2: Candlemas
- March 19: Saint Joseph
- April 10: Easter Monday
- May 1: Labor Day
- May 18: Ascension
- May 29: Whit Monday
- June 8: Feast Of Corpus Christi
- August 15: Liechtenstein State Celebration
- September 8: Nativity Of Our Lady
- November 1: All Saints
- December 8: Immaculate Conception
- December 25: Christmas Day
- December 26: St. Stephen's Day
Taxes and Social Security Contributions
In Lichtenstein, it’s up to employers to deduct a withholding tax (WHT) from employees' salaries. They’re also required to deduct 4.70% for social security contributions (old-age and dependent pension schemes, disability insurance) and 0.5% for unemployment insurance on the first CHF 126,000 (USD 139,139.91) of compensation.
An EOR, like Borderless, will ensure you remit payroll taxes on time, every time. With the support and expertise of an EOR, social security contributions are simplified and taxes are filed accurately and compliantly. So you can cut back on busy work and focus on growing your business.
What Are the Advantages of Going Through an EOR in Liechtenstein?
Working with an EOR comes with a range of benefits.
- Saves time and money.
- Minimizes risks and avoids penalties related to non-compliance.
- Cuts back on busy work.
- Helps you attract and retain top talent.
- Expands your talent pool
- Keeps data safe and secure.
- Keeps you up to date on hiring trends.
These are just some of the ways an EOR can positively impact your business. Sign up with Borderless to explore what an EOR can do for you.
How Do I Choose the Right EOR for Me?
With so many EORs to choose from, it’s important to determine which one suits your individual needs. It’s helpful to keep the following considerations in mind.
- Expertise: Choose an EOR that has a history of hiring, onboarding, and managing employees in the countries you want to hire from. Checking this box will help ensure your EOR of choice maintains compliance every step of the way.
- User experience: It’s important to provide your team with an easy-to-use, intuitive EOR platform that’s packed with self-service options. The goal is to integrate it into your team's existing workflow, stress-free.
- Support: Turn to EORs that have a solid team of experts with a proven track record. Ensure that they’ll be there to lend you support when you need it.
- Security: Keeping your data safe and secure is paramount. This is especially true when you’re working with a globally distributed team, which leaves you more vulnerable to cyberattacks. So, choose an EOR that has a robust set of data security standards and protocols.
Borderless: The Employer of Record Your Company Needs
Step outside of your comfort zone and consider hiring global talent. Use Borderless as your EOR of choice to expand your talent base and get the most out of your global hiring experience. Book a demo today.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
