Definitive Guide to Hiring in Andorra

Hiring In Andorra

Hiring employees compliantly in Andorra means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Andorra so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Andorra; or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Andorra

Employee Probation Period in Andorra

• The first 6 months are usually deemed to be the trial or probationary period

Annual Leave in Andorra

• Employees in Andorra are entitled to a minimum of 30 calendar days of paid annual leave after completing one year of employment with the company. 
• Employees who have not worked for one year in the company are entitled to leave calculated on pro rata basis at two and a half days for each month worked.

Holidays in Andorra

Maternity Leave in Andorra

• Working mothers are entitled to 16 weeks (4 months) of maternity leave with full pay from the social security for childbearing. 
• In case of multiple births, the period is extended in two more weeks by every child.

Working Hours in Andorra

• Andorra’s working week comprises 40 hours.
• Every employee is entitled to a 30-minute break on every 6-hour-working-period.

Overtime in Andorra

• Employees over the age of majority (over 18) and employers may agree to overtime of up to 15 hours per week, up to 60 hours per month, and up to 350 hours per year
• Any overtime shall be entitled to an increase in the employee' s base salary as follows: 
• The first four hours of overtime per week shall be paid at not less than 25 percent of the hourly wage. 
• The next four hours of overtime shall be paid at not less than 50 percent of the hourly wage. 
• In excess of eight hours of overtime per week, the increase in base pay shall not be less than 75 percent of the hourly wage

Termination of Employment in Andorra

• The contract might be terminated in the following cases:
  • Expiration of the term or termination of the work for which employee has been agreed upon.
  • Mutual agreement of the parties.
  • Death or permanent disability of the person worker to carry out the work contracted.
  • Death, incapacity or retirement of the employed person.
  • When the worker is deprived of freedom by court.
  • Declaration of bankruptcy of the employer.
  • An objective need to amortize the job places due to economical, technical, organizational or other causes.
• The contract might be terminated by the employer by means of a notice communicated with terms calculated as one day per month worked up to a maximum of 90 days and with the payment of compensation.

Notice Period in Andorra

• During the first six months of the contract, the employee may be dismissed without notice, subject to payment of financial compensation equivalent to fifteen days' salary.
• If the dismissal takes place during the trial period, the compensation is established at the rate of one and a half days per month worked.
• After the first six months, the dismissal is carried out in return for : -
• one day's notice per month worked up to a maximum of 90 days.
• payment of financial compensation at the rate of one and a half days' salary per month worked, up to a maximum of 270 days. 

13th / 14th Month Pay in Andorra

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• There is no evidence that it is a customary practice to pay end of year bonuses, however other incentives -monetary or otherwise- can be negotiated.
• If employees work on the four days mandatory holidays, their wages must be either tripled or they must be given two days extra days of rest.

Social Security in Andorra

Payments And Invoicing

• The tax year is the calendar year
• Each individual must file a tax return
• Joint filing is not permitted
• The personal income tax return must be filed and tax paid between 1^st April and 30^th September for the year following the tax year
• Where there is no loss to tax authorities, penalties may range from EUR 150 to EUR 3000.
• Underpayment penalties range from 50% to 150% of the unpaid tax liability

Payroll Accruals in Andorra

Country Accruals Additional Information

Description

employers and employees: levy from 5.5% to 10.5% of salary. Since the average amount is set by the country’s authorities at 14.5% of the income, it is the employer who is obliged to pay the difference of between 4% and 9% of the salary of his employees;

Payroll Accruals Additional Information

Accrued Benefits in Andorra

Why use Global Expansion to hire in Andorra

Establishing a branch office or subsidiary in Andorra can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Andorrian labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Andorrian law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Andorra. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Andorrian Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.