Got a new hire in Liechtenstein? Both businesses and candidates are making calculated bets. Interviews and qualifications tell one story, but the real performance only emerges once work begins.

Can this person deliver results? Will they integrate smoothly with existing teams and processes? Meanwhile, they’re wondering if the role matches their expectations – is your company culture genuine, and does the position offer what was promised?

Here’s what Liechtenstein’s employment laws mandate during probation periods, including how long they can last, what you can and can’t do, and how to handle things when they don’t work out.

Definition of a Probation Period in Liechtenstein

Liechtenstein’s probation period rules are established under the Persons and Companies Act (PGR), which governs the fundamentals of employment contracts. 

A probation period is a trial phase at the start of employment, during which both the employer and employee can assess whether the job is a good fit. During this time, either party can terminate the employment relationship more easily than after the probation period has ended.

If your employment contract doesn’t specify a probation period, the first month automatically serves as a probationary period under the law.

Lengths of Probationary Periods in Liberia

New employees and employers in Liechtenstein must adhere to specific probationary rules outlined in local employment law.

Permanent or Indefinite Contracts

For permanent or indefinite contracts in Liechtenstein, the probationary period is typically one month. However, it can be extended up to a maximum of three months if explicitly agreed upon in the written employment contract. 

During this period, either party may terminate the contract with a seven-calendar-day notice. This notice is usually effective at the end of a working week. No specific reason needs to be provided for termination, provided that the termination is not abusive or discriminatory.

After completing probation, the employee gains full legal protection. This includes longer statutory notice periods that increase with length of service. Notice periods start at one month for the first year and extend up to three months or more for longer tenure.

Fixed-Term or Definite Contracts

Probationary periods can apply, but given the limited duration of fixed-term contracts, they are often shorter or sometimes omitted, depending on the contract length. However, legally, the same maximum probation period of three months can be agreed upon if the contract duration allows. 

Additional Notes

  • Contracts and termination notices should be in German, the official language, to ensure clarity and legal validity.
  • In case of disagreements about probation or termination, parties can seek mediation or legal recourse through Liechtenstein’s labor courts.

Legal Considerations of Probation Periods in Liechtenstein

The rules that govern probation periods in Liechtenstein are established under the Persons and Companies Act (PGR). These rules exist to protect the rights of workers and help employers avoid costly hiring mistakes.

During probation, both parties are required to act in good faith and work toward the goal of continuing the employment contract. The following conditions also apply:

Pay and Working Conditions

Liechtenstein does not have a statutory minimum wage; however, wages must be fair and generally align with industry standards or collective labor agreements where applicable. 

Employers are required to make contributions to the country’s social security system, known as the Liechtensteinische Alters- und Hinterlassenenversicherung (AHV) for old-age and survivors’ insurance, as well as to the Invalidenversicherung (IV) for disability insurance, Arbeitslosenversicherung (ALV) for unemployment insurance, and the Krankenversicherung (KV) for health insurance.

Standard working hours range between 40 and 45 hours per week, depending on the sector. The maximum daily working hours, including overtime, should not exceed 9 hours. Employees are entitled to a minimum of 11 consecutive hours of rest between working days and at least 24 hours of uninterrupted rest per week, usually observed on Sundays.

Overtime work must be compensated with at least a 25% premium on top of the regular hourly wage or with equivalent time off, as mandated by labor regulations.

Termination and Notice

During probation, either party can terminate the employment contract with 7 calendar days’ notice. This is shorter than the notice periods that apply after probation ends.

Vacation / Holidays

Employees are entitled to a minimum of 20 working days of paid annual leave for a 5-day workweek (or 25 days for a 6-day workweek), regardless of probation status.

Vacation days accrue proportionally during probation based on time worked. If probation lasts one month, the employee earns roughly 1/12th of their annual leave entitlement. While employees can take vacation during probation, employers may require scheduling it after probation completion, especially for short probation periods.

Employees on probation receive paid leave on public holidays like other employees. If employment ends during probation, unused vacation days must be compensated financially. No legal restrictions limit vacation rights during probation; however, the short duration often means vacation is minimal or deferred, depending on employer policies.

Benefits of Probation Periods in Liechtenstein

Probation periods can be beneficial not only for Liechtenstein employers but also for employees. The advantages they can gain include:

  • For Employees

Employees can learn their new role, workplace culture, and responsibilities without a long-term commitment. This lets them assess whether the job and employer meet their expectations and career goals.

Probation also offers a flexible exit option if the position proves unsuitable, as termination requires only seven days’ notice without justification, provided it’s not discriminatory or abusive.

  • For Employers

Employers use probation to assess new hires’ skills, work ethic, and cultural fit before committing to a long-term relationship. This reduces the risk and cost of hiring unsuitable candidates.

Probation allows employers to terminate contracts with shorter notice and fewer procedures, helping with workforce adjustments and maintaining flexibility.

Probation periods create better matches between employees and employers, resulting in higher productivity and lower turnover rates.

Conclusion

Liechtenstein offers a stable, business-friendly environment, but navigating its employment laws—particularly around probationary periods—requires careful attention to remain compliant.

While probation is typically governed by the employment contract, it must still conform to Liechtenstein’s labor code and any applicable collective agreements. Terms such as notice periods, duration limits, and extensions can vary depending on role type and contract structure, making it important to align with local legal expectations.

Remote People enables international businesses to hire in Liechtenstein without needing to set up a local entity. We handle employment compliance, probation period rules, payroll, taxation, and benefits administration—giving you a streamlined path to build your team in Liechtenstein with confidence.

Frequently Asked Questions

Not all employers in Liechtenstein are legally required to include a probationary period in employment contracts. However, it is standard practice and highly common for employers to include one that lasts up to three months.

Employers in Liechtenstein cannot terminate workers at will without restrictions. During probation, employers can terminate with a 7-day notice without giving a reason, provided the termination is not abusive or discriminatory. After probation, termination requires a valid reason and adherence to statutory notice periods, which range from 1 month (for up to 1 year of service) to 6 months (for over 20 years of service).

In Liechtenstein, the standard probation period is one month. This can be extended to three months if both parties agree in writing. If the employment contract doesn't mention a probation period, the first month automatically counts as probation under the law.