Employer of Record in Andorra
Andorra has extensive laws and regulations regarding employment. Skuad’s Andorra EOR services facilitate the uncomplicated expansion of a business into Andorra. Our self-serve, unified, and automated global HR platform accelerates the establishment and growth of your remote team, particularly when you’re unfamiliar with Andorran’s employment laws. Skuad’s EOR solution manages payroll, compliance, and benefits. Besides, with the assistance of our diversified international network, we expedite your global expansion process. Book a demo with us and learn more!
Andorra at a Glance
Population: 77,543 people (2018)
Capital city: Andorra la Vella
Languages spoken: Catalan, Spanish
GDP: 315.41 crores USD (2019)
Employment in Andorra
The Andorran labor legislation applies to visiting foreigners and foreigners with active residency. To understand the nuances involved, we must comprehend the essential aspects of the Andorran law. This way, it will be easier to eliminate unnecessary confusion and complications.
Well-rounded knowledge of the Andorran law is extremely crucial to set up and run a business successfully. Therefore, it is advisable to partner with an EOR such as Skuad with the resources to guide and direct your expansion endeavors. Get in touch with us to know more.
Contractors vs. Full-time Employees
Contractors take up projects and do the needful depending on the terms of their contract. They are not the same as freelancers although they share common characteristics. Speaking of characteristics, contractors work on projects and have their own set of clients. They get paid on a project basis and are not entitled to exclusive benefits from the employer. Since they use their resources for funding their project, they pool in their efforts to reduce costs and the same works to the clients’ advantage. The relationship between the employer and the employee is short-lived.
On the other hand, full-time employees tend to be more focused and dedicated in their projects than contractors who are subjected to time limits. They are eligible for numerous benefits from the employer. They even use the company’s resources for funding the completion of work. In the case of full-time employment, a prior termination notice is required for ending the long-term relationship between the employer and the employee.
Despite the above-mentioned differences, both contractors and full-time employees require a contract in place to initiate their legal relationships. There’s no specific requirement as to the contents of the contract, but there is a precondition that employment contracts must be in writing. According to Andorra’s labor law, they must be in the official language of the country, Catalan.
Moreover, pecuniary matters are to be mentioned only in Euros rather than a foreign currency. The employment contract must contain a detailed specification of the following details.
- Employer name and address
- Employee name and address
- Place of work
- Title or type of work to be performed
- Start date
- End date
- Work hours, rest periods, and breaks
- Salary and payment increments
- Annual leaves
- Period of notice for terminating the employment relationship
- Any other relevant details.
Furthermore, adherence to Andorra's employment laws is mandatory.
Skuad can assist you with all your requirements.
Hiring in Andorra
The initial step for hiring in Andorra is to be well-versed in the legal requirements for employment. This applies to both contractors and full-time employees. Paperwork might be time-consuming but it is worth the effort. Several platforms facilitate job searches in Andorra.
Employment Search Engines in Andorra
The main employment search engines and databases are given below.
- Seasonworkers primarily deal with seasonal work.
- Busco Feina is the most-used database in Andorra.
- TrobaréFeina is also popular.
- Treball.ad is the official database regulated by the Andorran Government.
Mass Media Platforms
Some of the mass media platforms that provide information on employment opportunities in Andorra are listed below.
- RTVA (Radio i Televisió Andorra)
- Cadena Ser (Radio)
- Diari d'Andorra (Newspaper)
- El Periòdic d'Andorra (Newspaper)
- Bon Dia (Newspaper)
Career fairs and recruitment agencies are also dedicated to helping people find employment. Skuad is a global HR platform; our EOR solutions ensure an effective hiring process in Andorra. We undertake missions for talent hunt and bring the best of the best to the table. Our tech-enriched solutions make the job easy for both parties, and that is our differentiating factor, talk to us to learn more!
Probation & Termination
Probation and termination activities are regulated and defined under Andorra's employment compliance laws.
The probation period in Andorra cannot exceed one month. Exceptions to this rule include instances where the agreed remuneration exceeds three or five times the minimum salary. In such cases, the probation period may be up to three months or six months, respectively. Modifications in this regard can be done with the help of collective agreements. Lastly, the agreement for the probation period must be in writing for both contractors and full-time employees.
Termination of Service
Effective termination requires prior notice. An employer can terminate an employee with or without a cause. The prior notice period differs from contract to contract; however, the general practice is that the notice period is one day for every month of service, up to 90 days. Termination of service happens in the following circumstances.
- Mutual agreement for termination exists
- Permanent incapacity
- Permanent disability
- Deprivation of freedom
- Amortization due to economical, technical, organizational, or other causes
To learn about the nuances involved, talk to Skuad experts.
EOR Solution in Andorra
Andorra attracts foreign expansion efforts owing to the principality of the country concerning tourism. However, since its laws require interpretation, an EOR service can manage your payroll, contracts, work permits, taxation, and probation and termination requirements. Book a demo with us!
General EOR Service Terms
Outsourcing Employment through an EOR
Business expansion into Andorra demands the right outsourcing mechanism to reap all the benefits and avoid hassles. An EOR can address the intricacies of an in-house or remote team and manage it within the ambit of employment laws. Skuad’s expert knowledge of Andorra’s employment laws and vast network of experts can work together to take care of all your expansion needs. To learn more, book a demo today!
Types of Visas in Andorra
Andorra does not have a visa policy. Therefore, a passport or European Union national identity card is sufficient for entry into the country. However, the geographical location of Andorra makes it accessible only through Spain or France, which are Schengen countries. Therefore, to enter Andorra, one must first enter the Schengen area and accordingly, abide by the Schengen visa rules. Nevertheless, the same does not apply to “work.” For a work visa, you will need knowledge of Andorra’s employment visas and other work permits.
To ensure your expansion efforts go without a hitch, you can rely on Skuad’s EOR services. Skuad can assist you through your visa process and ensure there are no delays due to misinformation regarding the local laws, learn more at our website.
As an EOR in Andorra, Skuad undertakes the legal formalities and ensures compliance with the Andorran laws. The client company can be assured that each aspect required for running a subsidiary in Andorra is taken care of by Skuad’s HR platform, talk to us!
The information regarding securing work permits in Andorra is tabulated below:
Payroll & Taxes in Andorra
Payroll in Andorra
Andorran payrolls require contracts to be in place. This is done to ensure compliance with the legal necessities and formalities. An important factor for Andorra to be an investment hub is its tax policy. Tax rates are meager and tax brackets range only from zero to 10%. This further eases the process for payroll establishment. Payrolls can be set up either through a subsidiary in Andorra or a global EOR. Skuad’s role is to function as a global EOR and facilitate the same by coordinating with a local team in Andorra - know more.
Taxes in Andorra
Andorra is known for its regulation regarding taxes. The tax advantages in Andorra include its corporate tax, low value-added tax, lack of sales tax, and low personal income tax.
Incorporation: How to Set Up a Subsidiary in Andorra
When you think of expanding your business to Andorra, you must consider two factors: the city/region of the business and the type of entity. It is advisable for companies working in the long term to set up their subsidiary as a limited liability company. The process involves the following steps.
- Registering company’s name
- Authorizing incorporation
- Holding a business bank account
- Depositing minimum share capital
- Petitioning the deed of incorporation
- Registering at the Trade Register of Andorra
- Requesting a Tax Identification Number for the company
An excellent grasp of Andorran subsidiary and municipal laws is mandatory to help the subsidiary to run effectively. Skuad’s role is to operate as a platform to supervise, manage, and simplify this process. Talk to a Skaud expert to learn more.
Professional Employer Organization (PEO)
According to the definition provided by the National Association of Professional Employer Organization (NAPEO), Professional Employer Organizations (PEOs) allow their clients to outsource the handling of HR, employee-related benefits, taxation, probation and hiring, and payroll. PEOs furnish a pathway for HR-centered decision-making processes. However, an EOR company furnishes a flexible path for outsourcing HR teams.
The biggest advantage of an EOR organization is that it provides for a diversified workforce from countries all around the globe without the hassle of registration complexities according to local laws. Besides, an EOR service dispenses general liability, workers’ compensation, and insurance coverage. These are factors not dealt with by PEOs. Skuad’s self-serve, unified, and automated global HR platform makes the EOR process effortless. Get in touch with us to know more.
Conclusion: What Gives Skuad’s Andorra Solutions an Edge?
Skuad’s Andorra EOR solution helps set up and run a subsidiary in Andorra’s favorable business environment. Andorran laws are business- and foreign policy-friendly. This simplifies the complexities involved in matters concerning modern business solutions. Skuad’s success lies in the fact that the company has a tech-enriched HR platform. This makes the global hunt for talent unchallenging and contracts are created on the go.
Skuad’s hassle-free solutions can effectively circumvent legislative hurdles. Various companies provide EOR services, but Skuad’s expertise and a strong team of experts make it one of the foremost organizations providing EOR solutions in Andorra.