Andorra: Labour Law

On this page:

- ANDORRA REGULATORY ENVIRONMENT
- ANDORRA WORK PERMITS

Andorra Regulatory Environment

Andorran employment law is relatively undeveloped, and industrial relations are mostly conducted in a straightforward fashion between employer and employees. Since there is no unemployment in Andorra, employees are in a good position to obtain satisfactory pay and conditions of work. Trade Unions were legalised for the first time in the 1993 Constitution.

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Andorra Work Permits

All foreigners wanting to work in Andorra need work permits. These are obtained by employers, whether Andorran individuals or companies, on behalf of employees. Self-employment is not allowed until after 10 years' residence or trade in Andorra.

A new immigration law finally passed in 2002 was highly contentious, but legalised the situation of about 7,000 'pink slip' long-term immigrant workers, as well as setting new rules for the issuance of work permit quotas which give preference first to citizens from Andorra's neighboring countries, then to citizens from the countries of the European Union, then to citizens of countries with which the principality has signed international agreements, and finally immigrants from third party states. Under the law, the government sets annual quotas for new issues of renewable work permits.

There are separate types of non-renewable work permit for temporary and seasonal workers, to which the quotas don't apply. The holder of such a work permit must leave the country within one month of expiry of the permit.

Renewable work permits are issued first for 6 months, extensible for a further year; then a temporary residence card is issued valid for a renewable 2 years; then, a 5-year ordinary residence card is issued; and finally a 10-year privileged residence card is issued. Fees are modest, except that the employer must pay a small amount when first applying for a permit.

Applications for work permits must include photographs, home police certificate, proof of occupational qualifications, cv, passport, property ownership or rental details and marital status certificate. The CASS will conduct a medical examination.

The Law on Passive Residence Permits November 2006 established that a quota would be determined periodically according to the “economic and social needs of the Principality of Andorra”.

An initial quota of 500 such permits was set. Passive residents do not work of carry out professional activity in the principality.

New entrants to the Principality must:

• Show minimum annual income of 300% higher than the minimum wage in Andorra for the head of the family plus a supplement of 100% for each dependent family member;
• Prove good conduct in their previous domicile;
• Produce health insurance and a pension plan;
• Own or rent a house or apartment in the Principality;
• Pay a non-interest-bearing deposit of EUR30,000 plus EUR7,000 for each dependent to the Andorran National Institute of Finances (INAF) which is refundable on departure.