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Liability and obligations of the Liechtenstein client as an entrepreneur

Civil Liability

A client as a contractor is liable for the obligations of the contractor, a subcontractor or a hiring company engaged by the contractor or a subcontractor to pay the minimum wage to employees as a guarantor and payer under Section 1357 of the Austrian Civil Code (Art. 5a of the Posted Workers Act).

Further obligations: Obligations to cooperate

In the event that the posting party does not comply with its reporting or cooperation obligations, the supervisory bodies may also demand the fulfillment of this obligation from the client as the contractor. The latter may then have recourse to the posting contractor.

Administrative punishability

The principal as contractor may be penalized by the Office of National Economy in particular if he

  • does not comply with his obligations to cooperate;
  • assigns another contractor who, in the performance of this contract, violates the terms and conditions of employment to be observed or a posting ban.

In the latter case, he may be exempt from criminal liability if he proves that he has exercised due diligence under the circumstances in each subcontracting of the work. Increased requirements for due diligence are to be applied if the subcontracted company is listed on the sanctions list 

Laws

Contact persons

Link Website: https://www.llv.li/en/national-administration/office-of-economic-affairs/cross-border-services/posting-employees/liability-and-obligations-of-the-liechtenstein-client-as-an-entrepreneur