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How to hire remote employees in
Andorra’s a tiny country, but it’s famous for a few things: Great outdoor activities, quaint mountainside villages, and low taxes. As such, it’s a popular place for remote talent to live. Found somebody there you want to hire? On this page, we’ll teach you how to bring that person onto your team—if your company isn’t based in Andorra.
If you want to successfully hire in
Andorra
, you have two options:
Laws about hiring contractors are significantly more simple in
Andorra
. Onboarding talent takes days, not weeks or months. Both you, the company, and your talent have more flexibility. And in many cases, since you’re remote, the talent you’re hiring is better classified as a contractor, anyway. Of course, it’s not possible in every case, but it’s what we built Thera for.
This is the long route. You can either establish a physical presence with an entity and register as an employer, or you can use an Employer-of-Record (EOR) solution. Odds are, you’ll find using an EOR to be the easier route. Still, using an EOR in
Andorra
is expensive—it can often be $500 per month per employee—and sometimes prone to lengthy onboarding times.
Hiring contractors is normally the easier, faster, more flexible choice—but don’t just take it from us. Below are the specific benefits and drawbacks to hiring contractors in
Andorra
.
Hiring employees takes months, at the minimum. When you hire with Thera's locally-generated contracts, it’s a matter of days or weeks. This means you can hire the best talent, fast, without losing them to a hellish procession of paperwork.
It costs just $0 to sign up for Thera, then $25 per month to hire your contractors with Thera. If you hired employees manually (or did contracting on your own), you’d likely be on the hook for thousands of dollars each month. Setting up an entity alone can cost tens of thousands of dollars.
Hiring contractors in
Andorra
means you’re generally not on the hook for things like health insurance and paid time off. This makes hiring flexible for you, and it gives your talent more options.
Hiring employees is a bigger commitment, and can open you up to increased liabilities and regulations. When you hire contractors overseas, your biggest risk is misclassification—but laws surrounding contractor classification are often significantly more straightforward.
The contractor life isn’t for everyone—some people want the security that being an employee often appears to provide. Though it’s rare, this does happen, and it’s one disadvantage of manage an all-contractor team.
Most countries’ contractor-employer relationship laws stipulate that the employer can’t set fixed working hours, among other things. These laws give contractors more freedom over how and when they do their work than an employee would have. In reality, however, most contractors are willing & able to work on the company’s schedule—it’s a matter of setting expectations beforehand.
If you’re hiring contractors in
Andorra
, you can pay them with Thera in a single click. You won’t need to worry about complicated wire transfers, fees, or currency conversions. We’ll take care of it all. Just make a click and your contractor will get paid in their currency of choice. This is a valuable bonus for talent in countries where the local currency is particularly weak—most people appreciate the ability to receive their payment in stronger currencies.
If you’ve read up until this point, you’ll know that it’s easier, cheaper, and more flexible to hire contractors in Andorra than employees. Still, there are valid reasons why you might want to hire employees instead. The content below is for you—we’ll cover employer taxes and obligations in Andorra.
In Andorra, employees are entitled to 30 days of paid yearly vacation in addition to public holidays. More vacation days may be included in employment agreements and collective bargaining agreements.
Employee’s leave is normally scheduled by collective agreement or by agreement between the employer and the employee. If there is no such agreement, the employer schedules the leave, based on the needs of the business. Employees must be notified of when they will receive leave at least 45 days in advance.
There are 14 public holidays.
Employees are entitled to 12 months of sick leave, which may be extended in six month increments for up to three years. Employees are paid a varied proportion of their salary depending on how much sick leave they require. Salary is determined by the employee's average daily earnings over the previous 12 months of employment, or minimum pay if no earnings are available.
Female employees receive 20 weeks of paid maternity leave and two additional weeks for each additional child in the event of multiple births or adoptions.
The expecting woman can start her maternity leave up to four weeks before the due date. Benefits are provided at 100% of a female employee's average daily wages for the previous 12 months worked out of the previous 24 months.
Benefits are paid at 100% of the female employee’s average daily earnings, based on the last 12 months worked of the 24 months prior to leave. Part of the female employee’s maternity benefit is paid to the father either after birth of the child or after the female employee returns to work.
The father receives a portion of the female employee's maternity benefit either after the kid is born or after the female employee returns to work.
Beginning six weeks after the birth, the child's father, or the mother's spouse or partner, has the option of taking the balance of the mother's maternity leave.
There are no provisions in the Andorra law regarding parental leave.
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In Andorra, the contract may be terminated in the following circumstances:
The notice period is one day for every month of service, up to 90 days. Employment contracts may have a variety of various notice provisions.
Employees are expected to provide their employer between 14 and 30 days notice of their resignation.
The Severance Pay in Andorra depends on the Duration of Employment:
Probation period is cannot exceed one month.
The standard work in Andorra is 40 hours over five days.
In Andorra, employees overtime is only allowed if a shortage of staff makes it necessary for the available employees to work extra hours, if there is a temporary increase in the business’ activities (e.g., the month of December for a retailer that sells many items related to Christmas), or if other extraordinary circumstances require it.
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