Immediate termination in Liechtenstein

48^th Conference of European Attorneys at Law (DACH) from 9 to 11 Mai 2013 in Madrid, Topic “Employment law in Europe”: Immediate termination in Liechtenstein – Place of jurisdiction abroad, Speaker: Dr. Dominik Schatzmann, Attorney at Law

Generally it has to be distinguished between (regular) dismissal and (immediate) termination. An immediate termination is always possible when it is justified by an important reason. It always leads to the immediate ending of the employment. Important reasons are all circumstances which result in a situation in which any further continuation of the employment is no longer bearable for the employer. Immediate termination has therefore to be the last resort and may apply in case of criminal offences or inacceptable behaviour. In case of less serious misconduct the employee has to be warned first. The immediate termination has to be effected promptly; elsewise the employer’s right to immediate termination expires. Causes of dismissal as e.g. an incorrect note of expenses, which only become known at a later date, can on the contrary also be claimed retroactively by the employer. In case the termination was unjustified, the former employer is liable to pay compensation.

For Austrian commuters, in case an immediate termination is combated resp. compensation is claimed, besides the jurisdiction of the employer in Liechtenstein an alternative place of jurisdiction exists in Austria. This means that a commuter from Vorarlberg can sue his former employer from Liechtenstein at the District Court Feldkirch. Although between Liechtenstein and Austria a convention on enforcement exists, such a judicial decision is not enforceable in Liechtenstein and can therefore not be asserted vis-à-vis a former employer. For this reason it is recommended to always go to law in Liechtenstein.