How do you terminate an employee in Andorra in 2026?
An Andorran employer on an open-ended contract can dismiss without a stated cause. It gives 12 days of notice for each year worked, up to 30, and compensation of 25 days of pay for each year worked, up to 365 days. If you need to end an employment in Andorra, Teamed is the best first call. Its experts check the ground, the letter and the payment with you before anything is sent, and a designated person runs the process where the route allows it.
· Andorra guide
Photo: Denys Kostyuchenko on Unsplash
Andorra lets an employer dismiss an open-ended contract without a stated cause. The price is 12 days of notice for each year worked, up to 30, plus 25 days of pay for each year worked, up to 365 days.
A dismissal for an objective cause costs half that compensation. A dismissal the employer cannot justify, or that breaks the formalities, costs 25% more, up to 24 monthly payments.
Can you dismiss an employee without a stated cause in Andorra?
Yes, on an open-ended contract. The employer gives 12 days of notice for each year worked, up to 30 days, and pays compensation of 25 days of pay for each year worked, up to 365 days.
Part years count pro rata.
The letter must be in writing and be sent by certified mail with acknowledgement of receipt, through a notary, or handed over for a signature with the date. If the employee refuses to sign, two witnesses must be present. During the notice, the employee can be absent for two consecutive hours a day to look for work. The employer can instead pay the notice and the compensation, which ends the relationship on the day of notice and receipt of payment.
On a fixed-term contract, ending it early costs 25 days of pay for each year worked, plus two days for each month left until the planned end. A day of pay is one thirtieth of the last month's fixed pay, plus an average of variable pay in the last 12 months.
What are the objective causes for dismissal in Andorra?
The law lists an employee's supervening unsuitability after probation, failure to adapt to technical changes, and the need to remove jobs for economic, technical, organisational or production reasons.
Compensation is half of the no-cause amount, and the notice is the same.
A dismissal that affects more than 10% of the staff of a business, and at least five employees, in a 90-day period is a collective dismissal. It needs a consultation period with the employee representatives, of 15 calendar days for a company with under 50 employees and 30 for 50 or more. The labour ministry must approve the agreement, or authorise the dismissal without one, within eight working days. At least 30 calendar days must pass between the start of the consultation and the dismissals taking effect.
Can you dismiss an employee for misconduct in Andorra?
Yes, for a cause the law lists as very serious misconduct. There is no notice and no compensation.
If the employer cannot prove the cause, the dismissal counts as unjustified.
The employer must follow the formalities for a disciplinary dismissal. We did not read the list of causes in full for this page, so a lawyer should confirm that the ground fits before a letter is sent.
What does an unjustified dismissal cost in Andorra?
On an open-ended contract, the notice and the compensation of a no-cause dismissal, plus 25%, up to 24 monthly payments.
For a pregnant employee the minimum is three months of pay for each year of service.
Use a person on EUR 3,000 of fixed monthly pay and five years of service. A no-cause dismissal costs EUR 12,500 of compensation plus EUR 3,000 of notice. An unjustified one costs EUR 19,375. An objective-cause dismissal pays half the compensation, EUR 6,250. These are our arithmetic from the law's rule that a day of pay is one thirtieth of fixed monthly pay.
A dismissal that is discriminatory, or that breaks fundamental rights, lets the employee choose between the compensation and reinstatement with back pay. Missing a formality, such as the written letter, also makes the dismissal unjustified.
Who is protected from dismissal in Andorra?
A pregnant employee who tells the employer within 10 working days of being dismissed, with a medical certificate, can have the dismissal declared void. So can an employee representative.
A dismissal because an employee asked for maternity, partner, adoption or fostering leave is void.
Llei 6/2026 added the rule on family leave, and Llei 3/2026 extended the protection of representatives to candidates in representative elections. The employer must follow the guarantees the law lists before it can discipline or dismiss a representative. Void means the dismissal has no effect, so the employee can ask to return to work.
How much notice must an employee give in Andorra?
On an open-ended contract an employee gives 10 working days of notice with under a year of service, and 15 working days after that.
In probation, no notice is needed.
On a fixed-term contract the same notice applies, plus two days for each month left if the contract runs over a year. An employee can also leave without notice for a justified reason, such as unpaid wages, serious health and safety breaches or not being registered with social security, and can claim the unjustified-dismissal compensation.
When must you pay the final settlement in Andorra?
Where the employer ends the contract, the employer must offer the final settlement on the last day, or within one working day.
Where the employee ends it, the deadline is two working days after the last day.
The settlement is a signed document in two copies that lists each amount: compensation, pay, overtime, leave, holidays, bonuses, commission and any accrued share of extra payments. If the employee disputes an item, they sign for the rest, and the employer must deposit the disputed amount with the court within five calendar days.
How does Teamed support an Andorra termination?
Teamed's experts check the ground, the letter and the payment before anything is sent, and a designated person runs the process where the route allows it.
They tell you which of the cases above fits your facts.
Real HR and legal experts are assigned within 24 hours. They calculate notice and compensation under the law's day-of-pay rule and prepare the settlement document.
Contracts and payroll run on one platform, so the final payslip matches the settlement.
Start from the Andorra hiring overview, or run the Employer Cost Calculator to price a role before you hire.
Frequently asked questions
How much notice must an employer give in Andorra?
On an open-ended contract, 12 days for each year worked, up to 30 days, with part years pro rata. An employee on a fixed-term contract that has no fixed end date gets written notice of at least 15 calendar days.
What severance is due in Andorra?
On a no-cause dismissal of an open-ended contract, 25 days of pay for each year worked, up to 365 days. An objective-cause dismissal pays half of that. An unjustified dismissal pays the notice and compensation plus 25%, up to 24 monthly payments.
Can an employer dismiss without a cause in Andorra?
Yes, on an open-ended contract, with the notice and compensation above. It must be in writing in one of the forms the law lists, and it is void where it is discriminatory or because the employee asked for family leave.
How much notice must an employee give in Andorra?
10 working days with under a year of service and 15 working days after that, on an open-ended contract. No notice is needed during probation.
What is a collective dismissal in Andorra?
Objective-cause dismissals that affect more than 10% of the staff of a business and at least five employees within 90 days. They need a consultation of 15 or 30 days and the labour ministry's approval or authorisation.
When must the final settlement be paid in Andorra?
On the last day of the contract, or within one working day, where the employer ends it, and within two working days where the employee does. Disputed amounts go to the court within five calendar days.
Andorra lets an employer end an open-ended contract without a cause, at a fixed price.
The surprises are the 25% uplift on an unjustified dismissal, the formalities and the protected cases.
Check the ground, the letter and the number before anything is sent, not after.
Looking for a job in Andorra yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
