The Labor Law governs employment standards in Latvia and contains information on both employers’ and workers’ rights and duties. Together with a minimum salary, overtime compensation, and yearly leave, the legislation sets a typical workweek of forty hours. In addition to following health and safety laws, employers are expected to maintain a safe workplace. Employment contracts with definite or flexible terms are accepted in Latvia, and terminating an employee’s employment must comply with certain legal conditions.

Agreements

Generally speaking, Latvia offers two types of labor contracts:

Open-ended work agreements

This is the most widely used and employed in Latvia for an endless period of time.

Contract for a fixed-term job

Among other unusual circumstances, this kind of contract is used for emergency work, particular industries, temporary labor outside the organization, contract-length obligations, seasonal employment, and contract-required duties. There may be just five years in a fixed-term agreement.

The following provisions have to be included in every employment contract, regardless of the type:

• Where the job is located
• The particular field of labor
• Obligations that accompany labor
• Income
• Time of probation
• Obligatory notice durations
• Hours of operation
• The work procedures rules
• The length of time and the start of the collaboration (only applicable to fixed-term agreements)

Health advantages

Sick benefits are payable to those who have social insurance coverage. If a worker or independent contractor is unable to do their job or misses work, benefits are given. An individual is qualified for sickness benefits if they have paid social insurance payments for at least three of the preceding six months or six of the preceding twenty-four months.

Work hours and extra hours

Forty hours a week, or eight hours a day, are worked by employees Monday through Friday. There ought to be a minimum 30-minute lunch break every day. It is required to pay overtime. No more than 48 hours of overtime per month and 200 hours annually should be worked beyond that. When they complete a rework, employees are paid 100% of their hourly rate.

Leaves

Available leaves are:

Sick Leave

In three years, employees in Latvia are eligible to accrue 52 weeks of paid sick leave. Unpaid time off is granted on the first day. Various payers pay varying rates for the remaining days of leave, depending on the duration

Maternity leave

There are 112 paid days off for pregnant employees. There must be 56 days off each before and after delivery. 80% of the employee’s usual pay will be given to them. To determine the average pay, the 12-month period that concludes two months before the leave is used. It will be the State Social Security Agency that pays this compensation.

Paternity leave

Workers are entitled to 10 paid days of paternity leave. 80 percent of the employee’s typical pay will be awarded to them. It will be the State Social Security Agency that pays this compensation. The worker can prolong their absence by using parental leave.

Parental leave

Employees are eligible for eighteen months of paid parental leave until the kid becomes eight years old. Half or all of the parental leave may be used. A parent may take time off for themselves.

Yearly leave

Part-timers and full-timers alike are entitled to twenty days of paid time off (PTO) annually. PTO accrues monthly with 1.67 paid days (or 2.33 calendar days). Workers are eligible for annual leave for the first year after six months of work.

Social security

In Latvia, in addition to the employer’s monthly payments, social security contributions are normally funded by the employee’s wage (which is withheld and paid by the employer each month). Whereas workers must contribute 10.5% of their monthly salaries, employers must pay 23.59% of each employee’s compensation. Non-EU/EEA foreign workers in Latvia, staying over 183 days, must pay 31.83% of their income quarterly in contributions, a responsibility that can be borne by either their employer or themselves.

Probation

It is possible for parties to include a probationary term in a fixed or indefinite employment contract in Latvia. No more than three months may pass during this time. Employees are presumed to have completed their probationary term if they continue to work after it expires.

Termination

Employees or employers may terminate an employment contract in Latvia. Additional reasons for the contract’s termination include the expiration of a fixed-term agreement, mutual consent between the employer and employee, or a third party’s request. Terminations that meet compliance criteria consist of:

• Voluntary involvement of employees
• Both sides concur
• Employer acting on their own

Latvia offers both fixed-term and indefinite-term contracts with explicit termination criteria, and its legal framework for employment is generally clearly defined.


You may also find these articles helpful

The roles of a company director and secretary in Latvia

Register as a taxpayer in Latvia

Required licenses for administrative and support service activities business in Latvia