Latvia: Overview of Labor Law and Employment Policies

Employment Law Overview

• Key Legislation:
  • Labor Law of Latvia
  • Collective agreements
  • Government regulations
• Legal Characteristics:
  • Protects employee rights
  • Promotes employment stability
  • Regulates employment relationships

Employment Contract Requirements

• Contract Types:
  • Indefinite-term contracts
  • Fixed-term contracts (maximum 5 years)
• Contractual Terms:
  • Commencement date of employment
  • Place of work
  • Occupation
  • Probationary period (if applicable)
  • Salary details
  • Working hours
  • Annual leave
  • Notice period for termination
  • Applicable laws and regulations
  • Training entitlements
  • Social security contribution information
• Language and Currency:
  • Contracts must be in Latvian
  • Currency is Euro (EUR)

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day
• Rest Days and Breaks:
  • Minimum of 1 rest day per week
  • Minimum of 30 minutes break per day

Leave Policies

• Annual Leave: Minimum of 20 days of paid annual leave per year
• Public Holidays: 12 statutory public holidays
• Special Leave:
  • Sick leave: First 10 days paid by employer, from 11th day paid by the state
  • Maternity leave: 112 days
  • Paternity leave: 10 days

Employee Dismissal and Contract Termination

• Notice Periods:
  • Indefinite-term contracts: Minimum of 30 days
  • Fixed-term contracts: Depends on contract duration
• Severance Pay:
  • Service up to 5 years: 1 month's salary
  • Service 5-10 years: 2 months' salary
  • Service 10-20 years: 3 months' salary
  • Service over 20 years: 4 months' salary
• Protection Against Unfair Dismissal:
  • Employer must provide valid reasons and opportunity to explain

Taxation

• Personal Income Tax:

  • Salary Range (EUR)	Tax Rate
    0 - 20,004	20%
    20,005 - 78,100	23%
    78,100 and above	31%

• Social Security Contributions:

  • Employer: 23.59%
  • Employee: 10.5%

Health Insurance

• Insurance Policy:
  • National healthcare system funded by social security contributions
• Coverage:
  • Basic medical services

Compensation and Benefits

• Minimum Wage: EUR 620 per month
• Compensation Structure:
  • Salary
  • Bonuses (not mandatory)

Work Permits and Visas

• Permit Requirements:
  • Non-EU/EEA citizens require work permits
• Application Process:
  • Application made by employer to the Latvian Employment Agency

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Latvia
• Common Provisions:
  • Protection of employer's trade secrets
  • Restriction on employee engaging in competing work after termination

Training and Development

• Legal Requirements:
  • Safety training
  • Skills development
• Government Support:
  • Government-funded training programs

Workplace Diversity and Inclusion

• Legal Requirements:
  • Prohibition of discrimination based on race, gender, religion, etc.
• Enforcement:
  • Equal Opportunities Commission responsible for enforcing anti-discrimination laws

Remote Work Policies

• Legal Framework:
  • Remote work is supported by law
• Tax and Insurance Implications:
  • Remote work has no impact on taxation or social security

Key Website Addresses

• Latvian Employment Agency: https://www.nva.gov.lv/en