Latvia: Amendments to Labour Law

Latvia: Amendments to Labour Law

On October 3, 2013 Saeima in the first reading reviewed and accepted amendments to Latvian Labour Law, what anticipate to establish new liabilities, responsibilities and rights for employers and employees.

The draft law provides changes regarding information included in the Employment contracts and advertisements, as well as changes in rules regarding vacation payment, adjustification of work and rest time, as well as other changes. New draft law establishes that the Employment contract shall include employee’s or employer’s personal identification code (date of birth for foreigners), to make more precise identification of employer and employee, if they are natural persons. As till now, the Employment contract shall be concluded in Latvian language, whereas if the employee is a foreigner and unfamiliar with Latvian language, employer shall have the responsibility to inform the employee regarding the provisions of the Employment contract.

Also amendments anticipate the possibility for Employer not to allow to the employer to perform the work, if employee has submitted medical report, what confirms that the person can not perform particular work. Thus employer and employee will be able to agree on employing the employee on other work.

Fixed-term Employment contracts maximum term shall be prolonged from 3 to 5 years. Such provision shall raise competitiveness of Latvia and equalizes labour force payments.

To decrease the possibility to conclude fixed-term Employment contracts in case the employer`s need the employees for permanent work, it is anticipated to prolong the period from 30 to 60 days, when signing the new employment contract shall be considered as prolongation of previous Employment contract.  

The draft law also provides an obligation to employer to deliver to employee a written document with which the employee is suspended from duties.

Proposed amendments are more flexible for vacation payments. Employee will be allowed to request vacation payment to be made on other time, e.g. when the next salary will be paid. Current Law provisions establish that vacation payment must be made not later than one day before the vacation starts.

Before the new Labour law amendments come into force, Saeima will have to decide on them at second and third reading.

Valters Gencs

Tax Attorney & Founding Partner

Gencs Valters Law Firm, Riga

Email: valters.gencs@gencs.eu Tel: +371 67 24 00 90