General rules of employment in Latvia according to Labour Law
General Rules about Daily and Weekly Working Time
According to the Labor Law the working time means a period from the beginning till the end of work during which an employee performs work or is at the disposal of the employer, with the exception of breaks in work.
Regular daily working time of an employee may not exceed eight hours, and regular weekly working time – 40 hours. Daily working time means working time within a 24-hour period.
Generally there is 5 days working week; however, due to the nature of the work it is possible to settle a working day of six days. Before that the consultation with representatives of employees should be done.
If there is a working week of six days, then the length of daily working time shall not exceed seven hours. Work on Saturdays shall be ended earlier than on other days.
The daily working time and weekly working time should be established in the employment contract or there should be a reference in the employment contract that such rules are established in the collective employment agreement or in the regulations of the working procedure. The rules about the working time should contain also rules about the beginning and the end of the working time and breaks during the work.
General Rules about Overtime
Overtime work is permitted if the employee and the employer have so agreed in writing. However, the employer has the right to employ the employer on overtime without his or her written consent in the following exceptional cases:
- if this is required by the most urgent public need;
- to prevent the consequences caused by force majeure, an unexpected event or other exceptional circumstances which adversely affect or may affect the normal course of work activities in the company; or
- for the finishing of urgent, unexpected work within a specified period of time.
The overtime work must not exceed 144 hours within period of four months.
The employer has an obligation to maintain the records about the each employee’s hours worked and overtime hours, including hours worked at night, on the weekly rest days and holidays.
General Rules about Resting Periods
The length of a day rest within a period of 24 hours shall not be less than 12 consecutive hours.
If the daily working time of the employee exceeds six hours the employee has the right to a break in work.
The period of break shall be granted not later than four hours after the beginning of the work. The employer shall determine the length of a break after consultation with employee representatives, though it may not be less than 30 minutes. Taking into account occupational safety and health protection principles, the collective agreement may specify other procedures for the granting of breaks. A break shall not be included as working time.
During period of the break an employee has the right to leave his or her workplace unless otherwise provided for by the employment contract, the collective agreement or working procedure regulations. Prohibition against leaving a workplace during daily resting periods shall be adequately reasoned.
Feasibility of Flexible Working Hours
It should be noted that there is no prohibition in the Labor Law to agree about different working time than it is settled in the law. It means that the employer and the employee may also agree to introduce flexible working time where one part of the working time may be settled as a core working time but the other part of the working time may be defined by the employees themselves.
Exclusive Rules regarding Working Time Organization
According to the law where taking into account the characteristics of the respective work or occupation the length of working time is not measured or determined in advance or it may be determined by the employees themselves, in such case, complying with the principles of safety at work and health protection, as well as providing sufficient rest, there is allowed to depart from several previously described rules regarding daily and weekly working time, overtime and resting periods.
In such case the departure is allowed from following rules:
- daily working time – 8 hours, weekly working time – 40 hours;
- that the overtime work must not exceed 144 hours within period of four months;
- the length of a day rest within a period of 24 hours shall not be less than 12 consecutive hours;
- regarding the breaks in the work.
All other rules will continue to apply, for example, the below-described rules regarding salary and payment for overtime and rules regarding breaks during the work. Please also note that those above-mentioned rules will still apply to the working time which will be determined by the employer.
Salary
The employer has an obligation to maintain the records about the each employee’s hours worked and overtime hours, including hours worked at night, on the weekly rest days and holidays.
According to the law there two methods of the salary systems:
- a time salary system or
- a piecework salary system.
The time salary shall be calculated in conformity with the actual time worked irrespective of the amount of work done.
The piecework salary shall be calculated in conformity with the amount of work done irrespective of the time within which it was done.
At the end of each year the government establishes the minimum monthly salary and minimum hourly rate.
In 2014 the minimum monthly salary for regular working time is EUR 320, but minimum hourly rate is EUR 1,933.
Payment for overtime and work on holiday
If an employee performs overtime work or works on a holiday he shall receive an additional payment of not less than 100 per cent of the hourly or daily salary rate specified for him or her, but if piecework salary has been agreed upon, an additional payment of not less than 100 per cent of the piecework rate for the amount of work done. However, a collective agreement or an employment contract may specify a higher additional payment for overtime work or on a holiday.
Night work
Night work shall mean any work performed at night for more than two hours. Nighttime shall mean the period of time from 22 to 6 o’clock.
A night-employee shall mean an employee who normally performs night work in accordance with a shift schedule, or for at least 50 days in a calendar year.
Regular daily working time for a night employee shall be reduced by one hour. This provision shall not apply to employees who have been prescribed regular shortened working time. Regular daily working time for a night employee shall not be reduced if such is required by the particular characteristics of the undertaking.
An employee who performs night work shall receive a supplement of not less than 50 per cent of the specified hourly or daily wage rate specified for him or her, but if a lump-sum payment has been agreed upon, a supplement of not less than 50 per cent of the piece-work rate for the amount of work done.
Shift Work and Aggregated Working Time
If it is necessary to ensure continuity of a work process, an employer, after consultation with employee representatives, shall determine shift work. In such case the length of a shift may not exceed the regular daily working time prescribed for the relevant category of employees.
If due to the nature of the work it is not possible to comply with the length of the regular daily or weekly working time prescribed for the relevant category of employees, the employer, after consultation with employee representatives, shall prescribe aggregated working time.
Aggregated working time may not exceed 56 hours a week and 160 hours within a four-week period unless otherwise provided for by a collective agreement or an employment contract.
Dismissal and termination of employment contract according to Labour Law of Latvia
An employment contract shall be terminated:
1) if the employee and the employer have agreed on termination of the employment contract;
2) in the event of the death of the employee;
3) in other cases specified in the Labour Law of Latvia (for example notice of termination from employee, notice of termination of the employer etc.).
According to Labour Law of Latvia Employer has the right to give a written notice of termination of an employment contract only on the basis of circumstances related to the conduct of the employee, his or her abilities, or of economic, organizational, technological measures or measures of a similar nature in the undertaking in the following cases:
- the employee has without justified cause significantly violated the employment contract or the specified working procedures;
- the employee, when performing work, has acted illegally and therefore has lost the trust of the employer;
- the employee, when performing work, has acted contrary to moral principles and such action is incompatible with the continuation of employment legal relationships;
- the employee, when performing work, is under the influence of alcohol, narcotic or toxic substances;
- the employee has grossly violated labor protection regulations and has jeopardized the safety and health of other persons;
- the employee lacks adequate occupational competence for performance of the contracted work;
- the employee is unable to perform the contracted work due to his or her state of health and such state is certified with a doctor’s opinion.
If termination of the employment agreement is moved by the employer, there should be well grounded and provable reasons, there should be enough written evidences testifying the dismissing.
Valters Gencs, founding partner and lawyer of the Gencs Valters Law Firm in Riga.
Practising in fields of Labour Law in Latvia, Estonia, Lithuania.
T: +371 67 24 00 90
F: +371 67 24 00 91