Latvia HR Information

Updated on: 2025/08/05 15:25 (UTC)

Overview

The principal statute regulating employment is the Labor Law.

Hiring

Employment Contracts

An employment contract is considered to have been established from the moment the employee and the employer agree on the work to be performed and the remuneration to be paid. Under the contract, the employee agrees to perform specific work under the direction of the employer, and the employer agrees to pay the agreed-to remuneration and to ensure fair and safe working conditions. With certain exceptions provided in the Labor Law, employment contracts are entered into for an indefinite period.

An employment contract can be entered into for a specific period of time if it covers:

• seasonal work;
• work generally contracted for a definite period;
• replacement of an employee who is absent or suspended from work or of an employee whose permanent position has become vacant until a new employee is hired;
• casual work not normally performed in the undertaking;
• specific temporary work related to short-term expansion of the scope of the employer’s activity;
• emergency work to address unexpected events or other exceptional circumstances that could adversely affect the employer’s activities;
• temporary paid work to assist in the training of an unemployed worker; or
• work by a vocational or academic student related to study.

Temporary employment may not exceed five years.

An employment contract must include:

• the given name, surname, personal identification number and place of residence of the employee;
• the name, surname (business name), registration number and address of the employer;
• the starting date of the employment relationship;
• the expected duration of the employment relationship (if the contract has been entered into for a specified period of time);
• the workplace(s);
• the trade, profession and occupation of the employee and a general description of the contracted work;
• the remuneration and the time of payment;
• daily or weekly working time;
• length of annual paid leave;
• notice period; and
• relevant provisions of the collective agreement and work regulations.

The contract must be in Latvian and, if the employee is not fluent in Latvian, a language the employee can understand.

A probation period of up to three months may be included in an employment contract for a worker over 18 years old. During the probationary period, the employer or the employee can terminate employment with three days’ written notice and without identifying any cause as long as the termination is not discriminatory. If the employee continues to work past its expiration, the probationary period is considered to have been successfully concluded. If an employment contract does not specify a probationary period, none is considered to apply.

The Labor Protection Law has been expanded to include telework, which is defined as work that the employee could perform within the company is permanently or regularly performed outside the employer’s company. Employees who perform telework must cooperate with the employer in the assessment of the risk of the work environment and provide the employer with information on the conditions of telework which may affect their safety and health during the performance of their work.

Probationary periods. Effective August 1, 2022, Latvia’s Labour Law was amended to implement the EU Directive on Transparent and Predictable Working Conditions (EU Directive 2019/1152) to establish maximum probationary periods. Probationary periods may generally not last longer than 6 months and for employment agreements set for a fixed term and shorter than 6 months, then the probationary period should not exceed 1 month.

Restrictions on Hiring

The employment of children under 15 years of age or if still in school under 18 is generally prohibited. Employees under age 18 are subject to limitations on hours worked.

Children as young as 13 may be employed with parental consent doing light work that does not interfere with school attendance or in cultural, artistic, sporting and advertising activities. Young people between the ages of 15 and 18 cannot work in occupations that pose a risk to their safety, health, morals and development.

If given a doctor’s opinion to this effect, employers are prohibited from employing women who are pregnant, have given birth within the past year, or are breast-feeding in jobs that might pose a threat to the safety and health of the woman or her child. In all cases, it is prohibited to employ a woman two weeks prior to the expected birth or two weeks after childbirth.

Third-country nationals can generally only be employed if they have received a work permit.

Recordkeeping

Employment applications and supporting documents should be seen only by persons directly charged with making the hiring decision and can be disclosed to third parties only with the consent of the applicant.

Background Checks

Employers are required to evaluate occupational risks and determine whether employee health checks are necessary. An employer may require at its own expense that an applicant undergo a medical examination to verify suitability for employment. The examining doctor can tell the employer only whether the applicant is suitable for employment.

Criminal records are not publicly available in Latvia and can be requested from the Ministry of the Interior only by the person to whom they apply. If an employer wishes to check a job applicant’s criminal history, it must ask the applicant to provide the information.

Noncompetition Agreements

An agreement between an employee and an employer regarding the restriction of the occupational activities of the employee after termination of employment is permitted only if the agreement conforms to the following:

• its purpose is to protect the employer from direct competition from the former employee,
• the term of restriction on competition does not exceed two years from the date of termination of the employment relationship,
• the employer is required to pay the employee adequate monthly compensation for the restriction on competition,
• the former employee’s activity is restricted only in areas in which the employee was engaged while working for the former employer, and
• the agreement does not constitute an unfair restriction on the former employee’s occupational activity.

A noncompetition agreement must be in writing and specify the type, extent, place and time of restriction on competition and the compensation payable to the employee. The employer or the employee has the right to withdraw from the agreement in writing.

Reference Citations

Employment Contracts: Labor Law, 2002 (as amended), §§ 40-47 (Latvian)

Restrictions on Hiring: Labor Law, 2002 (as amended), §§ 32, 37

Recordkeeping: Labor Law, 2002 (as amended), § 38 (Latvian)

Background checks: Labor Law, 2002 (as amended), § 36 (Latvian)

Noncompetition Agreements: Labor Law, 2002 (as amended), § 84 (Latvian)

Immigration and Work Permits

In General

Before a non EEA/EU national can be hired for work in Latvia, the employing company must apply for permission from the State Employment Agency and issue the employee an employment contract, after which the employee must apply to the Office of Citizenship and Migration Affairs for a work permit and a permanent residence permit.

European Union and European Economic Area nationals do not need a visa or a residence permit to work in Latvia.

Visas and Work Permits

Before a non EEA/EU national can be hired for work in Latvia, the employing company must apply for permission to the State Employment Agency. The prospective employer must be registered with the Latvian Companies Registration Office. The prospective employer must then issue the employee an employment contract, after which the employee must apply to the Office of Citizenship and Migration Affairs for a work permit.

European Union and European Economic Area nationals do not need a visa or a residence permit to work in Latvia, but do need a valid travel document and must register with the Citizenship and Migration Agency if they plan to stay longer than 90 days.

Non EU/EEA nationals must generally have both a temporary residence permit and a work permit to be employed in Latvia. After 90 days’ residence, the worker must apply for a permanent residence permit.

Penalties

Employees who violate the immigration rules are subject to fines of between 40 euros and 700 euros, employers to fines between 430 euros and 500 euros for each illegally employed person.

Digital Nomad Visa. On June 29, 2022, Latvia’s immigration law allowing digital nomad visas went into effect. The visa permits eligible non-Latvian nationals to work remotely from within Latvia for one year. Applicants must be employed by an organization registered in an OECD (Organization for Economic Cooperation and Development) member state or be self-employed individuals with a business registered in an OECD member state. Digital nomad visa holders are prohibited from working for Latvian clients and from performing work or delivering services that generate revenue for Latvian entities. Applicants must meet a minimum monthly income requirement.

Reference Citations

Visas and Work Permits: Immigration Law (Latvian)

Nondiscrimination

In General

Under the Latvian constitution, discrimination of any kind is prohibited, including that based on race or skin color; gender; age; disability; religious, political, or other conviction; ethnic or social origin; property or marital status; or sexual orientation.

The constitution guarantees everyone an equal right to work under fair, safe, and healthy conditions for fair remuneration.

Types of Nondiscrimination

A job advertisement may not apply only to men or only to women except in cases where belonging to a particular gender is an objective and substantiated precondition for the performance of work. Job advertisements can also not contain age restrictions except in cases where persons of a certain age are legally prohibited from performing certain work.

A job interview may not include questions not relevant to the suitability of the applicant for the job or that are directly or indirectly discriminatory, in particular questions concerning:

• pregnancy;
• family or marital status;
• a previous conviction, except in cases where this may be of essential importance for the work to be performed;
• religious conviction or denomination;
• affiliation with a political party, employee trade union or other public organization or
• national or ethnic origin.

Gender Discrimination

Differential treatment in employment based on gender is prohibited in promotion, working conditions, compensation, training or termination, among other circumstances. Differential treatment based on gender is permitted only in cases where a particular gender is an objective and substantiated precondition for the performance of the work.

An employer has a duty to ensure equal compensation for men and women performing the same work or work of equal value.

EU Pay Transparency Directive: As a member state of the European Union, Latvia has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings. The national law may go beyond the minimum requirements of the directive, but the law may not directly conflict with the directive requirements.

Other Forms of Discrimination

Employees cannot be discriminated against for joining together to defend their social, economic and occupational rights and interests.

Reference Citations

Nondiscrimination: Labor Law, 2002 (as amended), §§ 7, 33 (Latvian)

Gender Discrimination: Labor Law, 2002 (as amended), § 28 (Latvian)

Other Forms of Discrimination: Labor Law, 2002 (as amended), § 8 (Latvian)

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

Monitoring and Surveillance of Employees

Under the GDPR, employers can monitor employees only if there is a lawful basis for doing so. Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures. Employees must be given prior notice, and any data that are collected must be used and kept only to fulfill their original purpose.

Reference Citations

Employee Data: General Data Protection Regulation, 2016

Employee Monitoring and Surveillance: General Data Protection Regulation, 2016

Compensation

Hours of Work

Regular daily working time may not exceed eight hours, regular weekly working time 40 hours, generally in a workweek of five days. If a six-day week is scheduled, daily working time may generally not exceed seven hours. A working day of fewer than eight hours in a five-day week may be offset by a day of more than eight but no more than nine hours.

An employee is entitled to a break of 30 minutes (or two breaks of 15 minutes each) in a workday of six or more hours. This break must come no later than four hours into the workday.

The regular working time of employees in jobs associated with special risk may not exceed seven hours a day (six hours in a six-day week) and 35 hours a week. The Cabinet of Ministers may determine regular shortened working time for other categories of employees.

Part-time working arrangements may be agreed to between employers and employees who (for example) are pregnant or breast-feeding or have a child under the age of 14 or a disabled child under the age of 18.

Minors between the ages of 12 and 15 may not be employed for more than two hours a day and 10 hours a week during the school year, four hours a day and 20 hours a week during a school vacation. Adolescents between 14 and 18 may not be employed for more than seven hours a day and 35 hours a week. If adolescents are also attending school, total work and school attendance cannot exceed seven hours a day and 35 hours a week.

Minimum Wage

The Latvian Parliament increased the monthly minimum wage: 1) to 620 euros (US $618) from 500 euros (US $498) for 2023; and 2) to 700 euros (US $697) for 2024.

Overtime

Work in excess of regular hours or on a public holiday must be compensated at no less than 200 percent of an employee’s average rate. Overtime may not exceed 144 hours in any four-month period.

Overtime work must generally be agreed to by the employer and the employee in writing, although an employer may require that an employee work overtime:

• if required by urgent public need,
• under exceptional circumstances or
• to complete unexpected work.

Overtime of more than six consecutive days must be approved by the State Labor Inspectorate. In no case may overtime exceed 144 hours in any four-month period. Overtime work for medical staff within a seven-day period may not exceed 16 hours in total.

Employees under 18 years of age cannot work overtime. Women who are pregnant or breast-feeding or have given birth within the past year cannot be required to work overtime.

Wage Payment

The employer must implement a system for the regular payment of wages at least twice a month unless employer and employee have agreed to monthly payment. Payment of wages must be in cash unless employer and employee have agreed to payment in a different form. Wage payment must be accompanied by an itemized statement of hours worked including overtime and night hours, wages paid, and taxes and other amounts withheld.

In addition to those required by law, an employer may make deductions from an employee’s wages for:

• overpayments of wages,
• advances on wages and
• advances on leave.

The total of all deductions may generally not exceed 20 percent of an employee’s gross wages, although in special cases provided for by civil law 50 percent is allowable. These restrictions do not apply to child support. Deductions may not be made from severance pay or expense reimbursements.

Mandatory Bonuses

The labor code does not address bonuses.

Reference Citations

Hours of Work: Labor Law, 2002 (as amended), §§ 131-133 (Latvian)

Overtime: Labor Law, 2002 (as amended), § 136 (Latvian)

Wage Payment: Labor Law, 2002 (as amended), § 69

Benefits

Vacation

Every employee has the right to annual paid leave of not less than four calendar weeks, not counting public holidays. Persons under 18 years of age are entitled to a full month’s vacation.

By agreement between an employee and the employer, annual paid leave in the current year may be granted in parts, although one part must be at least two uninterrupted calendar weeks.

The employer has a duty to take into consideration the wishes of employees when setting the annual leave schedule. In exceptional cases when the granting in the current year of the full annual paid leave to an employee may adversely affect the business, it is permitted with the written consent of the employee to transfer part of the leave to the subsequent year as long as at least two consecutive calendar weeks are taken in the current year. These provisions do not apply to persons under 18 years of age, pregnant women or women who have given birth within the past year.

Time taken as vacation leave must be compensated at an employee’s regular rate. Employees may not accept additional compensation in lieu of vacation except on termination of employment.

Annual leave must count toward the accrual of seniority-related benefits.

Vacation accrual is based on time actually worked and time during which the employee did not perform work for justified cause, including periods of:

• temporary incapacity,
• pregnancy and maternity leave,
• short-term absence,
• forced absence if the employee was dismissed illegally and has been reinstated and
• paternal and adoption leave.

Holidays

Under the Law on Holidays, Remembrance Days, and Celebrating Days, the following 15 days are official holidays:

• Jan. 1: New Year’s Day
• Good Friday
• Easter Monday
• May 1: International Workers’ Day, annual convening of the Latvian Constitutional Assembly
• May 4: Restoration of Latvian Independence Day
• Second Sunday in May: Mother’s Day
• Pentecost
• June 23-24: Midsummer Day
• Latvian Song and Dance Festival closing day
• Nov. 18: Latvian Independence Day
• Dec. 24, 25, and 26: Christmas
• Dec. 31: New Year’s Eve

If May 4, the closing day of the Latvian Song and Dance Festival or Nov. 18 falls on a Saturday or Sunday, the next working day is celebrated as the holiday.

Employees who work on a public holiday are entitled to double pay.

The day before a public holiday must be reduced by at least one hour.

Maternity Leave

Pregnant employees are entitled to 112 calendar days of maternity leave, divided as evenly as possible between pre- and postnatal leave.

A woman who has initiated pregnancy-related care at a medical facility by the 12th week of pregnancy and continued the care throughout her pregnancy and who suffers medical complications or gives birth to two or more children qualifies for 14 days’ additional maternity leave.

On return from maternity leave, an employee is entitled to return to her previous or an equivalent position.

Paternity Leave

The father of a newborn child is entitled to 10 calendar days’ leave within the two months following the birth. Effective August 1, 2022 Latvia’s Labour Law now grants a father paid leave of 10 working days to be paid by the state. (Previously it was 10 calendar days.) This leave can be used within 6 months of the birth of a child.

Sick Leave

Employers must pay employees on sick leave 75 percent of earnings for the first and second days and 80 percent for the fourth through the 10th. Employees are required to obtain a sick leave certificate from a certified medical practitioner. The State Social Insurance Agency pays benefits from the 11th day at 80 percent of salary for a maximum 52 weeks if the leave is consecutive, 52 weeks within a three-year period if it is intermittent.

Other Leave

Adoption leave. Following the adoption of a child, one of the parents is entitled to 10 calendar days’ leave. Additional unpaid leave must be granted if directed by the Orphan Court.

Parental Leave. Every employee has the right to parental leave in connection with the birth or adoption of a child. Up to one and a half years’ leave may be taken up to the date of the child’s eighth birthday. Parental leave, upon the request of an employee, shall be granted as a single period or in parts. The employee has a duty to notify the employer in writing one month in advance of the beginning and the length of the parental leave or parts thereof. The time spent by an employee on parental leave shall be included in the total length of service. The previous job of an employee who makes use of parental leave shall be retained. If this is not possible, the employer shall ensure the employee similar or equivalent work with not less favorable conditions and employment provisions.

Effective August 1, 2022, if parental leave is taken in increments, these may not be shorter than 1 calendar week without interruption, though parents may apply for flexible parental leave. The employer is obliged to assess such a request and notify the employee within 1 month of the request for flexible leave.

The time spent by an employee on parental leave shall be included in the total length of service. The previous job of an employee who makes use of parental leave shall be retained. If this is not possible, the employer shall ensure the employee similar or equivalent work with not less favorable conditions and employment provisions.

Carer’s Leave. Latvia’s Labour Law was amended to implement the EU Directive on Work-Life Balance (EU Directive 2019/1158) to allow for up to 5 days of unpaid leave to care for a family member or other person living in the same household.

Supplementary leave. Employees who have three or more children under 16 years of age or a disabled child up to 18 years of age or who work under hazardous conditions can qualify for an additional three days’ annual leave.

Collective or individual employment contracts can specify other circumstances (e.g., night work, shift work) under which an employee can qualify for additional leave.

Study leave. Individual or collective employment agreements may provide for study leave with or without pay. An employee must be granted 20 working days’ leave, paid or unpaid, for taking a state examination or preparing and defending a diploma paper.

Pensions and Social Security

Latvia’s national social security system covers:

• pension benefits,
• sickness and maternity benefits,
• social insurance,
• unemployment insurance,
• workers’ compensation and
• health insurance.

Men aged 63.5 or above who have been covered by the social insurance system for at least 15 years have a right to an old-age pension. The minimum retirement age will increase by three months a year through 2025, when it will reach 65.

Worker’s Compensation

If an accident at work or an occupational disease prevents an employee from working, the employee is compensated by the state social insurance fund. If the injured employee was not covered by social insurance, the employer is liable for lost income, treatment costs, and social, medical, and professional rehabilitation expenses.

Reference Citations

Vacation: Labor Law, 2002 (as amended), §§ 149-152 (Latvian)

Holidays: Labor Law, 2002 (as amended), §§ 68, 135; Law on Holidays, Remembrances and Observances, 2002 (as amended), §§ 1-5 (Latvian)

Maternity Leave: Labor Law, 2002 (as amended), § 154 (Latvian)

Paternity Leave: Labor Law, 2002 (as amended), § 155 (Latvian)

Other Leave: Labor Law, 2002 (as amended), §§ 151, 155-157 (Latvian)

Labor Relations

In General

The Latvian Constitution gives employees the right to bargain collectively and the right to strike. Employee representatives have the right to consult with the employer before it makes decisions that may affect employee interests, in particular decisions that may affect compensation, working conditions, and employment.

Employees have the right to strike to protect their economic or professional interests as a last resort if no agreement can be reached by other means, and the employer has the right to initiate a lockout in response.

Following a change in ownership, the successor employer must comply with provisions of a collective agreement entered into by the predecessor and in effect at the moment of transfer of ownership until the agreement expires or a new agreement is entered into.

Right to Organize

The Constitution of the Republic of Latvia states that “employed persons have the right to a collective labor agreement and the right to strike. The State shall protect the freedom of trade unions.” Under the Labor Law, employees can defend their social, economic and occupational rights and interests directly through authorized employee representatives or indirectly through trade unions.

Under the Trade Unions‘ Law, trade unions have the right to conduct collective negotiations with employers to reach collective agreements.

If there are several employee trade unions, they should authorize their representatives for joint negotiations with an employer in proportion to the number of members of each trade union but not less than one representative each. If representatives of several trade unions have been appointed for negotiations with an employer, they should express a united view.

Dispute Resolution

Employee representatives have the right to:

• request and receive from the employer information regarding the current economic and social situation of the company and possible future changes;
• receive information in good time and consult with the employer before the employer makes decisions that may affect employee interests, in particular decisions that may affect compensation, working conditions and employment;
• take part in decisions on compensation, working conditions, working time and safety and health;
• access any part of the workplace;
• hold meetings of employees on employer premises; and
• ensure that regulations, the collective agreement and workplace procedures are being observed.

Conciliation commission. Disputes under a collective agreement should be settled by a conciliation commission established by the parties to the agreement, each with an equal number of members on the commission. The parties to the agreement are required to draw up a report identifying their differences and submit it to the commission, which has seven days to reach a decision. The decision is binding on both parties.

Arbitration. If a conciliation commission does not reach agreement on a dispute regarding rights, the dispute can be settled by a court or an arbitration board. A court has jurisdiction to rule on any dispute regarding rights between parties to a collective agreement concerning:

• claims arising from the collective agreement,
• application of provisions of the collective agreement and
• validity or invalidity of provisions of the collective agreement.

The parties to a collective agreement may agree to refer any dispute regarding rights to an arbitration board. This agreement may be incorporated into the collective agreement as a separate provision (arbitration clause).

Strikes and Lockouts

The constitution gives employees the right to strike to protect their economic or professional interests. The right to strike must be exercised only as a last resort if no agreement can be reached by other means. Participation in a strike must be voluntary, and an employee may not be forced to participate in a strike or prohibited from participation.

Under the Labor Dispute Law, if employees strike an employer and the strike significantly affects the employer’s economic activity, the employer has the right to initiate a lockout but only against those employees who have gone on strike.

Successorship Clauses

When ownership of a company changes hands, the rights and duties of the predecessor employer transfer to the successor. The successor employer must comply with provisions of a collective agreement entered into by the predecessor and in effect at the moment of transfer of ownership until the agreement expires or a new agreement is entered into. During a one-year period from the transfer of ownership, the provisions of the collective agreement cannot be amended to the detriment of employees.

Reference Citations

Right to Organize: Constitution of Latvia, 1922 (as amended) art. 108

Dispute Resolution: Trade Union Act, 2003 (as amended) §§ 13-14; Labor Dispute Law, 2003 (as amended) art. 11 (Latvian)

Strikes and Lockouts: Labor Dispute Law, 2003 (as amended) arts. 20-21 (Latvian)

Successorship Clauses: Labor Law, 2002 (as amended), §§ 117-118 (Latvian)

Safety, Health and Security

In General

Employers are required by law to provide safe, healthy working conditions for employees. An employer has the right to suspend an employee who appears in the workplace under the influence of alcohol or drugs.

Workplace Safety and Health

Employers are required by law to provide safe, healthy working conditions. Failure to comply can result in a penalty of up to 700 euros.

Employers must bear the costs of mandatory health examinations for employees performing work in high risk or unhealthy working conditions. Failure to provide required health examinations can result in fines of up to 700 euros.

Drug and Alcohol Use

An employer has the right to suspend an employee from work if the employee, when performing work or being present at the workplace, is under the influence of alcohol or narcotics when failure to suspend an employee from work may be detrimental to his or her safety or the health or safety of other employees, as well as to the substantiated interests of the employer.

Reference Citations

Workplace Safety and Health: Labor Law, 2002 (as amended), §§ 7, 33 (Latvian)

Drug and Alcohol Use: Labor Law, 2002 (as amended), § 58 (Latvian)

Termination

Termination by Employer

The employer can terminate an employee’s employment immediately if the employee has acted illegally and lost the trust of the employer or is present at the workplace while under the influence of alcohol or narcotics. The employer must allow the employee to provide a written explanation of the suspect behavior before proceeding with the termination.

Employment can be terminated with 10 days’ written notice if the employee:

• has significantly violated the employment contract or specified working procedures without justification,
• has violated moral principles in the performance of work in a way that is incompatible with the continuation of the employment relationship,
• has grossly violated labor protection regulations and jeopardized the safety and health of other persons,
• is unable to perform the contracted work for health reasons as certified by a doctor’s opinion or
• does not perform work due to temporary incapacity for more than six months if the incapacity is uninterrupted or for one year within three years if the incapacity is intermittent.

Employment can be terminated with 30 days’ written notice if:

• the employee lacks the competence to perform the contracted work,
• the employee was substituting for an absent employee who has returned to work,
• the employer is reducing its workforce or
• the employer is being liquidated.

Termination other than for cause is permissible only if the employer cannot employ the employee with his or her consent in other work in the same or another undertaking.

Termination by Employee

An employee can terminate the employment contract on one month’s written notice, shorter notice if provided in the employment contract. Termination without notice is allowed if issues of morality or fairness make continuation of the employment relationship untenable or by mutual agreement with the employer.

Plant Closings and Mass Layoffs

A collective redundancy (mass layoff) occurs when:

• at least five employees are dismissed by a company that employs more than 20 but fewer than 50 employees,
• at least 10 employees are dismissed by a company that employs more than 50 but fewer than 100 employees,
• at least 10 percent of the workforce is dismissed by a company that employs at least 100 but fewer than 300 employees, or
• at least 30 employees are dismissed by a company that employs 300 and more employees.

The employer must notify the state employment agency and the local government in writing at least 30 days in advance of the planned layoffs. Layoffs may be initiated no sooner than 30 days following this notification, and the employment agency may postpone them for up to 60 days.

The employer must provide the following information to its employees or their representatives before a final decision is made on the layoffs:

• the reasons for the planned dismissals,
• the total number of employees to be laid off,
• the total number of employees working in the company,
• the period during which the collective redundancy will be carried out and
• the procedure for calculating severance pay.

Payment on Termination

The employer is required to pay severance if it terminates the employee because:

• the employee lacks adequate occupational competence to perform the job,
• the employee is unable to perform the contracted work due to his or her state of health,
• the employee was substituting for an absent employee who has returned to work,
• the workforce is being reduced,
• the employer is being liquidated or
• the employee terminates the contract on the basis of morality and fairness.

Severance is calculated based on an employee’s years of service:

• under five years’ service: one month’s average salary,
• five to 10 years’ service: two months’ average salary,
• 10 to 20 years’ service: three months’ average salary, and
• over 20 years’ service: four months’ average salary.

Unemployment Insurance

Employees who had been employed for not less than one year and made mandatory unemployment social insurance contributions for 12 months ins a 16-month period prior to becoming unemployed are entitled to unemployment benefits.

The benefit is based on length of employment and amount of compensation during employment:

• from one to nine years: 50 percent of average salary,
• from 10 to 19 years: 55 percent of average salary,
• from 20 to 29 years: 60 percent of average salary, and
• 30 or more years: 65 percent of average salary.

Reference Citations

Termination by Employer: Labor Law, 2002 (as amended), §§ 101-104 (Latvian)

Termination by Employee: Labor Law, 2002 (as amended), § 100 (Latvian)

Plant Closings and Mass Layoffs: Labor Law, 2002 (as amended), §§ 105-107 (Latvian)

Payment on Termination: Labor Law, 2002 (as amended), §§ 112 (Latvian)

Personal Taxes

Residency Requirements

Residents generally are defined as those with a permanent place of residence in Latvia or who have resided in Latvia for 183 days in a given 12-month period.

Taxable Income

Latvian residents are taxed on their worldwide income. Nonresidents are only taxed on their Latvian-sourced income. Taxable income for employment purposes generally includes salary, bonuses, and all other remuneration.

Tax Rates

Latvian tax rates are on a progressive scale from 20 percent to 31 percent based on income.

Reference Citations

Tax Rates: Personal Income Tax Rates

Web References

In Latvian unless otherwise noted.

Law and Regulation

Administrative Violations Code

Civil Procedure Law

Constitution of the Republic of Latvia

Contract Law

Council Directive 91/383/EEC supplementing measures to encourage improvements in the safety and health at work of workers with a fixed-duration employment relationship or a temporary employment relationship (English)

Council Directive 91/533/EEC on an employer’s obligation to inform employees of the conditions applicable to the contract or employment relationship (English)

Council Directive 2003/88/EC concerning certain aspects of the organization of working time (English)

Immigration Law

Labor Dispute Law

Labor Law

Labor Protection Law

Law on Holidays, Remembrance Days and Celebrating Days

Law on Personal Income Tax

Law on State Pensions

Law on State Social Insurance

Regulations of the Cabinet of Ministers of the Minimum Monthly Salary and the Minimum Hourly Wage Rates

Regulations of the Cabinet of Ministers of Procedures for Performance of Mandatory Health Examinations

Regulations of the Cabinet of Ministers Regarding Employment of Foreigners

Regulations of the Cabinet of Ministers Regarding Residence Permits

State Labor Inspection Law

Strike Law

Trade Unions‘ Law

Government Websites and Publications

Constitutional Court of the Republic of Latvia

Latvian Courts Portal

Ministry of Welfare

The Office of Citizenship and Migration Affairs

The State Labor Inspection