All work relations are based on employment contracts in Latvia. The termination of employment may happen at the initiative of the employer or of the employee in case of indefinite employment agreements. Employment may also be terminated by expiry of fixed-term contracts in Latvia. Another way of terminating work relationships is a mutual agreement between the Latvian company and its employee or employees or at the request of a third party. The Latvian Employment Law was last amended in 2013, when new provisions about the notice of termination were introduced. Section 102 of the Employment Law provisions that, when given by an employer, notices of termination must be in writing and state the reasons for termination.
Section 101 in the Labor Code provides the main reasons for termination of employment in Latvia. Among the most common reasons for dismissal in Latvia are: the conduct of the employee, organizational and economic reasons. However, there are also other legal grounds Latvian companies may dismiss employees on. Among the reasons for lawful dismissal are:
Employers may also terminate a labor contract, if the Latvian company is being liquidated or a reduction in the number of employees is required.
Before terminating an employment relation, a notice must be provided. The requirement applies to both fixed-term and indefinite term employment contracts. While the employee must give his notice one month before the termination of the employment contract, the Latvian company must give the notice within specific time ranges depending on the reasons for dismissal.
The notice for dismissal can be effective immediately, 10 days after or one month after it was given. Other periods of time apply to collective employment agreements. The employer must also take into account if special requirement apply when dismissing an employee.
For additional information about dismissal grounds, please contact our Latvian law firm.
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