The Latvian Labor Code was renewed in June 2002 and it has been updated according to the EU directives. The new code refers to the rights to work, equal and fair remuneration and proper working conditions for employees.
The Latvian laws accept trade unions and collective labor agreements. Both employers and employees can associate and form trade unions that will agree upon policies meant to regulate labor relations especially regarding payment and work protection, the terms contracts may end under and social security for employees. However, a collective labor agreement may also impose obligations for employees.
If you need more details about the laws regulating the employment, you may contact our lawyers in Latvia.
Employment contracts in Latvia
The employment contract in Latvia is concluded between an employer and an employee and contains rules and regulations the employee must abide in exchange for a salary and a safe and good working environment. A labor contract must be concluded in writing. Once the work contract has been concluded, the employer is required to register it.
The employment contract can be temporary or signed on indefinite amount of time.
The Latvian temporary contract may be concluded for two years at most. After this period, the contract will be considered as a contract for an indefinite period of time.
The probation period will be set when signing the work contract and it cannot exceed three months.
The work schedule in Latvian companies is 8 hours a day, 40 hours a week and overtime must be consented in writing.
Employees have the right to 4 weeks paid vacation that can be divided in several parts, but one of them must be of at least 2 subsequent weeks.
Duty of confidentiality and non-competition clauses
The new Labor Code in Latvia establishes the non-competition and duty of confidentiality clauses for the employee in the labor contract. The employer must convey in writing the commercial secrets these clauses are applied to.
The clause of non-competition applies after the end of work relations between the employer and the employee and it is admitted only if:
- it protects the employer in case the ex-employee will undertake activities that can compete with the employer’s business;
- the period of non-competition will not exceed two years;
- during the non-competition period, the employer will pay the employee a monthly amount of money for respecting the clause.
Termination of a contract in Latvia
Both employer and employee have the right to terminate a labor contract, with a one month notice. This notice must be given in writing by any of the parties wanting to end the collaboration. There is also the possibility for work relations to end by mutual agreement.
If you want to open a company in Latvia and you need details about the Employment Law, our Latvian lawyers can provide you with specific information.
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