Working life country profile for Latvia
This profile describes the key characteristics of working life in Latvia. It aims to provide the relevant background information on the structures, institutions, actors and relevant regulations regarding working life.
This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are systematically updated every two years.
‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Latvia.
Requirements regarding an employment contract
An employment contract has to be entered into in writing prior to the commencement of work. The Labour Law strictly determines the content of the individual employment contract (Section 40).
Amendments adopted on 16 June 2022 introduced several changes to Section 40.
One provision is that an employee may freely determine his or her workplace.
Working time regulations were amended: when the work schedule of a worker is completely or mostly predictable or when it is not completely or mostly predictable, the employment contract should include not only the period of notice of the termination of the employment contract but also the related procedures.
Three new clauses (11, 12 and 13) were introduced: employment contracts should include the probationary period and its duration (11); the employee has a right to training if the employer provides training (12); and the employee has the right to receive social security benefits on the grounds of the employment relationship, and any other social security benefit provided by the employer (13).
The information required may be substituted with a reference to relevant provisions in laws and regulations, collective agreements or with a reference to the relevant working procedure regulations.
It is against the law to employ a person who is under 15 years of age or someone who is under 18 years and in full-time education (identified as ‘children’) in permanent work.
Children from the age of 13, if one of the parents (or a guardian) has given written consent, may be employed outside of school hours during daylight in work not harmful to their safety, health, morals and development. Such work is determined by the Cabinet of Ministers.
Foreigners may be employed only if they have the right to be employed confirmed by visa or special permit (there may be exceptions). This rule does not apply to citizens of the EU and those who have the right to free movement within the EU in compliance with the Schengen Agreement.
Dismissal and termination procedures
Dismissal and termination procedures are regulated by the Labour Law (Sections 100–112 and Sections 113–129, respectively). The procedure starts with issuing or submitting notice of termination. The law describes in detail how and under what circumstances either party may issue a notice of termination. It sets out the notice period for termination by an employer, procedures for reducing the number of employees in an organisation and collective redundancy, the prohibition and restriction of dismissal and preferences for continuing employment relations if the number of employees is reduced, special requirements regarding membership of a trade union, assistance in seeking a new job and severance pay, among other things.
An employee has the right to give notice in writing of the termination of an employment contract one month in advance unless a shorter time period is provided for in the employment contract or the collective agreement. The law specifies 11 situations when an employer may give notice of termination, all based on circumstances related to the conduct of the employee or his or her abilities, or on economic, organisational, technological measures or measures of a similar nature in the undertaking.
The employer has a duty to notify the employee in writing of the circumstances that are the basis for the termination of the employment contract.
An employer is prohibited from giving a notice of termination of an employment contract to an employee who is a member of a trade union without the consent of the relevant trade union.
Parental, maternity and paternity leave
The length of parental, maternity and paternity leave is determined by the Labour Law (Sections 154–156). Parental, maternity and paternity leave are regulated by the Latvian social insurance system, which provides the allowances received during the leave. The relevant social benefits are available for socially insured people if a person has made mandatory or voluntary social insurance contributions to the special social insurance budget (as provided by the law on state social insurance (Section 12(1) and (2)), adopted on 1 October 1997 and valid from 1 January 1998). The amount of the benefit depends on the recipient’s total contribution and is calculated on the basis of their social insurance salary.
Paternity leave was introduced in 2004. In this year, 4,521 fathers (of 20,551 newborn children) received this benefit. In 2019, paternity benefit was paid to 10,508 fathers (of 18,589 newborn children).
Statutory leave arrangements
Maternity leave
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| Maximum duration |
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| Reimbursement | 80% of the average insurance wage of the beneficiary |
| Who pays? | Social insurance budget (valsts sociālās apdrošināšanas speciālais budžets), administered by the State Social Insurance Agency (Valsts sociālās apdrošināšanas aģentūra, VSAA) |
| Legal basis |
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| Parental leave | |
| Maximum duration | According to Article 156 of the Labour Law, every employee, whether a mother or a father, has the right to parental leave in connection with the birth or adoption of a child. Parental leave for a period not exceeding 1.5 years can be requested at any time up to the day the child reaches the age of eight years. Parental leave, upon the request of an employee, should be granted as a single period or in parts. The employee has a duty to notify the employer in writing one month in advance about the beginning of parental leave or its parts and the duration of parental leave. Parental leave cannot be shorter than one continuous calendar week The early termination of parental leave and an early return to work should be facilitated according to the procedures stipulated by a collective agreement or an employment contract or based on an agreement between the employee and the employer. The employee is entitled to return to work, subject to notifying the employer at least two weeks in advance, where for objective reasons there is no need for them to provide further childcare. The employee has the right to flexible parental leave. |
| Reimbursement | A beneficiary may choose the time the benefit is received, and the amount of the benefit is calculated on the basis of the duration of parental leave. The amount of the benefit is established according to the chosen duration of receiving the benefit:
For recipients of parental benefit who are employed during the period in which they are caring for their child and are not on childcare leave or are earning income during the period as a self-employed person, the benefit is 50% of their nominal wage. Once the choice is made regarding the duration of receiving the benefit (until the child reaches the age of 13 or 19 months) and the benefit is granted, the chosen duration for the same child may not be changed. |
| Who pays? | Social insurance budget (valsts sociālās apdrošināšanas speciālais budžets), administered by the VSAA |
| Legal basis |
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| Paternity leave | |
| Maximum duration | The father of a child is entitled to leave of 10 calendar days. This leave should be granted immediately after the birth of the child, but no later than six months from the birth of the child (amended from two months on 16 June 2022). A new clause regulates cases when the child’s paternity has not been established or the child’s father has died or has had his custody revoked. In such cases, a person other than the child’s mother has the right to 10 days of childcare leave at the request of the child’s mother. If a mother dies in childbirth or any time up to the 42nd day of the postnatal period, or, in accordance with the procedures prescribed by law, refuses to take care of the child during the period up to the 42nd day of the postnatal period, the father of the child or another person who is willing to take care of the child should be granted leave for the period up to the 70th day of the child’s life. If a mother cannot take care of their child during the period up to the 42nd day of the postnatal period due to illness, injury or other health-related reasons, the father or another person who is willing to take care of the child should be granted leave for those days on which the mother herself is not able to take care of the child. For a family that has adopted a child up to 18 years of age, one of the adoptive parents should be granted 10 calendar days of leave. A child’s father, an adoptive parent or another person who cares for the child and who makes use of the leave referred to in this section should have their job position kept for them. If this is not possible, the employer should ensure that similar or equivalent work with conditions and employment provisions that are not less favourable is available on their return. |
| Reimbursement | 80% of the average wage of the beneficiary, derived from insurance contributions |
| Who pays? | Social insurance budget (valsts sociālās apdrošināšanas speciālais budžets), administered by the VSAA |
| Legal basis |
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Sick leave
The legal basis of sick leave includes:
the Labour Law (adopted on 20 June 2001, and valid from 1 June 2002)
the law on state social insurance (adopted on 1 October 1997 and valid from 1 January 1998)
the law on maternity and sickness insurance (adopted on 6 November 1995 and valid from 1 January 1997)
Regulation of the Cabinet of Ministers No. 753 on rules of state social insurance benefits (adopted on 16 November 2021)
Regulation of the Cabinet of Ministers No. 152 on procedures for the issuance of sick leave certificates (adopted on 3 April 2001, and valid from 1 May 2001)
The law on budget and financial management (adopted on 24 March 1994 and valid from 24 April 1994)
The annual law on the state budget for the relevant year
Sickness benefit is paid from the social insurance budget. It is granted if the recipient has made state social insurance contributions for at least 3 months in the 6 months before the event necessitating sick leave occurred or no less than 6 months in the 24 months before the event. The person should still have the status of a worker or a self-employed person during the period of their incapacity for work.
The sickness benefit is granted at 80% of the average wage of the beneficiary, derived from insurance contributions.
An employer does not have the right to give notice of termination of an employment contract during a period of temporary incapacity of an employee, except in special cases connected with unacceptable behaviour of an employee at work.
Retirement age
The retirement age is determined by Section 11 of the Law on State Pensions (adopted on 2 November 1995 and valid from 1 January 1996). The retirement age will be gradually increased until it reaches 65 years for both men and women. In 2023, the retirement age was 64 years and 6 months. Women and men who have reached the established pension age and who have made insurance contributions for no less than 20 years have the right to an old-age pension.
A parent or guardian of a child who, during the period until the child reached 18 years of age, has taken care of five or more children for no less than 8 years or of a disabled child for at least 8 years can claim an old-age pension at age 60 if they have made insurance contributions for no less than 25 years.
People whose period of insurance contributions is no less than 30 years have the right to request an old-age pension from the age of 62.
