National Labour Law Profile: Latvia
Updated by Natacha Wexels-Riser Maîtrise in International Law, Diplôme
d’Etudes Supérieures Spécialisées (Master of Laws) in International Administration
(Paris II, Panthéon-Assas). Lectured in International Law, Paññasastra University
of Cambodia.
July 2004
Historical background
Latvia, which had been subject to continuous foreign rule since the 13th
century, was occupied by Germany during WWI. On 18 November 1918, a few days
after Germany surrendered to the Allies, Latvia declared its independence.
Karlis Ulmanis formed a government. But the hostilities between pro- and anti-
Bolshevik forces went on until 1920, when Soviet Russia signed a peace treaty
with the parliamentary republic of Latvia, and recognized its independence in
perpetuity. In September 1921, Latvia was admitted to the League of Nations. The
Constitution was adopted in February 1922.
In May 1934, Prime Minister Ulmanis took full power, banning all parties and
many press organs. In August 1939, the Molotov-Ribbentrop Pact was signed
between Nazi Germany and the Soviet Union. It placed Latvia under the Soviet
sphere of influence. Nationalisation and purges began, killing 35,000 Latvians
within a year of time.
In 1941, Germany invaded USSR and occupied Latvia, until 8 May 1945, when the
Soviet control was re-established, and Latvia again experienced deportations and
executions.
In the late 1980's, as a result of Gorbachev's glasnost (openness)
and perestroika (restructuring), a strong mobilization for self-rule took place. In May 1990, the Supreme Council voted for independence following a transition period. The pre-WWII Constitution was reinstated. The people were submitted to a referendum, and 73% of the votes were expressed in favour of independence. After the fall of the Soviet Union, the Supreme Council voted for the full restoration of Latvian independence, on 21 August 1991. This was recognized by the West and Russia, and Latvia joined the United Nations on 17 September 1991.
Latvia is a participating State to the OSCE since 1991 and to the Council of
Europe since 1995. Latvia joined the NATO on 29 March 2004, and the European
Union on 1 May 2004.
Latvia has ratified 45 ILO Conventions, as well as both International
Covenants and the European Convention on Human Rights.
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Institutional framework
The Constitution
of the Republic of Latvia (the Satversme) was adopted on 15
February 1922.
The Constitution was amended in 1933, 1994, 1996, 1997, 1998, 2002 and 2003.
The most substantial amendment, including a new chapter VIII on Fundamental
Human Rights, was made in 1998.
Latvia is a democratic, parliamentary republic.
Legislative power
Legislative power is vested in a single chamber parliament – the Saeima,
consisting of 100 deputies. Parliamentary elections take place every 4 years,
through universal direct secret ballot, on a proportional basis.
Legislative power is also delegated to the Cabinet of Ministers (government) in accordance with Section 81 of the Constitution: It allows the Cabinet, between two sessions of the Saeima, and in case of urgency, to adopt regulations with the force of law and to amend laws adopted by the parliaments of previous convocations. Such regulations shall not refer to matters, which are the exclusive competence of the Saeima. They are valid until three days after the start of the next session of the Saeima.
In accordance with the Constitution and other legislative acts, Latvia has
the following hierarchy of legal rules:
- the Satversme;
- international treaties approved by the Saeima;
- laws and regulations of the Cabinet of Ministers having the
force of law;
- regulations of the Cabinet of Ministers;
- local government regulations.
Section 68 of the Constitution stipulates that all international
agreements, which settle matters that may be decided by the legislative process,
require ratification by the Saeima. In accordance with Section 89 of the
Satversme, the State has a duty to recognise and protect fundamental human
rights laid down in the Constitution, the laws and international agreements,
which are binding upon Latvia. Section 13 of the Law on International
Treaties of the Republic of Latvia stipulates that where International
agreements approved by the Saeima contain different provisions from those
contained in national legislation, the former shall apply. Almost identical
wording is enshrined in the Labour Law. Thus, it is derived from the
Constitution and other legislative acts that international law principles
prevail over national rules (except the Satversme). However, the enforcement
procedures of international law may be different depending on the relevant
situation. In practice, the awareness of the courts as to the application of
international rules is steadily growing. As a confirmation of this, two
comparatively recent cases came before the court where international agreements
were applied directly by the court in the area of gender discrimination and
equal pay.
Draft laws may be submitted to the Saeima by the President, the Cabinet, the committees of the Saeima, at least five members of the Saeima or by one-tenth of the electorate (Section 65).
In specific occasions provided for in the Satversme, a law suspended by the
President shall be put to a national referendum. Such laws shall not refer to
matters, which are of the exclusive competence of the Saeima.
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The head of the state is the
President, who is elected by the Saeima for a period of 4 years, by simple majority (51 members of the Saeima, Section 36 of the Constitution). The President is the Commander-in-Chief of the armed forces of Latvia. He or she signs and promulgates laws, nominates the Prime Minister (who is the head of the government) and performs representative functions. The President represents Latvia on the international scene and nominates the diplomatic representatives. The same person may not hold more than two consecutive mandates for the presidency.
The president may decide to dissolve the Saeima, after consultation of the
people by referendum. In case of approval of the dissolution, new parliamentary
elections are held. But if the people vote against dissolution of the Saeima,
the President is removed from his functions.
Executive power is vested in the Cabinet
of Ministers, composed
of the prime Minister and the Ministers nominated by him. The duration of the
Prime Minister's mandate is 4 years. However, if the Saeima expresses no confidence
in the Prime Minister, the entire Cabinet of Ministers shall resign (Section 59).
The Cabinet may submit draft laws to the Saeima. In particular, it submits
draft laws on the State Budget. They must be approved by the Saeima.
The Judiciary
Judicial power is vested in the courts. There is a three level court system
in Latvia. Court cases are heard by district (city) courts, regional courts and
the Supreme Court, and, in the event of war or a state of emergency, also by
military courts. Judges shall be independent and subject only to law.
District (city) courts are the first instance courts.
A regional court is the first instance court for the criminal and civil
matters, which are within the jurisdiction of regional courts in accordance with
the procedure law. Regional courts also operate as appellate courts for cases,
which have been adjudicated by district (city) courts as the court of first
instance.
The Supreme Court (third level) is composed of the Senate and two Court
Chambers: the Civil Chamber and the Criminal Chamber. The judgements of the
Supreme Court are final.
All judges are appointed by the Saeima at the recommendation of the Minister
of Justice (judges of the Supreme Court – at the recommendation of the Chairman
of the Supreme Court).
For further information, please see Latvia Courts Portal
The Constitutional
Court is not a part of the general court system. It is a
special court, which reviews cases concerning the compliance of laws with the
Constitution, as well as other matters as defined by law. The Constitutional
Court has the right to declare laws or other enactments or parts thereof
invalid. There are seven judges in the Constitutional Court. Judgements of the
Constitutional Court are final and unappealable.
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Labour rights in the Satversme
Chapter VIII of the Constitution, which lays down the fundamental rights and freedoms of Latvian citizens, contains certain provisions on labour rights, such as the prohibition of discrimination (Section 91), the freedom of association (Section 102), the right to remuneration (and minimum wage) and the right to weekly holidays and annual paid leave (Section 107), and finally the right to conclude collective agreements, the right to strike and the freedom of trade unions (Section 108).
Accession to the European Union
Latvia joined the European Union on 1st May 2004. Membership in the EU
requires that the country complies with the "acquis communautaire" (already
existing Community law), that it implements ("transposes") any Directives and
Regulations not already incorporated into national law, that it transposes any
future Directives into national law within the specified time period, and that
it abides by future Regulations. European Community Law (EC Law) is binding not
only on the State but it also has direct effects on individuals, who can invoke
it before the national courts. In addition , national courts can and must
submit cases before the European Court of Justice (ECJ) for a preliminary ruling
under article 234 EC when they consider that national law or regulations deviate
from EC law. In case the ECJ takes the view that a national law or regulation
(including a collective agreement or even a practice) is in breach of EC Law,
then it shall instruct the national court to set aside the national rule so that
it can give a judgment in light of EC Law only.
EC
Law is composed of primary law (the EC Treaty and the
EU Treaty), and secondary law (Directives, Regulations, Decisions etc). While regulations are binding and applicable in all Member States without further national legislation directives are binding as to the result to be achieved, upon each Member State to which they are addressed, but shall leave to the national authorities the choice of form and methods. (Art. 249 EC). In
practice Member States adopt legislation with a view to transposing a directive
into the national law though in some cases a directive may be implemented by
other means, and more especially by collective agreement, which is expressly
envisaged under article 137.4 EC.
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Labour regulation
The Republic of Latvia acquired its independence in 1918. During the period
of independence until 1940, labour legal relations were partly covered by
Tsarist Russia legal acts (in the area of Civil law and industrial work). Labour
law was also covered by legal acts adopted by the Saeima and Cabinet of
Ministers of the independent Republic of Latvia. These acts regulated working
time organization, social insurance, right to organize and collective bargaining
issues, etc. In order to ensure proper implementation of the above-mentioned
legal acts, the Law on State Labour Inspectorate was also adopted in 1939.
During the period of occupation of Latvia by the Soviet Union (1940-1990) as
well as by Germany (during the WWII), the legal labour relations system of the
Soviet Union and Germany was applicable in Latvia respectively. The former also
included the Labour Code adopted in 1972 (which was replaced by the new Labour
Law in force since 1 June 2002).
In the 1990's, after Latvia regained its independence, a labour law reform was launched in order to replace the Soviet system. The major part of this reform included the implementation of the rules stemming from international law, in particular European Union law.
As a result of the reform, legislation in the area of labour law encompasses
both individual and collective labour relations. As a part of the reform, the
following legal acts were adopted:
A large proportion of the reform also lays in the establishment of a national
consultation mechanism between social partners – the National Tripartite
Co-operation Council (hereafter referred to as the NTCC). The main task of the
NTCC is to ensure and promote co-operation of the Government, employers'
organizations and employees' organizations at the national level with the
objective to ensure solutions of social and economic development problems, which
are acceptable to all social partners. Thus, social partners have an increased
responsibility in the adopted decisions. All legislative acts as regards
national policy in the social sphere are prepared in close collaboration with
the social partners (for example, the Labour Law, the Labour Protection Law, the
Labour Disputes Law, etc.).
Apart from legislative acts as sources of Labour Law, the role of other forms of labour regulation has always been of major importance. However, Latvia belongs to the Roman-German legal system that is characterised by strict laws and rules as sources of law. Therefore laws and regulations in Latvia are primary sources of law (including the Labour Law) and soft law in general is used only as an auxiliary for the correct interpretation and application of the primary source.
The government of Latvia does not use in practice such administrative
regulations that could serve as a source of Labour Law. The role of collective
agreements is constantly growing as a local source of law in establishing the
content of labour legal relations. This may be particularly observed in the new
Labour Law providing that such issues, as organization of work remuneration,
labour protection and social security shall be included in collective
agreements. Therefore collective agreements may be considered as sources of
labour regulation to the extent to which these agreements express a common
accord of both parties and as far as the issues covered by them are delegated by
law. However, provisions of collective agreements may not be contrary to those
contained in the law.
Arbitration awards, like collective agreements, may be local sources of law
in respect of persons involved in a dispute. The Labour Disputes Law provides
that collective labour rights dispute parties may agree to settle the dispute in
arbitrage. The law also stipulates that if the accord is not reached in a
conciliation committee in respect of collective interest dispute, it shall be
settled in accordance with the procedure set out in the collective agreement. If
there is no such procedure in the collective agreement, the dispute shall be
settled by reconciliation method or in arbitrage. The performance of the
decision taken in arbitrage shall be voluntary. If such decision is not
performed each party shall have the right to collective action. However, if
parties reach a written concurrence on the fulfilment of such decision, it shall
have a power of collective agreement.
Judicial decisions may not be considered as sources of labour regulation in general. Section 82 of the Satversme provides inter alia that
judges shall be independent and subject only to law. The judgement is binding
solely in the particular case, i.e. other judges are not obliged to follow the
judgement in similar case. Nevertheless, judges may use motivation explored in
the relevant judgement in order to adjudicate other cases. In practice, case law
(particularly that of the Supreme Court) and legal doctrine have been used as a
secondary source of law rather frequently.
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Contract of Employment
An employer and an employee establish an employment legal relationship by a
contract of employment. By means of a contract of employment an employee
undertakes to perform specific work, subject to specified working procedures and
orders of an employer, while the employer undertakes to pay the agreed work
remuneration and to ensure fair and safe working conditions that are not harmful
to health. A contract of employment shall be entered into in writing. If written
form has not been complied with, an employee has the right to request that the
contract of employment be expressed in writing. In order to afford additional
protection to an employee, the Labour Law also provides that where an employee
and an employer, or at least one of the parties, has begun to perform the duties
contracted for, a contract of employment that does not conform to the written
form shall have the same legal effect as a contract of employment expressed in
writing (Section 41 of the Labour Law).
Permanent and fixed-term contracts of employment
As a general rule, contracts of employment are concluded for an unspecified
period of time (Section 43 of the Labour Law). Fixed-term contracts are only
admitted in a restricted number of cases, defined in Section 44. This was one of
the major changes included in the new Labour Law, harmonizing Latvian Law with
Directive
1999/70/EC
on fixed-term work. Fixed-term employment contracts are permitted in the cases of seasonal work, work in activity areas where a contract of employment is normally not entered into for an unspecified period, replacement of an employee who is absent, casual work which is normally not performed in the company, emergency work in order to prevent the consequences caused by an unexpected event, etc. Fixed-term contracts may also be concluded in special areas such as sports, etc.
Where a contract of employment does not indicate the period for which it has been entered into, or if according to the circumstances the entering into a contract of employment for a specified period is not permissible, the contract of employment shall be deemed as entered into for an unspecified period (Section 44 (5), Labour Law).
With a view to eradicating differential treatment, the Labour Law provides that the same provisions which apply to an employee with whom a contract of employment has been entered into for an unspecified period shall apply to an employee who has concluded a fixed-term contract of employment.
The term of a contract of employment entered into for a specified period may
not exceed two years (including extensions of the term), whereas the term for
which a contract of employment has been entered into for performing seasonal
work (including all extensions of the term) may not exceed 10 months within a
period of one year. If, upon expiry of the term for which a contract of
employment has been entered into, no party has requested termination of the
contract of employment and employment legal relationships are effectively
continuing, the contract of employment shall be regarded as entered into for an
unspecified period.
Probation
Parties to a contract of employment, concluded either for a fixed period or
an indefinite period, can agree upon a probationary period (Section 46 and
following of the Labour Law). The maximum length of a probationary period is
three months. A probation period shall not be determined for persons under 18
years of age. Where the contracted term of a probation period has expired and
the employee continues to perform the work, it is considered that he or she has
passed the probation period (Section 47 (2) of the Labour Law).
Non-competition clause
Section 84 of the Labour Law provides for a possibility to conclude a
non-competition clause. In accordance with these provisions an employee may
accept the obligation that, for a certain period after the termination of his or
her employment, which however must not exceed two years, he or she will not be
engaged in a business activity of competitive nature in respect of his or her
former employer. Such activity must then be performed neither for another
employer nor as self-employment. A non-competition clause can be agreed upon
under circumstances where there is justification for such arrangement. The
employer must pay the employee adequate compensation during the period covered
by the agreement.
Suspension of the contact of employment
Suspension from work is a temporary prohibition, imposed by a written order
of an employer, for an employee to be present at the workplace and to perform
work, without paying work remuneration to the employee during the period of
suspension.
An employee can be suspended from work in situations defined in Section 58 of
the Labour Law, for example if the employee is under the influence of alcohol or
narcotic substances.
In order to protect employee's earnings during suspension the Labour Law
provides that an employer has a duty to pay an employee the average earnings for
the whole period of forced absence from work, as well as to compensate for
losses caused as a result of the suspension, if the suspension of an employee
from work has been unfounded due to the fault of the employer.
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Termination of the contract of employment
A contract of employment can be terminated either at the initiative of an
employer or an employee. A contract of employment may also be terminated by
expiry of a fixed-term contract, by mutual consent of employer and employee, or
pursuant to the request of a third party.
Parents (guardians) or the State Labour Inspection have the right to request
in writing the termination of an employment relationship with a person who is
under 18 years of age if such person performs work, which jeopardises his or her
safety, health or morals or negatively affects his or her development or
education.
Grounds for termination
Termination at the initiative of the employer
Pursuant to Section 101 of the Labour Law, an employer has the right to give
a written notice of termination of a contract of employment 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 only in the following cases:
- an employee has without justified cause significantly violated the
contract of employment or the specified working procedures;
- an employee, when performing work, has acted illegally and therefore has
lost the trust of the employer;
- an employee, when performing work, has acted contrary to moral
principles and such action is incompatible with the continuation of employment
legal relationships;
- an employee, when performing work, is under the influence of alcohol,
narcotic or toxic substances;
- an employee has grossly violated labour protection regulations and has
jeopardised the safety and health of other persons;
- an employee lacks adequate occupational competence for performance of the
contracted work;
- an 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;
- an employee who previously performed the relevant work has been
reinstated at work;
- a number of employees is being reduced;
- an employer – legal person or partnership – is being liquidated.
On an exceptional basis, an employer has the right to bring an action for
termination of employment legal relationships in court in cases not referred to
above if he or she has good cause. Any condition that does not allow the
continuation of employment legal relationships on the basis of considerations of
morality and fairness shall be regarded as such good cause. The issue whether
there is good cause shall be settled by court at its discretion.
Termination at the initiative of the employee
An employee can also terminate a contract of employment. He or she has a duty
to give a notice in writing one month in advance, unless a shorter time limit
for the giving of a notice of termination is provided by the contract of
employment or the collective agreement. By agreement of an employee and his or
her employer, a contract of employment may be terminated also before expiry of
the time period for a notice of termination.
These provisions do not apply if the employee has good cause, based on
considerations of morality or fairness. If an employee terminates the contract
of employment based on such good cause he or she is entitled to severance pay.
Notice and prior procedural safeguards
Prior notice is required to terminate a contract of employment concluded for an indefinite period as well as a fixed-term contract where an employer intends to terminate such contract before the expiry of the term. An employer, when giving a notice of termination of a contract of employment, shall comply with different time periods, depending on the grounds of dismissal. The notice of dismissal will take effect either immediately, or 10 days after the notice, or one month after the notice, accordingly to Sections 103 and 101 of the Labour Law.
However, the period of time for prior notice can be longer if it is provided
so in the collective agreement or the contract of employment. In the event of
temporary incapacity of an employee the period of such incapacity shall not be
included in the time limit of a notice of termination, if the employee requests
so.
An employer has to observe special requirements if he or she intends to
terminate the contract of employment with workers' representatives. Prior to
giving a notice of termination, an employer has a duty to ascertain whether an
employee is a member of an employee trade union (Section 101(6) of the Labour
Law). An employer is prohibited from giving a notice of termination of a
contract of employment to an employee who is a member of a trade union without
prior consent of the relevant trade union. Exceptions to this prohibition are
the notice during probationary time as well as situations when an employer
terminates contract on one of the following grounds: an employee, when
performing work, is under the influence of alcohol, narcotic or toxic
substances, an employee who previously performed the relevant work has been
reinstated at work or the employer – legal person or partnership – is being
liquidated (Section 110 of the Labour Law). According to Section
20(4) of the Labour Protection Law for trusties (i.e. workers'
representatives in the field of labour protection) an employer, before issuing a
notice of termination, must first receive prior consent of the State Labour
Inspectorate. Moreover, an employer does not have the right to give a notice of
termination of a contract of employment during a period of temporary incapacity
of an employee, during a period when an employee is on leave or is not
performing the work due to other justifiable reasons (Section 109, Labour Law).
In all cases when giving a notice of termination, an employer has a duty to
notify an employee in writing those circumstances that serve a basis for the
notice of termination of the contract of employment.
Severance payment
The Labour Law stipulates that where a collective agreement or the contract
of employment does not specify a larger redundancy benefit, when terminating a
contract of employment on the basis of circumstances related to the employees
abilities or of economic, organizational, technological measures or measures of
a similar nature in the undertaking an employer has a duty to pay a redundancy
benefit to an employee in the following amounts: (1) one month average earnings
if the employee has been employed by the relevant employer for less than five
years, (2) two months average earnings if the employee has been employed by the
relevant employer for five to 10 years, (3) three months average earnings if the
employee has been employed by the relevant employer for 10 to 20 years and (4)
four months average earnings if the employee has been employed by the relevant
employer for more than 20 years.
Cancellation of the employment relationship during probation
During a probationary period both parties can terminate the employment relationship giving prior notice in written three days before termination. An employer as well as an employee, when giving the notice of termination of a contract of employment during a probation period, does not have to indicate the cause for such notice (Section 47(1) of the Labour Law). An employee has no protection against unfair dismissal during probationary period. However, an employee has the right to request appropriate compensation, if an employer has violated the prohibition of differential treatment when terminating the contract of employment during probationary period (Section 48 of the Labour Law).
Large-scale dismissals
Section 105 and the following of the labour Law include provisions regulating
collective dismissals. A collective dismissal is defined as the following number
of terminations of employment relationships during a period of 30 days:
- at least 5 dismissed employees in companies employing 20 to 49 employees;
- 10 dismissed employees in companies employing 50 to 99 employees;
- at least 10% of the employees in companies employing 100 to 299 employees;
- at least 30 employees in companies employing 300 employees and more.
Where an employer contemplates collective redundancies, he or she is required
to begin consultations with employee representatives in good time before serving
notices of dismissal. These consultations are designed to arriving at an
agreement on measures to avoid or to reduce adverse consequences of collective
dismissals and to mitigate their social impact. Above all, ways and means should
be sought for transferring the employees concerned to other employers'
workplaces and/or finding them new suitable employment.
The employer must submit a notification to the State Employment Service at
least sixty days before issuing the notices of dismissal.
Remedies in case of unjustified dismissal
According to Section 122 of the Labour Law, an employee may bring an action
for the invalidation of a notice of dismissal, or for reinstatement, in a period
of one month following the notice.
Where a notice of termination made by an employer has no legal basis or the procedures prescribed for termination of a contract of employment have been violated, such notice in accordance with a court judgment shall be declared invalid. In such a case an employee can, in accordance with a court judgment, be reinstated in his or her previous work (Section 124 of the Labour Law).
Pursuant to Section 126 of the Labour Law, an employee who has been dismissed
illegally and reinstated in his or her previous work is entitled to average
earnings for the whole period of forced absence from work. Compensation for the
whole period of forced absence from work shall also be paid in cases where a
court, although there exists a basis for the reinstatement of an employee in his
or her previous work, at the request of the employee terminates employment legal
relationships by a court judgment.
The employer has the burden of proof in cases of dismissal, e.g. the employer
has a duty to prove that a notice of termination of a contract of employment has
a legal basis and complies with the specified procedure for termination of a
contract of employment. In other cases when an employee has brought an action in
court for the reinstatement in work, the employer has a duty to prove that, when
dismissing the employee, he or she has not violated the right of the employee to
continue employment legal relationships (Section 125 of the Labour Law).
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Working time and rest time
Hours of work
The Labour Law contains a separate part (Chapters 31-35) regulating working
time, rest time and their organization. Sources of law containing provisions
concerning working time are both statutory enactments (legislative acts and
regulations of the Cabinet of Ministers) and local acts (collective agreements,
working procedure regulations and contracts of employment). Although the Labour
Law renders detailed elaboration of working time issues, an emphasis is put on
the awareness of the parties to collective agreements or a contract of
employment of particular situations. It is presumed that parties are in a better
position to lay down working time regulations for themselves, provided the
protection of workers set out in the law is ensured.
The definition of working time laid down in Section130 (1) of the Labour Law,
stipulates that working time is a period from the beginning until the end of
work within the scope of which an employee performs work or is at the disposal
of an employer, with the exception of breaks in work. This perception of working
time is identical to that of actual work performance, excluding any
interruptions of work, such as breaks and periods of absence, for which
remuneration is not paid. Exceptions to this principle are (1) additional breaks
granted to employees who are exposed to a special risk, which shall be included
as working time (Section 145 (6) of the Labour Law) and (2) additional breaks
for feeding a child granted to an employee who has a child under one and a half
years of age. In these cases, the worker is entitled to his or her
average earnings (Section 146 (4) of the Labour Law). For employees who, on the
basis of the order of an employer, concurrently are acquiring an occupation
(profession, trade), the time spent on studies and work shall be summed and
shall be regarded as working time (Section 137 (2) of the Labour Law).
There are three types of working time provided for in the Labour Law: (1)
regular working time, (2) part-time work and (3) normal shortened working time.
In Latvia regular working time is the general rule and part-time or normal
shortened working time are exceptions.
Regular working time
In accordance with Section 131 of the Labour Law, regular daily working time
of an employee - the working time within a 24-hour period - may not exceed eight
hours. Regular weekly working time may not exceed 40 hours. Where, however,
daily working time on any weekday is less than the regular daily working time,
the regular working time of some other weekday may be extended, but not more
than by one hour. In such case provisions of the length of weekly working time
shall be complied with.
A regular working week consists of five days. If due to the nature of work it
is not possible to determine a working week of five days, an employer, after
consultation with employee representatives, has the right to specify a working
week of six days (Section 133 (1) of the Labour Law). In such occasions the
length of daily working time shall not exceed seven hours and work on Saturdays
shall be ended earlier than on other days. The length of the working day on
Saturdays is specified by a collective agreement, working procedure regulations,
or by a contract of employment.
However, the right to weekly rest in exceptional circumstances may be
restricted. Individual employees with a written order by an employer may be
engaged to work during the week's day of rest in the following cases:
- if such is required by the most urgent public needs;
- in order to prevent the consequences caused by force majeure
, an unexpected event or other exceptional circumstances which adversely
affect or may affect the usual course of activities in the undertaking; and
- for the completion of urgent, unforeseen work within a specified
period of time. In such occasions an employer has the duty to grant (at the
choice of the employee) rest on another day of the week or to pay compensation.
However, persons under 18 years of age, pregnant women, women for a period
following childbirth up to one year and women who are breastfeeding - during
the
whole period of breastfeeding - are the categories of persons prohibited
to be employed during the week's rest day.
Pursuant to Section 135 of the Labour Law, the length of the working day
before holidays shall be reduced at least by one hour. Like on Saturdays, it is
preferable that the length of working time of such days is specified by a
collective work agreement, working procedure regulations, or a contract of
employment. The regular working time of a night employee shall also be reduced
by at least one hour unless particular characteristics of an undertaking do not
allow for it.
Normal shortened working time
There are three categories of employees provided for in Latvian legislation
eligible to regular shortened working time: employees exposed to special risk,
persons under 18 years of age, and other categories of employees entitled to
normal shortened working time determined by regulations of the Cabinet of
Ministers.
Regular working time of employees exposed to special risk may not exceed
seven hours a day and 35 hours a week provided they are engaged in such work for
not less than 50 per cent of the regular daily or weekly working time (Section
131 (3) of the Labour Law).
Section 132 (1) of the Labour Law provides that all persons under 18 years of
age enjoy a working week of five days. If they, in addition to work, continue to
acquire primary, secondary or an occupational education, the time spent on
studies and work is summed and may not exceed seven hours a day and 35 hours a
week. Moreover, where persons under 18 years of age are employed by several
employers, the working time shall be summed and shall not exceed the time limit
specified above.
From the point of view of the amount of working time allowed, persons under
18 years of age are divided into two categories: children (i.e. persons between
13 and 15 years of age or those who until reaching the age of 18 continue to
acquire basic education) and adolescents (i.e. persons 15-18 years of age except
those who until reaching the age of 18 continue to acquire basic education).
Pursuant to Section 132 (2) and (3) of the Labour Law, children who have reached
the age of 13 may not be employed either for more than two hours a day and more
than 10 hours a week if the work is performed during the school year or for more
than 4 hours a day and more than 20 hours a week if the work is performed during
a period when there are holidays at educational institutions. Adolescents, on
the other hand, may not be employed for more than seven hours a day and more
than 35 hours a week.
Part-time work
An important principle focusing on equal treatment of full-time employees and
part-time employees is enshrined in Section 134 (2) of the Labour Law stating
that the rules, which apply to full-time employees, shall apply equally to
part-time employees.
Section 134 (1) of the Labour Law provides for the freedom of the parties to
agree on part-time work in the contract of employment. Part-time work is
understood as any working time, which is shorter than the regular daily or
weekly working time.
Part-time work may on several occasions also be initiated by a single party.
An employee has the legitimate right to ask for his or her transfer from regular
working time to part-time or vice versa and an employer has the duty to
satisfy the request, if such possibility exists in the undertaking. In order to
facilitate effective exercise of this right, an employer, pursuant to the
request, has to provide for information to the employee representatives
regarding any possibilities of employing employees part-time in an undertaking.
At the same time it has to be noted that employers themselves possess the
right to request the transfer of an employee from regular working time to
part-time or vice versa (Section 134 (4) of the Labour Law). But a
refusal by an employee to change over from regular working time to part-time or
vice versa may not of itself serve as a basis for a notice of
termination of a contract of employment or restriction of the rights of an
employee in any other way.
Overtime
Overtime is an exception to the maximum duration of regular working time.
Work exceeding the daily working time of 8 hours is considered to be overtime.
It is interpreted restrictively and, for instance, where the duration of working
time is reduced by agreement, overtime is still computed only after 8 hours of
work. The limit of allowed overtime hours is laid down in Section 136 (5) of the
Labour Law stipulating that overtime work may not exceed 48 hours within a
four-week period and 200 hours within a calendar year. Moreover, overtime
work is considered as both (1) the work in case of aggregated working time,
performed by an employee beyond 56 hours a week and 160 hours within a four-week
period as well as (2) the time worked by an employee after the end of a shift.
Overtime work is permitted if the employee and the employer have agreed upon
that in writing. However, in certain exceptional circumstances an employer has
the right to employ an employee on overtime without his or her written consent.
The exhaustive enumeration of the exceptional circumstances include (1) the most
urgent public need, (2) prevention of consequences caused by force majeure
, an unexpected event or other exceptional circumstances which has
adversely affected or may affect the normal course of work activities in the
undertaking, and (3) the completion of urgent, unexpected work within a
specified period of time. If the overtime work in the above-mentioned
exceptional cases continues for more than six consecutive days, save when
repetition of similar work is not expected, the employer has to obtain a permit
from the State Labour Inspection for further overtime work.
In accordance with Section 69 of the Labour Law, an employee who performs
overtime work is entitled to a supplement of not less than 100 per cent of the
hourly or daily wage rate specified for him or her, but if piece-work pay has
been agreed upon, a supplement of not less than 100 per cent of the piece-work
rate for the amount of work done. A collective agreement or a contract of
employment may specify a higher supplement for overtime work.
Night work
Following the conception enshrined in the Labour Law, night work is considered to be any work performed in the period of time from 10pm to 6am for more than two hours. In respect of children, night work means any work performed for more than two hours in the period of time from 8pm to 6am (Section 138 (1) of the Labour Law). A night-employee is an employee who normally performs night work either in accordance with a shift schedule, or for at least 50 days in a calendar year.
There are several restrictions to the right to work at night. It is
prohibited to employ at night worker less than 18 years of age, pregnant women,
women for a period following childbirth up to one year and women who are
breastfeeding. Employees who have a child less than three years of age may be
employed at night only with his or her consent.
There is a specific regulation of night work provided for by the Labour Law.
Firstly, working time for night employees, apart from those who have been
prescribed regular shortened working time, has to be reduced by one hour.
However, if there is an urgent need and it is required by the particular
characteristics of the undertaking, regular daily working time for a night
employee can be 8 hours. Secondly, a night employee has the right to undergo a
health examination before he or she is employed at night, as well as the right
to undergo regular health examinations not less frequently than once every two
years, while an employee who has reached the age of 50 years, not less
frequently than once a year. Employers are under the obligation to cover
expenditures associated with such health examinations. Thirdly, an employer must
transfer a night employee to an appropriate job to be performed during the day
if there is a doctor's opinion that the night work negatively affects the
employee's health. Fourthly, an employee who performs night work receives 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, if a collective work agreement or a contract of employment do not
specify a higher supplement for night work. Finally, a collective agreement or a
contract of employment may provide for annual paid supplementary leave granted
to a night employee.
Breaks
An employee has the legitimate right to a break in work if his or her daily
working time exceeds six hours. In such occasions breaks of at least half an
hour shall be granted not later than four hours after the start of work.
However, by virtue of the fact that an employer can determine the length of
break after consultation with employee representatives, it may also exceed the
limit of 30 minutes prescribed by law. Where a break cannot be granted all at
once, it is permitted for an employer to divide the break into parts not less
than 15 minutes each. Employees who are exposed to special risk are entitled to
an additional break. The length of such breaks has to be determined by the
employer after consultation with employee representatives and, as an exception,
they are included in working time.
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Paid Leave
Section 149 of the Labour Law stipulates that every employee has the right to
annual paid leave. Such leave may not be less than four calendar weeks, without
holidays. Persons under 18 years of age are entitled to annual paid leave of one
full month. In exceptional cases, however, when granting in the current year of
the full annual paid leave to an employee may adversely affect the normal course
of activities in the undertaking, it is permitted with the written consent of
the employee to transfer part of the leave to the subsequent year. In such case,
the part of the leave in the current year shall not be less than two consecutive
calendar weeks. Part of the leave may be transferred only to the subsequent
year. A special protection with regard to paid leave is afforded by Section 149
(4) of the Labour Law to persons under 18 years of age, pregnant women, women
for a period following childbirth up to one year as well as breastfeeding women
during the whole period of breastfeeding, stating that the above-mentioned
categories of persons have to take the annual leave in the current year. It is
prohibited to compensate annual paid leave with money, except in cases when
employment legal relationships are terminated and the employee has not utilised
his or her annual paid leave. By agreement of an employee and the employer,
annual paid leave in the current year may be granted in parts, nevertheless one
part of the leave in the current year shall not be less than two uninterrupted
calendar weeks.
Annual paid leave is granted each year at a specified time in accordance with
an agreement or a leave schedule, which is drawn up by an employer after
consultation with employee representatives. When granting annual paid leave, an
employer has a duty as far as possible to take into consideration wishes of
employees. An employee has the right to request the granting of annual paid
leave for the first year if he or she has worked for the employer for at least
six months without interruption. A woman at her request shall be granted annual
paid leave before prenatal and maternity leave or immediately after,
irrespective of the time the woman has been employed by the relevant employer.
Employees under the age of 18 and employees who have a child under three years
of age are in more favourable position and shall be granted annual paid leave in
summer or at a time at his or her choice. If an employee under the age of 18
years continues to acquire education, annual paid leave shall be granted as far
as possible to match the holidays at the educational institution. Annual paid
leave shall be transferred or extended in case of temporary incapacity of an
employee.
Public holidays
The state holidays in Latvia are January 1st, Good Friday, Easter Sunday and Easter Monday, May 1st, 2nd Sunday of May, Pentecost Sunday, June 23rd and 24th, November 18th, December 25th, 26th and 31st. Employees shall not be required to work on holidays prescribed by law. If it is necessary to ensure continuity of the work process, it is permitted to require an employee to work on a holiday by granting him or her rest on another day of the week or by paying appropriate compensation (Section 144 of the Labour Law).
Impediments to work
A general clause of Section 147 (2) of the Labour Law stipulates that an
employee has the right to temporary absence if his or her immediate presence at
work is not possible due to force majeure , an unexpected event or other exceptional circumstances. The duty of an employee is to inform the employer without delay of such temporary absence. Temporary absence may not serve as a basis for the right of an employer to give notice of termination of a contract of employment. An additional right granted to pregnant women is an obligation of employers to ensure an opportunity for pregnant women to leave the workplace in order to undergo health examination in the prenatal period with the reservation that it is not possible to undergo such examinations outside of working time.
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Maternity leave and maternity protection
Prenatal and Maternity Leave
Latvian legislation provides for a special protection afforded to women employees during pregnancy and after childbirth. A woman has the right to prenatal leave for 56 days prior to the birth of a child and to maternity leave 56 days following the birth of a child. The prenatal leave together with maternity leave make 112 calendar days that are granted irrespective of the number of days prenatal leave has been utilised prior to childbirth. However, this does not apply if a woman agrees to be employed. This agreement can be repealed at any time without conditions being forwarded. The leave granted in connection with pregnancy and childbirth is not included in annual paid leave.
The Labour Law gives a woman the right to supplementary leave of 14 days added to the prenatal leave in three cases: in case of complications in the pregnancy, childbirth or postnatal period, if two or more children are born, and if the woman has initiated pregnancy-related medical care at a preventive medical institution by the 12th week of pregnancy and has continued for the whole period of pregnancy.
Moreover, a pregnant woman prior or following the birth of a child is
entitled to several other benefits. Section 37 (7) of the Labour Law stipulates
that an employer, after receipt of a doctor's opinion, is prohibited from
employing pregnant women and women for a period following childbirth not
exceeding one year, but if the woman is breastfeeding – during the whole period
of breastfeeding if it is considered that performance of the relevant work poses
a threat to the safety and health of the woman or her child. Otherwise, in order
to prevent any negative effect on the safety and health of a pregnant woman, an
employer, after receipt of a doctor's opinion, has a duty to ensure appropriate
working conditions and working time for her. If it is not possible to ensure
such working conditions or working time, the pregnant woman should be
temporarily transferred to a different, more appropriate job. The amount of work
remuneration after making amendments to the contract of employment may not be
less than the previous average earnings of the woman.
There is also a possibility for a pregnant woman, a woman within a period up
to one year after childbirth, a breastfeeding woman and an employee who has
either a child less than 14 years of age or a disabled child less than 16 years
of age to demand determination of a part-time work (Section 134).
Section 136 (6) and 138 (6) of the Labour Law prohibits the employment of
pregnant women, women for a period up to one year after giving birth and a
breastfeeding woman in overtime work or at night. These women cannot be sent on
a work trip (Section 53 (2) of the Labour Law), unless they agree.
Persons on maternity leave are granted state social insurance benefit -
maternity benefit if these persons are socially insured according to the Law on State Social Insurance. Section 5 of the Law “On Maternity and Sickness
Insurance” stipulates that a maternity benefit is a benefit granted and paid to
a woman for the period before and after confinement if a woman does not come to
work and in this way loses her earnings.
Section 146 of the Labour Law ensures the right of every employee who has a
child under one and a half years of age to additional breaks of not less than 30
minutes, which are granted not less than every three hours. Breaks for feeding a
child are included as working time, paying the average earnings for such time.
Leave to Father of a Child, Adopters and Other Persons
There are special provisions introduced in the Labour Law concerning the leave of other persons caring a child. In accordance with Section 155 of the Labour Law, the father of a child is entitled to leave of 10 calendar days that is granted within a two-month period from the birth of a child. If a mother has died in childbirth or within a period up to the 42nd day of the postnatal period or up to the 42nd day of the postnatal period has refused to take care and bring up the child, the father of the child or any other person actually taking care of the child is granted leave for the period up to the 70 th day of the child's life. If a mother cannot take care of the child up to the 42nd day of the postnatal period due to illness, injury or other health-related reasons, the father or another person who actually takes care of the child are entitled to leave for those days on which the mother herself is not able to take care of the child. In a family that has adopted a child under two months of age, one of the adopters enjoy a leave of 56 calendar days starting from the day of adoption of the child (Section 7 of Law “On Maternity and Sickness Insurance”). In
a family, which has adopted a child between two months and three years of age,
one of the adopters shall be granted leave of 14 calendar days.
Parental Leave
In accordance with Section 136 of the Labour Law, parental leave is granted
to each of the parents. Every employee has an individual right to parental leave
in connection with the birth or adoption of a child for a period up to one and a
half years until the child reaches the age of eight years. It can be granted as
a single period or in parts. Additional security guarantees are the inclusion of
the time spent by an employee on parental leave in the total length of service
and retention of the previous job. Where this is impossible, the employer has a
duty to ensure equivalent or similar work.
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Other leave entitlements
In addition, the Labour Law provides for a few more grounds for leave.
Supplementary leave
An annual paid supplementary leave of three working days is granted to
employees having three or more children under the age of 16 years or a disabled
child and to employees exposed to special risk. A collective agreement or a
contract of employment may determine other cases (for instance, night work,
shift work, long-term work, etc.) where an employee also receives an annual paid
supplementary leave.
Leave without retention of work remuneration
An employer, at the request of an employee, may grant him or her leave
without retention of work remuneration. There are no restrictions on the amount
of such leave as long as there exists a mutual agreement.
Study Leave
Pursuant to Section 157 of the Labour Law, employees are entitled to study
leave provided that the work has not been discontinued, that the studies are
undertaken at an educational institution of any type and that such right is
provided for in a collective work agreement or a contract of employment. The
study leave can be granted either with or without retention of work
remuneration. However, if parties to the contract of employment have not agreed
the right to study leave, employers are free to deny attending of studies.
An exception concerns the taking of state examinations. An employee has an
obligation to grant study leave for the taking of a state examination or the
preparation and defence of a diploma work, which is not less than 20 days a
year, paying for such period the average earnings.
Leave for trade union purposes
Section 30 of the Law
“On Informing Employees of European Community-scale Commercial Companies and
European Community-scale Groups of Commercial Companies and Consulting Such
Employees” stipulates that members of a special negotiating body, members of
the European Works Council and representatives of employees who provide
information and consultations, when performing such duties, shall have the same
protection and guarantees as representatives of employees at the national level
in the state in which they act. The representatives of employees shall be
granted leave so that they may attend meetings organised by the central
management, as well as meetings organised to enter into the agreement regarding
the establishment of a European Works Council or regarding measures which are to
be performed in order to establish procedures by which employees are informed
and consulted, providing the average remuneration for this period is retained.
The parties are entitled to agree on even more favourable conditions for the
protection of representatives of employees.
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Minimum age and protection of young workers
Pursuant to Section 37 of the Labour Law, it is prohibited to employ in
permanent work a person under 15 years of age or who until reaching the age of
18 continues to acquire basic education. These persons are children within the
meaning of the Labour Law. However, there are several exceptions from
this general rule. In exceptional cases children from the age of 13, if one of
the parents (guardian) has given written consent, may be employed outside of
school hours doing light work not harmful to the safety, health, morals and
development of the child. The Cabinet of Ministers determines jobs in which it
is permitted to employ children. Another exception relates to the employment of
children in cultural, artistic, sporting and advertising activities. The Labour
Law stipulates that in case one of the parents (a guardian) has given written
consent and a permit from the State Labour Inspection has been received, a child
as a performer may be employed in cultural, artistic, sporting and advertising
activities if such employment is not harmful to the safety, health, morals and
development of the child. In both cases such employment shall not interfere with
the education of the child.
Another group of young workers – adolescents (persons between the age of 15
and 18 who are not to be considered as children) – is also subjected to a
special regulation. According to the Labour Law, it is prohibited to employ
adolescents in jobs in special conditions, which are connected with increased
risk to their safety, health, morals and development. The Cabinet of Ministers
determines those jobs in which the employment of adolescents is prohibited and
exceptions when employment in such jobs is permitted in connection with
occupational training of the adolescent.
In order to protect young workers, the Labour Law provides that an employer
has a duty, prior to conclusion of a contract of employment, to inform one of
the parents (guardian) of the child or adolescent regarding the assessed risk of
the working environment and the labour protection measures at the relevant
workplace. Moreover, persons under 18 years of age shall be hired only after a
prior medical examination and they shall, until reaching the age of 18, undergo
a mandatory medical examination once a year. Special measures of protection of
young workers also include a special working time organization, prohibition to
employ in overtime work and night work. Pursuant to Section 115 of the Labour
Law, parents (guardians) or the State Labour Inspection may request in writing
the termination of employment legal relationships with a person who is under 18
years of age if such person performs work that jeopardises his or her safety,
health or morals or negatively affects his or her development or education. An
employer, upon receiving the request, has a duty within a five-day period to
terminate employment legal relationships with the employee and pay him or her
compensation – not less than in the amount of one-month average earnings.
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Equal treatment
The concept of equality and the principle of equal rights is one of the most substantial parts of the legal system of Latvia. Section 91 of the Satversme stipulates that all human beings in Latvia are equal before the law and the courts. Human rights are exercised without discrimination of any kind.
The area of law having the most thorough implementation of the principle of
equal rights is labour law. Section 7 of the Labour Law provides that everyone
shall have an equal right to work, to fair, safe and healthy working conditions
as well as to fair work remuneration. Another facet of equal treatment includes
occasions when a foreign employee has been sent to perform work in Latvia and
renders applicable the principle of equality to such persons as well.
The principle of equality is implemented without any kind of discrimination –
either direct or indirect. However, by scrutinising the lately adopted European
Community legislation implementing the principle of equal treatment and
comparing it to the legislation currently in force in Latvia, it is apparent
that the latter lacks one of the facets of the concept of discrimination –
harassment. Nevertheless, law enforcement institutions in Latvia would have to
combat such kind of discrimination in any event.
The Satversme ensures universal prohibition of discrimination of any kind
without naming possible grounds of such discrimination. Section 7 of the Labour
Law list the grounds for discrimination leaving an open end of the enumeration.
It provides that equality has to be ensured irrespective of a person's race,
skin colour, gender, age, disability, religion, political or other conviction,
ethnic or social origin, property, marital status or other circumstances. The
list also contains “other circumstances” such as sexual orientation in order to
avoid any possible omissions, etc.
Another aspect of equal treatment regulation in labour law is its very broad
scope. Differential treatment, which is based on any of the above-mentioned
grounds is prohibited both during employment legal relationships as well as when
establishing or terminating them (Section 29 (1) of the Labour Law).
Section 29 (2) of the Labour Law states that differential treatment is
permitted only in cases where a particular ground is an objective and
substantiated precondition for performance of the relevant work or for the
relevant employment. In respect of job advertisements it is prohibited to
indicate age limitations except in cases where, in accordance with the law,
persons of a certain age may not perform the relevant work.
Section 29 (3) provides that in case of a dispute, where an employee
indicates conditions that may serve as a basis for his or her direct or indirect
discrimination, the burden of proving that the differential treatment is based
on objective circumstances lays with the employer.
If the principle has been violated, the employee has a right to appropriate
compensation or the right to request termination of a differential treatment
(Section 34 of the Labour Law for a violation of equal treatment during the
establishment of an employment relationship, Section 60 for a violation of the
right to equal work remuneration, Section 95 for the violation during the
determination of working conditions). If the principle of equal treatment has
been violated with regard to notice of termination, such notice shall be
declared invalid and an employee shall be reinstated in his or her previous work
(Section 124 of the Labour Law). An employee who has been dismissed illegally
and reinstated in previous work is entitled to payment of average earnings for
the whole period of forced absence from work. Such compensation is also paid in
cases where a court, although there exists a basis for the reinstatement of an
employee, at the request of the employee terminates employment legal
relationships by a court judgment (Section 126 of the Labour Law).
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Pay issues
Section 59 of the Labour Law stipulates that work remuneration is the regular
pay for work payable to an employee, and which includes a salary and supplements
specified by regulatory enactments, the collective agreement or the contract of
employment, as well as bonuses and other kinds of payments related to work. The
Labour Law regulates the issue of equal pay for the same work or the work of
equal value, minimum wage, organization of work remuneration, supplements as
well as other issues related to pay. At the same time there are a number of
regulations of the Cabinet of Ministers that determine pay issues, e.g., minimum
monthly salary within the scope of normal working time, minimum hourly wage
rates, work remuneration for specific group of workers, etc.
A general principle of equal pay is enshrined in Section 60 of the Labour Law
stating that an employer has a duty to specify equal work remuneration for men
and women for the same kind of work and work of equal value. Violation of this
principle entitles an employee to remuneration in amount equivalent to that paid
by the employer for the same kind of work a work of equal value.
A special protection within the framework of the Labour Law is afforded to
persons less than 18 years of age. Section 63 of the Labour Law envisages that
the monthly salary for adolescents employed for a shortened working time shall
not be less than the minimum monthly salary within the scope of normal working
time as specified by the Cabinet of Ministers. Nevertheless, where an adolescent
works in addition to pursuing secondary or occupational education, an hourly
wage rate specified for the adolescent may not be less than the minimum hourly
wage rate specified by the Cabinet for work within the scope of normal working
time (see below). Children, however, shall be paid for work in conformity with
the work performed (Section 63 (3) of the Labour Law).
Minimum wage
Section 107 of the Satversme stipulates that e very employed person has the
right to receive, for work done, commensurate remuneration which shall not be
less than the minimum wage established by the state. The minimum wage shall not
be less than the minimum level determined by the state (Section 61 of the Labour
Law). At the same time the Labour Law delegates the right to determine minimum
monthly salary within the scope of normal working time, as well as minimum
hourly wage rates, to the Cabinet of Ministers. The respective regulations
stipulate that the minimum monthly salary within the normal working time in 2004
is 80 LVL (121 EUR), which is an increase of 14.3% since 2003. The minimum
hourly wage rate is 0.474 LVL (0.72 EUR). Adolescents and employees performing
work in special circumstances associated with an increased risk to their safety
and health, however, shall not receive less than 0.542 LVL (0.82 EUR) per hour.
In May 2003, the government announced that it planned to increase the minimum
wage by 100% over a period of seven years. This increase in the rate of the
minimum wage is possible thanks to the economic growth and the efforts to combat
the undeclared payment of wages.
Determination of pay
Despite several restrictions provided for in the legislation, the most widespread way of fixing wages is individual contracts of employment and collective agreements. The determination of wages at a local level predominates over their fixing by statutory regulations or company agreements. There is a special work remuneration system for employees of institutions financed from the State budget with several exceptions within it (e.g. employees of the Bureau of Prevention and Combating of Corruption, State Human Rights Bureau, the State Revenue Service etc.).
There are two main systems of organization of work remuneration provided for
by the Labour Law: a time salary system and a piecework salary system. The time
salary is calculated in conformity with the actual time worked irrespective of
the amount of work done. The piecework salary is calculated in conformity with
the amount of work done irrespective of the time within which it was done
(Section 62 (2) of the Labour Law).
Protection of wages
There is a special guarantee fund established in accordance with the law on
Protection of Employees
in case of Insolvency of the Employer. The main goal of organization of the
guarantee fund is the satisfaction of claims of those persons who are recognised
as employees and whose employer is declared insolvent. An employee has the right
to satisfaction of his or her claim from the resources of the employee claims
guarantee fund regardless of whether the employer has made all the payments
prescribed by law.
Section 69 (5) of the Labour Law provides that work remuneration and related
mandatory payments of state social insurance shall be first level payments made
by the employer. Protection of wages is closely connected to the issue of
deduction. In order to provide protection to the workers the deductions from the
work remuneration are allowed only in cases specified by law. According to the
Labour Law, deductions may be made from the work remuneration payable to an
employee in certain circumstances defined in Sections 78 to 80.
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Workers' representation in the enterprise
In accordance with Section 10 of the Labour Law, employees shall exercise the
defence of their social, economic and occupational rights and interests
directly, or indirectly through the mediation of employee representatives.
Employee representatives shall mean: (1) an employee trade union on behalf of
which a trade union institution or an official authorized by the articles of
association of the trade union acts or (2) authorized employee representatives
who have been elected in accordance with the law. The most common way of
representation is a trade union representation.
Currently there are no workers' councils or committees in Latvia at national
level within the conventional meaning of these establishments. At the same time,
the Labour Protection Law provides for a trusted representative institution,
which shall be established in order to represent the interests of employees
regarding labour protection. Thus, if in the undertaking at least 10 trusted
representatives are elected, they shall establish a trusted representative
committee, which shall co-ordinate the work of the trusted representatives.
However, works councils' regulation within their conventional meaning exists
at the European level. Law On Informing Employees of European Community-scale
Commercial Companies and European Community-scale Groups of Commercial Companies
and Consulting Such Employees transposes Directive EEC 94/45 laying down the
obligation to establish European Works Council or another information and
consultation mechanism in European scale companies and groups of undertakings.
Authorized employee representatives may be elected if an undertaking employs
five or more employees. They shall express a united view with respect to the
employer.
If there are several employee trade unions, they shall 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.
It is prohibited to apply sanctions to an employee or to otherwise directly
or indirectly cause adverse consequences for him or her because the employee,
within the scope of employment legal relationships, exercises his or her rights
in a permissible manner.
Generally, employee representatives shall be elected for a specified term of
office, which is set out in the collective agreement. As regards the Labour
Protection Law, trusted representatives of workers or their professional
organizations that are elected in order to represent the interests of workers
within the undertaking with respect to labour protection, shall be elected for a
term of three years if not specified otherwise in the collective agreement. The
Law On Strikes authorizes employee and trade union representatives to establish
a conciliation committee in case of a labour interest dispute (pre-strike
negotiations). In such event the term of office for the representatives shall be
the one of the fulfilment of a specific task.
Employee representatives, when performing their duties, have the following
rights (Section 11 of the Labour Law): (1) right to request and receive from the
employer information regarding the economic and social situation of the
undertaking, (2) right to receive information in good time and consult with the
employer before the employer takes such decisions as may affect the interests of
employees, in particular a decision which may substantially affect work
remuneration, working conditions and employment in the undertaking, (3) right to
take part in the determination and improvement of work remuneration provisions,
working environment, working conditions and organization of working time, as
well as in protecting the safety and health of employees, (4) right to enter the
territory of the undertaking, as well as to have access to workplaces, (5) right
to hold meetings of employees in the territory and premises of the undertaking
and (6) right to monitor how regulatory enactments, the collective work
agreement and working procedure regulations are being observed in employment
legal relationships. The rights of employee representatives have to be exercised
so that the efficiency of the operations of the undertaking is not reduced.
Employee representatives have the duty not to disclose information brought to
their attention that is a commercial secret of the employer. However, such
information has to be indicated in writing. Performance of the duties of an
employee representative may not serve as a basis for refusal to enter into a
contract of employment, for termination of a contract of employment, or for
otherwise restricting the rights of an employee
Currently co-determination rights are not well developed in Latvia and exist
only to the extent that is determined by collective agreements. Work councils do
not exist at national level either. Nevertheless, there is a law regarding
European Works Councils (On Informing Employees of European Community-scale
Commercial Companies and European Community-scale Groups of Commercial Companies
and Consulting Such Employees), which is meant to be one of co-determination
mechanisms at the European level.
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Trade union regulation
Trade union structure
Section 102 of the Satversme provides that everyone has the right to form and join associations, political parties and other public organizations. Section 108 stipulates inter alia that the State shall protect
the freedom of trade unions. The Law on Trade Unions, as amended in 2003,
stipulates that the residents of the Republic of Latvia shall have the right to
freely form trade unions. Labour Law also provides that employees, as well as
employers shall have the right to freely unite in organizations and to join them
in order to defend their social, economic and occupational rights and interests.
Moreover, affiliation of an employee with the above organizations or the desire
of an employee to join such organizations may not serve as a basis for refusal
to enter into a contract of employment, for termination of a contract of
employment or for otherwise restricting the rights of an employee. Latvian
policemen and soldiers of armed forces on active service are prohibited by law
from forming and joining trade unions.
The law provides that trade unions in Latvia may be formed on the basis of professional, branch, territorial or other principles. Employers shall also be entitled to form trade unions. The most widespread patterns in practice are the branch, undertaking and professional trade unions. The right to join union includes also that of not joining or withdrawing from a union (so-called negative right). Currently there are no security clauses authorized under national law and it has not been observed also in practice.
Section 12 of the Law On Trade Unions provides that property and
financial relations between trade unions and the employer shall be governed by
law, collective agreements and other agreements. In most cases collection of
union dues is regulated by collective agreements. Thus, collection of union dues
by check-off is common to Latvia and is a usual practice.
Registration and recognition of unions
Section 3 of the Law On Trade Unions stipulates that a trade union is registered by the Ministry of Justice of the Republic of Latvia if the number of members is not under 50 or not less than one quarter of the persons working in an enterprise, institution, organization, profession or branch. This law was amended in May 2003, changing the registration requirements of trade unions, but there is still no English translation available. Section 2 of the Law On Employers' Organisations and their Associations stipulates that an employers' organization is a public organization founded by at least five employers and which represents and protects economic, social and professional interests of its members.
The Ministry of Justice reviews the relevant application for the registration
of the trade union in a month following the date of receipt of the application
and statute of the trade union. Registration of the trade union shall be
rejected where requirements of the law “On Trade Unions” are violated or where
activities provided for in the statute are in contradiction with the Latvian
legislation in force. Such rejection shall be subject to appeal in court.
Following the date of registration of the trade union by the Ministry of
Justice, the trade union acquires legal personality. The independence and
equality of the rights of trade unions are guaranteed by Section 4 of the
Law “On Trade Unions” according to which trade unions are independent from state authority, state administration institutions and other organizations and are equal in their rights. The above Section also lays down the right of trade unions to join international trade union organizations, to conclude agreements and contracts with them as well as with trade unions of other countries. Section 7 (3) of the Law “On Employers' Organisations and
their Associations” stipulates that employers' organizations and their
associations must not directly or indirectly restrict the right of workers to
unite in trade unions or interfere in their work.
Section 15 of the Law On Trade Unions provides that the employer cannot terminate an individual labour agreement with a member of a trade union on his own initiative without prior consent of the trade union, excluding occasions where work discipline or the labour agreement has been violated. The same in substance is fixed in the new Labour Law (Section 110 of the Labour Law). Where there is no such consent of the relevant trade union, the employer may, within a one-month period from the date of receipt of the reply, bring an action in court for termination of the contract of employment. Special provisions in respect of the relationships between trade unions and employers' organizations are provided for by the Law On Employers' Organisations and their Associations. Hence, Section 7 provides inter alia that
employers' organizations and their associations are not allowed to influence
directly or indirectly the right of employees to join trade unions or to
influence their functioning. There is no special procedure for the reimbursement
of remedies in case of unfair labour practice.
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Collective Bargaining and Agreements
Collective bargaining regulation
The collective bargaining authority in Latvia mostly lays “in the hands” of
employees and employer's organizations themselves. The role of the state is to
provide them with the necessary framework decisions in order to make their
activities as effective as possible. The general right to collective bargaining
stems from the Constitution (Section 108) whereby employed persons have
the right to a collective labour agreement, and the right to strike. Issues as
to collective agreements are enshrined in the Labour Law, while the
right to collective action is contained in the Law On Strikes. Some issues of
collective bargaining may also be found in the Labour Disputes Law. The necessary
legal background for trade unions and employers' organizations is contained in
Law On Trade Unions
and the Law On Employers' Organisations and their Associations respectively. For instance, Section 11 of the Law “On Employers' Organisations and their
Associations” promotes and makes it a responsibility of the employers'
organizations or their associations to recognize trade unions, involve in
negotiations with them, conclude collective labour agreements and general
agreements.
In Latvia collective bargaining takes place mainly at two levels: the company
level and the branch level. 2287 collective agreements were concluded in 2001
covering 203374 employees. 2167 of total collective agreements were concluded at
the company level and 17 at the branch level.
Procedure of the Collective Bargaining
Parties to collective bargaining at the company level are the employer, the
employee trade union or authorized employee representatives if the employees
have not formed a trade union. A collective work agreement in a sector or
territory (general agreement) shall be entered into by an employer, a group of
employers, an organization of employers or an association of organizations of
employers, and an employee trade union or an association (union) of employee
trade unions if the parties to the general agreement have relevant authorization
or if the right to enter into a general agreement is provided for by the Arts of
association of such associations (unions).
The entering into a collective agreement shall be proposed by employee
representatives, the employer or their associations (unions). An employer is not
entitled to refuse to enter into negotiations regarding the conclusion of a
collective work agreement. A reply in writing to a proposal of collective
bargaining shall be provided within a 10-day period from the date of receipt of
the proposal.
Parties entering into a collective work agreement shall organise negotiations
and agree on the procedures for the formulation and discussion of the collective
work agreement.
If during the course of negotiations, an agreement on the procedures for
formulation and discussion of a collective work agreement, or the content of the
collective work agreement is not reached due to the objections of one party,
such party has a duty, not later than within a 10-day period, to give a reply in
writing to the proposals expressed by the other party. If a draft of the whole
collective work agreement is received, a reply in writing shall be provided not
later than within a one-month period and the party shall include in it its
objections and proposals regarding the draft. Any employee has the right to
submit in writing to the parties to a collective work agreement his or her
proposals with respect to a draft collective work agreement.
A collective work agreement is binding on the parties and its provisions
apply to all employees who are employed by the relevant employer, unless
provided for otherwise in the collective work agreement. It is of no consequence
whether employment legal relationships with the employee were established prior
to or after the coming into effect of the collective work agreement. An employee
and an employer may derogate from the provisions of a collective work agreement
only if the relevant provisions of the contract of employment are more
favourable to the employee.
A general agreement entered into by an organization of employers or an
association of organizations of employers shall be binding on the members of the
organization or the association of organizations.
Extending the binding effects of collective agreements
If members of an organization of employers or an association of employers'
organizations employ more than 60 per cent of the employees in a sector, a
general agreement entered into between them and an employee trade union or an
association (union) of employee trade unions is binding on all employers of the
relevant sector and applies to all employees employed by the employers. With
respect to such employers and employees, the general agreement comes into effect
on the day of its publication in the newspaper Latvijas Vēstnesis
(official newspaper of the Republic of Latvia), after a joint application
of the parties.
Time of effect of collective agreements
A collective work agreement shall be entered into for a specified period of
time or for a period of time required for the performance of specific work. A
collective work agreement shall come into effect on the date it was entered
into, unless the collective work agreement specifies another time for coming
into effect. If a collective work agreement does not specify a time of effect,
the collective work agreement shall be deemed to have been entered into for one
year.
A collective work agreement may be terminated before the expiry of its term
on the basis of:
- agreement by the parties; or
- notice of termination by one party if such right has been agreed upon in
the collective work agreement.
Upon termination of a collective work agreement its provisions shall apply up
to the time of coming into effect of a new collective work agreement, unless
agreed otherwise by the parties.
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Collective labour disputes
According to Section 13 of the Labour Disputes Law, a collective labour
interest dispute is defined as a dispute between the parties that emerges during
the process of collective bargaining with regard to setting up working
conditions or employment regulations.
In accordance with the regulations laid down both in the Strike Law and the
Labour Disputes Law, a definite
procedure should be followed in order to ultimately reach a positive solution of
demands brought forward. The first step taken in case of a collective labour
interest dispute is the shaping and submission of demands to the other party.
Section 14 of the Labour Disputes Law provides that the demands should be
brought to the attention of an employer, a group of employers, an employers'
organization or an administrative institution of an industry in written. An
employer has the duty to review the submitted demands and to provide an answer
within three days. If the answer is not given or is negative, the collective
labour interest dispute is forwarded to the conciliation commission.
Conciliation commission
Hearing of a collective labour interest dispute in the conciliation
commission as laid down in Section 15 of the Labour Dispute Law is the second
intrinsic prerequisite of the strike action. Both parties to the collective
interest dispute within three days from the receipt of the negative answer to
their demands establish a conciliation commission composed of an equal number of
representatives. Parties prepare their statement of disagreement and submit it
to the conciliation commission. The latter reviews it and takes a decision
within one week. The decision taken by the conciliation commission is binding
upon the parties and has the status of a collective agreement.
If the parties fail to reach an agreement in the conciliation commission and
there are no ways found for strike-prevention, the collective labour interest
dispute has to be settled in accordance with the procedure prescribed by the
collective agreement. In the absence of such a procedure, the dispute is either
settled by method of reconciliation or arbitration or it is followed by a
collective action to defend parties' rights, e.g. a strike or a lock out.
Reconciliation
Pursuant to Section 16 of the Labour Dispute Law, reconciliation is a
settlement of a collective interest dispute by means of a third person acting as
an independent and impartial conciliator. Reconciliation can be approached only
by the mutual agreement of the parties. During the process of reconciliation,
parties are cannot exercise the right to collective action.
There can be one conciliator or a board of conciliators consisting of at
least three persons. Only persons having capacity to act can undertake duties of
a conciliator. Conciliators can be either private (persons who have been
selected by parties to the dispute themselves and which are not included in the
list approved by National Tripartite Co-operation Board) or public (persons
included in the above-mentioned list). Public reconciliation is without charge.
The conciliator is entrusted with the duty to undertake all the necessary action
in order to settle the collective labour dispute and reach an agreement. Such an
agreement has the effect of a collective agreement. Intrinsic features of the
conciliator are fairness, impartiality and independence.
Arbitration
Arbitration, on the other hand, is another method of settling collective
labour disputes by which a third, neutral party is authorized to take a decision
by seeking to reach a fair solution and balancing economical and other interests
of the parties. Arbitration can be employed with the consent of both parties
either straight after the conciliation commission has failed or following
crack-up during reconciliation. Compared to the reconciliation procedure,
arbitration involves a more active approach from the people entrusted with the
resolution of a dispute. The setting up and the proceedings of arbitration are
regulated by the Civil Procedure Law (Nr. E0044). An agreement reached as a result of arbitration, like the one reached as a result of conciliation or reconciliation, has the effect of a collective agreement.
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Strikes and lock-outs
Strike regulation
The employees' right to strike is one of the fundamental rights in Latvia and
is enshrined in Section 108 of the Satversme. The main legislative acts dealing
with strike issues are the Strike Law, as amended, determining rights and duties
of all parties involved, restrictions to striking rights, procedure of strike
monitoring, responsibility for violation of the right to strike, etc., as well
as the Labour Disputes Law. There are several other legislative acts laying down
restrictions to the right to strike on certain categories of employees.
According to Section 1 (3) of the Strike Law, a strike is a last resort means
of settling a collective labour interest dispute when employees on a voluntary
basis completely or partly terminate their work in order to reach the
implementation of their demands. Pursuant to Section 4 of the Strike Law, an
employee can neither be forced to participate nor restrained from participating
in a strike.
According to the Satversme and Section 3 of the Strike Law, employees are
entitled the right to strike in order to protect their economic or professional
interests. This general right, however, is not absolute and can be restricted in
public interest in respect of certain categories of persons (see below).
Furthermore, pursuant to Section 13.1.4. of the Law On State of Emergency, the
Cabinet of Ministers has a right, while declaring the state of emergency, to
prohibit any strikes for a certain period of time.
The announcement or participation in a strike is not considered as a
violation of the Labour Law or a contract of employment and therefore cannot
serve as the ground for dismissal of an employee (Section 26 (1) of the Strike
Law). Employees participating in a strike in conformity with the procedure laid
down in the Strike Law and the Labour Disputes Law retain their office and are
not subject to disciplinary punishment.
Employees participating in a strike do not receive a regular pay for work and
social insurance payments for this period of time unless otherwise agreed in a
collective agreement. Nevertheless, those employees working in essential
services during the strike receive regular pay for work in accordance with the
work actually done. Other employees not participating in the strike and
continuing their work receive regular pay for work in accordance with their
contract of employment and collective agreement and remain bound by them. The
latter cannot be forced to undertake the work of employees participating in a
strike.
Preparation and declaration of strikes
Trade unions, employee's authorized representatives or employees themselves
have the right to announce a strike on four occasions. Firstly, the right can be
exercised if the collective labour interest dispute has not been settled in a
conciliation commission and the parties have not agreed on settling the dispute
by method of reconciliation or by arbitration. Secondly, such right applies when
the parties fail to settle the dispute by reconciliation and the parties do not
resort to arbitration. Thirdly, a party has the right to strike when, within a
period of 10 days, procedural requirements such as the establishment of a
conciliation commission or the commencement of the resolution of a dispute
before a commission, reconciliation or arbitration are not observed. Finally,
the strike can be launched if the employer (or employer's organization) violates
an agreement reached during any stage of negotiations. In the latter occasion
the scrupulous procedure of initiation of a strike can be ignored.
Pursuant to Section 13 of the Strike Law, a trade union, upon decision
of the strike announcement, shall establish a strike committee that would lead
the strike and would represent interests of relevant trade unions or employees
of an enterprise during strike negotiations with an employer. No later than 10
days before the strike, the strike committee submits to the employer, the State
Labour Inspection and the Secretary of Tripartite Consultative Council of
Employers, the State and Trade Unions the starting time of the strike, its
venue, reasons, demands, the names of the leaders of the strike committee and
the resolution of the meeting on the strike announcement. Demands that were not
included in the initial strike announcement are illegal.
Unlawful strikes
The right to strike is not absolute. Section 116 of the Satversme stipulates
that the right to strike may be subject to restrictions in circumstances
provided for by law in order to protect the rights of other people, the
democratic structure of the state, as well as public safety, welfare and morals.
Section 16 of the Strike Law lists the categories of persons who have no right
to strike. Judges, public prosecutors, police officers, firemen, border-guards,
employees of state security institutions, warders of imprisonment and persons
serving in National Armed Forces are not allowed to strike. The Law On Bureau of
Prevention and Combating of Corruption adds the officials of this bureau as a
category of this list.
In addition, the employees in “essential services” have a limited right to
strike, which has to be balanced with public interests. Essential services are
defined as services provided by such enterprises, where the termination of work
can endanger the state security or security, health or life of society, a group
of people or separate individuals (Section 17 (1) of the Strike Law). It is the
duty of an employer and a strike committee to ensure that minimum work is
carried out in essential services during a strike. They must appoint a certain
number of employees that will perform the above-mentioned work during the strike
as well as determine the amount of work to be done. The refusal to perform such
work or to follow instructions is considered to be a violation of the Labour
Law. If necessary an employer and a strike committee also have to agree on such
activities as the maintenance of an enterprise, its equipment, machinery, etc.
Essential services are defined in Section 17 (2), as the medical assistance
services, public transport services, drinking water supply services, electricity
and gas producing and supply services, communication services, air transport
monitoring services and services providing meteorological information, services
concerning security of transport movement, waste and sewage collection and
purification services, radioactive substance and waste keeping, utilization and
monitoring services as well as public security services.
Termination of a strike
The termination of a strike is either voluntary or mandatory. The parties to
a collective labour dispute are free to cancel their demands and to end a strike
at any stage.
Only a court may find illegal a strike or a strike announcement. The court
does so if it establishes a violation of the Strike Law, if the strike has been
announced during the operation of the collective agreement in order to amend
provisions of this collective agreement, if it is a solidarity strike and does
not concern the conclusion or the implementation of a general agreement, if the
strike is proposed to express political demands, political support or political
protest, or if the strike is related to issues, which have already been agreed
upon during strike negotiations. The legal consequences emerging from finding a
strike or its announcement illegal are the termination of an ongoing strike or
the prohibition to strike if it is not yet commenced. Moreover, if the court has
received an application on recognition of the illegality of a strike prior to
the date of its commencement, within 5 days of its announcement, the right to
strike is suspended until the final ruling enters into force.
Lockouts
Unlike the right to strike, the right to lock out is not enshrined in the
Satversme. The right to lock out was introduced by the Law on Labour Disputes in
2003. A lockout is the employers' counteraction against employees' right to
strike with an aim to protect their own economic interests. It is considered as
the employers' right to collective action, provided for by the Law on Strikes.
Similarly to strikes, the only limitations to the right to lockout concern
institutions of state and local municipalities as well as essential services
determined by Section 17 of the Strike Law (see above).
Section 21 (2) of the Labour Disputes Law defines a lockout as a refusal to
employ employees as well as to pay any work remuneration if the strike
significantly affects economic activities of an enterprise, providing the number
of employees suffering in result of the lockout does not exceed the number of
striking employees. The decision to lock out is adopted by an employer himself
or by a qualified majority of members of the employers' organization. The
indispensable prerequisite of a lockout action is the submission of the lockout
announcement to respective employees or their representatives as well as to the
National Tripartite Co-operation Board and the State Labour Inspection. The
latter is in charge of monitoring lockouts and possesses the right to postpone
it for a period of up to three months in case of necessity to take action to
prevent natural disasters, large accidents or epidemics or their effects.
Another similarity with strikes undertaken by employees is made by the
prerogative of the court to hear cases on finding a lockout or its announcement
illegal following an application submitted within five days from the lockout
announcement. The lockout or its announcement is found illegal on two occasions:
if it stands in contradiction with the provisions of the Labour Disputes Law or
if it is directed against the exercise of the right to association, thereby
violating the fundamental right enshrined in Section 102 and 108 of the
Satversme. An illegal lockout has to be immediately terminated. An additional
guarantee of employees' rights is the employers' duty to recover losses of
employees made in result of an illegal lockout.
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Settlement of individual labour disputes
The main source of law governing the settlement of individual labour disputes
is the Labour Disputes Law.
Section 4 of this law defines an individual labour dispute as a disagreement
between an employee or a group of employees and an employer concerning the
conclusion, amendment, termination or implementation of the contract of
employment or the application or interpretation of statutory enactments,
collective agreements or working procedure regulations.
There are three stages in the settlement of individual labour disputes. The
first stage is the negotiations within an enterprise between an employee and an
employer. However, this is not a compulsory stage and its omission does not
affect the parties' right to apply to a labour disputes commission or to the
court.
The labour disputes commission
Where the individual labour dispute is not settled during the negotiations
within the enterprise, the parties to the dispute have the right, upon mutual
agreement, to advance the dispute to the labour disputes commission established
within the enterprise or chosen by any other means for settling the dispute.
Parties are free to stipulate the establishment of a labour disputes commission
in collective agreements. Exceptions to this principle are contained in Section
7 of the Labour Disputes Law, pursuant to which the following cases are reviewed
exclusively in court: (1) the invalidation of a notice of termination by an
employer and the reinstatement of an employee, (2) the application of an
employer, in case of refusal by the employee trade union to accept the notice of
termination of a contract of employment to the member of an employee trade
union, (3) the exacting of undue payments, (4) the violation of the principle of
equal treatment, (5) the application of an employer or an employee, where the
termination of a contract of employment is claimed by a third party.
When the parties favour the labour disputes commission, they shall conclude a
written agreement providing for the composition of the commission, its
competence, terms and other issues concerning the operation of the commission.
The commission consists of equal number of representatives from both parties.
Members of the commission shall be impartial and may not have any direct or
indirect interest in the outcome of a particular case. Moreover, independence of
the members of the commission during the exercise of their duties shall be
guaranteed by the prohibition of any interference or influence on their work.
The labour disputes commission shall review the case within 10 days running
from the submission of the application. The commission is not deterred to review
a case and shall deliver its decision without the presence of any of the
parties. The commission takes the decision by majority voting. The decision
taken by the labour disputes commission shall be compulsory and has to be
executed within 10 days. Where the decision has not been executed voluntarily,
the other party has the right to appeal to the court. The decision enters into
force after 10 days provided the decision has not been appealed to the court.
Review by a court
The review of an individual labour dispute by a court, in accordance with the
civil procedure is the third and final stage. Each party has the right to plead
to court if: (1) the parties have not settled the dispute during the negotiation
stage, (2) a party is not satisfied with the decision taken by the labour
disputes commission, (3) the decision taken by the labour disputes commission is
not enforced, (4) the dispute involves one of the exceptional occasions when the
case is heard directly by the court (listed above). The fact that the court is
the first instance does not serve a ground for refusal to admit an application.
Individual labour disputes may not be reviewed in arbitration.
It has to be noted that during settlement of individual labour disputes,
trade unions have a special right to represent the trade union members without
special authorization as well as they have the right to bring the case to court
on behalf of its members.
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ILO Conventions ratified by Latvia
See APPLIS (ILO data base of ratifications, CEACR comments, reporting schedule)
Useful and relevant web links
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