Published: 12.08.2020.
  • Obligations of an employer when posting an employee to perform work in Latvia

An employer, including those in the road transport sector, who posts their employee to work in Latvia, is obligated to comply with the administrative requirements stipulated in the Labour Law and provide their employee with the working conditions and employment regulations specified in Latvian legislative acts.

If, according to the employment contract concluded in a foreign country (European Union or European Economic Area state), the employee is entitled to more favourable working conditions and employment regulations compared to the minimum requirements set by Latvian legislative acts or collective agreements, then these terms of the employment contract continue to apply to the employee. For example, if the employment contract in a certain country specifies a higher wage than what is provided for in Latvian legislative acts or collective agreements, the employee is entitled to receive the wage specified in the employment contract, thus not worsening their situation.

Latvian legislative acts outline a series of obligations for the employer before posting an employee to Latvia, as well as during the time when the employee is working in Latvia.

An employer of another European Union Member State or European Economic Area State who posts an employee to perform work in Latvia has the obligation to, prior to posting the employee, electronically inform the State Labour Inspectorate of such employee.

The portal for the notification system for workers posted to Latvia is available in two languages - English and Latvian. If you have any questions or concerns, please contact support team - supportposting@vdi.gov.lv.

An employer of another European Union Member State or European Economic Area State who posts an employee to perform work in Latvia has the obligation to inform the State Labour Inspectorate of such employee in the official language, indicating:

  1. the given name, surname, the number of personal identification document, and address of the employer - natural person, or the name (firm), registration number, and address of a legal person, the given name, surname, and address of the responsible official of the executive body of the employer - legal person, and also other contact information (telephone number, electronic mail address). If the employer is a work placement service provider, it shall be especially indicated and a certification shall be submitted that the employer as a work placement service provider is entitled to provide work placement services in its home country;
  2. the given name and surname of the employee as well as the number of personal identification document;
  3. the anticipated duration of posting, as well as the time of starting and ending work;
  4. the address or addresses of the work performance location if the work is to be performed in several places;
  5. the representatives of the employer referred to in Paragraphs four and five of this Section, indicating the given name, surname as well as contact information;
  6. the person for whose benefit work will be performed (recipient of the service), as well as the nature of service justifying the posting of the employee;
  7. the certification that the posted employee who is a third-country national legally works for the employer in the European Union Member State or the European Economic Area State;
  8. the information on the Certificate of Social Security Legislation Applicable to the Recipient of the Certificate (Certificate A1), indicating the issuing country and number.

An employer of another European Union Member State or European Economic Area State who posts an employee to perform work in Latvia has the obligation to electronically inform the State Labour Inspectorate in the official language of the changes that have occurred in relation to the information referred to in Paragraph two of this Section within three working days from the day the changes have occurred.

If an employer from another European Union Member State or European Economic Area State posts an employee to perform work in Latvia, then, irrespective of the law applicable to the employment contract and employment relationship, such posted employee shall be ensured the working conditions and employment provisions provided for by the laws and regulations of Latvia and the general agreement entered into according to Section 18, Paragraph four of the Labour Law and governing:

  1. maximum working time and minimum rest time;
  2. minimum annual paid leave;
  3. remuneration, including supplements for work associated with special risk, overtime work, night work, work on a public holiday, additional work. Within the meaning of this Clause, remuneration shall not include contributions to supplementary pension capital made by the employer;
  4. provisions regarding securing a workforce, especially with the intermediation of work placement service provider;
  5. safety, health protection and hygiene at work;
  6. protection measures for persons under 18 years of age, for pregnant women and women during the period following childbirth, as well as the working and employment provisions of such persons;
  7. equal treatment of men and women, as well as prohibition of discrimination in any other form;
  8. provisions for the accommodation of such employees who are outside their permanent workplace if such service is provided by the employer;
  9. reimbursement of the expenses of the employee in relation to an official trip or work trip in Latvia, including the disbursement of a daily allowance for an official trip. This provision shall be applied to the reimbursement of expenses to an employee who has been posted to perform work in Latvia if he or she is sent on an official trip or work trip in the territory of Latvia.

If the employee posted to Latvia is subject to more favorable working conditions and employment terms under their employment contract compared to the minimum requirements set out in Latvian regulatory acts or a collective agreement recognized as generally binding, the guarantees provided in the employment contract shall continue to apply to that employee.

An employer of another European Union Member State or European Economic Area State who posts an employee to perform work in Latvia has the obligation to designate its representative in Latvia who is authorised to represent the employer in public institutions of Latvia.

An employer of another European Union Member State or European Economic Area State who posts an employee to perform work in Latvia has the obligation to, if necessary, designate its representative who may be addressed by the parties of the collective agreement in order to initiate negotiations regarding entering into a collective agreement in accordance with the provisions of this Law. That person may be a person other than designated representative who is authorised to represent the employer in public institutions, and this person does not have to be in Latvia, however, it has to be available on a reasonable and justified request

GENERALLY APPLICABLE COLLECTIVE AGREEMENTS

There are currently three collective agreements in Latvia that can be considered universally or general applicable agreements.

Railway sector

On August 5, 2022 General Agreement of the Railway Sector was concluded for the period of 5 years - until 2027.

This general agreement is binding on all undertakings whose activities relate to the functioning of rail or rail transport. The general agreement shall determine the minimum level of obligations and guarantees for the parties, which may be supplemented by collective agreements to be concluded between the employer and the trade union.

Text of this General Agreement available on the website of the Official Gazette “Latvijas Vēstnesis”.

Construction sector

The General Agreement has been concluded between the Latvian Building Sector’s Trade Union and three employee organizations and their members:  Partnership of the Latvian Building Contractors, the Latvian Builders’ Association, the Latvian Road Builders, and assorted companies.

It has been concluded for the period from November 3, 2019 until December 31, 2025 and covers all the employers and employees within the construction sector. 

The Agreement provides for a projected wage growth setting the minimum wage at 930 euros per month or 5.57 euros per hour.  Accordingly, the 5% qualification bonus is increased to 46.50 euros per month. The overtime pay bonus remains reduced at 50%.

On September 25, 2024, the minimum wage in the construction sector was reviewed by the Construction Sector General Agreement Committee.

The agreement reached stipulates that:

  • From January 1, 2025, the minimum wage for employees in the construction sector will be 1,050 euros per month or 6.29 euros per hour.
  • For one year, until December 31, 2025 (transition period), employees in the construction sector whose profession belongs to the 9th basic group of professions may receive a lower wage, but not less than:
    • 930 euros per month and 5.57 euros per hour, or
    • 830 euros per month and 4.97 euros per hour if their length of service with the current employer is less than six months in the last 12 months.

When applying the reduced minimum wage, overtime pay must be compensated at 100%.

Text of the General Agreement is available on the website of the Latvian Construction Association and on the website of Latvian Building Sector Trade Union.

An employer who posts an employee to perform work in Latvia is required, during the posting period, to ensure the storage of the employment contract, the calculation of wages, working time records, and documents proving wage payments with their representative in Latvia, who is authorized to represent the employer in state institutions. These documents must be presented to supervisory and control authorities upon request and, if necessary, translated into the official language when required by representatives of supervisory and control authorities.

The employer who posts an employee to perform work in Latvia is also required, for two years after the end of the employee's posting period, to ensure the presentation of the employment contract, wage calculations, working time records, and documents proving wage payments to supervisory and control authorities.

If the duration of the employee's posting exceeds 12 months, the working conditions and employment terms provided by Latvian legislation, such as those in the Labour Law, the Labour Protection Law, other regulatory acts, and universally binding collective agreements, will apply to the posted employee. This excludes rules regarding the conclusion and termination of employment contracts, including post-employment non-compete clauses and employer contributions to additional pension schemes.

If the employer submits a reasoned notification to the State Labour Inspectorate for an extension of the posting (up to a total of 18 months), the employer may continue to apply the employment terms and working conditions mentioned in the section "The obligation to comply with Latvian legislative acts and collective agreements recognized as universally applicable."

Please note that if different employees perform the same job at the same work location, the duration of the posting is calculated as the cumulative duration of these individual postings.

An employer who posts an employee to perform work in Latvia is obliged, before commencing the provision of services, to inform their cooperation partner in Latvia, for whom the work will be performed, that the obligation to notify the State Labour Inspectorate on the posting of the employee has been fulfilled.

The Latvian employer shall not allow the posted employee to commence work if the employer from another country, who is posting the employee to Latvia, has not submitted a confirmation that the legally required information has been provided to the State Labour Inspectorate.

  • Employers who post their employees to perform work in Latvia, as well as Latvian employers, are subjects of administrative liability.

An employer who posts an employee to another country and fails to ensure compliance with the respective country's regulatory requirements may be held administratively liable according to the relevant national regulations. Information about the administrative liability and penalties stipulated in the laws of other countries to which employees are posted can be found on the website of the respective country.

An employer who violates the regulatory enactments may be subject to administrative responsibility. Administrative penalties for violations in the field of labour law are covered by Chapter 36 of the Labour Law, while in the field of labour protection, Chapter VI of the Labour Protection Law. General issues of administrative responsibility are governed by the Administrative Liability Act.

Appealing against an imposed sanction

The decision on an imposed administrative sanction may be appealed in accordance with the procedure and time limits set forth the Law on Administrative Liability. 

According to Section 13 of the State Labour Inspectorate Law an administrative deed issued by an official of the Labour Inspectorate or actual action thereof may be contested to the Director of the Labour Inspectorate. The administrative deed issued by the Director of the Labour Inspectorate or actual action thereof, as well as a decision regarding the contested administrative deed or actual action may be appealed to the court in accordance with the procedures specified in law.  Contesting or appeal of the administrative deed or actual action shall not suspend the execution thereof, except in cases when it is suspended with a decision of the person examining the submission or application.

The decision shall always contain information on appeal of the decision.

Consequently, if a official of State Labour Inspectorate issues administrative deed and imposes a fine, it may be contested in writing by submitting a substantiated application to the Director of the State Labour Inspectorate. If the Director of the State Labour Inspectorate leaves that decision unchanged, then person may turn to court. 

Payment of a fine and compulsory recovery thereof

According to the Law on Administrative Liability a fine applied to a punished person shall be paid in full amount not later than within one month from the day when the ruling on penalty has come into effect.

If there are justifying circumstances due to which a punished person may not enforce the ruling on penalty in full amount within the term for voluntary enforcement of the fine, an institution may postpone enforcement thereof for a period of up to one month. If there are justifying circumstances due to which a punished person may not enforce the ruling on penalty in full amount within the term for voluntary enforcement of the fine, an institution may divide enforcement of the fine in parts without exceeding a six-month period from the day when the ruling on penalty has come into effect. A punished person shall submit a written application to an institution for the postponement of enforcement of the ruling on penalty or for the division of a fine in parts within the term for voluntary enforcement of the fine.

Cross-bordder enforcement of administrative fines

In cases when the State Labour Inspectorate has imposed of an administrative sanction (i.e. a fine) on an employer who is located in another country, State Labour Inspectorate sends the request for recovery of an administrative fine to the authority of that state where employer is situated.

If after the receipt of the decision the employer fails to pay the fine voluntarily, the State Labour Inspectorate sends a request for the enforcement of the decision to the respective authority of the another state. Then this decision is executed, i.e. the fine is recovered from the employer under the statutory procedures of the respective country.

Whereas, when the State Labour Inspectorate receives a request for notification of the decision from an authority of another country, it shall notify the decision on the imposition of an administrative sanction to the employer who is located in Latvia. If after the receipt of the notification the employer fails to pay the fine voluntarily, the State Labour Inspectorate receives a request from the respective authority of the another state for the enforcement of the decision and the decision shall be transferred for enforcement to the court bailiff.

Enforcement of administrative fines

A decision made by the State Labour Inspectorate with respect to imposition of an administrative penalty (i.e. a fine) on an employer who is located in another country shall be enforced in accordance with the national laws and regulations of the country such an employer is located in.

Whereas, the fines imposed by the authorities of other states shall be recovered in Latvia in accordance with the same procedures that are applied to the recovery of fines imposed by the Latvian authorities. Namely, in the event the employer has failed to pay the fine, the State Labour Inspectorate transfers the decision on the imposition of an administrative penalty (i.e. a fine) for a compulsory execution to the bailiff, who recovers the fine in accordance with the procedure set forth in the Civil Procedure Law.