Working life in Latvia

Notes: Values for real GDP per capita are chain-linked volumes (based on 2010 data; €). The unemployment rate for men and women is the annual average as a percentage of the active population aged 15–74 years, and the youth unemployment rate is the annual average as a percentage of people aged 15–24 years. The employment rate for men and women is the annual average as a percentage of the active population aged 15–64 years, and the youth employment rate is the annual average as a percentage of people aged 15–24 years. GDP, gross domestic product.

Sources: Eurostat [sdg_08_10], for real GDP per capita and percentage change 2012–2022; [une_rt_a], for unemployment rate by sex and age; [lfsi_emp_a], for employment rate by sex and age

Economic and labour market context

Between 2012 and 2022, annual gross domestic product (GDP) growth ranged from 7% (in 2012) to -2.2% (in 2020). In 2012–2022, except for the drop in 2020, the annual growth rate was moderate (1.9–4%) but stayed positive. In the 10-year period, the unemployment rate steadily decreased. Total unemployment stood at 6.9% in 2022. In the 10 years considered, there was an increase in employment, with the total employment rate being 74.3% in 2012 and 76.8% in 2022. In 2022, the employment rate of men (79.1%) was higher than that of women (74.5%).

Legal context

Labour legislation includes the Labour Law (adopted on 20 June 2001), the Labour Protection Law (adopted on 20 June 2001) and supplementary legislation, the Labour Dispute Law (adopted on 26 September 2002), the Strike Law (adopted on 23 April 1999) and several other normative acts regulating pay for special groups of workers and other specific issues.

Employer representation, employee representativeness and collective bargaining are regulated by the Labour Law, the Trade Union Law (with a new version adopted on 6 March 2014) and the Employers’ Organisations and their Associations Law (adopted on 19 May 1999).

A law on the information and consultation of workers in EU-level commercial companies and groups of EU-level commercial companies, adopted on 19 May 2011, determines the role of European works councils.

In 2022, two sets of amendments were made to the Labour Law. The first amendments (adopted on 6 June 2022 and valid from 1 August 2022) introduced changes to more than 40 clauses in the main body of the law and three changes to transition rules (Latvijas Republikas Saeima, 2022a). These changes concern the following items:

• the regulation of collective agreements (for example, derogations from collective agreements)
• the obligation of a work placement service provider to inform an employee in writing of the recipient of the work placement service before the expected appointment of the employee
• new requirements regarding the content of employment contracts
• a stricter obligation for the employer to inform employees about employment rules and conditions
• new probationary regulations
• the employer’s duty to inform employees about business trips they are expected to undertake
• wider joint liability in the construction industry
• permission from the State Labour Inspectorate (VDI) for overtime work
• new regulations on working time for employees whose work schedules are not completely or mostly predictable
• employees’ right to adjust their working hours
• the rule that the taking of annual leave must not have adverse consequences
• the employer’s obligation to provide unpaid leave
• the entitlement of fathers to a longer period of paternity leave
• parental leave

The second set of amendments (valid from 25 November 2022) introduced exceptions in procedures for the determination and review of minimum monthly wages (Latvijas Republikas Saeima, 2022b).

Industrial relations context

The social dialogue system was established at the beginning of the 1990s, when the role of trade unions, employer organisations, collective agreements and the procedure for negotiations was set out in the Latvian Labour Law and other specific laws. The system is based on the principle of the voluntary participation of those involved. In the beginning, social dialogue was a bipartite process. Then, in 1993, a social dialogue system was established based on a tripartite negotiation process. In the same year, two tripartite councils were established, and in 1994 one more council was established. Employees were and still are represented by a single national-level organisation, the Free Trade Union Confederation of Latvia (Latvijas Brīvo arodbiedrību savienība, LBAS). Employers are also represented by a single organisation, the Employers’ Confederation of Latvia (Latvijas Darba Devēju konfederācija, LDDK) (established in 1993).

The National Tripartite Consultative Council of employers, the government and trade unions was established in December 1993. It was reorganised into the National Tripartite Cooperation Council (Nacionālā trīspusējās sadarbības padome, NTSP) in 1996.

On 12 May 1998, based on the ‘Concept of tripartite cooperation at national level’, the councils were amalgamated into one main council and several subcouncils.

A number of laws were introduced to regulate the social dialogue process. In 2002, a new Labour Law was introduced, which set out more clearly the main principles of social dialogue, obligations of employers and rights of employees.

Since the reorganisation of the social dialogue system in 1998, there have been no significant changes. Industrial relations are corporate and consensus-oriented. While they are strong, concerted and tripartite at national level, they are weak at sector level.

In 2017, the representativeness of employers in sector-level social bargaining was expanded to large enterprises through an amendment to the Labour Law. Such large enterprises should meet the same representativeness arrangements that are in place for the employer organisations.

The social partners were very active in mitigating the effects of the COVID-19 crisis. Initially, they expressed full support for the government actions aimed at limiting the spread of the virus and actively participated in designing and improving the support measures proposed and adopted by the government. Later in the year, the social partners stressed the importance of social dialogue in cushioning the impact of the crisis and called on the government to better honour the social partners’ initiatives.

The government played the main role at the beginning of the pandemic, having to take decisions quickly. Yet from the very beginning, the government tried to involve the social partners as much as possible in the working groups it established at that time.

The first group was established before the COVID-19 pandemic under the auspices of the Ministry of Finance to facilitate the collective discussion of state tax and fiscal policy. The second group was established at the Cross-Sectoral Coordination Centre to coordinate the operation of state institutions and comprised ministers and representatives of the social partners and non-governmental organisations. The third was the Operational Management Group – a working group for the coordination of interinstitutional operations. It was established by Order of the Cabinet of Ministers No. 2020/1.2.1.-84, adopted on 10 July 2020.

The largest social partners (the LDDK and LBAS) and other institutions (the Latvian Chamber of Commerce and Industry (Latvijas Tirdzniecības un rūpniecības kamera, LTRK), the Latvian Association of Local and Regional Governments (Latvijas Pašvaldību savienība, LPS) and the Latvian Academy of Sciences established a coalition they called ‘the great five’. Through the coalition, they coordinated their actions and prepared and submitted joint opinions.

This new approach to public discussion somewhat reduced the role of the social partners as agreements were reached in large, established groups.

Trade unions, employer organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes European, national, sectoral, regional (provincial or local) and company levels. This section looks at the main actors and institutions and their role in Latvia.

Public authorities involved in regulating working life

The highest-level institutions involved in regulating working life are the general legislative body, the Parliament of Latvia (Latvijas Republikas Saeima), and its Social and Employment Matters Committee. Some legislation is adopted by the Cabinet of Ministers. Previously, before being adopted by the Cabinet of Ministers, normative regulations were discussed at meetings of the state secretaries and intergovernmental working groups. Meetings of the Committee of the Cabinet of Ministers have not taken place since April 2019. Social dialogue and working conditions are the direct responsibility of the Ministry of Welfare. Within the ministry, the Social Policy Planning and Development Department, the Labour Relations and Labour Protection Policy Department, the Labour Market Policy Department, and International Cooperation and EU Policy Department draw up proposals for employment policies and normative regulations on working life and supervise the implementation of adopted normative regulations. The Ministry of Welfare has two executive institutions directly dealing with the labour market: the State Employment Agency (NVA) and the VDI.

The NVA deals with employment promotion and unemployment issues.

The main duty of the VDI is state supervision and control of compliance with the normative regulations on employment law and work protection. This institution also monitors and promotes health and safety at work. The VDI cooperates with the Riga Stradins University’s Institute of Occupational Safety and Environmental Health, which collects and maintains a database on occupational diseases. The operation of the VDI is regulated by legislation.

The Ministry of Economics, which is responsible for employment issues (drafting employment policies, job creation, managing employment-related programmes supported by European Structural and Investment Funds) and therefore participates in the organisation of working life, also has a role in regulating working life issues.

Labour courts do not exist in Latvia.

Representativeness

At national level, employers are represented by a single employer organisation (the LDDK), and employees are represented by a single trade union organisation (LBAS).

This system of representation is set forth in the ‘Concept of tripartite cooperation’, which was approved by the Cabinet of Ministers in 1998 and the statutes of the NTSP. It is confirmed in a tripartite agreement between the Cabinet of Ministers, LBAS and the LDDK, signed on 1 October 2004.

The rights and obligations of the social partners are set forth in the Trade Union Law and the Employers’ Organisations and their Associations Law. Principles of representativeness in labour relations are set forth in Part 2 of the Labour Law.

Trade unions

About trade union representation

The Trade Union Law (Section 4) states that everyone has the right to freely establish a trade union, without any discrimination, and the right not to join a trade union. Section 8 of the Labour Law regulates trade union membership for working citizens. Employees and employers have the right to unite freely, without any direct or indirect discrimination, and to join organisations to defend their social, economic and occupational rights and interests and receive the benefits provided by such organisations. Affiliation with or a desire to join such organisations may not serve as a basis for refusal to enter into an employment contract, for the termination of an employment contract or for restricting the rights of an employee in another way.

Some categories are excluded from the right to establish and to join trade unions. These are: employees of the Constitution Protection Bureau, Defence Intelligence and Security Service and the Security Police; soldiers; border guards. State police workers have their own trade union.

Section 16 of the law on trade unions (adopted in 2014) sets out that trade union interests at national level in relations with the Cabinet of Ministers must be represented by the trade union association that unites the largest number of workers in the country. Moreover, trade union interests in relations with the state and local government institutions at sector or profession level or at the level of the administrative territory should be represented by trade union that is member of the trade union association uniting the largest number of workers in the country. However, the law permits state and local government institutions to collaborate with other trade unions and their associations if necessary.

Trade union membership and density

Data on trade union membership are not officially collected in Latvia. LBAS has its own dataset, but it is an internal resource and is not publicly available. The number of trade union members in LBAS member organisations is also not known.

The available data up to 2019 indicates that membership and density have steadily declined. For instance, membership was around 96,000 in 2017 and decreased to 85,700 in 2019. The number of employees in 2019 was 871,000 (data from the Central Statistical Bureau of Latvia (CSP) and LBAS). Trade union density was 10.16% in 2019.

In many cases, the decline in trade union membership is connected with significant socioeconomic transformations, such as the closure of the large Soviet enterprises, which were traditionally a stronghold of trade unions, the shrinking process in industrial development and reforms in the education and health sectors.

Trade union membership and density

* Proportion of employees who are members of a trade union. ** Trade union membership of employees derived for the total union membership and adjusted, if necessary, for trade union members outside the active, dependent and employed labour force (i.e. retired workers, self-employed workers, students, unemployed people).

Note: n.a., not available.

Main trade union confederations and federations

The main trade union confederation is LBAS – the single trade union organisation representing employees at national level.

The membership of LBAS has changed over the years. In 2019, the United Police Trade Union (which has about 320 members) was excluded from LBAS. In 2017, the Trade Union of Latvian Interior Employees (with 2,900 members) joined LBAS. In 2021–2022, two sector-level trade unions (the Latvian Nursing and Health Care Personnel Trade Union and the Latvian Post and Telecommunication Workers Trade Union) left LBAS, and one sector-level trade union (the Latvian Probation Employees’ Trade Union) became a member. According to LBAS’s own data, it had 19 affiliate organisations at the beginning of 2023.

All LBAS affiliates are leading sector-level trade unions. Of these, the largest trade unions are in the following sectors:

• education (the Latvian Trade Union of Education and Science Employees (Latvijas Izglitibas un zinatnes darbinieku arodbiedriba, LIZDA))
• healthcare (the Trade Union of Health and Social Care Employees of Latvia (Latvijas Veselibas un socialas aprupes darbinieku arodbiedriba, LVSADA))
• railway (the Latvian Railway and Transport Industry Trade Union (Latvijas Dzelzceļnieku un satiksmes nozares arodbiedrība, LDzSA))
• energy (the Latvian Trade Union Enerģija (Latvijas arodbiedrība Enerģija, LAB ‘Enerģija’))
• state services (the Trade Union of Employees of State Institutions, Municipalities and Finance Sector (Latvijas valsts iestāžu, pašvaldību, uzņēmumu un finanšu darbinieku arodbiedrība, LVIPUFDA)
• public services and transport (the Latvian Trade Union of Public Service and Transport Workers (Latvijas Sabiedrisko pakalpojumu un Transporta darbinieku arodbiedriba, LAKRS))

Trade unions seldom exist in retail trade companies – including those that are foreign owned – and small private companies. In some services sectors (such as inland waterways, hairdressing and personal services), trade unions do not exist.

Main trade union confederation

Employer organisations

About employer representation

Latvian legislation does not set out rights to, obligations for or restrictions on membership of employer organisations. The law states that an employer organisation is a public organisation established by at least five employers that represents and protects the economic, social and professional interests of its members and other interests that conform to the objectives and functions of the organisation. Members of an employer organisation may be individuals or legal persons who, on the basis of an employment contract, employ at least one employee.

An association of employer organisations may be established if at least three employer organisations unite. An employer that is not a member of an employer organisation may also be a member of an association of employer organisations if, on the basis of an employment contract, it employs at least 50 employees.

Associations of employer organisations and large enterprises that fulfil the representation requirements set by the Labour Law are eligible to represent employers in sector-level negotiations.

Despite the good design of the representation system, it is rare for employer organisations to be involved in collective bargaining, even if they are members of the national-level employer organisation the LDDK.

Employer organisation membership and density

Official data on membership of employer organisations are not collected, and employer organisations do not monitor density. Therefore, membership, as well as coverage and density, in terms of employees is not clear. The LDDK reports that its members employed 37% of all employed people in 2009 and 44% in 2019 (an increase of 19% in 10 years). According to the LDDK’s annual report for 2021, the LDDK had 173 members in 2021. Data for 2022 have not been published. According to the LDDK’s website, it currently has 157 members, of which 96 are large enterprises and 61 are employer organisations.

Membership is not compulsory.

Employer organisation membership and density, 2009–2022 (%)

* Percentage of employees working in an establishment that is a member of any employer organisation involved in collective bargaining.

Note: n.a., not available. Data for 2010–2012 not available; columns excluded from table because of lack of space.

Main employer organisations and confederations

The LDDK is the largest employer organisation and the only national-level employer representative. It was established exclusively for social dialogue purposes.

The LTRK is the largest business association but is not an employer organisation by law. Its main sectors of activity are the business environment, enterprise competitiveness and exports.

Main employer organisation

Tripartite and bipartite bodies and concertation

The main tripartite body is the NTSP, whose operation is regulated by its statutes (adopted on 30 October 1998). According to its statutes, the NTSP is based on the principle of parity of the representatives of the Cabinet of Ministers (the government), the LDDK and LBAS.

In compliance with the statutes, the NTSP examines policy planning documents and drafts of normative acts and sets out proposals for their improvement in the following areas: social security, guidelines on the state budget, the economic and regional development strategies, health, the development of general and vocational education, employment and the classification of occupations, and the implementation of international commitments.

The NTSP provides a two-stage discussion platform: at the first stage, discussions are carried out within subcouncils, and at the second stage discussions are carried out within the main body of the NTSP. The NTSP had 10 subcouncils in 2022.

The executive body of the NTSP is its secretariat. Initially, the NTSP and its secretariat were operated by the Ministry of Welfare, but later the legal status of the council was elevated so that it is directly subordinate to the prime minister. Consequently, the secretariat is now operated by the State Chancellery. The secretary of the NTSP is subordinate to the State Chancellery in institutional matters and to the prime minister in functional matters.

Meetings of the NTSP are organised on request and are held at least once every two months.

The institutional regulation and work organisation of the NTSP have not changed in the last three years.

There are some bodies, such as consultative councils and working groups, in which the social partners must be invited to participate, but these are not created specifically for social dialogue purposes. An example of such an organisation is the Council of Economy and its committees, in which the LDDK and LBAS are represented in the main council and in the committees.

The national-level social partners LBAS and the LDDK have concluded one tripartite cooperation agreement – in 2004 – and three mutual cooperation agreements – in 1994, 2007 and 2013 (valid until 2020) – aimed at the creation of a favourable economic environment and industrial peace.

On 25 May 2022, the five largest government cooperation parties – the LDDK and LBAS as social partners and the LTRK, the LPS and the Latvian Academy of Sciences as cooperation partners – signed a memorandum of agreement that envisaged the further coordination of actions and a unified position in negotiations with the state administration to achieve the goals set.

Main tripartite and bipartite body

Workplace-level employee representation

Section 10 of the Labour Law states that employee representatives are either:

• trade union members or officials of trade union associations
• authorised employee representatives who have been elected in accordance with the Labour Law

Employee representatives are bound to defend the social, economic and occupational rights and interests of employees.

Trade unions may be established in compliance with the Trade Union Law. The law does not establish thresholds for membership, but statutes of existing trade unions specify that no fewer than three people may establish a trade union organisation.

Authorised employee representatives may be elected if an undertaking employs five or more employees. The Labour Law does not require the appointment of an employee representative for information and consultation, but it provides for convenient information and consultation procedures.

The law allows an indefinite number of trade unions and authorised employee representatives in one enterprise. However, it requires that all existing employee representatives are authorised for joint negotiations with an employer in proportion to the number of people they represent, but not less than one representative each.

The law requires that employee representatives express a united view with respect to the employer in cases where: several representatives are elected, representatives of several trade unions have been appointed for negotiations with an employer, or representatives of one trade union or representatives of several trade unions and authorised employee representatives have been appointed for negotiations with an employer.

The law on the information and consultation of workers in EU-level commercial companies and groups of EU-level commercial companies regulates the right to establish and operate European works councils.

Regulation, composition and competencies of the bodies

The central concern of employment relations is the collective governance of work and employment. This section looks at collective bargaining in Latvia.

Bargaining system

Collective bargaining is regulated by Part B of the Labour Law (Sections 17–27). The law describes the content and form of collective agreements, parties to a collective agreement, the effect of a collective agreement over time, the effect of a collective agreement on workers, procedures for entering into a collective agreement, the approval of a collective agreement, amendments to provisions of a collective agreement, familiarisation with a collective agreement and the settlement of disputes.

A collective agreement is a voluntary instrument but is binding on all parties involved once it is concluded. Changes in collective agreements should be agreed by all parties involved.

Collective bargaining is voluntary and is usually initiated by trade unions. It has increased in recent years. Sector-level collective bargaining is still weak, although special attention has been paid to sector-level collective bargaining since 2009.

New practices have been introduced in company-level and sector-level bargaining. The essence of these practices is the connection of collective agreements with certain economic benefits or with important economic processes in the country.

At company level, companies that have collective agreements were given tax allowance for  part of the meal and medical treatment expenses of all employees specified in the collective agreement and paid by an employer. Such expenses are excluded from the income of the person for whom the salary tax is paid, if they do not exceed €480 per year (on average €40 per month).

This incentive was initiated by trade unions.

At sector level, collective agreements were used in order to increase financial discipline and to increase salaries. The first example of these applications of collective agreements is in the construction sector, where sector-level collective bargaining is supported by an economic stimulus – less pay for overtime work. Collective bargaining was initiated by the employer organisation the Latvian Construction Association (Latvijas Būvuzņēmēju apvienība, LBA), which facilitated the establishment of the Partnership of Latvian Construction Contractors for the management of the bargaining process. In 2019, a general agreement was signed by 313 construction companies and trade unions in the construction sector on minimum wages, and relevant amendments were made to the Labour Law.

The amendments to the Labour Law adopted on 16 June 2022 resulted in two changes in the regulation of collective agreements. The first amendment concerned the possibility of derogations from collective agreements, and the second related to the obligation of the employer to inform all employees about a new collective agreement no later than one month after its signing.

Wage bargaining coverage

Wages are usually determined in negotiations between the employer and the individual employee. Wage bargaining coverage is not monitored at national level. It can be roughly characterised using data from an annual LBAS survey, but these data are collected on a voluntary basis, are not perfect and have not been publicly available since 2015.

CSP provides data on the composition of employees by economic activity and the scope and nature of collective agreements for 2010, 2014 and 2018 (Official Statistics Portal, 2023a).

With a recently signed general agreement in the construction sector, wage bargaining coverage has certainly increased.

Collective wage bargaining coverage of employees at different levels

Source: Official Statistics Portal (2023a)

Collective wage bargaining coverage of employees

Sources: Eurofound, European Company Survey 2013 and 2019 (including private sector companies with establishments with more than 10 employees (NACE codes B–S), with multiple responses possible); Eurostat [earn_ses10_01], [earn_ses14_01], [earn_ses18_01] (including companies with more than 10 employees (NACE codes B–S, excluding O), with a single response for each local unit); OECD and AIAS (2021); LBAS database (2015); Official Statistics Portal (2023a); ILO

Bargaining levels

The main level of collective bargaining is company level.

In Latvia, collective agreements are not distinguished as wage agreements or working time agreements. Collective agreements usually include a wider scope of issues but do not specifically tackle the issues of wages and working time, because these aspects of working conditions are sufficiently regulated by the law. Regarding working time, collective agreements most typically provide more holidays or more time for education.

In 2019, the first real wage agreement was concluded in the construction sector. A sector-level collective agreement (general agreement) has been valid from 3 November 2019. It states that the minimum gross monthly wage in the construction sector should be €780; the minimum hourly rate should be €4.67; mandatory additional pay should be paid if an employee has obtained relevant vocational education; additional pay for overtime work should be no less than 50% of the employee’s salary; and the minimum monthly wage for student trainees for their first six months should be €546.

Levels of collective bargaining, 2022

Note: Wage and working time issues are negotiated at national level but do not result in collective agreements.

Articulation

The highest standard for employment relations is the law. Any collective agreement may only improve conditions set by law and by the highest-level collective agreement. Since sector-level agreements are almost non-existent in Latvia, company-level agreements must provide better conditions than the whole scope of labour legislation.

Timing of bargaining rounds

Collective bargaining may be carried out at any time, and collective agreements may be concluded at any time. Negotiations on the national minimum wage between the government and the national-level social partners are conducted before the adoption of the state budget, usually in August or September, when statistical data on economic development for the first half of the year are available.

Expiry of collective agreements

Section 19 of the Labour Law specifies the effect of collective agreements during their period of validity but does not specify what happens when they expire and are not negotiated within a certain period. Regulations for such situations should be included in collective agreements. The law states: ‘A collective agreement may be entered into for a specified period of time or for a period of time required for the performance of specific work. If a collective agreement does not specify a time of effect, the collective agreement shall be deemed to have been entered into for one year.’

A collective agreement may be terminated before the expiry of its term on the basis of an agreement by the parties or a notice of termination by one party if such a right has been agreed on in the collective agreement.

Coordination

Official procedures for wage bargaining coordination are not established.

Informal coordination is not developed either. There are only three sector-level collective agreements (identified as general agreements): in the railway sector, the construction sector and the glass fibre industry. In some sectors, trade unions and employer organisations have concluded cooperation agreements that are similar in terms of format and wording.

LBAS and LDDK organise measures for improving sector-level social dialogue, but these efforts have a capacity-building rather than a coordinating purpose. However, since 2008, the social partners have participated in the action programmes financed by the EU Structural and Investment Funds aimed at building the capacity of the national-level social partners. These projects include special projects for capacity-building for social dialogue at sector and regional levels. These projects are aimed at information and consultation for member organisations, which may be considered a kind of ‘soft’ coordination.

Extension mechanisms

In compliance with Latvian law, a general agreement entered into by a large enterprise, an employer organisation or an association of employer organisations is binding on the members of the organisation or the association of organisations. If an enterprise or organisation or an association of employer organisations concluding an agreement employs more than 50% of the employees or provides more than 50% of the turnover in a sector, a general agreement is binding on all employers of the relevant sector and applies to all their employees.

A company-level collective agreement is binding on the parties, and its provisions apply to all employees who are employed by the relevant employer or in a relevant undertaking of the employer, unless otherwise provided for in the collective agreement. It should be of no consequence whether legal employment relationships with the employee are established prior to or after the coming into effect of the collective agreement.

Other voluntary mechanisms of extension of the application of the terms of collective agreements do not exist.

Derogation mechanisms

The Labour Law states that ‘an employee and an employer may derogate from the provisions of a collective agreement only if the relevant provisions of the employment contract are more favourable to the employee’.

The legal way to derogate from an existing collective agreement is by amending the provisions of the agreement. Section 23 of the Labour Law determines the mechanism for amending provisions of a collective agreement. The law states that during the period of validity of a collective agreement the parties may amend its provisions only in accordance with procedures prescribed by the collective agreement or with the procedures for establishing a collective agreement (Section 21 of the Labour Law) if such procedures have not been prescribed.

In 2022, the rules on derogation clauses were changed for cases specified by the law; derogations from the above-mentioned provisions were permitted only if the overall level of protection of employees was not reduced. To date, there has been one such case – on the determination of an employee’s probationary period.

Peace clauses

Section 16(3) of the Labour Dispute Law stipulates that if a collective interests dispute is tackled using conciliation procedures, parties should refrain from taking collective action (including strikes or lockouts). The same requirement is valid if the collective dispute is resolved by the court of arbitration (Section 20(5)). Section 14(2) of the Strike Law states that during the strike neither trade unions nor employees are allowed to communicate to the employer demands that have not been indicated in the declaration of a strike.

There is no information on the existence of peace clauses in collective agreements.

Other aspects of working life addressed in collective agreements

According the LBAS database, the most important other aspects of working life addressed in collective agreements until 2015 were:

• additional holidays, for instance in the case of childbirth
• additional benefits, such as paid phone bills, transport, meals and health insurance
• paid training and education
• improved conditions for the reconciliation of work and private life (e-work, telework, flexible working time)
• additional measures for older workers

Legal aspects

The right to strike and the procedure for striking is established in the Strike Law. Two amendments were introduced in 2019: Chapter VIII, on administrative violations in the field of the right to strike and competence in administrative violation proceedings, was introduced, and, in connection with this, Section 19(3), item 4) establishing the VDI’s right to administratively punish guilty people for violations of regulatory enactments was removed.

The Labour Dispute Law regulates the procedure for the resolution of labour disputes prior to strikes or, if disputes are unresolved, the justification of strikes. The law was not changed in 2022.

The Strike Law defines a strike (streiks) as a means of resolving a collective interest dispute that manifests itself as employees or a group of employees in a branch of an undertaking voluntarily, completely or in part, discontinuing work to attain the fulfilment of their demands.

Employees have the right to strike to protect their economic or professional interests. The right to strike should be exercised as a last resort if no agreement has been reached in a collective interest dispute. Participation in a strike must be voluntary.

Judges, prosecutors, members of the police, fire protection workers, firefighters and rescue service employees, border guards, members of the state security service, warders and people who serve in the National Armed Forces are all prohibited from striking.

Other legal types of industrial action are labour disputes (darba strīds) and dispute resolution mechanisms and lockouts (lokauts) (governed by the Labour Dispute Law). Trade unions may also call for protest actions such as meetings (mītiņš), pickets (pikets) and demonstrations (demonstrācija) (regulated by the law on meetings, pickets and demonstrations, adopted on 16 January 1997).

Amendments to the law on meetings, pickets and demonstrations in 2022 introduced new regulations aimed at limiting the political purposes of meetings, pickets and demonstrations. The law prohibits the use of these measures for the purposes of organisations whose activity in Latvia is prohibited or related to the promotion or glorification of events based on the ideology of Nazi or communist regimes.

Developments in industrial action, 2017–2022

Strikes are rare in Latvia. Still, according to International Labour Organization (ILO) data, in 2017 there were 15 strikes and lockouts. According to the same source, there were no strikes and lockouts in 2018, 2019, 2020 and 2021. More detailed information was not found in either ILO statistics or data from the European Company Survey 2019.

National statistics on industrial action are not published in Latvia. CSP may provide data on request from its survey of economically active commercial companies, individual merchants, peasant or fisherman farms, budgetary institutions, foundations or funds as well as administrative data. These data are submitted to the ILO and published in an ILO dataset. Data for 2022 were not found in the relevant ILO dataset.

Based on local media reporting in 2022, several industrial actions occurred. In the education sector, for example, more than 3,000 pedagogical workers picketed the Parliament of Latvia on 16 June 2022. Pedagogical workers demanded a halt to the introduction of a new teachers’ salary model, the balancing of teachers’ workloads, and the fair distribution of the salary funds across municipalities, so that teachers from municipalities with an already established network of schools do not suffer. The medical union LVSADA held two 2-day warning strikes and protest actions near the office of the Cabinet of Ministers on 27 July and 7 September 2022. The main demand of the doctors was a 10% salary increase.

Dispute resolution mechanisms

Collective dispute resolution mechanisms

The general principles of dispute resolution mechanisms are set out in the Labour Law.

Depending on the object of a dispute and the people involved, labour disputes are divided into individual disputes regarding rights, collective disputes regarding rights and collective disputes regarding interests.

In settling individual and collective disputes regarding rights, the Labour Law and the Civil Procedure Law are applied. In settling collective disputes regarding interests, the Labour Law and the Strike Law are applied.

Collective dispute resolution mechanisms are regulated in detail by the Labour Dispute Law (Sections 9–21). The law distinguishes between collective disputes regarding rights and collective disputes regarding interests. The Labour Law regulates the resolution of disputes regarding collective agreements.

A collective dispute regarding rights is a difference of opinion between the parties involved that arises when concluding, altering, terminating or fulfilling an employment contract, or in applying or interpreting provisions of regulatory enactments, provisions of a collective labour contract or working procedure regulations.

A collective dispute regarding interests is a difference of opinion between the parties involved that arises in relation to collective negotiation procedures determining new working conditions or employment provisions.

In both cases, the first step is making a submission in writing to the other party, setting out the demands being made. If the reply is negative or there is no reply, a collective dispute regarding rights should be settled through a conciliation commission. Any party to a collective dispute regarding rights has the right to apply to the courts if it is not settled through the conciliation commission. If parties agree in writing, a collective dispute regarding rights may be transferred to an arbitration court for settlement.

Individual dispute resolution mechanisms

The Labour Law states that individual disputes regarding rights between an employee and an employer, if not settled within an undertaking, should be settled in court.

The Labour Dispute Law defines an individual dispute regarding rights as a difference of opinion between an employee or group of employees and an employer arising when concluding, altering, terminating or fulfilling an employment contract, and when applying or interpreting the provisions of regulatory enactments, the provisions of a collective labour contract or working procedure regulations.

Individual disputes regarding rights in an undertaking should be settled as far as possible through negotiations between the employee and the employer.

If an agreement between the employee and the employer is not reached in negotiations, the employer and the employee representatives have to agree in writing about establishing a labour dispute commission. The employer and the employee representatives may also agree to apply other procedures to settle the dispute.

Any party to an individual dispute regarding rights has the right to apply to the courts if it is not settled through negotiations between the employee and the employer, or if any of the parties is not satisfied with the decision of the labour dispute commission.

Trade unions have the right to represent their members without special authorisation in the settlement of individual disputes regarding rights and to bring an action to court in the interests of their members.

Use of alternative dispute resolution mechanisms

There are no labour courts in Latvia. Labour disputes are settled by the ordinary court. No data are available on how often alternative forms of dispute resolution are used compared with the dispute resolution procedures taking place in court.

In 2018, the VDI conducted research on effective methods of labour dispute resolution in Latvia (Baltic Institute of Social Sciences, 2018). The resulting report provides statistics on some aspects of dispute resolution procedures for 2017. Statistical data and the authors’ calculations are based on applications to the court and complaints to the VDI. For 2017–2021, data are available on the number of cases reviewed by the VDI on labour rights issues. They do not specify whether these submissions are labour disputes or consultations.

Use of dispute resolution mechanisms, 2017–2022

Note: n.a., not available.

Sources: 2017: the VDI and the court’s information system, as reported in Baltic Institute of Social Sciences (2018); 2018–2022: the VDI’s annual reports on the submissions reviewed on labour rights issues

‘Individual employment relations’ refers to the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over terms and conditions. This section looks at the start and termination of the employment relationship and entitlements and obligations in Latvia.

Start and termination of the employment relationship

Requirements regarding an employment contract

An employment contract has to be entered into in writing prior to the commencement of work. The Labour Law strictly determines the content of the individual employment contract (Section 40).

Amendments adopted on 16 June 2022 introduced several changes to Section 40.

• One provision is that an employee may freely determine his or her workplace.
• Working time regulations were amended: when the work schedule of a worker is completely or mostly predictable or when it is not completely or mostly predictable, the employment contract should include not only the period of notice of the termination of the employment contract but also the related procedures.
• Three new clauses (11, 12 and 13) were introduced: employment contracts should include the probationary period and its duration (11); the employee has a right to training if the employer provides training (12); and the employee has the right to receive social security benefits on the grounds of the employment relationship, and any other social security benefit provided by the employer (13).

The information required may be substituted with a reference to relevant provisions in laws and regulations, collective agreements or with a reference to the relevant working procedure regulations.

It is against the law to employ a person who is under 15 years of age or someone who is under 18 years and in full-time education (identified as ‘children’) in permanent work.

Children from the age of 13, if one of the parents (or a guardian) has given written consent, may be employed outside of school hours during daylight in work not harmful to their safety, health, morals and development. Such work is determined by the Cabinet of Ministers.

Foreigners may be employed only if they have the right to be employed confirmed by visa or special permit (there may be exceptions). This rule does not apply to citizens of the EU and those who have the right to free movement within the EU in compliance with the Schengen Agreement.

Dismissal and termination procedures

Dismissal and termination procedures are regulated by the Labour Law (Sections 100–112 and Sections 113–129, respectively). The procedure starts with issuing or submitting notice of termination. The law describes in detail how and under what circumstances either party may issue a notice of termination. It sets out the notice period for termination by an employer, procedures for reducing the number of employees in an organisation and collective redundancy, the prohibition and restriction of dismissal and preferences for continuing employment relations if the number of employees is reduced, special requirements regarding membership of a trade union, assistance in seeking a new job and severance pay, among other things.

An employee has the right to give notice in writing of the termination of an employment contract one month in advance unless a shorter time period is provided for in the employment contract or the collective agreement. The law specifies 11 situations when an employer may give notice of termination, all based on circumstances related to the conduct of the employee or his or her abilities, or on economic, organisational, technological measures or measures of a similar nature in the undertaking.

The employer has a duty to notify the employee in writing of the circumstances that are the basis for the termination of the employment contract.

An employer is prohibited from giving a notice of termination of an employment contract to an employee who is a member of a trade union without the consent of the relevant trade union.

Entitlements and obligations

Parental, maternity and paternity leave

The length of parental, maternity and paternity leave is determined by the Labour Law (Sections 154–156). Parental, maternity and paternity leave are regulated by the Latvian social insurance system, which provides the allowances received during the leave. The relevant social benefits are available for socially insured people if a person has made mandatory or voluntary social insurance contributions to the special social insurance budget (as provided by the law on state social insurance (Section 12(1) and (2)), adopted on 1 October 1997 and valid from 1 January 1998). The amount of the benefit depends on the recipient’s total contribution and is calculated on the basis of their social insurance salary.

Paternity leave was introduced in 2004. In this year, 4,521 fathers (of 20,551 newborn children) received this benefit. In 2019, paternity benefit was paid to 10,508 fathers (of 18,589 newborn children).

Statutory leave arrangements

Sick leave

The legal basis of sick leave includes:

• the Labour Law (adopted on 20 June 2001, and valid from 1 June 2002)
• the law on state social insurance (adopted on 1 October 1997 and valid from 1 January 1998)
• the law on maternity and sickness insurance (adopted on 6 November 1995 and valid from 1 January 1997)
• Regulation of the Cabinet of Ministers No. 753 on rules of state social insurance benefits (adopted on 16 November 2021)
• Regulation of the Cabinet of Ministers No. 152 on procedures for the issuance of sick leave certificates (adopted on 3 April 2001, and valid from 1 May 2001)
• The law on budget and financial management (adopted on 24 March 1994 and valid from 24 April 1994)
• The annual law on the state budget for the relevant year

Sickness benefit is paid from the social insurance budget. It is granted if the recipient has made state social insurance contributions for at least 3 months in the 6 months before the event necessitating sick leave occurred or no less than 6 months in the 24 months before the event. The person should still have the status of a worker or a self-employed person during the period of their incapacity for work.

The sickness benefit is granted at 80% of the average wage of the beneficiary, derived from insurance contributions.

An employer does not have the right to give notice of termination of an employment contract during a period of temporary incapacity of an employee, except in special cases connected with unacceptable behaviour of an employee at work.

Retirement age

The retirement age is determined by Section 11 of the Law on State Pensions (adopted on 2 November 1995 and valid from 1 January 1996). The retirement age will be gradually increased until it reaches 65 years for both men and women. In 2023, the retirement age was 64 years and 6 months. Women and men who have reached the established pension age and who have made insurance contributions for no less than 20 years have the right to an old-age pension.

A parent or guardian of a child who, during the period until the child reached 18 years of age, has taken care of five or more children for no less than 8 years or of a disabled child for at least 8 years can claim an old-age pension at age 60 if they have made insurance contributions for no less than 25 years.

People whose period of insurance contributions is no less than 30 years have the right to request an old-age pension from the age of 62.

For workers, pay is a reward for their work and their main source of income; for employers, it is a cost of production and a focus of bargaining and legislation. This section looks at minimum wage setting in Latvia.

From 2018 to 2022, the average monthly wage increased by 36.8%, from €1,004 to €1,373. Of the large economic sectors, the highest wage levels in 2022 were in financial and insurance activities, at €2,437 (an increase of 22.4% from 2018), and the information and communication sector, at €2,287 (an increase of 43.7% from 2018). The lowest wage increases were in financial and insurance activities (22.4%, as previously mentioned), the accommodation and food services sector (25.4%), the public administration and defence sector (26.9%) and the mining and quarrying sector (27.7%).

Average monthly basic wages and salaries per worker (€)

Note: Data for quarter 3, 2022. NACE, Nomenclature of Economic Activities.

Source: CSP

Minimum wages

The national statutory minimum wage is established by the Labour Law. The minimum wage is determined for employees with a normal working time (40 hours per week) by the annual regulations of the Cabinet of Ministers. The main principles of the calculation of the minimum wage are set out in the ‘Concept on determination of the minimum wage’, approved by the Cabinet of Ministers on 16 March 2011. Adjustments were introduced in 2017 when the social partners agreed with the government to raise the minimum wage for 2018 to €430 and to keep it unchanged for three years, until 2021. Between 2021 and 2022, the statutory minimum wage remained unchanged.

The Ministry of Welfare prepares the proposal for a minimum wage in each budget period at the beginning of each year. The proposal is discussed by the government and the social partners in the NTSP. The decision of the NTSP is indicative. The hourly rate for the minimum wage is not set; instead, the formula for its calculation is provided and should be used to calculate it on a monthly basis. The Labour Law states that, for teenagers and workers who are exposed to increased risk, normal weekly working time is considered to be 35 hours for the purposes of this calculation, making their minimum hourly tariff higher.

The amendments to the Labour Law in 25 November 2022 introduced exceptions to the procedures for the determination and review of the statutory minimum wage.

Monthly minimum wage, rate for adults and young workers (€)

Sources: Relevant regulations of the Cabinet of Ministers of the Republic of Latvia

Collectively agreed pay outcomes

Collectively agreed pay is not established in Latvia. Company-level collective agreements rarely include pay issues, and these outcomes are not reported and used for the calculation of averages. Wages are agreed at sectoral level only in the general agreement in the construction sector (valid from November 2019).

Working time is ‘any period during which the worker is working, at the employer’s disposal and carrying out his activity or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises the regulation of and issues regarding working time, overtime, part-time work and working time flexibility in Latvia.

Working time regulation

Working time is regulated by the Labour Law (Section D).

The regular daily working time of an employee may not exceed 8 hours, and regular weekly working time may not exceed 40 hours. Daily working time means working time within a 24-hour period.

Adolescents may not be employed for more than 7 hours a day and more than 35 hours a week.

The regular working time of employees facing special risks in their work may not exceed 7 hours a day and 35 hours a week if they are engaged in such work for no less than 50% of their regular daily or weekly working time. The Cabinet of Ministers may also determine regular shortened working time for other categories of employees.

Normal working week means five working days. If, due to the nature of the work, it is not possible to have a working week of five days, an employer, after consultation with employee representatives, may specify a working week of six days.

Collective agreements may include regulations that are better than those set by law. Existing company-level collective agreements include some specific regulations regarding working time, for instance providing more holidays.

Amendments to Section 40 of the Labour Law, adopted on 16 June 2022, introduced a new principle of having working time reflected in the individual employment contract. Before the amendments, the employment contract had to include a simple definition of the agreement on working time: ‘agreed daily or weekly working hours’. After amendments, working time is specified in two ways, depending on whether or not the work schedule of the employee is completely or mostly predictable. If the work schedule of the employee is completely or mostly predictable, an employment contract should indicate agreed daily or weekly working hours.

If a part-time work arrangement is agreed and the work schedule is not completely or mostly predictable, it should be indicated in the individual employment contract that the work schedule is variable. The contract should also include information on the agreed working hours. These are the guaranteed paid working hours over a month. The employment contract must also include information on the time when the employee may perform work or is required to perform work, and information on the minimum notice period before the commencement of work or its cancellation.

Overtime regulation

Overtime work is regulated by the Labour Law. Collective agreements and individual contracts may only improve the conditions set by law.

Section 136 of the Labour Law defines overtime as work performed by an employee in addition to regular working time.

Overtime work is permitted if the employee and the employer have agreed to it in writing, or without written consent in exceptional cases: if it is required by the most urgent public need; to prevent the consequences of force majeure, an unexpected event or other exceptional circumstances; or for the completion of urgent, unexpected work within a specified period. If exceptional overtime work continues for more than six consecutive days, the employer needs a permit from the VDI for further overtime work.

In general, overtime work cannot exceed eight hours on average within a seven-day period, calculated over a reference period that does not exceed four months.

Section 68 of the Labour Law states that overtime work should be compensated for by no less than 100% of the hourly or daily salary rate specified for the employee or the piecework rate for the amount of work done. A collective agreement or an employment contract may specify a higher supplement for overtime work or work on a public holiday.

In 2019, a general agreement, which is in conformity with the Labour Law, was concluded providing for a substantial increase in the statutory minimum salary or hourly salary rate in the relevant sector to at least 50% more than the statutory minimum salary or hourly salary rate. As a result, the supplement for overtime work must be set at less than 100% but no less than 50% of the hourly salary rate specified for the employee. Where a piecework salary has been agreed on, the supplement should be no less than 50% of the specified piecework rate for the amount of work done.

If the state determines the minimum salary or hourly rate such that the amount of the minimum salary or hourly rate specified within the framework of the general agreement in force in the sector no longer complies with these criteria, and if the supplement for overtime referred to in the general agreement in question has been set at a smaller amount than the amount specified in the Labour Law, amendments should be made to the general agreement to ensure compliance with the law. If the abovementioned amendments are not made, the general agreement should become invalid one year after the date of the occurrence of the non-compliance.

Part-time work

Part-time work is regulated by Section 134 of the Labour Law. Part-time work is defined as work for a shorter time than the regular daily or weekly working time.

An employer has to transfer certain categories of employee from regular working time to part-time work at their request, or vice versa, if such working time arrangements are possible in the company. These categories are the following: pregnant women, mothers up to a year after childbirth, mothers for the whole period of breastfeeding up to a child’s second birthday, and parents with a child of less than 14 years of age or a disabled child under 18 years of age. Full-time and part-time employees are covered by the same provisions.

According to Eurostat’s Labour Force Survey statistics, the share of part-time workers aged 15 to 64 years was relatively stable from 2012 to 2020, with a decrease from 8.8% in 2012 to 7% in 2018 and an increase to 8% in 2019 and 8.7% in 2020. Figures for both men and women are well below the EU average. Figures for women were particularly low at 11.1% in 2020, compared with an EU27 average of 27.6%.

Night work

According to the Latvian Labour Law, night work is any work performed at night for more than two hours. Night-time with respect to adults is the period from 22:00 to 06:00. With respect to children, it is the period from 20:00 to 06:00.

A night worker is an employee who normally performs night work in accordance with a shift schedule or for at least 50 days in a calendar year.

Shift work

Shift work is not defined in Latvian law. In compliance with the Labour Law, an employer, after consultation with employee representatives, may allocate shift work if it is necessary to ensure the continuity of a work process. In this case, the length of a shift may not exceed the regular daily working time prescribed for the relevant category of employee.

An employee cannot be asked to work two shifts in succession.

A shift may overlap with the following shift and in doing so exceed the time specified by a shift schedule. The time worked by an employee after the end of a shift must be considered as overtime work.

The transition from one shift to another must be organised in accordance with the procedures specified by a shift schedule, but not less frequently than weekly.

An employer has a duty to familiarise their employees with the shift schedule no later than one month before it comes into effect.

Weekend work

Weekend work is not defined in Latvian law. In compliance with the Labour Law, two days in a weekend are components of a week’s rest if a working week of five days (normal working time) is specified for employees.

If – due to the nature of the work – it is not possible for employees to have a working week of five days, an employer, after consultation with employee representatives, may specify that the working week is six days.

Work on Saturdays must end earlier than on other days. The length of the working day on Saturdays must be specified by a collective agreement, working procedure regulations or an employment contract.

Individual employees with a written order from their employer may have to work on their day of rest for the week, being granted rest at another time within 14 days in the following cases:

• if such work is required to meet an urgent public need
• to prevent the consequences of force majeure, an unexpected event or other exceptional circumstances that may affect the usual course of activities in the undertaking
• for the completion of urgent, unforeseen work within a specified period

Employers are prohibited from employing on the week’s day of rest people who are under 18 years of age, pregnant women and women for a period following childbirth up to one year (if a woman is breastfeeding, employment is prohibited during the whole period of breastfeeding, up to when the child reaches two years of age).

Rest and breaks

Rest time in the context of the Labour Law is a period during which an employee does not have to perform their work duties that they may use at their own discretion.

Rest time includes rest breaks during work, a one-day rest period, weekly rest, public holidays and leave.

The length of a one-day rest period in a 24-hour period should be no less than 12 consecutive hours. This provision need not apply if aggregated working time has been prescribed. For children, the length of a one-day rest period within 24 hours should not be less than 14 consecutive hours.

The length of a weekly rest period in a seven-day period should not be less than 42 consecutive hours. This provision need not apply if aggregated working time has been prescribed.

If a working week of five days is specified, an employee should be granted two of the week’s days of rest, and if a working week of six days is specified, they should be granted one of the week’s day of rest. Both of the weekdays of rest are customarily granted as consecutive days.

Generally, the week’s day of rest should be Sunday.

If an employer specifies one working day (that falls between a public holiday and the week’s days of rest) as a holiday and transfers it to the Saturday of the same week or of another week in the same month, the length of the week’s days of rest should not be less than 35 consecutive hours.

Every employee has the right to a break in work if their daily working time exceeds 6 hours. Adolescents have the right to a break in work if their daily working time exceeds 4.5 hours.

Breaks should be granted no later than four hours after the start of work, and they may not be less than 30 minutes in duration. A collective agreement may specify other procedures for the granting of breaks. If possible, an adolescent must be granted a break when they have worked for half of the daily working time contracted for.

During breaks, an employee has the right to leave the workplace unless otherwise provided for by their employment contract, a collective agreement or working procedure regulations. Any prohibition on leaving a workplace during breaks must be adequately substantiated.

Employees are permitted to divide the break into parts, which may not be less than 15 minutes each. Employers must grant an additional break to employees who are exposed to special risks.

An employee who has a child under 18 months of age must be granted additional breaks for feeding the child, lasting no less than 30 minutes no less than every three hours for one child and lasting at least one hour if an employee has two or more children under 18 months. When determining the procedure for granting a break, the wishes of the relevant employees should be considered as far as possible.

Breaks for feeding a child may be added to breaks in work or, if requested by the employee, transferred to the end of the working time, thus shortening the length of the working day.

In all cases, employers should determine the length of a break after consultation with employee representatives. All breaks envisaged by labour law are to be included in working time.

Working time flexibility

Working time flexibility is provided for by the Labour Law. In compliance with the law, working time is determined by an individual agreement. Better working time conditions may be agreed in a collective agreement.

The law includes several deviations from the normal working time in specific circumstances.

• If 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 by more than one hour (the provisions on the length of weekly working time should be complied with (Section 131(2)).
• Groups of workers with special needs, such as employees exposed to special risks, children who have reached the age of 13 years and adolescents.
• Normal working time is 8 hours per day and 40 hours per week in a five-day working week. If, due to the nature of the work, it is not possible for employees to have a working week of five days, an employer, after consultation with employee representatives, may specify a working week of six days. In this case, the daily working time should not exceed seven hours.
• Work on Saturdays has to end earlier than on other days, and the length of the working day on Saturdays has to be specified by a collective agreement, working procedure regulations or an employment contract.
• Special working time regimes: part time (Section 134), overtime work (Section 136), night work (Section 138), shift work (Section 139) and aggregate working time (Section 140).

Through amendments to the Labour Law, adopted on 16 June 2022, additional regulations are introduced in Section 148 on the organisation of working time.

Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill health of their workers. This section looks at psychosocial risks and health and safety at work in Latvia.

Health and safety at work

Health and safety at work is addressed by labour protection legislation, consisting of the Labour Protection Law and complementary legislation. The purpose of the Labour Protection Law is to guarantee and improve health and safety protection for employees by determining their obligations and rights and mutual relations regarding labour protection between employers, employees and their representatives, and state institutions.

Complementary legislation comprises more than 30 regulations of the Cabinet of Ministers. These regulations are divided into two groups.

The first group regulates particular administrative procedures: labour protection requirements in the workplace; requirements regarding competent labour protection institutions and competent labour protection specialists in the workplace and the procedure for the assessment of competence; the procedure for the internal supervision of a working environment; the procedure for obligatory health checks; procedures for investigating and reporting accidents at work and occupational diseases; training in labour protection matters; training in providing first aid and requirements for the minimum content of a first aid kit; and the procedure for the election and operation of people of trust in labour protection matters.

The second group sets out the health and safety requirements for work in specific conditions: exposure to risks created by electromagnetic fields, visual display units, optical radiation, vibration and noise in the workplace; exposure to cancerous substances, chemicals and biological substances; working at heights, in forestry, in construction, in mining, with asbestos and in environments containing explosives; carrying heavy things; work and medical assistance on ships in general and fishing vessels in particular; and using work equipment, individual methods of protection and interpreting safety signs.

Accidents at work, 2014–2022

Note: n.a., not available.

Source: National data from the VDI.

According to information from the VDI, there were 2,304 accidents at work in 2021. After a sharp increase in 2018 (by 15.1% compared with 2017), the total number of accidents at work increased slightly in 2019 (by 3.4% compared with 2018) and increased again in 2021 (by 14.5% compared with 2020). From 2020 to 2021, the number of serious accidents increased (by 33%), and the number of deaths significantly increased (from 22 deaths to 38 deaths). The number of accidents at work per 1,000 employees increased from 2020 to 2021, when it reached its highest level since 2014.

Psychosocial risks

Psychosocial risks at work are addressed in the labour protection legislation. Special legislation regarding psychosocial risks does not exist. However, general labour protection regulations regarding risk assessment, approved labour protection measures and mandatory labour protection systems in enterprises are aimed at reducing psychosocial risks at work.

The main method of prevention of psychosocial risks at work is through information campaigns and guidelines for dealing with such risks.

Skills are the passport to employment; the more highly skilled an individual, the more employable they are. People with good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Latvian system for ensuring skills and employability and looks at training provision.

National system for ensuring skills and employability

The Ministry of Economics is responsible for skills identification in the medium and long terms. The ministry maintains the long-term labour market forecasting system. The NVA is responsible for short-term forecasting for the labour market.

The Ministry of Education and Science is responsible for skills development, validation and recognition. The Ministry of Welfare (through the NVA) is responsible for the training and retraining of unemployed people.

Skills development and employment promotion policy is based on lifelong learning and assistance in career development. The social partners are involved in ensuring skills and employability by participating in developing education policy, reforms in education and setting up professional standards. LBAS conducted a study on employability in 2014. The LDDK has permanent experts in education, technology and innovation issues who participate in the management of skills, learning and employability at national level.

The social partners do not have their own training facilities for workers, apart from those they may have for their own employees or members.

Training

Regulation and development of training is the responsibility of the Ministry of Education and Science (for general issues) and the Ministry of Welfare (through the NVA) (for the training and retraining of unemployed people).

The NVA implements several training-related measures for unemployed people and jobseekers: practical training with employers; training to increase the competitiveness of workers; and the acquisition of informal education programmes, professional continuing education programmes and professional education completion programmes for unemployed people using vouchers.

Training programmes are specified for young workers within the Youth Guarantee programme. The social partners are involved insofar as they monitor the effectiveness of training programmes from a practical point of view and may advise on necessary improvements.

Training employed workers is the responsibility of the employer. NVA may assist workers who are at high risk of unemployment by providing career consultations and some training.

The principle of equal treatment requires that all people – and, in the context of the workplace, all workers – have the right to receive the same treatment and not to be discriminated against on the basis of criteria such as age, disability, nationality, sex, race and religion.

Section 7 of the Labour Law provides for the principle of equal rights. Everyone has a right to work; to fair, safe and healthy working conditions; and to fair work remuneration.

Direct or indirect discrimination on the basis of a person’s race, skin colour, gender, age, disability, religious, political or other conviction, ethnic or social origin, property or marital status, sexual orientation or other circumstances is forbidden.

An employer has a duty to make it possible for people with disabilities to work, be promoted to higher positions or gain better qualifications, as long as such measures do not place an unreasonable burden on the employer.

Recently, attention has been paid to the prevention of discrimination in wage payments. Amendments to the Labour Law adopted on 16 June 2022 change Section 75(2) on special liability provisions regarding the disbursement of remuneration, providing pay guarantees for workers in subcontractors’ enterprises in the construction sector.

Equality at work must be ensured by the VDI, and the courts must be involved if a problem cannot be solved by the VDI.

Equal pay and gender pay gap

Equal pay for equal work is ensured by the non-discrimination approach of the Latvian labour legislation. In practice, the average salaries of women are lower than those of men (by 16.4% in 2021, according to CSP data). However, it has not been proven that women are paid less for the same work; rather, women and men are employed in different types of jobs. For instance, women are more likely to be employed in healthcare and education, where wages are low, while men are more likely to work in the information technology sector, where wages are high.

National studies providing figures on the adjusted pay gap were not found.

There are no legislative support measures for addressing the gender pay gap. It is seen to be a problem but is not taken seriously by the government or the social partners. Social partner initiatives, if any, are formal and connected with international campaigns.

The table below presents the state of play regarding the introduction of pay transparency instruments proposed in the 2014 European Commission recommendation on strengthening the principle of equal pay between men and women through transparency (COM(2014)1405 final).

Note: NACE, Nomenclature of Economic Activities.

Quota regulations

Quotas do not exist in Latvia, either in legislation or in practice.

Trade union

• Free Trade Union Confederation of Latvia (LBAS)

Employer organisation

• Employers’ Confederation of Latvia (LDDK)

Main business organisation

• Latvian Chamber of Commerce and Industry (LTRK)

Regional government organisation

• Latvian Association of Local and Regional Governments (LPS)

Government

• State Social Insurance Agency (VSAA)
• Ministry of Welfare
• Ministry of Health
• State Employment Agency (NVA)
• State Labour Inspectorate (VDI)

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