In Latvia, labor law mandates that employers must provide a minimum notice period of one month during employment termination, unless otherwise specified. This is applicable when the employer initiates the termination and the employee has not committed any misconduct or is not medically unfit for the position.

Exceptions to the Minimum Notice Period

There are certain exceptions to the one-month minimum notice period:

• Employee Initiated Termination: When employees decide to terminate their employment contract, they are not legally bound to a specific notice period. However, the employment contract or collective agreement may specify a notice period that the employee must follow.

• Probationary Period: During a probationary period, both the employer and the employee can terminate the employment relationship with a shorter notice period of three days in writing. Neither party is required to provide a reason for termination during probation.

• Collective Bargaining Agreements: Collective bargaining agreements may establish different notice periods that supersede the one-month minimum mandated by law.

• Employer-Employee Agreement: An employer and employee can mutually agree to shorten the notice period, as long as it adheres to Latvian labor law.

It's important to note that if an employee believes the termination was unfair or the employer did not provide the legally required notice period, they have the right to challenge the termination in court within one month of receiving the notice.

In Latvia, labor law stipulates that employees are entitled to severance pay under certain circumstances when their employment contract is terminated by the employer.

Circumstances for Entitlement

Employees can claim severance pay if their employment contract is terminated due to:

• Performance issues: If the employee lacks the necessary competence or skills to perform their job duties effectively.
• Health reasons: If the employee's health condition, certified by a doctor, is unsuitable for continuing their work.
• Economic or structural changes: If the employer experiences economic, organizational, or technological changes, or undertakes similar measures, resulting in job cuts or liquidation of the company.

Calculation of Severance Pay

The calculation of severance pay is based on the employee's length of service and their average monthly earnings for the past six months:

• Less than 5 years of service: 1 month's average earnings
• 5 to 10 years of service: 2 months' average earnings
• 10 to 20 years of service: 3 months' average earnings
• More than 20 years of service: 4 months' average earnings

Exceptions and Limitations

There are certain exceptions and limitations to the entitlement of severance pay:

• Severe misconduct: In cases of severe employee misconduct, the employer may terminate the employment contract without providing severance pay.
• Collective agreements or employment contracts: These agreements may stipulate more favorable severance pay terms as long as they don't fall below the legal minimums set forth in the Labour Law.

In Latvia, employers can terminate employment contracts based on several grounds. These include significant breach of contract or work procedures by the employee, the employee lacking the necessary skills or qualifications to effectively perform their job duties, and economic, organizational, or technological changes that necessitate workforce adjustments.

When terminating an employment contract, the employer must provide a written notice to the employee. This notice must explicitly state the reason(s) for termination, adhering to the valid grounds outlined above.

There are special considerations for certain categories of employees. If the employee is a trade union member, the employer must obtain prior written consent from the trade union before issuing the termination notice. Additionally, certain employee categories, such as pregnant women, employees on parental leave, and employees with disabilities, have additional protections. Employers cannot terminate their employment contracts without substantial justification and the approval of relevant authorities.

Finally, employees who believe the termination was unjustified or unlawful have the right to challenge the decision in court within one month of receiving the notice.