Remote’s guide to employing in

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Employer of Record ProductContractor Management
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Services available in this country:
Employer of Record ProductContractor Management

Employment termination in Latvia

Termination process

Employers can dismiss employees for personal preferences, and serious misconduct. Workers who’re dismissed for misconduct must be warned beforehand and given an opportunity to explain their actions.

Further, employees can be entitled to severance pay if they are dismissed for personal reasons, i.e. without being found guilty of misconduct.

Notice period

Notice periods for employees
1 month is the maximum notice period
• Employees have the right to resign with immediate notice if they are morally unable to perform the work that is expected of them.

Notice periods for employers
10 days in cases of breach of contract or long-term sickness.
• 1 month in cases of redundancy, liquidation of an entity, lack of necessary skills, or the return of a substituted employee.
• 2 months in cases where termination is unrelated to breach of contract and the person has incapacity.
• Immediate termination is possible if there’s a loss of trust, use of alcohol or drugs during working hours, or an inability to work due to health reasons confirmed by a doctor.

Severance pay

Severance under Latvian law depends on tenure, that is:

  • Up to five years of service: one month’s pay

  • Five to ten years of service: two months’ pay

  • 10 - 20 years of service: three months’ pay

  • 20+ years of service: four months’ pay

Probation periods

In Latvia, the maximum probation period varies based on the type and length of the employment agreement.

Fixed-term agreement of 6 months or less: Probation is 1 month fixed
Fixed-term agreement between 6 months and 1 year: Maximum of 2 months
Fixed-term agreement longer than 1 year: Maximum of 3 months
Indefinite-term agreement: Maximum of 3 months