What should an employment contract in Latvia include?
Employment contracts in Latvia should contain a few essential clauses, including:
- Information for the employer and the employee, including names, addresses, and contact information.
- The name of the job position and a comprehensive job description, including the rights and obligations of each party.
- The days and hours of the week when the employee is required to be working.
- Salary, wage, or hourly rate plus the benefits the employee is entitled to.
- Terms under which the employment contract may be terminated, including notice periods and severance pays if applicable.
- Any non-disclosure or confidentiality policies that safeguard the employee’s proprietary information and interests.
It’s important to note that each of the parties should read, understand, and agree to the terms of the employment contract before signing.
What types of employment contracts exist in Latvia?
Employment contracts in Latvia can be divided into a few categories, as follows:
- Employee contracts
Employee contracts in Latvia can be split into two general categories:
- Open-ended employment contracts: Open-ended or permanent employment contracts don’t feature fixed end dates and are commonly used for permanent, long-term employment arrangements. In order to terminate a permanent employment contract, both parties must meet the notice period requirements stated in the contract or by law. Except for notice period policies, these contracts should include terms such as wage, working hours, paid leave policies, and others.
- Fixed-term employment contracts: Unlike permanent employment contracts, fixed-term contracts last for a prespecified period of time and stop being effective on the predetermined date without a notice period. Fixed-term employment contracts should also define key employment terms such as compensation, working hours, termination policies, and others.
- Project-based employment contracts
Project-based employment contracts are used for temporary work and project-based arrangements. The contract should define the scope of the project/work, the start and end dates, and other mandatory labor law requirements such as wage or hourly rate.
- Seasonal employment contracts
Seasonal employment contracts are commonly used for arrangements related to a specific season in agriculture, tourism, hospitality, and similar industries. These contracts should outline a few essential terms, such as the start and end dates of the contract being effective, the nature of work, compensation, and termination policies.
Before signing any employment contract, all parties should read, comprehend, and accept the terms and conditions of the employment.
How to hire employees in Latvia?
To hire employees from Latvia, it’s necessary to register a company, establish a physical office, obtain a registration number, and open a local bank account. Companies must also abide by Latvian employment laws regarding minimum wages, benefits and contributions, working hours, and paid leave policies.
Businesses that want to hire employees from Latvia can seek assistance from companies offering global Employer of Record services. Native Teams is at your service for guidance and support when handling global payroll, tax management, and HR administration. Our local teams of tax and law experts are readily available to help you expand internationally while adhering to local labor laws.