Find your employer of record in Latvia

For employers of foreign nationals, the Latvian law can provide a lot of options regarding employee onboarding and recruitment. Firstly, note that Latvia is a member of the EU (European Union) and the Schengen Area. Therefore, requirements, employment eligibility, processing times, and benefits for accompanying family members can vary by visa classification.

For example, business visitors to Latvia usually need a local version of the Schengen C Visa. But there can be exceptions for visa-exempt individuals, which are usually based on their nationality. And the Schengen Area limits stay to 90 days within 180 days.

On the other hand, there are also some work authorization categories. And the main one is the Residence Permit with Work Authorization, which is available to many foreign national workers.

For highly skilled, locally hired employees who meet a salary threshold, an EU Blue Card is the best option. And for intracompany transfers of managers, specialists, or trainees from outside the EU, the EU Intracompany Transferee (ICT) Permit is suitable.

Apart from the available categories, applicants must also know about the requirements of the application process. And one of them is that it requires an in-country application with the Office of Migration and Citizenship Affairs (OCMA). Moreover, foreign nationals may request a residence permit, thereby choosing between a visa and a residence permit, if the intended stay is under 90 days.

If you desire to hire global employees, you can request Global Employment Outsourcing services. Or you may also request the services of an Employer of Record in Latvia.

In Latvia, the standard VAT rate is 21.00%. And, in case you need more details, you should hire an Employer of Record in Latvia or Contractor Management Services. Besides, with these services, you will also be able to hire and onboard workers in Latvia as per your requirements.

Termination Process

By providing valid reasons, employers can terminate a fixed-term employment contract. For example, they can proceed with the termination process for business or personal reasons, or due to the employer’s misconduct.

However, this process will require a notice period and a written explanation for the termination. Moreover, if the reason for it is misconduct, the employer must warn the employee and give them a chance to explain their actions.

Notice Period

In Latvia, the statutory notice period must be no less than 1 month. And, if you require further information about notice periods, international PEO services will be useful.

Severance Pay

The statutory severance pay in Latvia depends on the length of employment of workers as follows:

• The employee served for up to 5 years: 1 month pay
• The employee served between 5 and 10 years: 2 months’ pay
• The employee served between 10 and 20 years: 3 months’ pay
• The employee served for more than 20 years: 4 months’ pay

By requesting the services of an Employer of Record in Latvia, you can accurately calculate employees’ severance pay.

Probation Period

The parties in a collective agreement can agree on a probationary period of more than 3 months but less than 6 months. And it can be without reducing the overall level of protection of employees.

On the other hand, employment contracts in Latvia will determine the length of probationary periods as follows:

• For employment contracts of up to 6 months: Up to 1 month
• For employment contracts of up to 1 year: Up to 2 months

Paid Time Offs

If an employee has completed at least 6 consecutive months of service, they are eligible for an annual leave entitlement. And this entitlement consists of at least 20 days or 4 calendar weeks (without including public holidays) of paid leave. Furthermore, in case an employee is under 18 years of age, they can receive 1 month of annual paid leave.

On the other hand, employers may grant the current year’s annual paid leave in parts as per mutual agreement with the employee. However, one part of the leave in the current year should be at least 2 uninterrupted calendar weeks. And, with an Employer of Record in Latvia, it can be easier to calculate paid annual leave for your employees.

Public Holidays

There are 12 national holidays throughout the year.

Vacation Holidays

There are 20 vacation holidays throughout the year.

Sick Days

Employers can grant employees 10 days of sick pay if they have been employed for at least 1 month. And for the first 3 days, the employer will pay at a rate of 75.00% of the regular pay rate. Then, from the 4th until the 10th day, it will increase to a rate of 80.00%.

But, if the employee is sick for more than 10 days, they may keep receiving paid sick leave. However, on this occasion, if the employee is eligible, they will keep receiving this payment from the government. And this Sick Leave Benefits paid by the government will be up to 52 weeks.