The Saeima of Latvia Makes an Important Decision That Will Affect All Workers 0 7

Payments Must Be Made on Time

The bill provides for the right to immediately terminate an employment contract if the delay in payment of the salary established by the contract or law exceeds two weeks after the due date. This condition will not apply in cases where the enterprise has experienced downtime and compensation has been reduced in accordance with the law.

The amendments also stipulate that an employer cannot terminate an employment contract due to the prolonged incapacity of an employee if the incapacity is related to caring for a seriously ill child under the age of 18 and a panel of doctors from the Children's Clinical University Hospital has recognized the necessity of ensuring the parent's constant presence. In such cases, the employee will be required to inform the employer and provide the relevant documents.

Transition to a Four-Day Workweek

Additionally, the bill allows for the possibility of extending the workday by two hours (instead of just one, as is currently the case), while maintaining a 40-hour workweek.

It also provides for the possibility for employers and employees to agree on a four-day workweek while retaining existing pay. Such an agreement can be made for a specified period or on a permanent basis, with the option to revert to a five-day workweek later.

Agreements Can Be Made

The amendments stipulate that employers and employee representatives can agree on a lower premium for overtime work, but not less than 50 percent, if the minimum monthly salary or hourly rate in the respective enterprise or industry has been increased by at least 50 percent.

If the state-established minimum wage is increased and the salary provided in the collective agreement falls below the legally established minimum, but the parties do not clarify the collective agreement, only that part which provides for a reduction in the overtime premium will lose its validity, while the other provisions of the collective agreement remain in force.

What About Downtime?

Furthermore, to mitigate the negative consequences of downtime and promote job preservation, the bill requires employers to inform employees about the occurrence of downtime, its causes, and conditions.

Employers are planned to be granted the right to reduce downtime pay to 70 percent if the downtime lasts more than five working days. In turn, if the downtime continues for more than four consecutive weeks, the employee will have the right to terminate the employment contract without observing the one-month notice period.