Navigating employment regulations in a new country requires a clear understanding of local labor laws, particularly concerning working hours and compensation. In Latvia, the Labour Law (Darba likums) sets out the framework for employee working time, ensuring fair treatment and compliance for both employers and employees. Adhering to these regulations is crucial for businesses operating in Latvia, whether they employ local staff directly or through an Employer of Record.
Understanding the standard working week, rules around overtime, mandatory rest periods, and specific conditions for night or weekend work is fundamental to compliant payroll and operations. Employers must also be diligent in accurately recording working hours to demonstrate adherence to legal requirements. These regulations are designed to protect employee well-being and ensure a balanced work-life environment.
Standard Working Hours and Workweek
In Latvia, the standard working time for an employee is typically 40 hours per week. This is generally structured as an 8-hour workday over a five-day workweek. However, the Labour Law allows for different working time arrangements, such as unequal working time distribution, provided they comply with overall limits and are agreed upon in the employment contract or collective agreement.
The maximum average working time, including overtime, must not exceed 48 hours per week over a four-month reference period. In specific cases and with the employee's written consent, the weekly working time can temporarily be extended up to 52 hours, provided the average over the four-month period does not exceed 48 hours.
Overtime Regulations and Compensation
Overtime is defined as work performed outside the employee's standard working time. Overtime work is generally permitted only with the employee's written consent, except in specific circumstances defined by law (e.g., urgent public necessity, force majeure).
There are limits on the amount of overtime an employee can work. The total working time, including overtime, cannot exceed the average of 48 hours per week over a four-month period.
Compensation for overtime work is mandated by law. Employees working overtime are entitled to increased remuneration.
| Type of Work | Minimum Overtime Compensation Rate |
|---|---|
| Overtime | 100% increase (double the standard hourly or piece-rate wage) |
| Overtime on a public holiday | 100% increase (double the standard hourly or piece-rate wage) |
Alternatively, with the employee's agreement, overtime can be compensated with paid rest time equivalent to the overtime hours worked, provided this is agreed upon within a specific period (usually one month).
Rest Periods and Breaks
Latvian law mandates specific rest periods to ensure employee well-being. These include breaks during the workday, daily rest, and weekly rest.
| Type of Rest/Break | Minimum Entitlement | Conditions |
|---|---|---|
| Break during workday | At least 30 minutes | If daily working time exceeds 6 hours. The break is not included in working time unless otherwise agreed. |
| Daily Rest | At least 12 consecutive hours | Between two working days. |
| Weekly Rest | At least 42 consecutive hours | Within a seven-day period. Usually includes Sunday. |
For employees whose daily working time is less than 6 hours, a break is not mandatory unless specified in the employment contract or collective agreement. The timing and duration of breaks should allow employees sufficient time to rest and eat.
Night and Weekend Work Regulations
Night work is performed between 10:00 PM and 6:00 AM. Employees who regularly work at least three hours of their daily working time or at least one-third of their annual working time during the night period are considered night workers.
Specific regulations apply to night work:
- The average daily working time for night workers must not exceed 8 hours over a four-month period.
- Night workers are entitled to increased remuneration, typically a percentage increase on their standard wage, as agreed in the employment contract or collective agreement, but not less than the rate specified by law or collective agreement.
Weekend work (typically Saturday and Sunday) is generally considered rest time. If an employee is required to work on their designated weekly rest days, they are entitled to increased remuneration, similar to overtime rates, or compensatory rest time, as agreed. Work on public holidays also requires increased compensation.
Working Time Recording
Employers in Latvia have a legal obligation to accurately record the working time of each employee. This includes recording the start and end time of the workday, as well as any overtime hours worked.
Accurate working time records are essential for ensuring compliance with maximum working hour limits, calculating correct remuneration for standard hours, overtime, night work, and weekend/holiday work, and demonstrating compliance to labor authorities if required. The method of recording can vary (e.g., timesheets, electronic systems) but must be reliable and accessible. Failure to maintain accurate records can result in penalties.
