In Latvia, employment agreements are fundamental documents that define the relationship between employers and employees. These agreements must comply with the Labour Law of Latvia, which sets out the minimum standards for working conditions, pay, and termination procedures. A well-drafted employment agreement is crucial for ensuring clarity and avoiding potential disputes. It is important to understand the different types of contracts available, the mandatory clauses that must be included, and the regulations surrounding probationary periods, confidentiality, and termination.
Understanding Latvian employment law is essential for businesses employing individuals in Latvia, whether directly or through an Employer of Record. This guide provides an overview of key aspects of employment agreements in Latvia, focusing on the types of contracts, essential clauses, probationary periods, confidentiality, non-compete provisions, and termination requirements.
Types of Employment Agreements
Latvian Labour Law recognizes two primary types of employment agreements: fixed-term and indefinite-term contracts.
- Fixed-Term Employment Agreement: This type of agreement specifies a definite period of employment. It is typically used for project-based work, seasonal employment, or temporary replacements. The maximum duration of a fixed-term contract, including any extensions, is generally five years.
- Indefinite-Term Employment Agreement: This agreement does not specify an end date and continues until terminated by either the employer or the employee, subject to the provisions of the Labour Law.
| Contract Type | Description
