Our Expertise
Managing a global workforce in Latvia
Effectively managing a workforce in Latvia requires a nuanced understanding of local employment practices and cultural norms. TopSource Worldwide's tailored services in Latvia are designed to facilitate smooth business expansion and operational efficiency. By leveraging our local expertise and global experience, companies can focus on their core operations while ensuring a well-managed, satisfied workforce in Latvia.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Latvia
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Latvia. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Latvia-based employees.
End-to-end Latvia payroll services
Looking to expand into Latvia? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Latvia expansion initiatives.
Global entity management
Venturing into the Latvian market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Latvia
Entering the Latvian market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Latvia.
Latvia Insights
Key insights into Latvia's landscape
VAT rates: Latvia has a standard Value Added Tax (VAT) rate of 21%, with reduced rates of 12% and 5% for specific goods and services.
Ease of Doing Business rank: Latvia ranks 19th in the World Bank's Ease of Doing Business Index, indicating a favourable business environment.
Consumer Confidence Index: Latvia's Consumer Confidence Index currently sits at approximately 94.80, reflecting stable economic sentiment.
Employee maternity/paternity leave: Maternity leave is 16 weeks, and paternity leave is 10 days, supporting work-life balance for new parents.
Employee termination period: Standard notice for termination is typically 1 to 3 months, depending on employment contract terms and length.
Employee salary pay date: Employees should be paid monthly between the 1st to the 5th of each month.
Bank holidays: Latvia observes public holidays, including Līgo Day and Jāņi Night, Independence Restoration Day, Proclamation of the Republic of Latvia and Christmas, with a total of around 12 public holidays in a year.
An overview of the main statutory benefits
The state-funded pension is granted to all citizens, upon reaching pensionable age, who have accrued the required social security contributions.
The retirement age in Latvia 64 years and is set to rise to 65 by 2025.
Latvia operates a three-tier pension system, combining mandatory and voluntary payment plans for Latvian citizens. Employers may opt to enrol their employees in a private occupational pension plan as part of the third pillar, voluntary payment scheme.
Employees are entitled to sick leave pay upon presentation of a medical note.
The first ten days of illness are covered by the employer:
- The first day of leave is unpaid
- 2nd and 3rd days of illness – not less than 75% of employee’s average salary
- 4th to 10th day of illness – not less than 80% of employee’s average salary
In exceptional circumstances, sick leave can be extended up to 52 weeks upon ruling by the State Medical Commission.
Contractual provisions
Contracts of employment must be written and executed in Latvian or dual language.
The Latvian Labour Code recognises both temporary and indefinite contracts of employment.
Temporary contracts cannot exceed two years and are only accepted in specific circumstances.
Upon signing a contract, employers must register the employee in the local Electronic Declaration System (EDS) of the State Revenue Service within three days.
Prior to this, the employee must complete a mandatory medical examination and provide the employer with their Payroll Tax Book (ANG).
Employers may choose to include a probationary period of up to a maximum of three months; this must be stated in the contract of employment.
Should the employee not pass the initial probationary period, extensions are not permissible and the employee must be informed of their termination at least three days prior to the end of the probation date.
A regular working week consists of 8 hours per day and 40 hours per week.
For any employment associated with special risk this is reduced to 35 hours per week.
An employee must not work more than 56 hours in one week, inclusive of overtime.
It is a legal requirement to record hours worked.
All overtime must be agreed in writing with employee’s consent. The maximum overtime is restricted to 8 hours per week and must not exceed 24 hours in succession or the 56-hour maximum.
All overtime hours must be paid at a minimum rate of 100% of the employee’s daily hourly rate.
Employees are entitled to 18 months of childcare leave until their child reaches the age of eight. Time taken during childcare leave counts towards work service.
The Latvian Labour Code stipulates the terms of cause for termination by an employer. This includes circumstances related to the performance or conduct of an employee and economic and organisational measures related to the company.
It is advised that all terminations are discussed with TopSource Worldwide.
Notice of termination must be provided in writing by both parties.
Dependent on the cause of termination, employers are required to give between ten days to one month’s notice.
Employees are required to give one month’s notice upon resignation.
Employees are entitled to severance pay after five years of employment, equal to one month’s wages.
This is increased to remuneration of two months’ wages for any employment exceeding five years.
Our author
Mark Robbins
Global Sales Director
Mark is the Sales Director at Topsource Worldwide. He has been a pioneering figure in the global expansion space since 2013. He is the first salesperson to sell EOR services in Europe, a feat he accomplished in 2013.
Published 2023-11-14 00:00:00
Updated 2023-11-15 00:00:00
Reviewed by:
Adrian Cooney
Fact checked by:
Adrian Cooney
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