Major Labour Law Changes Ahead — Key Things Entrepreneurs Must Know
The proposed amendments include:
- Overtime pay procedures — in cases where a valid collective agreement or general agreement exists;
- Wage payment exclusively by non-cash means and ensuring electronic payslips;
- Payment terms during downtime periods;
- Justification for contract termination with a "serious reason";
- Clarifications regarding summarized working time accounting and a new approach to part-time summarized working time;
- More flexible working time arrangements, e.g., the possibility to shorten one working day per week and extend another (by no more than 2 hours);
- Regulations on work involving artificial intelligence systems;
- Termination rules for temporary employees and trade union members;
- Conditions for unilateral termination of collective agreements.
Where is the amendment process currently?
Currently, the proposals are under review by the Human Capital Development Council. Next steps include:
- Announcement at the State Secretaries' Meeting;
- Review by the Cabinet of Ministers;
- Legislative process in the Parliament (Saeima).
Comment from an LP Consulting professional:
As accounting and business consultants, we encourage companies to closely monitor the progress of these amendments. Many of the proposed changes will directly impact daily work organization, payroll calculations, and employment contract structuring. It is advisable to proactively review internal work regulations and collective agreements.
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