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Dear clients and cooperation partners,
On 20 July 2011 amendments to the Labour Law covering a wide range of issues will come into effect. The amendments regulate work placement services; they also focus on decreasing illegal immigration and non-registered employment and set rights to work remuneration for third-country nationals illegally residing in Latvia. The legislator has also set a time limit for an employee to claim revocation of an employer’s disciplinary penalty and has released employers from the obligation to inform the State Employment Agency (SEA) when decreasing employee numbers.
This Employment Newsflash gives more detailed information about these Labour Law amendments.
- LEGAL REGULATION OF WORK PLACEMENT SERVICES (HIRING OUT PERSONNEL)
- MEASURES TO DECREASE ILLEGAL IMMIGRATION AND NON-REGISTERED EMPLOYMENT
- EMPLOYEE HAS ONE YEAR TIME LIMIT TO CLAIM REVOCATION OF DISCIPLINARY PENALTY
- EMPLOYERS DOWNSIZING PERSONNEL NO LONGER NEED NOTIFY STATE EMPLOYMENT AGENCY
1. Legal regulation of work placement services (hiring out personnel)
The Labour Law implements requirements arising from Directive 2008/104/EC of the European Parliament and of the Council of 19 November 2008 on temporary agency work. Previously, general provisions of the Labour Law applied to temporary employees; but this was not enough to ensure the requirements included in European Union (EU) law.
To create clear legal regulation, the amendments expressly state that when an employee is sent to work for and under the management of a company receiving work placement services, the provider of work placement services is regarded as the employer. Note: the Support for Unemployed Persons and Persons Seeking Employment Law determines that providing a work placement service – hiring out personnel – requires a licence issued by the SEA.
The amendments stress that an agreement prohibiting or limiting a placed employee’s rights to enter legal employment relations directly with the company receiving work placement services is not valid. The amendments also prohibit differential treatment as to availability of employment, premises of common use, transportation services and similar advantages.
a) obligations of provider of work placement services (ie company hiring out its personnel)
A provider of work placement services will be required to ensure the following protection to employees sent to work at a company using those services:
- the employee has the same working conditions and is subject to the same employment provisions that would be ensured and applied if employment legal relations between the employee and the company receiving the work placement services were established directly and the employee performed the same work. The Amendments also explain what should be understood by “working conditions” and “employment provisions” (for example, working time and rest time, remuneration);
- the employment agreement with the employee should directly indicate that the employer provides work placement services and that the employee must also comply with the work policies and procedures determined by the company receiving work placement services;
- between placements, irrespective of the agreed working time, the employee is paid remuneration not less than the statutory minimum monthly salary in proportion to the time between placements.
b) obligations of company receiving work placement services
A company receiving work placement services also has several significant obligations in relation to a placed “temporary” employee:
- to ensure safe working conditions that pose no harm to health in compliance with requirements of work safety regulations except for obligatory health checks;
- to inform the employee about vacancies at the company.
2. Measures to decrease illegal immigration and non-registered employment
Amendments to the Labour Law also transpose Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 providing minimum standards on sanctions and measures against employers of illegally present third-country nationals.
When preparing an employment agreement an employer must require foreigners to show a visa or residence permit, as well as a work permit if the law so requires. This provision does not refer to EU citizens and others if the law so determines. Employers must ensure storage of copies of these documents or corresponding information during the entire time of employing a foreigner, while these copies and information must be provided to supervision and control institutions on request.
The Amendments also prohibit employing a person who is not entitled to reside in Latvia and increases the range of persons to be held administratively responsible for violating this regulation. Likewise, persons who are not entitled to reside in Latvia but have been employed are granted the right to claim payment of salary in the full amount.
3. Employee has one year time limit to claim revocation of disciplinary penalty
Amendments to the Labour Law allow an employee to claim revocation of a disciplinary penalty – a reproof or a reprimand – imposed by their employer within a year as of its imposition.
Previously the Labour Law did not set a particular term for when an employee should apply to the court to revoke a disciplinary penalty. However, court practice has established the opinion that an employee had to do so in the case of a disciplinary penalty imposed by their employer within a month from the day a reproof or reprimand was imposed.
4. Employers downsizing personnel no longer need notify State Employment Agency
The regulation requiring employers to notify the SEA not later than one month in advance about the number and profession of employees to be dismissed when downsizing personnel (also where employment relations with only one employee are terminated on this basis) is excluded from the Labour Law.
Exclusion of this regulation does not influence the employer’s obligations in the case of collective redundancy (Section 106 of the Labour Law) including the obligation to provide statutorily determined information to the SEA and the municipality in whose administrative territory the employer is located.
Please consider these changes introduced by the Labour Law amendments and in case of any questions contact SORAINEN or your legal adviser! |
