According to the Labour Law, “posting of workers” are the cases when as per the provision of international services:

1. the employer, based on a contract, that he or she has entered into with a person for whose benefit the work will be performed, posts a worker to another state (for example, a Swedish company establishes a contract with a Latvian company to carry out construction works on a building, and the Swedish company posts its workers to carry out the construction works in Latvia);
2. the employer posts a worker to a branch or to an undertaking in another state, which is part of the group of companies (for example, a German company posts a worker to its affiliate in Latvia);
3. the labour service provider, as an employer, sends the worker to the recipient of the labour service for whom and under whose direction the work will be carried out, if its company is located in another country or if it carries out its activities in another country (for example, a Belgian temporary employment agency establishes a contract with a Latvian company to hire workers and those workers are posted to work in Latvia).

A posted worker is a worker who works for a fixed period in a country other than the country where he or she usually works. During the secondment, the worker maintains an employment relationship with the employer who recruited him/her and made the secondment.

The EU regulatory framework on posting of workers: 

1. Directive 96/71/EC of the European Parliament and of the Council of 16 December 1996 concerning the posting of workers in the framework of the provision of services;
2. Directive 2014/67/EU of the European Parliament and of the Council of 15 May 2014 on the enforcement of Directive 96/71/EC concerning the posting of workers in the framework of the provision of services and amending Regulation (EU) No 1024/2012 on administrative cooperation through the Internal Market Information System (“the IMI Regulation”);
3. Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services.

The employer, who posts a worker to carry out work in Latvia (within the framework of the provision of works or services) shall comply with the administrative requirements established in the Labour Law and shall ensure to his/her worker the working conditions and employment provisions prescribed by the regulatory enactments of Latvia.

Exception - posting drivers of vehicles (from February 2, 2022, a carrier that carries out international transport and to which the situation of posting is applicable, needs to prepare and submit a declaration of posting of a driver of a vehicle via the Road transport posting declaration portal)

If under an employment contract concluded abroad (in any EU or EEA country other than Latvia) the worker has more favourable working conditions and employment provisions compared with the minimum requirements set forth in the regulatory enactments of Latvia, as well as by the collective agreements, which have been recognized as generally binding, then in respect to the worker the conditions of the contract concluded with the worker continue to apply. For example, if the employment contract of the worker from another country provides for a higher salary than the Latvian minimum standards set by regulatory enactment, then such worker is paid the salary set forth in his/her employment contract, thus ensuring the worker's situation is not compromised.

Latvian legislation imposes several obligations on the employer before posting a worker to Latvia and while the worker is performing work in Latvia as part of the secondment.

According to the second part of Article 14.1 of the Labour Law, before posting a worker to perform work in Latvia, the direct employer (the person with whom the seconded worker has an employment contract) is obliged to submit a notification about the posting of the worker to the State Labor Inspectorate. According to Article 162 of the Labour Law, the direct employer is the entity that is administratively responsible for the failure to fulfill this obligation.

According to the third part of Article 14.1 of the Labour Law, an employer from another member state of the European Union or a country of the European Economic Area, who posts a worker to perform work in Latvia, is obliged to inform the State Labour Inspectorate about the changes that have occurred in relation to the information mentioned in the second part of this article. This information shall be provided electronically and in the national language within three working days from the date of the occurrence of the change.

"Notification system for workers who are posted to Latvia" provides an option to submit a notification of posting a worker not only to the person who is obliged to do so under the Labour Law, but also to the recipient of the service in Latvia (the person in Latvia for whom the work will be performed).

If an employer from another European Union Member State or European Economic Area State posts a worker to perform work in Latvia, then, irrespective of the law applicable to the employment contract and employment relationship, such posted worker shall be ensured the working conditions and employment provisions provided for by the laws and regulations of Latvia and the general agreement entered into according to Section 18, Paragraph four of Labour Law and governing:

1) maximum working time and minimum rest time;

2) minimum annual paid leave;

3) remuneration, including supplements for work associated with special risk, overtime work, night work, work on a public holiday, additional work. Within the meaning of this Clause, remuneration shall not include contributions to supplementary pension capital made by the employer;

4) provisions regarding securing a workforce, especially with the intermediation of work placement service provider;

5) safety, health protection and hygiene at work;

6) protection measures for persons under 18 years of age, for pregnant women and women during the period following childbirth, as well as the working and employment provisions of such persons;

7) equal treatment of men and women, as well as prohibition of discrimination in any other form;

8) provisions for the accommodation of such workers who are outside their permanent workplace if such service is provided by the employer;

9) reimbursement of the expenses of the worker in relation to an official trip or work trip in Latvia, including the disbursement of a daily allowance for an official trip. This provision shall be applied to the reimbursement of expenses to a worker who has been posted to perform work in Latvia if he or she is sent on an official trip or work trip in the territory of Latvia.

An employer who violates the regulatory enactments may be subject to administrative responsibility. Administrative penalties for violations in the field of Labour law are covered by Chapter 36 of the Labour Law, while in the field of labour protection, Chapter VI of the Labour Protection Law. General issues of administrative responsibility are governed by the Law of Administrative Liability.

Appealing against an imposed sanction

The decision on an imposed administrative sanction may be appealed in accordance with the procedure and time limits set forth the Law on Administrative Liability.

According to the first part of Article 166 of the Law on Administrative Liability, the decision taken in the case of an administrative violation can be appealed to a higher official, while the decision of a higher official can be appealed to the court.

The decision shall always contain information on appeal of the decision.

Consequently, if an official of State Labour Inspectorate issues administrative deed and imposes a fine, it may be contested in writing by submitting a substantiated application to the Director of the State Labour Inspectorate. If the Director of the State Labour Inspectorate leaves that decision unchanged, then person may turn to court.

Payment of a fine and compulsory recovery thereof

According to the Law on Administrative Liability a fine applied to a punished person shall be paid in full amount not later than within one month from the day when the ruling on penalty has come into effect.

If there are justifying circumstances due to which a punished person may not enforce the ruling on penalty in full amount within the term for voluntary enforcement of the fine, an institution may postpone enforcement thereof for a period of up to one month. If there are justifying circumstances due to which a punished person may not enforce the ruling on penalty in full amount within the term for voluntary enforcement of the fine, an institution may divide enforcement of the fine in parts without exceeding a six-month period from the day when the ruling on penalty has come into effect. A punished person shall submit a written application to an institution for the postponement of enforcement of the ruling on penalty or for the division of a fine in parts within the term for voluntary enforcement of the fine.

Cross-bordder enforcement of administrative fines

In cases when the State Labour Inspectorate has imposed of an administrative sanction (i.e., a fine) on an employer who is located in another country, State Labour Inspectorate sends the request for recovery of an administrative fine to the authority of that state where employer is situated.

If after the receipt of the decision the employer fails to pay the fine voluntarily, the State Labour Inspectorate sends a request for the enforcement of the decision to the respective authority of another state. Then this decision is executed, i.e., the fine is recovered from the employer under the statutory procedures of the respective country.

Whereas, when the State Labour Inspectorate receives a request for notification of the decision from an authority of another country, it shall notify the decision on the imposition of an administrative sanction to the employer who is located in Latvia. If after the receipt of the notification the employer fails to pay the fine voluntarily, the State Labour Inspectorate receives a request from the respective authority of the another state for the enforcement of the decision and the decision shall be transferred for enforcement to the court bailiff.

Enforcement of administrative fines

A decision made by the State Labour Inspectorate with respect to imposition of an administrative penalty (i.e., a fine) on an employer who is located in another country shall be enforced in accordance with the national laws and regulations of the country such an employer is located in.

Whereas, the fines imposed by the authorities of other states shall be recovered in Latvia in accordance with the same procedures that are applied to the recovery of fines imposed by the Latvian authorities. Namely, in the event the employer has failed to pay the fine, the State Labour Inspectorate transfers the decision on the imposition of an administrative penalty (i.e., a fine) for a compulsory execution to the bailiff, who recovers the fine in accordance with the procedure set forth in the Civil Procedure Law.