RegRally Insights: Employment, Migration Law

The latest employment law update, November 2025, by ECOVIS, explores the latest developments in employment law and examines the issues that matter most to employers.

VDI Reminds Employees and Employers of Deadlines for Filing Labour Disputes

The State Labour Inspectorate (VDI) reiterates that any party to an employment relationship who believes their rights have been violated — for example, through unlawful dismissal, delayed or incomplete wage payments, or other breaches of labour law or contractual obligations — may submit a claim to the Labour Disputes Commission.

To ensure effective protection of rights, the Labour Code sets strict deadlines:

General labour disputes must be filed within 3 months from the moment the party became aware (or should have become aware) of the violation.
Unlawful dismissal, unlawful termination, or breaches of a collective agreement must be brought within 1 month.

Timely submission is essential, as missing these statutory deadlines may limit the ability to defend one’s rights.

VDI Reminds Employers of Key Obligations as Sick Leave Cases Increase

With rising illness rates, the State Labour Inspectorate (VDI) reminds employers of their legal obligations regarding sick pay, leave, and employment rights. Employers must follow statutory procedures to ensure that employees receive proper social protection.

Key points highlighted by VDI:

Employer-paid sick leave: The first days of illness must be paid by the employer.
Vacation adjustments: Annual leave must be transferred if an employee falls ill.
No dismissal during illness: Termination based on illness is prohibited.
No work during medical leave: Employees with a sick leave certificate cannot be required to work.
Extension of probation: The probationary period may be extended for the duration of illness.
Remote work: Employees may work remotely only if no sick leave certificate has been issued.

VDI underscores that ensuring compliance with these requirements is crucial for safeguarding employees’ rights and maintaining lawful employment practices.

Our recommendations:

The employer should ensure full compliance with legal requirements governing employee illness and related employment rights. Specifically:

Payment of sick pay: The employer is obligated to pay employees for the initial days of illness as prescribed by law. They should verify internal payroll procedures to ensure correct calculation and timely payment.
Vacation transfer: If an employee becomes ill during approved leave, the unused portion of the vacation must be rescheduled upon the employee’s request.
Protection from dismissal: Terminating an employee solely due to illness or during a valid period of medical leave is prohibited, except in some instances provided in the Labour Code. Any dismissal actions should be reviewed for compliance with statutory protections and safeguards.
Work prohibition during sick leave: Employees on sick leave may not perform work duties unless a valid medical clearance or certificate permits it. Employers should monitor compliance to avoid liability.
Probation period extension: When an employee’s probationary period coincides with illness, the probation period may be extended for the duration of the medical leave. This should be documented formally.
Remote work without a sick leave certificate: If no medical certificate has been issued, remote work arrangements may be used by mutual agreement. Employers should ensure that written confirmation of such contracts is obtained.

VDI Reminds Employers: Working Day Must Be Shortened Before Public Holidays

The State Labour Inspectorate (VDI) reminds employers that on days preceding public holidays, the working day must be shortened by one hour, regardless of the employee’s working time regime or schedule. The rule applies to all employees, including part-time workers, those on cumulative working time regimes, and on-call staff.

This reduction does not apply to employees whose working hours are already legally reduced (e.g., healthcare professionals, teachers, lecturers, pharmacists) or public sector employees with reduced hours due to raising children under three.

Pre-holiday days in 2025

On the dates below, the working day must be shortened by one hour:

December 23 (Tuesday) – before Christmas Eve
• December 24 (Wednesday) – before Christmas Day
• December 25 (Thursday) – before the second day of Christmas
• December 31 (Wednesday) – before New Year’s Day

Key Points for Employers

If an employee works in multiple positions for the same employer, the total working day is shortened, not each position separately.
If a shift starts on a pre-holiday day and ends on the public holiday, it must still be shortened by one hour.
If public holidays fall consecutively, working hours are reduced before each holiday.
If an employee works two shifts on a pre-holiday day, each shift is shortened by one hour.

Latvian Supreme Court Confirms Mandatory Double Pay for Work on Rest Days

The Supreme Court of Latvia (LAT) clarified that under Article 144(1) of the Labour Code, employees who work on a rest day at the employer’s request are entitled to double pay.

Key points:

Mandatory protection: Double pay applies only when the employer requires work on a rest day.
Employee-initiated changes: If the employee requests the schedule change for personal reasons, double pay does not apply.
Burden of proof: Employers must demonstrate that any schedule change occurred at the employee’s initiative to avoid paying double compensation.

The LAT emphasised that these rules are designed to protect employees from unexpected schedule changes imposed by employers.