On May 7, 2020 Amendments in the Law On Measures for
the Prevention and Suppression of Threat to the State and Its Consequences Due
to the Spread of COVID-19 (hereinafter – the Amendments) have been approved,
with the aim to provide more flexibility for employers in organizing existing
work positions. The Amendments are related to employer’s rights to: (1) reduce
the salary amount that employer pays to employee during idle time; (2) organize
granting of annual leave. Additionally, the Amendments regulates determination of
partial work time in a collective agreement concluded with a trade union.
Employers who will be able to use the rights
determined with the Amendments Only such employer who complies with the two following
criteria will be able to use the below indicated rights:
1.
who complies with criteria for participant in the
In-depth Cooperation Programme
[1];
2.
who has been affected by crisis caused by Covid-19.
The text of the Amendments allows to conclude that
there are no specific criteria that the employer must comply with in order to
determine that the employer “has been affected by crisis caused by Covid-19”.
However, to avoid any disputable situations the employer, who uses the below
indicated rights, should be able to prove that the employer has been affected
by the Covid-19 crisis.
Right to reduce the amount of the remuneration paid
during idle time up to 70% of the salaryThe existing regulation of the Labor law provides that
during such idle time, which has not accrued due to employee’s fault, the employer
must continue to pay the remuneration determined to the employee.
The approved Amendments provides that employer who
complies with the above mentioned criteria may reduce the employee’s
remuneration for idle time determined in Section 74 of the Labor Law to 70% of
the employee’s salary. In any case remuneration in the amount of minimum wage.
Furthermore, for an employee, upon whom his minor child or a child who
continues acquiring general, professional, highest or special education and who
has not reached age of 24 years, is dependent additional fund shall be
maintained for the employee in the amount of minimal amount of maintenance
determined by law for each of the dependent child. The mentioned right shall be
in force until December 31, 2020.
Employee who disagrees to such reduction in the
remuneration during idle time, shall have the right to unilaterally terminate
the employment contract without observing the notice period determined in the
Section 100(1) of the Labor Law. In such case the employer will be obliged to
disburse employee the severance payment in the amount as determined in Section
112 of the Labor Law.
It can be concluded that the Amendments will allow
employers to unilaterally reduce the amount of remuneration to be paid during
the idle time. The text of the Amendments allows to conclude both employers who
have applied and whose employees receives state paid idle time benefit, and
those who do not comply with the criteria to receive the state paid idle time
benefit, will be allowed to use this opportunity.
Granting annual leave without taking into
consideration the wishes of employee The existing regulation of the Labor Law foresees also
that the employer has the obligation to as far as possible consider the wishes
of the employee when granting annual leave (Section 150(2) of the Labor Law).
The approved Amendments foresees that the employer,
who corresponds to the above mentioned criteria, may grant the annual leave by
not observing Section 150(2) of the Labor Law. Accordingly, the Amendments
provides that the employer has the right not to observe the obligation – as far
as possible to consider the wishes of the employee when granting annual leave.
The mentioned right shall be in force until December 31, 2020.
However, it is not clear from the text of the
Amendments whether this means that the employer may unilaterally send an
employee on annual leave without the consent of the employee. The approved
Amendments applies only to the mentioned Section 150(2) of the Labor Law. Therefore,
the Amendments does not affect other parts of the Section 150 of the Labor Law,
which also provides that the annual leave shall be granted in accordance with
the agreement between employee and employer. Thus, the Amendments seems not to
affect the fact, that annual leave shall be granted on the basis on mutual
agreement of both parties.
Determination of partial working time in a collective
agreement concluded with a trade unionThe approved Amendments foresee that in a collective
agreement that has been concluded with a trade union with a mutual agreement
and without reducing the overall level of the employees’ protection, it may be
provided that in case of a temporary reduction of production amounts, a partial
working time can be determined to an employee. In any case remuneration in the
amount of minimum wage. Furthermore, for an employee, upon whom his minor child
or a child who continues acquiring general, professional, highest or special
education and who has not reached age of 24 years, is dependent additional fund
shall be maintained for the employee in the amount of minimal amount of
maintenance determined by law for each of the dependent child. Such amendments
in the collective agreement can be in force for a time period that does not
exceed December 31, 2020.
An employee who does not agree to the partial working
time shall have the right to unilaterally terminate the employment contract
without observing the notice period determined in the Section 100(1) of the
Labor Law. In such case the employer will be obliged to disburse employee the
severance payment in the amount as determined in Section 112 of the Labor Law.
It should be noted that regulations approved during
the state of emergency raises different questions and ambiguity in relation to
the application of the regulation. The above mentioned is the opinion of
Leinonen Latvia lawyers and it might change in case additional explanations are
provided in regard to the application of the regulations.
We invite you to contact our legal team in case you
have any questions related to application of the rights determined in the
Amendments or if you require any other assistance in regard to managing
employment related issues in order to mitigate consequences of Covid-19.
[1] Information on
criteria:
https://www.vid.gov.lv/lv/kriteriji-padzilinatas-sadarbibas-programmas-dalibnieka-statusa-iegusanai