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What should be considered in contracts of employment?

Concluding an employment contract according to the Labour Law of Latvia parties should take into account regulation laid down in Section 40 of the Labour Law of Latvia. An employment contract shall include: the given name, surname, personal identification number, place of residence of the employee and the name, surname (business name), registration number and address of the employer, the starting date and expected duration of employment legal relationships, the workplace, the trade, profession, speciality and the general description of the contracted work, the amount of work remuneration and time of payment, the agreed daily or weekly working time, the length of the annual paid leave, the term for giving a notice of termination of the employment contract and the provisions of the collective agreement and working procedure regulations to be applied to employment legal relationships.

In order to facilitate possible future disputes with employees other important agreements between parties should be included in employment contract. Especially it is important when employer is registered in one EU member state of but work of employee permanently has to be carried out in other EU member state. Regulation (EC) No 593/2008 of the European Parliament and of the Council of 17 June 2008 on the law applicable to contractual obligations (Rome I) (Article 8) and the Labour Law of Latvia (Section 13) lay down legal regulation that individual employment contract shall be governed by the law chosen by the parties. The choice shall be made expressly or clearly demonstrated by the terms of the contract.

Business type and specific requirements for profession also is important to take into account in draft of an employment contract. In order to eliminate individual legal conflicts is recommended to include in employment contract regulation about compensation of the losses, restriction of the occupational activities of the employee (restriction on competition), duty not to disclose any information brought to his or her knowledge, which is a commercial secret of the employer, disclaimer about intellectual property rights and other important information.  

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