New labor code offers more rights, confusion

Latvia's new labor code, which took effect June 1 this year, is thought to provide a lot more protection for Latvia's work force. There are, however, a few flaws in need of review.

The law replaces a code adopted in 1972 and was passed to be in agreement with European Union legislation. Attorneys say it provides more protection for employees than the old law but still leaves a few questions lingering.

"I believe the Parliament has done a great job, but there are a few holes in this law which have to be closed," said attorney Ilze Baltmane.

One glitch is holiday pay, said attorney Ilze Baltmane.

"It says that workers should be paid in accordance with their average pay for every public holiday, but it does not specify what will happen if a holiday falls on a weekend," she said.

Also under the new code an employee has seven months to petition a court if he or she feels they are wrongly fired. The employer must then present a valid reason.

"Before the employee had to go to court within a month and prove his or her case," said Baltmane.

All employee contracts signed before July 1 this year will fall under the new code.

Many employers and attorneys are still waiting to see what the law's full effect will be.

"Every new law needs time for understanding," said Gunars Kusins, head of the Parliament's legal bureau. "It will also be good to have a few court cases to set precedents."

"I don't think we have a bad law. It has a complex text and not all employers will be able to understand it," he said.

After Dec. 31, 2002, administrative penalties of up to 250 lats ($415) can be levied for violations of the code.

Inga Piraga, the spokeswoman for Latvia's Foreign Investment Council, said some of the council's members have inquired about the law, but it has not been widely discussed yet.