Covid-19 | Legal solutions for business – Latvia

On March 13 the Latvian Parliament approved the decision of the Latvian Government and declared a national emergency in an attempt to restrict the spread of the coronavirus COVID-19.

This decision is raising numerous questions in relation to force majeure application to contracts and employer obligations and rights in suspending business operations (e.g. office or store closures) or mandating that employees should work from home or self-isolate for the protection of others. Ellex is assisting our clients to minimize the impact of the state of emergency and assist you to find the best solutions for your business in these specific circumstances.
We are addressing numerous questions from our clients about the impact of these emergency measures on their business, especially performance of contractual obligations, employment matters, cooperation with third parties especially in relation to cancellations of various events or other planned activities in these or coming days due to the emergency restrictions in Latvia. Several other countries have adopted similar decisions and that causes a cross-border and multinational impact on business relations and the ability to operate in the usual course of business.
Ellex in Latvia is a member of the Lex Mundi network of law firms and can leverage valuable information and experience of our colleagues in other jurisdictions in similar situations to help find immediate and workable solutions for our clients with issues in the Baltics.
For businesses in Latvia we recommend to:
  • review contracts with counterparties to be sure you understand the consequences for the parties in case of failure to fulfil obligations; whether the contract provides a force majeure clause and whether it can be invoked in the current circumstances and with what notification requirements. Pay special attention to the applicable law, liability and insurance clauses;
  • analyse if the company is able to perform according to the contract or whether it may be necessary to start communication with the other party before a breach of the contract occurs; evaluate if the company can mitigate its own losses or losses that might be caused to counterparty;
  • communicate with the counterparties and employees and explain potential courses of action before any problems arise;
  • review status of the initiated proceedings in state or municipal institutions or in court. Plan well in advance the next submissions and check the deadlines. Many institutions have changed their work routine, and timely communication might be necessary;
  • carefully evaluate any written communication to your business partners or institutions keeping in mind potential consequences (including disputes) during emergency period and which may arise later.
We sincerely hope that businesses will be able to find flexible solutions and adjust to the current limitations during the emergency period. The Ellex team is ready to assist you and share our knowledge and experience to help you find solutions for business-related issues that could arise as a consequence of the national state of emergency aimed at restricting the spread of the coronavirus COVID-19.
If you have any questions please contact your contact person at Ellex in Latvia or alternatively please contact Partner Daiga Zivtina or Associate Ints Skaldis.

Linked Experts

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Ints Skaldis
Senior Associate / Latvia
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Daiga Zivtiņa
Partner / Latvia