Ellex Klavins Employment Newsletter

_{AMENDMENTS TO THE LABOUR ACT}

_{On the 22nd October of this year amendments to the Labour Act came into effect providing for a more strict legal framework with respect to the rights of an employer to request fluency of certain foreign languages from an employee. As outlined in the explanatory note, the purpose of the amendments is to consolidate use of the official language in the labour market and protect employees from unjustified requirements of language skills, mainly Russian.}

_{The amendments stipulate that foreign language skills shall not be deemed to be reasonably necessary if the job is related to manufacturing of goods, provision of services, or other activities on the domestic market of Latvia. The said provision may not be attributable to such jobs on the domestic market of Latvia where the foreign language skills is an objective and justified precondition for performing  the respective job or engaging in the respective occupation, inter alia, the performance of the job is related to foreign countries.}

_{The foregoing means that henceforth the employer will not be entitled to request fluency in foreign languages from employees who, for example, serve customers on the local market. At the same time, if the fluency in foreign languages is required for performance of the job duties in and of themselves, because otherwise the job could not be performed, for example, tourist guides, the employer will be able to request knowledge of specific foreign languages. Furthermore, one will still be able to request fluency in foreign languages from employees whose work is associated with foreign markets, for example, communication with companies of the same group, sale of goods or provision of services abroad.}

_{In order to avoid unnecessary misunderstandings due to the amendments coming into effect, we would recommend the employers to take the following steps:}

_{1. Conduct evaluation of job positions in light of the fluency in foreign languages. Namely, ascertain whether there are job positions at the company affected by these amendments to the Labour Act;}

_{2. Verify what requirements are set in job descriptions of particular employees;}

_{3. If necessary, adjust the job descriptions;}

_{4. Conduct training of HR experts so that neither classified ads for vacancies nor job descriptions would contain unjustified requirements for fluency in foreign languages.}

_{AMENDMENTS TO THE COMMERCIAL ACT}

_{On 14th November 2024, Saeima (Parliament) of Latvia adopted amendments to the Commercial Act stipulating rights of members of the management board (directors) to take leave related to child care. The amendments are not proclaimed by the President yet; however, most probably, this will be done in the near future, and then it will become clear when the amendments actually come into effect.}

_{The explanatory note to the amendments reads that development of such legal framework is aimed at providing a more wholesome social, economic and legal protection to members of the management board in cases when they need to get involved in childcare which is not compatible with the full-fledged performance of duties of the board member’s office.}

_{The amendments stipulate that the member of the management board has a right to use:}

_{1. Prenatal and maternity (confinement) leave}

_{2. A leave for a father, adopter and other person,}

_{3. Childcare leave,}

_{4. Child carer’s leave,}

_{5. As well as a leave without remuneration if an adopted child, foster child or ward needs to be cared for.}

_{The leaves will fall under legal framework of the Labour Act, unless otherwise stipulated by the Commercial Act. While these leaves are being used, the powers of the member of the management board will be suspended and another member of the management board may be appointed instead for the period of leave of the board member.}

_{Exercising the right of leave is a right of the member of the management board. Therefore, it will be possible to recall such board member while on leave only if there is a serious cause. Exercising of the right of leave will not form grounds for recall of the board member. It must be kept in mind that the board member who has exercised the right of leave will retain the rights that they had before going on the leave. For example, the board member will have the same right to increase of remuneration and other benefits as they would have If they had not gone on leave.}

_{CASE LAW}

_{In the judgment of 6th November 2024 in case No SKC-471/2024, the Senate of the Supreme Court explained the legal framework governing the consequences of limitation (prescriptive) period in case an employee has issued (made available) an estimate of work remuneration where an estimate of overtime worked by the employee was not included.}

_{The Senate explained that Article 31 of the Labour Act shall be interpreted in conjunction with Article 71 thereof, and that a duty of the employer arises to issue a written estimate to the employee. Whether the limitation period for non-compliances discovered in a claim of the employee is 2 or 3 years shall depend on whether the employer has served such estimate to the employee. If the employer has not served the estimate of work remuneration to the employee, the law prescribes a longer limitation period for bringing an action. Therefore, it is crucial for the employers to serve such estimate in a timely manner.}

_{The judgment is important also because of a confirmation on the part of the court that making the work remuneration estimate available electronically, such as on Horizon WEB or HoP portal (employee self-service modules), is valid service thereof, because in such a way the estimate is made available and the employee is deemed aware of it in order to verify whether all payments that the employee is eligible for are included. That means that it is not mandatory for employers to serve such estimates to the employees against a signature in hardcopy format. It is advisable to prescribe in the internal work procedure the manner and form in which these estimates will be communicated in order to avoid unnecessary misunderstandings.}

_{EUROPEAN INVESTIGATIONS GUIDE}

_{For several consecutive years Attorneys-at-Law Edvijs Zandars and Irina Rozenšteina have been invited to draft the Latvian chapter for the European Investigations Guide – a guidebook for conducting internal investigations in European countries. The Guide is being compiled by the Berlin office of international law firm Hogan Lovells, and leading and most reputable law firms from all over Europe have the privilege to be involved in the project.}

_{When conducting internal investigations, not only provisions of the Labour Act and the Whistleblowing Act are to be taken into account, but also the legal framework governing data protection, commercial law and even criminal law. Therefore, we are certain that the Guide will be a useful tool especially for major international companies wanting to understand how to arrange internal, and especially cross-border, investigations in each of the countries.}

_{Contents of the Guide is available here.}

_27.11.2024