FICIL welcomes the recent progress in the Saeima on the Labour Act amendments, an important step towards strengthening a modern and predictable labour framework in Latvia. The Social and Employment Matters Committee has supported a number of significant amendments ahead of the second reading, demonstrating a constructive approach and willingness to move towards balanced, efficiency‑oriented solutions.
FICIL would like to acknowledge the constructive work of the Saeima committee deputies and their responsible vote on several key provisions of the draft law. The decisions taken demonstrate a willingness to move forward with balanced solutions that support the modernisation of Latvia’s labour regulation and contribute to the country’s overall development.
It is encouraging to see progress on two of the three most widely debated issues – the modernisation of collective agreements and the regulation of overtime premium.
The proposed amendments concerning the possibility to terminate collective agreements if no new agreement has been reached within one year introduce greater legal clarity and flexibility for the involved parties. The supported amendments reflect the legislators’ readiness to pursue a balanced compromise that strengthens legal clarity while supporting business efficiency.
At the same time, Saeima committee has supported a proposal to update the approach to overtime premium by introducing a differentiated system: a minimum 50% premium for overtime work, 75% for overtime performed during weekends, and 100% for work carried out on public holidays.
As the largest foreign investor organisation in Latvia, FICIL welcomes the constructive efforts of policymakers to advance balanced and forward-looking labour regulation that supports both employees and employers.
“Progress on these amendments shows that constructive dialogue between policymakers, employers and employees can lead to practical solutions. Modern and predictable labour regulation is essential for strengthening Latvia’s competitiveness and ensuring that businesses can continue investing and creating quality jobs. We hope that these amendments will also be supported at the second reading in the Saeima.” said Reinhold Schneider, Chairperson of the FICIL Board.
FICIL continues to participate in the Saeima committee discussions and closely follows the development of these amendments. Ensuring a modern, predictable and balanced labour framework remains an important priority for FICIL, as it contributes directly to a stable and competitive investment environment in Latvia.