Practice Area Articles
By Karina Paatsi
Back to International Employment Law
KEY DEVELOPMENTS FOR 2021
Remote work and related issues
Although more than a year has passed since the start of the pandemic, there are still a number of unresolved issues related to remote work. For example, remote work has been defined only in the Labour Safety Law but not the Labour Law. Accordingly, it is still not clear exactly what expenses must be covered by the employer in case of remote work and whether the parties are free to agree on different procedure. Remote work from abroad has become a trend recently which raises a number of tax related issues.
Vaccination of employees
There is an ongoing debate as to whether the employers can force employees to vaccinate. Most of the experts agree that forced vaccination is not allowed. It is also being discussed whether the employer can introduce certain benefits or advantages for vaccinated employees.
Overhaul of legal framework for employee share options
There was a recent overhaul of the legal framework for employee share options. As of the beginning of 2021, tax benefits are available also for limited liability companies (only joint stock companies were eligible until 2021) which is the most widespread corporate form in Latvia. In addition, the minimum vesting period has been reduced to one year, i.e., tax free shares can be granted to employees after holding the options only for one year. As a result, Latvia is now considered the most friendly European jurisdiction for employee share options.