Employee leave in Latvia: what employers and employees need to know

The vacation season is approaching, and with it, companies are increasingly facing questions related to granting and calculating employee leave.

👉 It is precisely during this period that errors, which often go unnoticed in day-to-day operations, tend to come to light.

Incorrectly granted or calculated leave can lead to financial risks as well as disputes with employees.

In this article, we will cover:

• the types of leave available in Latvia
• how annual leave is granted
• employee rights during the first year of employment
• and how to avoid the most common mistakes

1. Types of leave in Latvia

According to the Labour Law, employees in Latvia may be granted several types of leave:

• annual paid leave
• additional leave
• unpaid leave
• maternity leave
• parental leave
• study leave

👉 Each type of leave has its own conditions for granting and application rules.

2. Annual paid leave

Every employee is entitled to annual paid leave.

👉 In the standard case, it is:
at least 4 calendar weeks per year (the employer may grant a longer leave period in accordance with the company’s HR policy or employment contract).

👉 Employees under the age of 18 are entitled to a longer annual leave - one month.

Important:

• public holidays are not included in the leave period
• leave may be divided into several parts

👉 However, at least one part of the leave must be no shorter than
2 consecutive calendar weeks.

👉 If public holidays fall during the leave period, the leave is extended by the respective number of days.

👉 This means that:

• the total absence period becomes longer
• however, payment is made only for working days within that period

👉 This is a common situation in practice that affects both the duration of leave and its calculation.

3. Right to annual leave in the first year of employment

Employees are entitled to annual paid leave also during their first year of employment.

👉 Important:

After 6 months of continuous employment, the employer is obliged to grant annual leave if the employee requests it.

👉 In practice, this means that:

• leave may be granted in full
• not only proportionally to the time worked

👉 At the same time, the timing of the leave is agreed with the employer, taking into account work organisation.

💡 From experience, this is one of the most common misunderstandings that can lead to disputes between employers and employees.

4. Carrying forward annual leave

Annual leave may be carried forward to the next year only in specific cases.

👉 The main condition:
the employee’s written consent.

👉 In practice, a common mistake is carrying forward leave without the employee’s agreement.

5. Additional leave

Additional leave is granted to specific groups of employees.

👉 For example:

• employees with 3 or more children under the age of 16, or a child with a disability - 3 working days
• employees with 1 or 2 children under the age of 14 - 1 working day
• employees whose work involves increased risk - not less than 3 working days

👉 These days are granted in addition to annual leave.

👉 Additional leave cannot be compensated in cash, except in cases where the employment relationship is terminated.

6. Leave pay

For the period of leave, the employee is paid based on their average earnings.

👉 This means that:

• the calculation is based on a previous period
• the amount paid may differ from the employee’s regular salary

👉 In practice, mistakes are most commonly made in the calculation of leave pay.

7. Study leave

Employees who combine work with studies may be granted study leave.

👉 For example:

• to take state examinations
• to prepare a diploma thesis

👉 An employee may be granted up to 20 working days of study leave per year.

👉 It may be granted with or without pay, depending on the agreement between the employee and the employer.

👉 In practice, payment during study leave is often defined in the employment contract or a collective agreement.

8. Unpaid leave

An employee has the right to request unpaid leave.

👉 It may be granted:

• for personal reasons
• due to family circumstances

👉 Such leave does not affect the existence of the employment relationship, but it does affect the employee’s income.

💡 Important to know

👉 Unpaid leave also affects the accrual of annual leave:

• If unpaid leave does not exceed 4 calendar weeks per year, it does not affect the accrual of annual leave
• If it exceeds 4 calendar weeks per year, the excess period is not counted towards the time that gives the right to annual leave

👉 This means that the employee does not lose already accrued leave, but no new leave entitlement is accrued for this period.

⚠️ Common mistakes in practice

👉From practical experience, the most common mistakes are:

• not ensuring 2 consecutive weeks of annual leave per year
• carrying forward leave without the employee’s consent
• incorrect calculation of average earnings
• failure to grant additional leave
• misinterpretation of the employee’s right to annual leave in the first year of employment

✅ How to avoid mistakes in leave management

To avoid the most common mistakes, it is recommended to:

• plan the leave schedule in advance
• ensure that the employee takes at least 2 consecutive weeks of annual leave
• document all agreements regarding the carryover of leave
• regularly review the tracking of accrued leave days
• correctly calculate average earnings, especially in cases of variable pay

👉 In practice, mistakes most often arise not from a lack of knowledge, but from insufficient control.

📌 Conclusion

The regulation of employee leave in Latvia is clear; however, in practice, misunderstandings and mistakes are common.

👉 To avoid them, it is important to:

• comply with the requirements of the Labour Law
• correctly calculate leave pay
• plan the leave schedule in advance

💼 Are employee leaves calculated correctly in your company?

If you want to ensure that your leave calculations are accurate and avoid potential risks, contact us - we will help you organise the process professionally and reliably.