In today’s world, innovation has become a critical component of competitiveness and economic growth. Companies and individuals around the world are looking for new solutions in the hope that the market will recognise and demand them. Innovation usually means the introduction of new ideas, methods or products that promote growth and competitiveness by improving processes, services or technologies. However, when pursuing progress, it is important to assess whether innovations will truly improve society as a whole and whether the benefits they offer are accessible to everyone. Specifically, will innovations be inclusive? In this article, we will explore the link between social innovation and social justice, or how innovation can help reduce social exclusion, provide accessible solutions for all and promote long-term positive change in society.

In Latvia, there is frequent talk of progress in gender equality, yet the reality is harsher. Latvia ranks last in the European Union for gender pay equality, and the gap between men’s and women’s wages is unfortunately growing. While the EU’s average gender pay gap in 2023 was 12%, in Latvia this figure reached 19%, worsening the country’s position (17.1% in 2022) and placing it last among all 27 Member States. In other words, for every euro earned by a man in Latvia, a woman earns only 81 cents.

According to the Pay Transparency Directive 2023/970 (“Directive”), the concept of work of equal value covers four aspects: skill set, accountability, necessary effort and working conditions. As the Directive is to be implemented by June 2026, these aspects have become topical. This article deals with  the legislature’s guidance.

In Latvia, medical costs are very high for many people, especially for patients with serious illnesses, and the state does not cover them in full. Employers can support their employees financially, but the existing regulation makes this financially disadvantageous. The bill, which is in its 3rd reading in Parliament (Saeima), proposes significant changes that could change this system and allow employers to cover medical costs without an additional tax burden. This article informs you about the expected changes and the consequences for employers and employees alike.

Central and local government agencies have been required to create accessible Web content since 2016. This is prescribed by Directive (EU) 2016/2102 of the European Parliament and of the Council of 26 October 2016 on the accessibility of websites and mobile applications of public sector bodies passed in 2016. However, studies suggest that it’s still very difficult for people with disabilities to access information in the way they need. For example, in August 2024, having surveyed 15 websites run by central and local government agencies, the Ombudsman found that none of them is fully accessible to people with disabilities. In this article we will explain what accessibility is and why it’s important for businesses, as well as exploring the essence of accessibility to digital resources and services, the rationale, legislation, practices and recommendations for providing accessibility successfully.
 

Europe has been looking for ways to improve its gender equality indicators in recent years, including the pay gap between men and women and their participation in top management. One of the latest initiatives provides for securing a gender balance on the boards of listed companies. In this article, we explore these changes because the new rules apply to Latvia too.

The role of employer image in attracting and retaining talent is becoming more and more important. However, the dynamics of trust are changing, with people putting more stock in personal suggestions and recommendations, as clearly demonstrated by social media. The same message on a company’s social media and an employee’s private profile will have a different tone, reach and contribution. On average a personal post created by an employee can achieve a level of engagement twice or three times as much as a corporate post, thanks to personal contacts and more trust.

The growing job market requirements both locally and globally are forcing employers to identify HR policy improvements capable of attracting and retaining today’s workforce. Yet strategies for attracting talent, adopting GenAI tools, understanding and satisfying workers’ needs are only the tip of the iceberg. With increased challenges to reduce staff turnover and create an inclusive and growth-oriented working environment, organisations should be putting more effort into identifying the current market trends and building their value proposition. In this article we will present the findings of ‘Workforce Radar’, a PwC US study of organisations across the PwC network, and the findings of ‘Hopes and Fears 2024’, a PwC survey of more than 20,000 employees, business leaders and HR leaders.

In August we wrote about the State Revenue Service’s plans to begin sending out notifications in September asking people to review their income and report it in full. This is one of the steps the SRS is taking as part of the plan to fight the shadow economy. In this article we will look at how this initiative is happening in practice and what is worthy of attention.

‘Don’t hire yourself!’ is a campaign-like slogan resonating loudly across the Nordic countries this autumn to warn employers against giving in to the temptation to hire only people like them and to encourage them to cast their net wider for the talent they need. This article highlights the manifestations and consequences of bias in candidate selection, puts forward arguments for recruitment that is open to diversity and inclusive in the light of the latest EU demographic trends, and makes specific recommendations for guidelines and activities in the recruitment process.

Following a lively public debate about revising the Latvian system of labour taxation to make it more competitive in the Baltic region, the Ministry of Finance has put together and on 26 September 2024 presented proposals for amending the Personal Income Tax (PIT) Act. The proposals make several changes to PIT treatment, affecting the rates, personal allowances and other core principles of tax treatment. This article explores key changes to labour taxation affecting taxpayers from next year.

In many companies summer is the time when staff performance is being appraised, potentially leading to promotions and bonus payments. Yet the employer has discretion in paying bonuses – it’s not an obligation but a choice. There are several preconditions to consider when it comes to setting up and running a bonus system. The case law says a bonus shows appreciation for an employee’s good work, so it’s up to the employer to determine the amount of a bonus. However, this decision-making power should not be interpreted as the employer’s unilateral opportunity to pay bonuses inconsistently and with no legal justification.

If we are to successfully integrate artificial intelligence (AI) in society, first of all we need to cross our moral threshold. We can see a common attitude that “the technology is not ready, it’s not capable of doing what I need”. However, we often expect AI to act independently like a human. The technology can do a lot of things, yet we need to find out if we are able to see its added value. The computer does what we tell it to do, rather than what we want it to do.

Inheritance tax is payable by individuals that receive property or money from a testator. Rates and exemptions may vary from country to country according to the degree of relationship between heirs, the inherited value and other criteria. Latvia has not introduced inheritance tax. This article explores the Finance Ministry’s proposal for introducing inheritance tax in Latvia, as identified in the report ‘An assessment of the current workforce cost situation and proposals for future action’, a tax policy planning document.

The European Union (EU) celebrates May as the month of diversity to highlight the importance of diversity and inclusion (D&I) in society. Diversity basically reflects the nature of a person’s unique and distinct qualities and relates to people’s different values in terms of gender, age, ethnicity, religion, sexual orientation, abilities and experience.