We have written before about changes to labour law affecting tax matters. Tax authorities are now scrutinising compliance with local and international law that provides for giving posted workers employment conditions that are consistent with the host country’s national law, including prescribed working hours, rest periods, protection at work and minimum pay. This article explores the rules governing pay and their tax implications.

During the pandemic, Latvian companies faced unprecedented challenges around remote working, when the entire corporate culture came up for overhaul. The biggest challenges arose from the need for flexibility as the traditional eight-hour working day at the office was upgraded with the option to connect remotely at the employee’s convenience. Some companies cancelled the full-time office presence requirement altogether and set up alternative working arrangements with variable hours, places and conditions. Flexibility became a key aspect in keeping employees motivated and loyal. This article explores the rapid development of flexible reward schemes.

PwC US has carried out HR Tech Survey 2022. We believe that MindLink.lv subscribers, too, might be interested in its findings, as they relate to one of the traditional corporate processes – human resources (HR), or more precisely, investing in HR technologies. HR technologies in this article mean IT systems that enable the recording of HR processes, such as vacations, time sheets, training courses, hiring and firing. The survey interviewed 688 HR leaders, who answered questions about their technology challenges and achievements. The full survey is unfortunately restricted to the US market, but a summary offering many valuable insights is available here. This article explores what we see as key findings.

There are various programmes out there aimed at increasing a company’s sales by raising the productivity of its employees joining the programme, by increasing customer loyalty etc. Cross-border programmes are also implemented in Latvia, and their tax issues are very topical as well as complicated. This article explores employee incentive programmes in the light of a recent VAT ruling from the Court of Justice of the European Union (CJEU).

Dropping all the hype about the Great Resignation and stiff competition for talent, we invite you to look at investing in your people from a few rational down-to-earth perspectives. Based on a number of PwC surveys, you might end up finding a good argument in your budgeting process in favour of investment initiatives targeting your people.

In March 2021 the European Commission passed a proposal for a new directive  aimed at putting mechanisms in place that will help employers provide equal pay for men and women. According to the draft directive, the pay disparity is still about 14%. Inequality becomes evident when we convert this percentage into days: compared to men, women actually have to work 51 days a year without pay. The main aim of the new rules is to minimise gender inequality in pay. While gender equality is a topic that has been discussed in public at length, statistics do not give us a reason to believe a balance has been achieved on the issue of pay. To achieve this, the European Commission has come up with new solutions that will mean new statutory obligations for employers.

The Latvian Labour Code is amended on a regular basis and sometimes even more than once a year, but recent years have not seen so sweeping amendments as those coming into force on 1 August 2022. This article will help you navigate the new provisions of labour law.

In March 2022, PwC conducted the “Global Workforce Hopes and Fears” survey of 52,195 individuals who are in work or active in the labour market. That was one of the largest ever surveys of the global workforce, covering a range of industries, demographic characteristics and working patterns in 44 countries and territories.

Many workers take a vacation in the summer but accountants usually pick a time with a relatively lower workload. Taking a full vacation tends to be difficult when you are supposed to be filing tax reports, calculating and paying out wages, or closing the month. This article explores replacement possibilities and an appropriate evaluation of accounting risks during accountants’ absence.

Productivity has always been high on the agenda in organisations. Remote and hybrid working during the pandemic has brought some new advantages as well as complex challenges. When trying to put our processes back on track, we often focus on the process itself and how to streamline it, yet people play a big role in the productivity puzzle.

Employers commonly use GPS geolocation devices to monitor their vehicles or equipment and to analyse fuel consumption, mileage, driving time, idle time, parking time, usage statistics etc. European case law has introduced tighter rules and requirements for personal data processing associated with GPS tracking. There are certain restrictions that companies using these devices for business purposes should be aware of.

With the summer holidays approaching, student employment is an option. This article explores tax aspects to be considered if a student wants to do paid work during the summer holiday, how such income is treated, and what tax relief is available to parents.

On 20 April 2022 the Regional Administrative Court again ruled on a dispute between a Latvian company and the State Revenue Service (SRS) about refunding overpaid personal income tax in a situation of double taxation. This court ruling follows the Supreme Court Administrative Division’s ruling No. A420282416 of 9 July 2020 (SKA-150/2020). The Regional Administrative Court’s anonymised ruling is available under case No. A420282416 (archive No. AA43-0096-22/15).

The Labour Act does not prohibit employers from hiring part-time workers under the cumulative scheme. This issue has been settled by case law, yet we can still see some part-timers employed on a cumulative basis. This article explores the potential consequences of such action.
 

Every two years the Ministry of Welfare prepares an informational report on the operation and development of social enterprises (SEs) for submission to the Cabinet of Ministers. The latest report on SE development, with information relevant to companies seeking SE status, was submitted on 30 March 2022. This article explores what SE status is and what aid measures it offers, as well as providing an overview of the information included in the report and of proposals for amending the SE Act.