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Labour Administration Convention, 1978 (No. 150) - Latvia (Ratification: 1993)

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Direct Request (CEACR) - adopted 2021, published 110th ILC session (2022)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on labour administration and inspection, the Committee considers it appropriate to examine Conventions Nos 81 (labour inspection), 129 (labour inspection in agriculture) and 150 (labour administration) together.

A. Labour inspection

1. Labour Inspection Convention, 1947 (No. 81)

2. Labour Inspection (Agriculture) Convention, 1969 (No. 129)

Article 3(1) and (2) of Convention No. 81 and Article 6(1) and (3) of Convention No. 129. Primary functions of labour inspectors. 1. Labour inspection activities in the area of undeclared work. In its previous comments, the Committee requested the Government to continue to provide information on the work of the labour inspectorate in relation to the establishment of formal employment contracts and the registration of workers in the social security scheme. The Committee notes the information provided by the Government in its report according to which during the period from 2017 to 2020, the State Labour Inspectorate (SLI) imposed a total of 2,546 administrative penalties on employers for establishing employment without a written employment contract and/or a declaration to the State Revenue Service. It also notes that under section 25 of the Law on Administrative Liability of 2018, the imposition of administrative penalties does not exempt the employer from compliance with the obligation to enter into a written employment contract, in accordance with sections 28(1) and 41(1) of the Labour Law of 2001.

The Committee also notes the Government's indications on the conduct of surveys for the identification of unregistered employment, as well as on the activities undertaken to improve the effectiveness of the surveys. The Committee notes that from 2017 through the first quarter of 2021, the SLI conducted 2,606 surveys in mining, manufacturing and commercial enterprises during which 1,094 unregistered employees were identified. It also notes that during the same period, the SLI re-inspected enterprises where no unregistered employees were identified, but where there were indications that unregistered employment may be present. In this regard, the Committee notes that 1,426 surveys were repeated in enterprises identified as having a high risk of unregistered employment.

The Committee further notes with interest the Government’s indication that following inspections carried out by the SLI from 2017 through the first quarter of 2021, 3,297 employees were regularized through the conclusion of written employment contracts and the registration of employees with the State Revenue Service, and that this number represents between 55 per cent and 71 per cent (variations by year) of all identified unregistered employed persons.

In addition, the Committee notes the comprehensive information provided by the Government on the measures taken by the SLI to reduce unregistered employment. In particular, it notes the establishment of the Working Group of Unregistered Employment Coordinators in 2017, through which criteria were developed to identify unregistered employment; the 2019 cooperation agreement between the SLI and the Free Trade Union Confederation of Latvia (FTUCL), under which the scope of cooperation issues in the field of unregistered employment was expanded; as well as the Government's indications regarding the annual meetings organized by the SLI with the FTUCL to report on the results of the previous year and discuss the plan for the following year. The Committee requests the Government to continue to provide information on the work of the labour inspectorate with respect to securing the enforcement of sections 28(1) and 41(1) of the Labour Law on the establishment of written employment contracts. It also requests the Government to continue to provide specific information on the number of employees whose situation is regularized, as compared to the number of unregistered employees identified.

2. Labour inspection activities related to the monitoring of migrant workers. The Committee notes the Government's indication in response to its previous request for information on joint inspections carried out with the State Boarder Guard that joint employment control measures are regularly implemented to prevent violations of laws regulating employment relationships and labour protection, as well as violations of the Immigration Law, including the conditions of residence and employment of foreigners. In this respect, the Committee notes that according to the information provided by the Government, 333 joint inspections with the State Boarder Guard were carried out between 2017 and 2020 to control the employment of third-country nationals. It also notes the information concerning the cooperation agreement between the SLI and the State Border Guard, which aims to organize cooperation between these two state bodies and to monitor the effectiveness of inspections carried out in view of the increased urgency of employment control and monitoring of third-country nationals.

Moreover, the Committee notes that the Government indicates that in order to monitor unregistered employment of third-country nationals, SLI officials regularly cooperate with the State Border Guard, the State Police, the Office of Citizenship and Migration Affairs, the State Revenue Service and the Ministry of the Interior, and that each institution uses the information obtained in joint inspections within its competence as evidence in order to prove unregistered employment. The Committee recalls that the primary duty of labour inspectors is to protect workers and not to enforce immigration law. The function of verifying the legality of employment should therefore have as its corollary the reinstatement of the statutory rights of all workers if it is to be compatible with the objective of labour inspection. In this connection, the Committee requests the Government to take the necessary measures to ensure, in accordance with Article 3(2) of Convention No. 81 and Article 6(3) of Convention No. 129, that additional duties which are not aimed at securing enforcement of the legal provisions relating to conditions of work and the protection of workers are assigned to labour inspectors only insofar as they do not interfere with their primary functions. The Committee also requests the Government to indicate the time and resources allocated by labour inspectors to each of their duties related to monitoring migrant workers, in comparison to the time and resources allocated to their primary functions. The Committee further requests the Government to provide information on instances where inspectors took specific action to provide migrant workers with protection of labour rights equal to those enjoyed by Latvian citizens.

Articles 3(1)(b), 5(b), 13(2)(b) and 16 of Convention No. 81 and Articles 6(1)(b), 13, 18(2)(b) and 21 of Convention No. 129. Preventive measures carried out in the area of occupational safety and health (OSH), including in agriculture. The Committee notes the information provided by the Government, in response to its previous request, that the SLI carries out an average of 10,000 inspections in enterprises each year. It notes that in both preventive and extraordinary inspections, which include accident investigations, examination of submissions and preparation of hygienic descriptions of workplaces, SLI officials pay attention to compliance with the requirements of laws and regulations regarding labour protection (including mandatory health inspections, provision of personal protective equipment, assessment and measurement of risk factors and training in safe working techniques), and that, potential danger and direct threats to the safety and health of employees can therefore be detected.

The Committee also notes the Government's indications that in order to improve the supervision and control of the working environment, the number of preventive inspections in the field of labour protection has increased from 2,215 to 3,103 between 2017 and 2020. It notes that 5 per cent of all inspections are carried out to inspect enterprises in which breaches of labour protection and/or labour law have previously been detected, and to assess whether and how the breaches have been addressed.

The Committee further notes the Government's indications that pursuant to section 7(1) of the State Labour Inspectorate Law of 2008, which empowers officials of the labour inspectorate to suspend the operation of a person or object, if they detect that laws and regulations regarding labour protection and employment relationships have been violated, SLI officials issued orders and warnings concerning the suspension of the operations as follows: in 2017, 15 orders and 13 warnings; in 2018, 6 orders and 36 warnings; in 2019, 10 orders and 55 warnings; and in 2020, 3 orders and 14 warnings. Further, the Committee notes that, according to the Government, in the agricultural sector during the period 2017–20, the SLI conducted 1,439 inspections, issued 418 orders for the elimination of 2070 violations, and imposed 169 administrative penalties. The Committee also notes that the number of occupational accidents and diseases continues to increase since 2015 while the number of fatal accidents remains substantially unchanged.

The Committee notes, in addition, the Government’s indication that the SLI organizes annual thematic inspections in the field of labour protection, targeting high-risk sectors, including agriculture, with the objective, inter alia, of preventively inspecting working conditions in enterprises and reducing the risks of occupational accidents and diseases. In this regard, the Committee notes that from 2017 to 2020, the SLI organized thematic inspections in various sectors, such as construction, agriculture, metallurgy, food and beverage production, as well as on the safe use of chemicals in the working environment. The Committee requests the Government to continue to provide information on the preventive activities carried out by the SLI in the field of OSH. It also requests the Government to provide information on annual inspections conducted including preventive, extraordinary, follow-up and thematic inspections, as well as information on the number of orders issued with immediate executory force in case of imminent danger to the health or safety of workers. With regard to occupational accidents and diseases, the Committee also refers to its comment concerning the application in practice of Convention no. 155.

Articles 6 and 11(1) of Convention No. 81 and Articles 8 and 15(1) of Convention No. 129. Status and conditions of service of the labour inspection staff. Provision of work equipment. Further to its previous comments on the increase in the remuneration of labour inspection staff, the Committee notes the Government's indications regarding the increase in the SLI budget and its remuneration fund until 2021, which directly affects the average level of remuneration of employees. In this regard, it notes that in 2019, all employees whose job performance evaluation was good, very good and excellent, received a job performance evaluation bonus in the amount of 55 per cent, 65 per cent and 75 per cent, respectively, in accordance with section 35 of the Cabinet of Ministers Regulation No. 66 of 2013 “Regulations Regarding Work Remuneration of Officials and Employees of State and Local Government Authorities, and Procedures for Determination Thereof”. It further notes that according to the information provided by the Government, the turnover rate of inspectors decreased from 28 per cent in 2017 to 17 per cent in 2020.

The Committee also notes that the Government indicates that SLI officials receive certain benefits, including annual leave allowances of up to 50 per cent of the established monthly salary and cash prizes for personal contribution to employees aged 50, 60 and 70 who have worked for at least 5 years.

With respect to the remuneration levels of SLI inspectors, the Committee notes the Government's indication that remuneration is determined in accordance with the Law on Remuneration of Officials and Employees of State and Local Government Authorities of 2009, which establishes a unified system for determining remuneration of employees and officials of state and local government institutions.

The Committee further notes the Government's reply to its previous request for information on the measures taken to improve the equipment necessary for the performance of work responsibilities. In particular, it notes that during the period from 2018 to 2020, personal protective equipment (including footwear, helmets and vests, warm windbreakers and fleece jackets) and office equipment (including desks, chairs, air conditioners, smartphones, laptops, computers, printers and photocopiers) were acquired. In addition, it notes that the SLI has 36 cars at its disposal to facilitate the performance of inspection tasks. Taking due note of this information, the Committee requests the Government to continue to provide information on the status, conditions of service, and turnover rate of the labour inspection staff.

A. Labour administration

Labour Administration Convention, 1978 (No. 150)

Article 6 of the Convention. Impact of austerity measures on labour administration. The Committee notes the Government's indication, in response to its previous request for information on the measures taken as a result of the economic and financial crisis, that short-term measures aimed at alleviating the severe social consequences of the crisis and reducing the risk of increased poverty, and long-term measures aimed at improving the competitiveness of the labour force and promoting the inclusion of disadvantaged groups in the labour market, have been necessary in recent years. It notes that while the Government does not refer to specific measures taken in the area of labour administration, public spending on labour market policies remains below 1 per cent of GDP since 2012.

The Committee further notes the Government's indications that with the rapid spread of COVID-19 and the decline in economic activity since March 2020, the number of unemployed persons has increased, impacting the workload of State Employment Agency (SEA) staff. At the end of 2020, 69,000 unemployed persons were registered with the SEA. In this respect, the Committee notes the information provided by the Government on the functions and activities carried out by the SEA for the promotion of employment.

Lastly, the Committee notes the Government’s indication that with regard to social insurance benefits, since 2015 there are no longer restrictions or limits on the amount of benefits. While taking due note of this information, the Committee requests the Government to continue to provide information on the measures taken in order to address the health crisis and their impact on the effective performance of the functions of the labour administration services. It also requests the Government to continue to provide information on the work of the labour administration services in relation to the situation of unemployed persons.

Article 10. Status, conditions of service, material means and financial resources necessary for the effective performance of the staff of the labour administration. Further to its previous comments on the conditions of service of the staff of the labour administration and the allocation of appropriate financial resources to this end, the Committee notes the Government's indications that in the period from 2015 to 2019, the total amount of remuneration of the SEA staff has increased from €5,963,177 in 2015 (with 675.71 positions in 2015) to €7,710,415 in 2019 (with 699.82 positions in 2019).

The Committee also notes that the Government indicates that in 2019, as a result of SEA operational resource efficiency measures, the number of workloads financed from the SEA basic budget and special budget funds was reduced by 4 per cent (as of 1 January 2019 it was 460 positions and as of 1 January 2020 it was 441.6 positions). It also notes that the average monthly salary of SEA employees in March 2020 was €901 (approximately US$1,040), while in 2019, the average gross wages and salaries for full-time work in the country was €1,076 (approximately US$1,242). The Committee further notes the Government’s indication that the increase in the average level of remuneration in the economy makes the remuneration offered by the SEA less competitive and the Agency faces the challenge of attracting and retaining qualified specialists, which increasingly affects the agency’s capacity to provide quality customer service, to implement EU projects and to develop its operational processes.

With respect to material means necessary for the effective performance of the labour administration staff, the Committee notes the Government's indications regarding the acquisition of work tools including laptops, webcams and headsets following the organization of remote work, in order to reduce the risk to the health of the employees and clients of the SEA caused by COVID-19. Lastly, the Committee notes the information provided by the Government on the annual trainings of the SEA staff from 2015 to the first quarter of 2021, which were mainly focused on improving customer service skills and knowledge, including working with customers with special needs, establishing cooperation with employers and implementing the SEA employee support program. Noting the efforts made by the Government in relation to the conditions of service of the staff of the labour administration, the Committee requests the Government to continue its efforts to ensure that their remuneration is appropriate for the effective performance of their duties, in accordance with Article 10(2) of the Convention.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

Legislative developments. The Committee notes the information provided by the Government on the adoption of various amendments to the national legislation, including the adoption and coming into force of the Law on Trade Unions in 2014, a copy of which is attached to the Government’s report.

Article 6 of the Convention. Impact of austerity measures on labour administration. The Committee notes the Government’s indication, in reply to its previous request concerning the impact of austerity measures on labour administration, that in order to stabilize and restore the economy, Latvia had to adopt difficult political decisions. According to the Government, the reduction in the amount of unemployment, sickness and maternity/paternity benefits was not only aimed at the reduction of the budget expenditure, but also at enabling the granting of social security benefits to all beneficiaries. The Committee further notes that the Government refers to the adoption of a number of additional employment promotion measures and the slow recovery of the economy since 2011. The Committee requests that the Government continue to provide information on the measures taken as a result of the economic and financial crisis (decisions in relation to the budget allocated to the labour administration services, and in relation to social security benefits, etc.) and their impact on the effective performance of the functions of the labour administration services.

Article 10. Status, conditions of service, material means and financial resources necessary for the effective performance of the staff of the labour administration. The Committee notes the Government’s indication that due to the impact of the crisis on the availability of jobs, the number of persons using the State Employment Agency (SEA) has increased. This has required the introduction of new approaches and methods. In this regard, the Government refers to improvements in the operation of the SEA (including through the use of an electronic unemployment profiling system, the development of new career consultation support methodologies, the introduction of new electronic services for clients, the integration of an electronic labour market information tool in the work of the SEA, among other things). The Government further refers to various training activities of the SEA staff, including the training in relation to the abovementioned new measures and electronic tools.

In this regard, the Committee also notes the Government’s indications in its report that despite an increase from 2010–14 in the wages of staff of the SEA, their average monthly wage (€719 that is, about US$765) is lower than the national average monthly wage (€765 that is, about $813). It notes the Government’s indication that it therefore becomes difficult for the SEA to attract highly qualified personnel. The Committee requests that the Government pursue its efforts to ensure that the conditions of service of the staff of the labour administration are appropriate for the effective performance of their duties (including remuneration commensurate with their responsibilities). It requests that the Government ensure the allocation of appropriate financial resources to this end.

Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

The Committee takes note of the Government’s report and the information it contains in relation to the substantial institutional changes which took place in 2007 in the field of professional career services, in particular, the merger of the State Professional Career Choice Agency with the State Employment Agency, the creation of an advisory council at the State Employment Agency to formulate opinions and proposals to the Minister for Welfare regarding the implementation of employment policies and the adoption of amendments to the Act on Support for Unemployed Persons and Persons Seeking Employment which came into force on 19 July 2007 in order to specify the competence of the various ministries involved in the field of unemployment policy (Ministry of Economics, Ministry of Welfare, Ministry of Education and Science).

Articles 6 and 10 of the Convention. Impact of austerity measures on labour administration. The Committee recalls that in its previous comments it had welcomed among other things, the information provided by the Government on the criteria for selecting and remunerating public labour officials and the need to provide them with conditions of service and work which allow them to continue in their posts and improve their skills and qualifications. It had requested the Government to provide information on any change in the functioning of the labour administration system.

The Committee notes that in the context of the current economic crisis and an emergency agreement with the European Commission and the International Monetary Fund (IMF), Latvia has been one of the first European States to introduce austerity measures in 2009. It notes that according to publicly available information, on 9 June 2009 an agreement was reached on the creation of a government-level crisis working group with the involvement of the social partners. On 16 June 2009 the Parliament (Saeisma) adopted amendments to the Law on Insurance in Case of Unemployment which came into force on 1 July 2009 in order to increase state support to the unemployed. However, this measure was accompanied by a reduction in social guarantees: among other things, the Parliament adopted on 16 June 2009 the Act on State Pension and State Allowance Disbursement in the period from 2009 to 2012 which drastically reduced old-age pensions and benefits. This Act was subsequently declared unconstitutional by the Latvia Constitutional Court Decision No. 2009-43-01 of 21 December 2009 on the grounds that the measures in question were disproportionate and did not comply with the principle of protection of legitimate expectations. The Committee also notes that on 1 December 2009 the Saeisma adopted Latvia’s revised budget for 2010, which introduced significant tax increases and reduced government expenditure to 2004 levels. The Committee understands that both the Latvian Free Trade Union Federation (LBAS) and the Employers’ Confederation of Latvia have publicly expressed apprehension about the impact of these measures on the competitiveness of Latvian business and on employment levels in times of recession.

The Committee would be grateful if the Government would provide in its next report an assessment of the impact of the above measures on the application of the Convention, especially Article 6, according to which the competent bodies within the system of labour administration shall be responsible for the preparation, administration and review of a national labour policy, including a national employment policy, by among other things, studying and keeping under review the situation of employed, unemployed and underemployed persons and making services available to employers and workers and their respective organizations.

The Committee would also be grateful if the Government would indicate the impact of the above measures in relation to Article 10 of the Convention according to which the staff of the labour administration shall have the status, material means and financial resources necessary for the effective performance of their duties.

The Committee finally requests the Government to provide any additional legislative text adopted in the framework of the austerity measures with regard to labour market issues along with an evaluation of its expected impact.

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

Further to its previous comments, the Committee notes with satisfaction the detailed information provided by the Government on the application of the Convention, with each development illustrated by precise data reflecting, most notably, the importance given by the public authorities to the tripartite aspect of this instrument, to the coordination of the tasks and responsibilities of the labour administration system, to the criteria for selecting and remunerating public labour officials and to the need to provide them with conditions of service and work which allow them to continue in their posts and improve their skills and qualifications.

The Committee also notes with interest the proliferation of collective agreements, notably in undertakings where there is trade union representation, and that, within the framework of the PHARE project on the promotion of bipartite social dialogue, a web site has been created (http://www.socialaisdialogs.lv) to familiarize the public with this issue. It also notes that a review of the Law on trade unions was undertaken in 2004, with a view to bringing it into line with ILO Conventions, Recommendations and resolutions and ensuring that the decisions and agreements adopted as a result of negotiation are of a binding nature.

The Committee would be grateful if the Government would indicate any changes in the functioning of the labour administration system over the period covered by the next report and provide a copy of the Trade Union Act once it has been adopted.

Direct Request (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes the Government's first report for the period ending 31 July 1998. It requests the Government to provide detailed information on the application of the following provisions of the Convention:

Article 3. Please state whether national legislation specifically indicates the activities in the field of national labour policy which are regarded as being matters regulated through negotiations between employers' and workers' organizations.

Article 4. Please provide information on any arrangements made to ensure the effective operation, and the coordination, of the functions and responsibilities of the labour administration system.

Article 5. Please provide information on arrangements made at the regional and local levels and in different sectors of economic activity to ensure the consultation, cooperation and negotiation provided for in paragraph 2 of this Article.

Article 6. The Committee asks the Government to indicate the provisions of national legislation requiring the state Employment Service to draw attention to defects and abuses in conditions of work and working life and terms of employment and submit proposals on means to overcome them (paragraph 2(b)); to make its services available to employers (paragraph 2(c)); and to make technical advice available to employers and workers and their respective organizations on their request (paragraph 2(d)).

Article 7. Please indicate whether the functions of the system of labour administration include activities relating to conditions of work and working life of workers such as: tenants who do not engage outside help, sharecroppers and similar categories of agricultural workers; self-employed workers who do not engage outside help; members of cooperatives and worker-managed undertakings; and persons working under systems established by communal customs or traditions, if any; and what measures have been undertaken or envisaged in order to promote the extension of its functions to such persons. Please clarify whether labour legislation is applicable to labour relations between a cooperative and its members.

Article 9. The Committee asks the Government to provide information on the manner in which the Ministry of Welfare exercises control over the activities of non-governmental organizations to which particular labour administration activities have been delegated.

Article 10. Please provide information on the specific forms of training of officials of the labour administration upon their entry into service and in the course of employment (paragraph 1); and on the material means and the financial resources allocated to the staff of the labour administration for the performance of its duties (paragraph 2).

Part V of the report form. Please provide information in respect of the results of realization of the International Labour Organization -- France Project RER/96/MO4/FRA "Strengthening of Inspection and Promotion of Practice under the General Working Conditions in the Baltic Countries" and the International Labour Organization -- the Finnish Baltic Labour Inspection Project RER/94/MO2/FIN and, in particular, measures taken that affect the organization and functioning of the labour administration.