The rules on severance pay in detail

Statutory severance is payable where:

  • the employee does not have sufficient professional skills for the job;
  • the employee is unable to perform the job because of ill health;
  • an employee who previously did the same job has been reinstated;
  • there has been a reduction in the number of employees (redundancy);
  • the employer is being liquidated;
  • extended sick leave (more than six consecutive months or one year in a three-year period). 

The amount of the severance pay depends on the seniority of the employee at the employer:

Length of service Severance pay
Up to 5 years 1 month’s average earnings
5 to 10 years 2 months’ average earnings
10 to 20 years 3 months’ average earnings
More than 20 years 4 months’ average earnings
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Author: COBALT Latvia

Date: December 2018


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