πŸ‡±πŸ‡» Europe Β·OECD member Β·EU member

Latvia

Latvia scores 2.71/6.0 on the OECD employment-protection strictness index.

B-READY 2025 OECD EPL
2.71 OECD EPL strictness (0–6)
OECD EPL β†’

Latvia scores 2.71/6.0 on the OECD employment-protection index - above the OECD average of about 2.0. Data is compiled from 2 official sources (World Bank B-READY 2025, OECD EPL), covering statutory notice periods, severance pay, and dismissal procedures.

Latvia - the verdict

Latvia scores 2.71/6.0 on the OECD employment-protection index - above the OECD average of about 2.0.

2.71/6
OECD EPL strictness
64.9/100
B-READY labor quality

Sources: World Bank B-READY 2025 Β· OECD EPL. Higher = stronger statutory protection.

Latvia ranks among the more protective OECD economies, with an overall EPL strictness score of 2.71/6.0, substantially above the OECD average of about 2.0. B-READY 2025 labor regulation quality is 64.9/100.

What the Data Shows for Latvia

Europe. Covered by 2/3 tracked datasets. As an OECD member, it is included in the OECD's long-running historical EPL series. EU membership means its labor rules are also shaped by directives on collective redundancies, transfers of undertakings, and fixed-term work. B-READY 2025 labor score: 64.9/100, moderate. The OECD EPL overall strictness index is 2.71/6.0, where higher values indicate stricter rules on individual and collective dismissal.

Dismissal process: ~5.3 weeks, middling. 3rd-party approval required for individual dismissal.

Formal labor dispute resolution takes a moderate timeline, averaging 5.7 months. A moderate share of firms, 5.8% in the World Bank's survey, report experiencing a labor dispute. Employer social contributions add a comparatively light cost layer, 0.5% of salary. Historically, Latvia's OECD EPL score moved from 3.02 in 2012 to 2.71 in 2019, showing the direction of reform over time. 6 peer comparisons below.

How to read the three measurement scales

These figures draw on three different measurement traditions, so read each one on its own terms before comparing across countries. The ILO EPLex composite condenses statutory termination rules into a single index from zero to one, where higher numbers mean stronger legal protection against dismissal. The World Bank Business Ready 2025 labor score runs from zero to one hundred and blends the quality of regulation with how well public services and dispute processes actually work in practice. The OECD employment protection index uses a zero to six scale and only covers member economies, but it offers the longest historical series, which makes it the better choice for tracking reform over time. A country can score strictly on paper yet still process dismissals quickly, so always weigh the statutory index against the practical estimates. Where a country appears in fewer than all three datasets, treat the missing measures as not yet collected rather than as a sign of weak protection, and revisit this page when new releases are published because indicators can shift year over year.

Data Sources

2

ILO / WB / OECD coverage

Region

Europe

Geographic grouping

Latest Year

2025

Most recent indicator update

ILO EPLex
-
No data available
B-READY 2025
64.9
out of 100 Β· Rank #62
OECD EPL
2.71
out of 6.0 Β· Rank #17


B-READY 2025

Labor Regulation Quality

Regulation Quality
67.8
out of 100
Public Services
75.6
out of 100
Efficiency
51.4
out of 100
Notice Required
Yes
Severance Required
Yes
Weeks to Dismiss
5.3
Weeks Severance
7.1
Firms in Disputes
5.8%
Months to Resolve
5.7
Social Contributions
0.5%
3rd Party for Dismissal
Required

Source: World Bank Business Ready 2025 World Bank Business Ready 2025 Pillar scores are 0-100 (higher = better regulation quality)


OECD EPL

Historical Protection Score

Year Overall Score Visual
2012 3.02
2013 2.71
2014 2.71
2015 2.71
2016 2.71
2017 2.71
2018 2.71
2019 2.71

Scale: 0-6 (higher = more protective). Source: OECD Employment Protection Legislation database.

Frequently Asked Questions

What are the employment protections in Latvia?

World Bank B-READY labor regulation quality: 64.9/100; OECD EPL overall: 2.71/6.0. (2 sources.)

How does Latvia compare to the OECD average?

OECD EPL 2.71/6.0 (above the ~2.3 average).

What notice period and severance pay does Latvia require?

notice mandated; severance mandated.

What data sources cover Latvia's employment laws?

2 sources: World Bank B-READY 2025; OECD EPL.

How strict are dismissal protections in Latvia?

3rd-party approval required; dismissal ~5.3 weeks.

How does Latvia handle labor disputes?

disputes resolve in ~5.7mo; 5.8% of firms report one; social contributions 0.5% of salary.

What to do with this

Use Latvia's scores as a comparison benchmark, not legal advice.

  • See where Latvia lands among all rated countries on each protection index. View the rankings
  • The three indices measure different things on different scales, compare Latvia side by side with another country before drawing a conclusion. Compare Latvia
  • Read Latvia against its regional peers, the Europe averages reveal the structural pattern. Europe overview

These indices reflect the law as written, not how it is enforced, recent amendments, or the facts of any individual case. For a real decision, confirm the current statute and consult a qualified employment lawyer, see our disclaimer.

Related

Data sourced from official OECD, ILO, and World Bank employment-protection datasets. See our methodology for details. Retrieved and formatted by PlainEmploy Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from OECD, ILO, and World Bank labor market databases. Consult a qualified professional before making decisions based on this data.

Primary sources: ILO EPLex, World Bank B-READY, OECD EPL.

PlainEmploy is rendered directly from the OECD Employment Protection Legislation indicators, the ILO EPLex database, and the World Bank B-READY labor pillar, no number is typed in by an editor. This country's composite scores and comparisons are computed directly from the underlying OECD/EPLex/B-READY tables, no figure is typed in by an editor. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error. Data current as of 2026-07-06.