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Severance pay in Latvia: when you get it and how much

Published: 27 September 2026 · Sources checked: 27 September 2026

In short

Severance pay is due when your employer ends the contract for reasons that are not your fault, such as redundancy or liquidation. Under Section 112 of the Labour Law it depends on your continuous service with that employer: one month's average earnings for under 5 years, two months for 5–10 years, three months for 10–20 years and four months for 20 years or more.

When severance is usually not due

There is normally no severance if you resign without a serious reason, are dismissed for misconduct, or the contract ends by mutual agreement that does not provide for it. If you resign for a serious reason under Section 100(5), the law does provide for severance.

When it is paid

The final settlement, including severance, is paid on the day employment ends. Check your payslip separately for severance, unused-leave compensation and pay for the notice period. A collective or individual contract may provide for more.

What evidence to keep

  • Dismissal notice stating the ground.
  • Employment contract showing your start date.
  • Payslips for the last six months (for average earnings).
  • The final settlement calculation.

Step by step

  1. Confirm the dismissal ground — redundancy and liquidation are typical qualifying cases.
  2. If severance is missing, request payment and the calculation in writing.
  3. Complain to the State Labour Inspectorate or file a court claim.
  4. If the employer is insolvent, the employees' claims guarantee fund may cover claims — see the Insolvency Control Service.

Exceptions and caveats

  • Service counts with the current employer only.
  • Average earnings are calculated under Section 75 and Cabinet regulations.

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Official sources

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This is general information on Latvian law prepared with AI assistance, not legal advice and not a guarantee of any result. Laws change — check the current version in official sources before acting.