No. 35/2026

The consultation explains that a debtor in collection proceedings can dispute the creditor's claimed amount by submitting evidence such as payment proof. Courts weigh evidence at their own discretion, and only the amount set in the judgment can be collected; debtors may also request deferral or installment payment under Civil Procedure Law Article 206.

A lawyer explains that in civil and administrative cases, the court must be notified of counsel's involvement at the start of the hearing, before the case is examined on the merits, by submitting a power of attorney or order; similar rules apply in criminal cases before trial begins. No fixed advance notice deadline is set by law.

In an opinion piece, the chair of Riga Stradiņš University's academic arbitration court explains how universities' internal arbitration bodies protect student rights by reviewing procedural fairness and equal treatment, without substituting for faculty's academic judgment. Such bodies can overturn expulsions or require fair re-assessment, but have no jurisdiction over employment disputes or private financial claims.

Latvia's Financial Intelligence Unit (FID) reminds that following EU sanctions against the "MERE" retail chain (linked to Sergey Schneider), suppliers have, under a general administrative act issued August 6, been allowed to reclaim their goods from the frozen stores without separate FID approval, provided sanctions conditions are met. Goods that have lost economic value must be handled under other applicable rules, including food-safety requirements; the recovery process practically began on August 7.

Latvia's Competition Council received a merger notification from AIBE pārtika SIA regarding acquisition of decisive influence over SIA LAUMIŅA 1, which runs three retail stores in Viļāni. A decision is due within one month (by September 21), extendable for an in-depth review until November 21, with stakeholder comments accepted until September 3. AIBE plans to continue operations without major changes to range or staffing.

A law published on 25 August lets the state, as airBaltic's shareholder, creditor and bondholder, apply up to four stabilisation measures for AS "Air Baltic Corporation" — extending a 30-million-euro state loan, converting it into equity, converting up to 50 million euros of state-held bonds, or buying up to 30 million euros of new bonds. The Cabinet decides which measures to use, with quarterly reporting to the Saeima's Budget and Finance Committee. The law entered into force on 26 August.

The Cabinet approved rules banning, from 1 September 2026, imports of printed materials, clothing, footwear and toys originating in Russia and Belarus, including goods routed through third countries. The rules supplement existing EU sanctions and will be reviewed annually. Imports from these countries have fallen 91% since 2022.

The Cabinet decided that line ministries must, by 30 September, review planned and ongoing public procurements valued at 140,000 euros or more for supplies/services, or 1 million euros for construction. They must assess whether the procurement is necessary, whether supplier requirements are proportionate, and the risk of cost overruns. State-owned enterprise supervisors must complete their reviews by 1 September.

The consultation clarifies that reaching retirement age does not automatically end employment; the employee must submit written resignation notice one month in advance under the Labour Law, and separately file a pension application with the State Social Insurance Agency no earlier than one month before eligibility.

The article (paywalled, only the lead is visible) explains what documentation is needed when employment contract terms change — duties, pay, working hours or workplace location — referencing Section 97 of the Labour Law on amendments made by mutual agreement of the parties.

The State Labour Inspectorate clarifies that the Labour Law does not automatically grant parents a paid day off on 1 September, though employers may offer it at their discretion. Parents raising three or more children under 16 are entitled to three extra paid leave days, while parents of children under 8 may, under Article 148, request flexible hours or remote work. The Inspectorate advises employees to discuss their needs with employers in advance.

Amendments to the Law on Maternity and Sickness Insurance, published on 25 August, change how parental benefit is calculated for working parents who are not on formal child-care leave. From 1 January 2027 such parents will receive the benefit at 75% of the full rate. The law took effect on 8 September, though the new rule only applies from 2027.

Justice Minister Edvards Smiltēns met with Land Register judges to discuss future development models, including a proposal to shift some judicial functions to a new "court jurist" post. Land Register cases make up about 74% of the workload of specialised judges, and 13 of 68 posts are currently vacant. The Ministry pledged to compare several reform models on legal certainty, cost and service quality, with no final decision yet made.

The consultation explains that co-owners have a two-month right of first refusal when a share is sold to an outside party. If co-owners cannot agree on dividing shared property, any of them may petition a court to terminate joint ownership under Civil Law Section 1074, with the court able to award separate plots, compensation, a sale, or a lottery.

State Revenue Service data show Latvia's total tax arrears fell to €815.593 million as of 1 August 2026, down 1% from July. State budget debts stood at €339.521 million, municipal debts at €298.4 million, and social insurance debts at €177.672 million; €224.797 million of the total is suspended debt from insolvent companies, while €85.203 million has extended payment terms.

The Cabinet approved Finance Ministry amendments to the Personal Income Tax Law. Key changes raise the tax-exempt ceiling for volunteer and clergy expense reimbursements from 1,000 to 3,000 euros a year, exempt loyalty-programme cashback from tax, and widen tax-free gifts between relatives. The re-election period for the reduced patent tax is also shortened from five to two years.

LV portāls explains consumers' 14-day no-reason withdrawal right from consumer credit agreements, requiring repayment of principal and interest within 30 days. Creditors cannot charge penalties for withdrawal except unreimbursed state fees, with exemptions for loans under €140, overdrafts and interest-free credit.

The Cabinet approved draft laws by the Finance Ministry and the Bank of Latvia transposing EU Directive 2025/1 on recovery and resolution of insurers. Insurance and reinsurance companies will have to prepare recovery plans, and if a company faces serious difficulty, the supervisor may apply resolution tools such as business or asset sales, a bridge institution, or write-down of liabilities. Costs will be covered by the Insurance Guarantee Fund, funded by licensed insurers.

The article explains EU residents' right to open a basic payment account at a bank and the conditions under which a bank may refuse or close one. Fees may not exceed average market rates by more than 25%, and consumers can appeal to PTAC or the financial ombudsman.

Justice Minister Edvards Smiltēns convened a meeting with state agencies and cybersecurity experts on rising cyber threats in the justice sector. He stressed that under the National Cybersecurity Law, managing risk and ensuring resilience of critical services is the responsibility of an organisation's leadership, not just IT staff. The Ministry committed to strengthening inter-agency cooperation and treating security audits as an ongoing process rather than a one-off exercise.

Latvia's Ombudsman states that insurers may not demand, and medical practitioners may not provide, a patient's complete medical history for evaluating an insurance claim. Only information directly relevant to the specific insured event may be shared, in line with the data-minimisation principle. The opinion addresses insurers' practices when handling clients' health data.

Latvia's Data State Inspectorate explains how data controllers must notify individuals of a personal data breach, citing the summer CSDD security incident that affected roughly 1.2 million people's data as an example. It states that for mass incidents public notification (website, media) can replace individual letters if individual contact would be disproportionately burdensome, and notices must describe affected data, risks and recommended action.

Justice ministers of Latvia, Lithuania and Estonia met in Tallinn to discuss cooperation on protecting democratic institutions and the rule of law. Latvia's minister stressed that EU requirements should be transposed proportionately, avoiding unnecessary administrative burden on business. No specific legislative changes were announced.

The Senate's Criminal Cases Department terminated criminal proceedings against a businessman accused of large-scale embezzlement, ruling the dispute over unpaid German-supplied goods was a civil commercial matter, not a crime. Under applicable German law, ownership passed to the recipient's company at delivery, so he managed his own, not another's, property; the case now goes to civil courts.

In case No. SKA-139/2026, the Senate overturned an appellate ruling and held that a former judge whose term ended due to reaching the maximum age limit has no right to severance pay. The Senate found the legislator deliberately excluded this ground from judges' compensation rules, unlike other dismissal grounds for state officials; the Justice Ministry had earlier refused payment.

Justice ministers of Latvia, Lithuania and Estonia met in Tallinn to discuss court-system digitalisation, data exchange between institutions and the use of AI in judicial processes, stressing that decisions remain with judges. They backed expanding the European Public Prosecutor's Office to cover serious EU sanctions breaches. The states agreed to continue coordinating on cross-border crime.