Direct Request (CEACR) - adopted 2005, published 95th ILC session (2006)

Protection of Workers' Claims (Employer's Insolvency) Convention, 1992 (No. 173) - Latvia (Ratification: 2002)

The Committee notes with interest the Government’s first report on the application of the Convention.

Articles 9 and 11(1) of the Convention. The Committee notes the Government’s reference to the Cabinet of Ministers Regulation No. 425 of 17 September 2002 on the by-laws of the state agency Insolvency Administration and the Cabinet of Ministers Regulation No. 556 of 23 December 2002 on the procedure for the submission, examination and satisfaction of employee claims. As the above regulations are not available at the Office nor have they been appended to the Government’s report, the Committee would appreciate receiving a copy of these texts.

Article 10. The Committee requests the Government to indicate any measures seeking to protect the wage guarantee institution (Employee Claims Guarantee Fund) from abusive practices and to specify any relevant legal provisions.

Article 13. The Committee notes that under the transitional provisions of the law of 20 December 2001 on the protection of employees in case of insolvency of the employer, the aggregate amount of employee claims to be satisfied from the resources of the Employee Claims Guarantee Fund could not exceed LVL 400 (approximately US$750) per employee. The Committee also notes that, according to the Government’s report, the maximum amount of guaranteed payment is currently set at LVL 1,000 (approximately US$1,870) per employee. The Committee would be grateful to the Government for transmitting a copy of the legal instrument fixing the new amount and for supplying additional information on the manner and frequency in which this amount is reviewed and adjusted.

Part IV of the report form. The Committee notes the statistical information provided by the Government in its report concerning the number of wage claims settled and the amounts paid by the Employee Claims Guarantee Fund in 2003. The Committee would appreciate if the Government could continue to supply detailed information on the operation, financing and management of the Fund, particularly as regards the employers’ contribution rate, the number of applications received and claims settled per year, the proportion of the paid amounts which are successfully recovered by the Fund, the evolution of the rate of the Fund’s expenditure as compared to its annual income, etc.