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Actual problems of legislation
     applicable in Latvia

                                      Liene Kiršfelde
                      State Social Insurance Agency
                  trESS seminar RIGA, 19 April 2012




                                                        1
Statistics


       A1     E101   Total      Applications refused:
2010                  5224      • In 2011 - 12%
2011   3945   2071    6016      • In 2012 - 13%
2012   982    793     1775



   State Social Insurance Agency informs electronically
   State Revenue Bureau on all issued/received A1/E101


                                                          2
Main problems (I)


• Slow information exchange with some MS;

• Employers sometimes do not understand difference
  between work in two or more MS and posting;

• Employers often apply person for much longer
  posting period, “just in case”;


                                                 3
Main problems (II)


• Not all employers inform on changes in posting
  situation, when A1/E101 should be terminated;

• Employers sometimes ignore their obligations
  regarding posted workers’ working conditions
  and salary (Labor Code and Directive 96/71/EC);



                                                   4
Main problems (III)


• In cases of posted self-employed persons it is
  hard to verify persons economic activity;

• Sometimes self-employed persons do not
  understand that when posted they still have to
  pay social insurance contributions in Latvia and
  inform State Revenue Bureau.



                                                     5
Questions (I)

• Is there any possibility to apply Article 16 of Regulation
  No 883/2004 in case the enterprise does not meet
  special rules of paragraph 1 Article 12 of Regulation No
  883/2004 (for example, enterprise registered in Latvia at
  the moment does not carry out any activity in Latvia)?

• How to take a decision on issue of the certificate A1
  without permission of other MS competent institution in
  case there is no answer on common agreement request
  for a very long time?


                                                               6
Questions (II)

• Is the principle of paragraph 3.c) of AC Decision No.A2
  applicable to all posting cases when the certificate A1
  has been issued or to those cases, when a person has
  been posted to maximum period of 24 months only?

• When examining documents of application to A1 it is
  clear that enterprise does not carry out any activity in
  Latvia anymore, issue of A1 is refused. Should
  previously issued certificates A1 be terminated or
  cancelled?



                                                             7
Paldies!
   Ačiū!
Thank you!


             8

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2012 - Actual problems of legislation applicable in Latvia

  • 1. Actual problems of legislation applicable in Latvia Liene Kiršfelde State Social Insurance Agency trESS seminar RIGA, 19 April 2012 1
  • 2. Statistics A1 E101 Total Applications refused: 2010 5224 • In 2011 - 12% 2011 3945 2071 6016 • In 2012 - 13% 2012 982 793 1775 State Social Insurance Agency informs electronically State Revenue Bureau on all issued/received A1/E101 2
  • 3. Main problems (I) • Slow information exchange with some MS; • Employers sometimes do not understand difference between work in two or more MS and posting; • Employers often apply person for much longer posting period, “just in case”; 3
  • 4. Main problems (II) • Not all employers inform on changes in posting situation, when A1/E101 should be terminated; • Employers sometimes ignore their obligations regarding posted workers’ working conditions and salary (Labor Code and Directive 96/71/EC); 4
  • 5. Main problems (III) • In cases of posted self-employed persons it is hard to verify persons economic activity; • Sometimes self-employed persons do not understand that when posted they still have to pay social insurance contributions in Latvia and inform State Revenue Bureau. 5
  • 6. Questions (I) • Is there any possibility to apply Article 16 of Regulation No 883/2004 in case the enterprise does not meet special rules of paragraph 1 Article 12 of Regulation No 883/2004 (for example, enterprise registered in Latvia at the moment does not carry out any activity in Latvia)? • How to take a decision on issue of the certificate A1 without permission of other MS competent institution in case there is no answer on common agreement request for a very long time? 6
  • 7. Questions (II) • Is the principle of paragraph 3.c) of AC Decision No.A2 applicable to all posting cases when the certificate A1 has been issued or to those cases, when a person has been posted to maximum period of 24 months only? • When examining documents of application to A1 it is clear that enterprise does not carry out any activity in Latvia anymore, issue of A1 is refused. Should previously issued certificates A1 be terminated or cancelled? 7
  • 8. Paldies! Ačiū! Thank you! 8