On 10 June 2026, the Supreme Court of the Republic of Latvia delivered a judgment favourable to Evolution Latvia SIA in case No. SKC-35/2026 concerning the termination of an employment agreement during a probationary period. Sitting in an extended composition, the Supreme Court provided important guidance on the application of probationary periods.
The dispute concerned the employer’s right to terminate an employment agreement during the probationary period before commencement of actual work. In this case, the Supreme Court departed from its previous case law, which had recognised that an employee whose employment agreement was terminated during the probationary period should have the right to request the restoration of their previous legal position, including reinstatement.
“The Supreme Court’s judgment provides important clarity on the application of probationary periods and employers’ rights during this time. It is a significant ruling for employment law practice in Latvia, as it clarifies the boundaries between an employee’s right to judicial protection and an employer’s statutory right to assess the employee’s suitability for the work,” explains Toms Šulmanis, COBALT Partner.
The Supreme Court held that where an employer terminated an employment agreement on the grounds that the employee had not passed the probationary period, the employee had no right to bring a claim seeking reinstatement. Nor did the employee have the right to remuneration for forced absence from work. At the same time, an employee could bring a claim for damages if the termination was carried out in breach of the prohibition of differential treatment.
Another important finding concerned the employer’s right to terminate an employment agreement during the probationary period before the employee had actually commenced performing their duties. The Supreme Court held that an employer was entitled to do so where, after concluding the employment agreement, the employer obtained information about the employee that gave grounds to conclude that the employee was not suitable for the work.
COBALT provided representation for Evolution Latvia SIA throughout this complex employment law dispute, achieving a favourable outcome. The client was represented by COBALT Partner Toms Šulmanis and Senior Associate Ivo Maskalāns.
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