The purpose of this paper is to create an employee ownership model for Latvia including both recommendations for the state and enterprise level. To outline the methods of research, the following qualitative methods have been used: the interview of experts and the content analysis of the model. As aresult, a frame for alternations in legislation has been developed to set the main type of employee ownership and adapt taxation, as well as suggestions have been proposed and methodological principles elaborated for employee ownership introduction in enterprises.