Lithuania HR Information

Updated on: 2025/08/05 15:25 (UTC)

Overview

The principal statute regulating employment is the Labor Code. Case law interpreting the code is also important. A major revision to the Labor Code took effect on Jan. 1, 2017.

Hiring

Employment Contracts

An employment contract (and any subsequent amendment to it) must be in writing and executed in two copies, one each given to employee and employer. An employment contract must be in Lithuanian, and employment contracts with foreign employees may be in Lithuanian and another language acceptable to both parties.

Unless a later date has been agreed, the employee may start working on the next working day after conclusion of the employment contract. The employer must notify the State Social Insurance Fund about new employment at least one working day before the new hire’s actual work commences.

In addition to details identifying the employer and the employee, the employment contract must include:

• place of work (enterprise, establishment, organization, structural unit, etc.),
• employee’s work functions (profession, speciality, qualification or specific duties at work), and
• remuneration for work (remuneration system, amount of the salary, procedure of payment, etc.).

Other mandatory terms and conditions (e.g., term of the employment contract, seasonality of work) are related to the type of employment contract (fixed-term, seasonal work, etc.). Specific provisions must be included in employment contracts for certain categories of employees (such as apprentices, chief executive officers).

Although the employer and the employee are free to detail the terms and conditions of employment, an employment contract may not establish working conditions less favorable to the employee than those provided by the Lithuanian Labor Code except with relation to:

• maximum and minimum working time,
• termination of the employment contract,
• minimum salary,
• security and health and
• nondiscrimination, if the employment contract ensures the balance of interests of the employer and employee.

The employer and the employee may agree to a probationary period not exceeding three months.

It is advisable to specify in whose interest (the employee’s or the employer’s) the probationary period is set and to note that the employee’s periods of absence from work (sick leave, annual leave, unpaid leave, etc.) are not included in the duration of the probationary period. Probation is not allowed for persons:

• under 18 years of age,
• transferred by the agreement between employers to work for another employer and
• in certain other cases specified by labor laws.

The types of employment contracts that can be entered into are as follows:

• indefinite period contracts,
• fixed-term contracts,
• temporary employment contracts,
• apprenticeship contracts,
• undetermined volume contracts,
• design contracts,
• job-sharing contracts,
• employment contract for several employers and
• seasonal employment contracts.

Most employment contracts are concluded for an indefinite period. A fixed-term employment contract may, however, be concluded for a certain period or for the performance of certain work but may not exceed five years. Fixed-term contracts cannot exceed 20 percent of the total number of employment contracts. It is prohibited to conclude a fixed-term employment contract if work is of a permanent nature, except if otherwise provided in law or in a collective bargaining agreement. If work continues even though the term of an employment contract has expired and neither party requests termination of the contract, the agreement is considered to have been extended for an indefinite period of time.

Restrictions on Hiring

Employers are prohibited from hiring persons who are under 18 years of age for:

• work that is beyond their physical and psychological capacity;
• work involving exposure to toxic, carcinogenic agents causing genetic mutation or which are harmful to health;
• work involving possible exposure to ionizing radiation or other harmful and/or dangerous agents;
• work involving a higher risk of accidents or occupational diseases or
• work which a young person might not be able to perform safely due to lack of experience or attention to safety.

Recordkeeping

The Lithuanian Labor Code requires the employer to obtain an identification document (passport, ID card) and state social insurance certificate from every new hire. Where labor laws make recruitment conditional upon certain education, vocational training or health status, the employer must require a new hire to submit documents confirming these criteria have been met.

Copies of these documents, along with the employment contract and other employment documentation, are kept in the employee personnel file. Pursuant to the Law of the Republic of Lithuania on Documents and Archives, private legal persons must store documents in a safe and secure environment, evaluating possible risk factors; retain records for the time needed to document covered activities and protect the rights of natural and legal persons related to the activities and ensure that documents stored electronically remain authentic, reliable and accessible. Contextual information must be preserved together with such documents.

Background Checks

Criminal records. In Lithuania, criminal records are not publicly available. If an employer wishes to check the criminal record of a potential employee, it may ask the applicant to provide a certificate on previous convictions or lack of convictions. Such certificates are issued by the IT and Communications Department of the Ministry of the Interior of the Republic of Lithuania and may be obtained only by the person to whom the records apply, not directly by employers.

Medical checks. Employers are required to evaluate occupational risks and determine whether employee health checks are necessary. In certain sectors—such as food processing, catering, hotel services, spas—employees may commence work only after having passed an obligatory medical examination.

Noncompetition Agreements

The employee and the employer can agree that upon the termination of the employment contract the employee will not perform certain duties with another employer for a period of up to two years. These agreements are restricted to employees who have special knowledge or skills that would harm the employer if they were given to a competitor.

While the noncompete agreement is in place, the former employee must receive at least 40 percent of his or her average salary prior to termination of employment.

Reference Citations

Employment Contracts: Labor Code, 2016 (as amended), arts. 36, 43-44 (Lithuanian)

Restrictions on Hiring: Labor Code, 2016 (as amended), art. 158 (Lithuanian)

Noncompetition Agreements: Labor Code, 2016 (as amended), art. 38 (Lithuanian)

Immigration and Work Permits

In General

Before hiring a foreign national, the employer must register its work vacancy with the local labor exchange. Employment of a foreign national will be allowed only if there is no Lithuanian national who could fill the position. A European Union/European Economic Area national does not need to obtain a work or residence permit, although an EU/EEA national working and staying in Lithuania for more than three months in any half-year must obtain a certificate proving the right of residence. A non-EU/EEA national intending to work in Lithuania generally must obtain a work permit, which will be valid for two years.

Visas and Work Permits

Before hiring a foreign national, the employer must register its work vacancy with the local labor exchange. Employment of a foreign national will be allowed only if there is no Lithuanian national who could fill the position.

A European Union/European Economic Area national does not need to obtain a work or residence permit, although an EU/EEA national working and staying in Lithuania for more than three months in any half-year must obtain a certificate proving the right of residence.

U.S. citizens with a valid U.S. passport can enter Lithuania for a period of up to 90 days during a period of 180 days without a visa. If a longer stay is planned, a visa or a temporary residence permit should be obtained.

A non-EU/EEA national intending to work in Lithuania must obtain a work permit unless the individual:

• will be training personnel or installing equipment and will not be staying longer than three months during a 12-month period,
• will be working for no more than three years in a foreign company’s representative or branch office or in a subsidiary Lithuanian company of a foreign group as the CEO or a specialist and provided that the employee has worked for the foreign company for at least a year and has expertise or high professional qualification absolutely necessary for the entity in Lithuania,
• will be working in a position determined by the Lithuanian Labor Exchange to be necessary for the Lithuanian labor market,
• is a stakeholder and the CEO or a member of a board in a private Lithuanian company or
• will qualify for an EU blue card by performing work requiring a university degree or similar qualification and paying annual compensation of at least 48,400 euros.

A work permit is issued for up to two years.

Foreign nationals from outside the EU on assignment in Lithuania within the same group of companies can obtain an intra-corporate transfer (ICT) permit if their duration in the country will be more than 90 days. The permits are valid for up to three years for managers and specialists, or up to one year for trainees. After this period has expired, a new application can be submitted only after leaving Lithuania for a period of three months.

Post-Entry Requirements

An EU or EEA national who stays in Lithuania for over three months in any half-year must obtain a certificate proving the right of residence and report his or her place of residence within seven working days. Other foreign nationals who have obtained temporary residence permits have the same seven days to report their place of residence. A foreign national holding a temporary residence permit who has lived in Lithuania for five consecutive years can apply for a permanent residence permit.

A company employing a third-country national must:

• require the employee to present a valid residence permit or other document establishing the right of residence before an employment contract is finalized,
• keep a copy of the residence permit and provide it at the request of a competent institution and
• notify the Lithuanian labor exchange about termination of employment of a third-country national within three working days.

Reference Citations

Visas and Work Permits: Law on the Legal Status of Aliens

Nondiscrimination

In General

Discrimination in employment on the following grounds is unlawful: sex, national origin, citizenship, language, social status, age, sexual orientation, disability, race or ethnicity, religion or belief, marital and family status, and participation in political parties and social organizations.

As a general rule, the employer can choose a new hire to its liking, provided job applicants are not discriminated against based on a protected status. Job advertisements cannot specify discriminatory qualifications, and when recruiting new employees, the employer has to apply uniform selection criteria and conditions.

Employers must provide men and women equal pay for equal work.

Although employees can defend their rights on the basis of the constitution, the Labor Code, the Law on Equal Opportunities for Women and Men and other statutes, discrimination cases are almost nonexistent. Employers must provide equal pay for equal work or work of equal value.

EU Pay Transparency Directive: As a member state of the European Union, Lithuania has until June 2026 to transpose the minimum requirements of the EU Pay Transparency Directive into its national law or amend any current pay equity laws to conform with the directive, which aims to promote pay equity between men and women. The directive introduces requirements on gender pay gap reporting, salary history bans during the hiring process, and wage disclosure in job vacancy listings. The national law may go beyond the minimum requirements of the directive, but the law may not directly conflict with the directive requirements.

Reference Citations

Nondiscrimination: Labor Code, 2016 (as amended), art. 26 (Lithuanian); Law on Equal Opportunities for Women and Men, 2015

Employee Privacy

Employee Data

On May 25, 2018, the General Data Protection Regulation (GDPR) superseded the Data Protection Directive as the primary law governing data privacy in the EU. The GDPR establishes minimum requirements for the processing of employee data and allows EU member nations to introduce more restrictive local legislation. Stricter requirements can also be established in collective bargaining agreements or work contracts. For more information, see the In Focus: International Privacy Laws.

Employee Monitoring and Surveillance

Under the Labor Code, video surveillance and audio recording measures may be used by employers in the workplace to prevent crime and ensure employee safety, but not for the specific purpose of controlling the quality and amount of work.

Employers with more than 50 employees are required to publish information about their data protection policy on their website and include any implementation measures relating to that policy. This information has to be renewed at least once a year.

Employers are not allowed to transfer employees’ personal data to third parties except in cases defined by law. Personal data processing must have a legitimate basis. A legitimate basis can be the consent of the employee or the legitimate interests of the employer or of a third party to whom the personal data is disclosed unless such interests are overridden by the interests of the employee.

Under the GDPR, employers can monitor employees only if there is a lawful basis for doing so. Lawful bases can include preventing employee misconduct, deterring crime, and ensuring compliance with health and safety procedures. Employees must be given prior notice, and any data that are collected must be used and kept only to fulfill their original purpose.

Reference Citations

Employee Data: General Data Protection Regulation, 2016

Employee Monitoring and Surveillance: General Data Protection Regulation, 2016; Labor Code, 2016 (as amended), arts. 27, 39 (Lithuanian)

Compensation

Hours of Work

Maximum working time, including overtime, generally cannot exceed 48 hours per week. If the employee and the employer have an agreement for additional work hours, maximum working time may not exceed 12 hours per day and 60 per week.

Adult employees must be allowed at least 11 hours of uninterrupted rest between one work day and the next, minors 12 to 14 hours in each 24-hour period.

Employees are generally entitled to a break of between 30 minutes and two hours to rest and to eat, normally halfway through the work day but no later than after five consecutive working hours.

Minimum Wage

Effective Jan. 1, 2024, the monthly minimum wage is 924 euros. The monthly minimum wage from 2023 was 840 euros.

Overtime

An employer may order an employee to work overtime only in extraordinary cases specified in the Labor Code. Other than that, overtime work may be performed solely with the employee’s written consent or at the employee’s request in writing.

Overtime cannot exceed eight hours in seven consecutive calendar days unless an employee gives written consent to work up to 12 overtime hours per week. Total hours worked cannot exceed 48 per week averaged over a period of up to three months. A different annual limit may be established in the collective bargaining agreement but cannot exceed 180 hours a year.

Overtime must be paid at a rate of at least 1.5 times the employee’s regular hourly pay. Employees who work on a day of rest or a public holiday are entitled to double time.

Wage Payment

The Labor Code requires that salary be paid at least twice a month unless the employee requests in writing that salary be paid once a month.

The law does not regulate the exact date of wage payment, which depends on the agreement of the parties to the employment contract.

Mandatory Bonuses

Bonuses may be at the discretion of the employer or provided for in employment contracts, collective bargaining agreements, or other legal instruments. In the latter case, the employee has a legal right to the bonus.

It is common to provide employees with fringe benefits—private health care, life insurance, company cars, phones and various performance-based bonuses (e.g., supplemental pay, commissions). Profit-sharing is typically restricted to executive employees.

Reference Citations

Hours of Work: Labor Code, 2016 (as amended), arts. 114, 122 (Lithuanian)

Minimum Wage: Ruling on Minimum Wage, June, 2016 (Lithuanian)

Overtime: Labor Code, 2016 (as amended), art. 119 (Lithuanian)

Wage Payment: Labor Code, 2016 (as amended), art. 146 (Lithuanian)

Benefits

Vacation

Employees are entitled to paid annual leave of 20 working days or 24 working days if working six days a week. Certain categories of employees (e.g., minors, the disabled) are entitled to extended annual leave. Additional annual leave must also be granted for long uninterrupted employment at the same work place and for certain types of work, among other things. A contract of employment, a collective agreement or internal work regulations may provide for longer leave. Public holidays falling within a period of annual leave do not count as part of the leave, and during annual leave employees must be paid their average salaries.

Annual leave for the first working year is generally granted after six months of uninterrupted work at the enterprise. For the second and subsequent working years, annual leave is granted according to a schedule stipulated in a collective agreement or agreed upon by the employer and its employees. Certain categories of employee (e.g., women on maternity leave, minors) have the right to choose the time of their annual leave.

The employee may take annual leave in increments, although one uninterrupted period of at least 10 working days is required.

Payment in lieu of annual leave is not allowed except when an employee cannot be granted annual leave due to employment termination or if the employee does not wish to go on leave.

Holidays

The following paid public holidays are established in the Labor Code:

• Jan. 1: New Year’s Day
• Feb. 16: Day of Reestablishment of the State of Lithuania
• March 11: Day of Reestablishment of Lithuania’s Independence
• Easter Sunday and Easter Monday
• May 1: International Labor Day
• First Sunday in May: Mother’s Day
• First Sunday in June: Father’s Day
• June 24: Rasos and St. John’s Day
• July 6: Day of the State (Coronation of King Mindaugas)
• Aug. 15: Assumption Day
• Nov. 1: All Saints’ Day
• Dec. 24: Christmas Eve
• Dec. 25 and 26: Christmas

Holidays are observed on their calendar date. If the holiday falls on a Saturday or Sunday, it will not be moved to a weekday.

Employees cannot be required to work on public holidays with the exception of work that cannot be interrupted for technical reasons, work that is critical for the continuation of public services and work involving urgent repair and loading. Pregnant women may be assigned work during holidays only if they give their consent.

Employees required to work on a public holiday must receive at least double their regular rate of pay or an extra rest day within the following month.

Maternity Leave

Expectant mothers are entitled to maternity leave of 70 calendar days before childbirth and 56 or (in the event of a complicated confinement or birth of two or more children) 70 calendar days after.

During this period, the employee is eligible for maternity benefits from the State Social Insurance Fund. As a general rule, the maternity benefit is equal to the employee’s full salary, subject to certain statutory limitations. If a woman chooses not to take maternity leave before childbirth, the maternity benefit is paid for 56 calendar days after or 70 calendar days in the event of a complicated confinement or birth of two or more children.

Employees who have been appointed guardians of newly born children are entitled to paid leave from the date guardianship is awarded until the child is 70 days old.

Following maternity leave, employees have the right to return to the same or an equivalent position under conditions no less favorable than before and to any benefits to which they would have been entitled during their absence.

Paternity Leave

Effective January 1, 2023, the Labour Code of the Republic of Lithuania allows for 30 calendar days of  paternity leave, which can be split into 2 parts of 15 calendar days or used noninterruptedly until the child reaches 12 months of age.

During this period, the employee is eligible for paternity benefits from the State Social Insurance Fund, set at 77.58% of compensatory earnings, subject to certain statutory limitations.

Sick Leave

For the first two days of absence, the sickness allowance is paid by the employer. The allowance may not be smaller than 80 percent or larger than 100 percent of the employee’s average monthly salary. From the third to the seventh day of absence, the sickness allowance is paid from the State Social Insurance Fund at 40 percent of average monthly salary and from the eighth day at 80 percent until the employee is able to work or is declared disabled.

An employee’s illness must be certified by a physician, and the employee must inform the employer of the necessary absence and of its probable duration.

Other Leave

Parental leave. A parent or grandparent, other custodial relative or guardian is eligible for 2 months, in any increment, of childcare leave until the child is 18 or 24 months old; this leave cannot be transferred to another person. Both parents may not be simultaneously on childcare leave.

A child-raising benefit is paid by the State Social Insurance Fund from the expiration of maternity leave until the child reaches age 12 or 24 months, 100 percent of salary for one year or 70 percent for two.

In implementing the EU Directive on Work-life Balance for Parents and Carers (2019/1158), ** Labour Code of the Republic of Lithuania now requires employers to allow an employee to work remotely who is raising a child of under 8 years of age or who is caring for a family member or a person living with him/her, unless an employer can prove it would not be cost effective.

Caretaker Leave. An employee is entitled to unpaid leave for a period recommended by a healthcare institution when taking care of a sick member of the family or household. The employer must grant time off when the request is related to a family emergency in the event of sickness or accident in which the employee is required to be directly present.

Adoption leave. An adoptive mother or father is entitled to three months’ child care leave.

Pensions and Social Security

Lithuania’s national social security system covers:

• pension benefits,
• sickness and maternity benefits,
• social insurance,
• unemployment insurance,
• workers’ compensation and
• health insurance.

No later than one working day before the commencement of actual work, every employer must notify the State Social Insurance Fund about every new hire.

In the course of employment, the employer must make mandatory monthly contributions to the State Social Insurance Fund at the following rates:

• 23.3 percent of the employee’s gross remuneration for pension benefits,
• 3.4 percent for sickness and maternity benefits,
• 1.1 percent for unemployment insurance,
• 3 percent for health insurance and
• between 0.18 percent and 0.9 percent (depending upon the employer’s category) for workers’ compensation.

Employee contributions are 6 percent for health insurance and 3 percent for pension and social insurance. Responsibility for withholding and paying both the employer’s and the employees’ income tax and social insurance contributions lies with the employer.

The normal retirement age is 60 for women and 62 ¹ / ₂ for men, increasing by two months each year for men and four months for women until reaching 65 for both in 2026. The amount of the old-age pension is calculated using a formula based on salary and service. The minimum service requirement to qualify for a full pension is 30 years. A reduced pension is available after service of at least 15 years.

The state provides old-age pension benefits from the Social Insurance Fund composed of the main part, the additional part and pay for long-term service. The additional and the main parts of the pension are calculated using the base pension determined by the government.

Worker’s Compensation

If an accident at work or an occupational disease prevents an employee from working, the employee is compensated by the State Social Insurance Fund. The employer must pay a premium to the fund equivalent to 0.18 percent of each employee’s gross salary.

If the injured employee was not covered by social insurance, the employer is liable for lost income, treatment costs, and social, medical, and professional rehabilitation expenses.

Reference Citations

Vacation: Labor Code, 2016 (as amended), arts. 128-130, 138 (Lithuanian)

Holidays: Labor Code, 2016 (as amended), arts. 123, 144 (Lithuanian)

Maternity Leave: Labor Code, 2016 (as amended), arts. 131-132 (Lithuanian)

Paternity Leave: Labor Code, 2016 (as amended), art. 133 (Lithuanian)

Labor Relations

In General

Trade unions have the authority to protect the rights and interests of employees, conclude collective agreements with employers and call strikes. Unions are independent of employers, and employers are prohibited from making employment or retention conditional on the employee’s nonmembership in a union. Any persons legally working in Lithuania are entitled to establish a trade union or join a trade union to protect their interests. If an employer has no trade union, the employees may be represented by a works council, but works councils cannot perform any function recognized under law as a prerogative of trade unions. When the average number of employees in the workplace exceeds 20, the employer is required to establish a works council.

Disputes with union-represented workers are usually resolved by the Labor Disputes Commission or the courts. A strike, however, can be declared by a trade union or, where there is no union, by a works council with seven days’ notice to the employer. Strikes are prohibited during the term of a collective bargaining agreement unless the employer is in violation of the contract. Employees who participate in a strike are not paid and are released from their obligation to work.

When a business is sold or transferred, the successor employer is responsible for the predecessor’s duties under an existing collective agreement.

Right to Organize

Under the Lithuanian Labor Code, trade unions and works councils are considered representatives of employees and have a right to:

• conclude collective agreements and supervise their implementation;
• submit proposals to the employer concerning the organization of work in the enterprise;
• organize and manage strikes and other lawful measures employees have the right to take;
• submit proposals to state and municipal institutions;
• exercise nongovernmental supervision of and control over compliance with labor laws;
• protect the rights and interests of the employees when the employer makes decisions concerning collective redundancies, the reorganization of the enterprise or other matters likely to have substantial effects on the legal status of the employees;
• receive information from and have consultations with employers about the current and future activities of the enterprise and its economic situation, the status of employment relationships and any decisions likely to have substantial effects on the organization of work or the legal status of the employees and
• appeal to the courts against decisions and actions of the employer contrary to legal norms and agreements or that violate the rights of an employee.

In representing and protecting the professional, economic and social interests of employees, Lithuanian employment law gives priority to trade unions over works councils. Trade unions are independent organizations formed on a voluntary basis and governed by the Lithuanian Labor Code, the Law of the Republic of Lithuania on Trade Unions, other laws regulating trade union activities and the articles of association of the trade union.

Trade unions are independent from employers, and employers are prohibited from making employment or retention conditional on the employee’s nonmembership in a union. Any persons legally working in Lithuania are entitled to establish a trade union or join a trade union to protect their interests.

Trade unions may be set up on the basis of profession, duties, manufacturing, territorial or other principles established by the trade unions themselves. A trade union may be established when it has at least 20 founders or when the number of founders would make up no fewer than one-tenth of all employees in an enterprise but no fewer than three employees. A trade union is considered a legal entity when it has the requisite number of founders, the statutes of the trade union are approved in its general meeting, the managing body is elected and the general meeting passes a resolution regarding the legal address of the trade union. The union must submit documents testifying to its compliance with these requirements to the Register of Legal Entities for official registration.

The law confers a wide range of powers on trade unions, one of the most important of which is the representation of members by entering into collective bargaining agreements with the employer. Trade unions and their federations have a right to:

• negotiate and conclude agreements with employers, their organizations and/or unions regarding employees’ occupation, requalification, work organization and remuneration, as well as improvement of work and social conditions and other matters;
• submit proposals to national and municipal institutions and organizations regarding adoption, amendment or abolition of legal acts in relation to employment, economic and social matters;
• represent the rights and lawful interests of trade unions and their members before state institutions;
• propose to penalize corporate officers who violate labor laws, fail to ensure safe working conditions or violate collective bargaining or other mutual agreements;
• participate in the resolution of individual and collective labor disputes;
• arrange meetings and demonstrations or other mass events and
• declare strikes for the protection of member rights in accordance with the procedure set by law.

Trade unions are also entitled to monitor how the employer follows and implements employment, economic and social laws and collective bargaining and other agreements related to the rights and interests of employees they represent. Should a trade union discover a violation of employment laws, it should notify the relevant territorial division of the State Labor Inspectorate within three working days.

The workforce in Lithuania is not heavily unionized, collective agreements are not common and unions do not exert significant influence on employment relations.

Works Councils

If an enterprise, establishment or organization has no functioning trade union, the employees may be represented by a works council elected by a secret ballot at a general staff meeting, but works councils cannot perform any function recognized under law as a prerogative of trade unions. The status of works councils and the procedure of their formation are established by the Law on Works Councils.

When the average number of employees in the workplace exceeds 20, the employer is required to establish a works council. A works council may have from three to 15 members depending on the size of a company. Members are elected for three-year terms, and any employee of the company who is at least 16 years old and has at least six months’ service with the company is entitled to be elected to a works council. The employer and its representatives cannot be members of a works council.

If at least 10 percent of employees request it in writing, the employer is required by law to hold a works council election within seven days. Following its election, the employer must provide the works council with premises and facilities. The employer must provide information requested by the works council unless it constitutes commercial or trade secrets the disclosure of which may greatly harm the enterprise.

When representing the employees of the company, a works council has a right to:

• participate in information and consultation procedures;
• coordinate with the employer on decisions when required by law, collective bargaining agreements or agreements between the employer and the works council;
• conclude a collective bargaining agreement with the employer;
• authorize members of the works council to enter the premises of the company during working hours and familiarize themselves with the work conditions of the employees without disturbing the employees’ work;
• receive from the employer and from state and municipal institutions and establishments information required to perform the duties of the works council;
• make proposals to the employer in relation to economic, social and work matters; employer’s decisions relevant to employees; and implementation of laws regulating labor relations and collective bargaining agreements;
• bring an action to the court in respect of the legality of decisions of the employer and in cases of employer failure to perform acts required by laws, regulatory acts and collective agreements;
• bring an action to the court to protect the rights of the works council as established by law, collective agreements or agreement of the works council and the employer;
• discuss important economic, social and labor matters and call for a general meeting of staff in coordination with the employer;
• decide to call a strike and lead the strike if there is no trade union at the company; and
• carry out any other actions not in contradiction of law, collective agreement or agreement between the works council and the employer.

Dispute Resolution

Disputes with union-represented workers are usually resolved by the Labor Disputes Commission or the courts.

Strikes and Lockouts

A strike can be declared by a trade union or, where there is no union, by a works council. The employer must be given at least seven days’ written notice, 14 days in certain industry sectors. Strikes are prohibited during the term of a collective bargaining agreement unless the employer is in violation of the contract. If there is reason to believe a strike is unlawful, the employer may petition a court to enjoin it. The court must decide on the petition within 10 days.

No one may be forced to join or not to join a strike. Employees who participate in a strike are not paid and are released from their obligation to work. Nonstriking employees unable to work because of the strike must be paid for idle time or with their consent transferred to another job.

During a strike, the employer is prohibited from:

• employing replacement workers,
• taking any unilateral action to stop the enterprise’s operation,
• preventing employees from coming to work,
• refusing to provide employees with work or
• taking other actions to interfere with normal work.

Successorship Clauses

In cases where a business is sold or transferred, the successor employer becomes responsible for its predecessor’s rights and duties towards the employees under the collective agreement.

Reference Citations

Right to Organize: Labor Code, 2016 (as amended), arts. 161, 165-168 (Lithuanian)

Works Councils: Labor Code, 2016 (as amended), arts. 169-171 (Lithuanian)

Strikes and Lockouts: Labor Code, 2016 (as amended), arts. 243-254 (Lithuanian)

Successorship Clauses: Labor Code, 2016 (as amended), art. 51 (Lithuanian)

Safety, Health and Security

In General

Employees must be provided introductory and continuing instruction on health and safety and cannot be required to begin work without this training. Workers likely to be exposed to occupational hazards must undergo a preemployment medical examination and periodic medical examinations during the course of employment. Employers must follow a uniform procedure for the investigation and reporting of accidents at work and for occupational diseases, and all serious accidents and fatalities must be reported to the government.

Employees who report to work under the influence of alcohol or drugs can be suspended without pay.

Workplace Safety and Health

Under the Lithuanian Labor Code, employees must be provided introductory and continuing instruction on health and safety, and the employer must keep records of training completed. An employee cannot be required to begin work without this training.

Health examinations are obligatory for night workers, shift workers and employees under 18 years of age. Workers likely to be exposed to occupational hazards must undergo a preemployment medical examination and periodic medical examinations during the course of employment. Compulsory medical examinations take place during working time and are paid for by the employer.

Employers must follow a uniform procedure for the investigation and reporting of accidents at work and for occupational diseases. Records must be kept of all work accidents, and all serious accidents and fatalities must be reported to the local prosecutor’s office, the local office of the State Labor Inspectorate and the family of the victim.

Drug and Alcohol Use

Employees who report to work under the influence of alcohol or drugs can be suspended without pay.

Reference Citations

Workplace Safety and Health: Labor Code, 2016 (as amended), arts. 158-160 (Lithuanian)

Drug and Alcohol Use: Labor Code, 2016 (as amended), art. 26 (Lithuanian)

Termination

Termination by Employer

Employees may be terminated only on the grounds provided for in the Lithuanian Labor Code.

During a probationary period, the employment contract can be terminated on three working days’ written notice by either party. If during the probationary period the employer finds the employee’s performance unacceptable, the employer may terminate the employment contract with no severance payment to the employee.

Employers have the right to dismiss an employee on an indefinite contract without cause, provided they give the employee three days’ written notice and a severance payment equal to at least six months’ average salary. Otherwise, the standard notice period is one month, two weeks if the employee has worked for the employer for less than one year.

The notice period must be doubled for employees who are raising a child up to 14 years of age or have less than five years until retirement age. The notice period must be tripled for disabled employees or employees who have less than two years until retirement age.

The employer also must give the employee two months’ severance pay if the worker has a year or more of service and half a month’s pay if less than a year of service. One month’s severance will be payable on expiration of fixed-term contracts with terms exceeding two years.

An employee terminated through no fault of his or her own may not be paid in lieu of notice, and the employer is required to transfer the employee to another job if one is available and the employee consents.

During the entire notice period, the employer must offer the employee any available positions for which he or she qualifies and must grant the employee no less than 10 percent paid time off from work to seek a new job.

Certain categories of employees enjoy protection against dismissal other than for cause:

• an employee on annual leave,
• an employee on sick leave,
• an employee who has lost the capacity to work as a result of injury at work or occupational disease until recovery or qualification for disability,
• an employee called up to active military service,
• an employee raising a child under the age of 3 and
• a pregnant employee from the day her pregnancy is medically certified and for a month following maternity leave.

Employees who will be entitled to the full old-age pension in not more than five years, persons under 18 years of age, disabled persons and employees raising children under 14 years of age may be terminated only in extraordinary circumstances where the retention of the employee would substantially endanger the interests of the employer. Employees elected to employee representative bodies may not be dismissed without cause during the term of office without the consent of the representative body.

A gross breach of work duties is grounds for termination without notice or severance pay:

• when the employee commits one gross breach of duties (for example, missing an entire working day or shift) or
• if the employee performs duties negligently or commits other violations of labor discipline provided that disciplinary sanctions were imposed at least once during the last 12 months.

Before imposing a disciplinary sanction, the employer must request the employee in writing to provide a written explanation of the breach of labor discipline and can only proceed with termination if the employee fails to provide a satisfactory explanation. Disciplinary termination can be imposed no later than six months after the precipitating event occurred and one month after the employer learned of the breach.

An employment contract can be terminated by an agreement between the employer and the employee. To initiate this procedure, one party may propose in writing to the other to terminate the employment contract. The proposal must be accepted or rejected within seven days. The parties must agree on the use of accrued leave, the date of employment termination and other terms and conditions. The law does not require that an employee be paid severance in this situation, although it is common practice for the parties to agree on a payment often slightly larger than statutory severance.

Employers often resort to the option of employment termination by mutual agreement when an employee enjoys special protection against dismissal (e.g., a parent who raises a child under 3 years of age, a disabled person) and cannot be terminated at the employer’s initiative through no fault of the employee.

In some cases, the employer is required to terminate an employment contract without notice, for example:

• upon demand of bodies or officials authorized by law,
• if an employee loses certification to perform certain work or
• if an employee is sentenced to prison.

During a health emergency, employers have a right to suspend employees whose health conditions endanger the health of other workers and not pay their salary if they do not agree to work remotely.

Termination by Employee

An employee wishing to terminate the employment contract must give at least 20 working days’ prior written notice to the employer.

Plant Closings and Mass Layoffs

Collective redundancy (mass layoff) procedures are triggered at different levels depending on the number of dismissals in proportion to the total number of employees in the company:

• 20 to 99 employees: 10 dismissals within a 30-day period,
• 100 to 299 employees: 10 percent of the workforce within a 30-day period, and
• 300 or more employees: 30 dismissals within a 30-day period.

Collective redundancy procedures require consultation with trade unions, works council or (if neither of these exists) employees individually or at a general meeting.

The employer must notify the territorial labor exchange in writing about the planned collective redundancy after consultations with employee representatives but before submitting notices to the employees subject to redundancy.

Information must be provided to employees or their representatives prior to notifying the territorial labor exchange and before making any decisions. The following information must be provided:

• reasons for the planned dismissal,
• total number of employees to be dismissed and their categories,
• period during which the contracts will be terminated,
• selection criteria for employees to be dismissed, and
• conditions of termination of employment contracts.

Payment on Termination

An employee terminated without cause is entitled to severance pay calculated on the basis of service from a minimum two month’s severance for service of under 12 months to six months’ for service of over 20 years. For employment lasting less than a year, a severance pay in the amount of 50 percent of the average monthly wage will apply.

Upon expiration of the notice period, the employer must pay the employee any outstanding salary and compensation for any accrued but unused vacation.

Unemployment Insurance

Unemployment insurance benefits are paid to unemployed persons registered with a regional labor exchange who have not received any job offer in line with their professional or occupational qualifications. In order to qualify for benefits, the person must have paid unemployment insurance contributions for at least 18 of the past 36 months and must have been dismissed without cause.

Reference Citations

Termination by Employer: Labor Code, 2016 (as amended), arts. 58-61 (Lithuanian)

Termination by Employee: Labor Code, 2016 (as amended), art. 55 (Lithuanian)

Plant Closings and Mass Layoffs: Labor Code, 2016 (as amended), art. 63 (Lithuanian)

Payment on Termination: Labor Code, 2016 (as amended), art. 127 (Lithuanian)

Personal Taxes

Residency Requirements

Individuals are considered residents of Lithuania if their permanent place of residence is in the country during a tax year or if they are in the country for at least 183 days in a tax year or 280 days in two successive tax years.

Taxable Income

Residents are taxed on their worldwide income, nonresidents on Lithuania-sourced income only. Income from an employment relationship includes benefits in cash and in kind, bonuses, allowances, and severance payments.

Tax Rates

Income is generally taxed at a flat rate of 15 percent for all individuals.

A multiple of Lithuania’s applicable average salary is used as the rate differentiation threshold for the country’s progressive income tax system for employment income. The applicable average salary is a monthly amount that is subject to adjustment each year. The applicable average salary in effect for tax calculations during a year usually is determined in December of the previous year.

Employees also are required to contribute 9 percent of salary to social security contributions.

The standard total social tax rate for employers pertaining to the six main types of social insurance is 30.48 percent.

Reference Citations

Tax Rates: Personal Income Tax

Web References

In English unless otherwise noted.

Law and Regulation

Constitution of the Republic of Lithuania

Labor Code (Lithuanian)

Law on Documents and Archives

Law on Equal Opportunities for Women and Men

Law on European Works Councils (Lithuanian)

Law on Trade Unions

Government Websites and Publications

Ministry of Social Security and Labor

Ministry of the Interior (Latvian)

State Labor Inspectorate