Lithuania's labor law framework is designed to protect employees and ensure fair treatment in the workplace. The Labour Code of the Republic of Lithuania is the primary legislation governing employment relationships, setting out minimum standards for contracts, working time, rest periods, wages, and termination. Employers operating in Lithuania, whether directly or through an Employer of Record, must adhere strictly to these regulations to ensure compliance and foster a positive working environment. Understanding these rights and obligations is crucial for both employers and employees.
The legal protections afforded to workers in Lithuania cover a wide range of aspects, from the initial hiring process through the duration of employment and extending to its termination. These laws aim to prevent exploitation, promote equality, and provide mechanisms for resolving disputes that may arise between employers and employees. Compliance with these standards is not only a legal requirement but also contributes to effective talent management and operational stability.
Termination Rights and Procedures
Employment contracts in Lithuania can be terminated on various grounds, including mutual agreement, expiry of a fixed-term contract, employee's initiative, employer's initiative, or circumstances beyond the parties' control. Termination initiated by the employer must adhere to specific procedures and notice periods, depending on the reason for termination and the employee's tenure.
Termination on the employer's initiative typically requires a valid reason, such as employee fault (e.g., breach of duties) or reasons unrelated to employee fault (e.g., redundancy, restructuring). In cases of termination for reasons unrelated to employee fault, statutory notice periods apply.
| Employee Tenure | Standard Notice Period (Working Days) |
|---|---|
| Less than 1 year | 15 |
| 1 year or more | 30 |
| Employees close to retirement age | 60 |
| Employees with disability | 60 |
The employer must provide written notice of termination. In certain cases, such as gross misconduct, the employer may terminate the contract without notice, but this is subject to strict legal requirements and potential challenge. Severance pay is often required in cases of termination for reasons unrelated to employee fault, calculated based on the employee's length of service.
Anti-Discrimination Laws and Enforcement
Lithuanian law strictly prohibits discrimination in employment based on various grounds. The principle of equal opportunities is enshrined in the Labour Code and specific anti-discrimination legislation. Employers are required to ensure equal treatment in recruitment, terms and conditions of employment, promotion, training, and termination.
Protected characteristics under Lithuanian law include:
- Age
- Gender
- Sexual orientation
- Race
- Ethnicity
- Nationality
- Language
- Origin
- Social status
- Religion
- Beliefs
- Convictions
- Membership in political parties or public organizations
- Disability
- Marital status
- Family responsibilities
Both direct and indirect discrimination are prohibited, as is harassment related to any of these grounds. Employees who believe they have been subjected to discrimination can seek recourse through internal company procedures, the Labour Disputes Commission, or the courts. The Office of the Equal Opportunities Ombudsperson also plays a role in investigating complaints and promoting equality.
Working Conditions Standards and Regulations
Lithuanian law sets clear standards for working time, rest periods, and leave entitlements. The standard working week is 40 hours, typically spread over five days. Daily working time should not exceed 8 hours, though exceptions apply for certain professions or under specific agreements, provided average weekly hours over a reference period do not exceed the legal limit (usually 48 hours, including overtime).
Overtime work is generally permitted only with the employee's consent, except in specific circumstances defined by law. Overtime must be compensated at a higher rate, typically 1.5 times the standard wage, or compensated with additional rest time.
Employees are entitled to annual leave. The minimum duration of annual leave is 20 working days (if working five days a week) or 24 working days (if working six days a week). Certain categories of employees, such as those with disabilities or single parents raising a child under 14, are entitled to extended annual leave. Employees also have rights to other types of leave, including sick leave, maternity leave, paternity leave, and unpaid leave. Public holidays are also observed, during which employees are generally entitled to a day off with pay.
Workplace Health and Safety Requirements
Employers in Lithuania have a legal obligation to ensure a safe and healthy working environment for their employees. This includes identifying and assessing risks, implementing preventative measures, providing necessary safety training and equipment, and ensuring compliance with specific health and safety regulations relevant to the industry and type of work.
Key employer responsibilities include:
- Conducting risk assessments of the workplace and work processes.
- Implementing measures to eliminate or minimize identified risks.
- Providing employees with clear instructions and training on health and safety procedures.
- Providing necessary personal protective equipment (PPE) free of charge.
- Ensuring regular health checks for employees where required by law.
- Investigating workplace accidents and occupational diseases.
- Consulting with employees or their representatives on health and safety matters.
Employees also have duties to follow safety instructions, use provided equipment correctly, and report any hazards. Employees have the right to refuse to perform work if there is an immediate and serious risk to their life or health, provided they inform the employer immediately.
Dispute Resolution Mechanisms
When workplace issues or disputes arise, Lithuanian law provides several avenues for resolution. The first step is often attempting to resolve the matter directly between the employee and the employer through internal procedures or discussions.
If a resolution cannot be reached internally, employees can turn to the Labour Disputes Commission (Darbo ginčų komisija). These commissions are extrajudicial bodies established by the State Labour Inspectorate. They provide a relatively fast and accessible way to resolve individual labor disputes concerning issues such as wages, working time, leave, disciplinary penalties, and termination. Both the employee and the employer can submit an application to the commission. The commission's decision is binding unless appealed.
If either party disagrees with the Labour Disputes Commission's decision, they have the right to appeal to the district court within a specified timeframe. Court proceedings represent the final stage of dispute resolution, offering a formal legal process for resolving complex or unresolved labor conflicts. Employees may also seek assistance from trade unions or legal counsel throughout the dispute resolution process.
