Employment law
Conclusion of an employment contract
The employment contract must be in writing, and in accordance with the model form established by the law, and it must contain essential provisions, i.e. those on which parties must agree to validate the employment contract, and other provisions. The essential provisions are: the place of work and work functions. Separate types of employment contracts can also provide for other essential provisions (e.g. term of contract, seasonal work, etc.). It is forbidden to enter into a fixed-term employment contract, if the work is of a permanent nature. Besides the essential provisions, in every employment contract both parties are required to agree on the conditions of payment for work.
Termination of an employment contract
The Labour Code of the Republic of Lithuania (Labour Code) regulates the dismissal of an employee.
| The main bases of employment termination | An employment contract is terminated by |
|---|---|
| expiry of an employment contract | agreement between the parties |
| liquidation of an employer without a legal successor | notice of an employee |
| death of an employee | notice of an employer |
| other cases provided by the law |
If there is no fault of the employee, the employment contract may be terminated by the employer for good reason, e.g. due to circumstances related with the employee’s qualifications, professional competence or behavior at work. The contract may be also terminated for economic or technological reasons, due to structural changes at the work place etc. The employer dismissing an employee at the employer’s initiative without fault on the part of employee must give him a written notice at least 2 months before the termination date.
Work hours, overtime work, remuneration
The normal work hours for an employee may not exceed 40 hours per week. The daily period of work should not exceed eight working hours. A five-day workweek is standard, but it may be extended to six days. Generally overtime is prohibited. An employer may apply overtime hours only in exceptional cases, which are specified in the Labour Code of the Republic of Lithuania. In any case the employee’s overtime hours shall not exceed four hours in two consequent days and 120 hours per year for each employee. A different annual duration may be established in the collective agreement for overtime hours, however, not exceeding 180 hours per year. The pay for overtime and night work shall be at least one and a half times the hourly pay/monthly wages established for the employee.
The general minimum monthly wage is approx. EUR 289.
Vacation
The minimum annual paid holiday is 28 calendar days, but is increased to 35 calendar days for employees: 1) under the age of 18, 2) a single parent raising a child under the age of 14 or a disabled child under the age of 18, 3) disabled employees. Normally, all employees are entitled to their annual paid vacation leave after they have worked in the company continuously for an initial period of six months.
Work permits for non-residents
Foreign citizens (except EU citizens) who are not permanent residents of Lithuania may work temporarily in Lithuania under an employment contract, provided they have a work permit issued by the Lithuanian Labour Exchange at the Ministry of Social Security and Labour. EU citizens are released from the obligation to obtain a work permit, but those who intend to reside in Lithuania for more than three months within a half-year period must obtain a temporary residence permit. It is not possible to apply for a residence permit while staying in Lithuania on a short-term visit visa.
Regulatory authorities
Depending on business activities, the liaison with various regulatory authorities (including, but not limited the Register of Legal entities, State Labour Inspectorate, the Competition Council, State Data Protection Inspectorate, the Communications Regulatory Authority, Migration Department) of the Republic of Lithuania is involved in the different stages of the operations of the companies.
