Dismissals due to the economic situation

ECOVIS Miškinis, Kvainauskas ir partneriai advokatų kontora

The economic situation in Lithuania can be the reason as to why employees are fired from their jobs, giving importance to Article 129 part 1 of the Labor Code of Republic of Lithuania (when firings are mostly due to the economic situation). The employer may not be familiar with the laws and thus violates this order.

The necessary steps of dismissal on these grounds are:
1.    the reason for dismissal has to be very important, according to Article 129 part 2 of the Labor Code;
2.    the employee has to be properly warned at the right time (2 or 4 months before);
3.    it is impossible to transfer the employee to another workplace.

The Supreme Court of Lithuania regarded on the constant violation of this procedure and declared exhaustively on these conditions of dismissal: The employee often abuses and declares that he did not get notice from the employer at the right time; he maliciously does not sign the notice and declares that the dismissal is not legal.

The Supreme Court prevented these actions and pointed out that the employer is able to fire the employee even if the notice is not signed by the employee. Avoiding of this signing means the proper service of the documents was done.
The employer has an obligation to offer the employee another workplace. According to the Supreme Court, this obligation must be fulfilled on the principles of cleverness and honesty. The employer is able to fix the term for the employee to decide on the new offer. Delay of an answer is grounds to declare that this condition was fulfilled.

Because the employee is considered by the Courts as a weaker party, and the employer has an obligation to justify his position, the above listed conditions are necessary to be fulfilled if the employer wants to avoid disputes with the employee and additional costs.