Corrections to the Labor Code of Republic of Lithuania

  • 2011-11-17
  • By Donata Pundinaitė, Associate Lawyer

ECOVIS Miškinis, Kvainauskas ir partneriai advokatų kontora

This November, the government is to decide on the correction of the Labor Code of The Republic of Lithuania, which was prepared by the Ministry of Economy, and should be presented to the Seimas. The Ministry of Economy offers a more flexible policy of the Labor Code use for employees that earn more than 6,500 litas per month (tax is not deducted).
The Labor Code is equally valid for all employees.

According to the new changes, the mentioned employees would be able to make individual arrangements with employers on dismissal, term of the notices, time of work and recreation, severance pay. The current Labor Code strictly determines the procedures of dismissal and related relations (for example, an employer shall be entitled to terminate an employment contract by giving the employer written notice two months in advance, or an employee shall be entitled to terminate a non-term employment contract, as well as a fixed-term employment contract prior to its expiry by giving his employer written notice thereof at least 14 working days in advance).

According to the legislation such policy guarantees the rights of the employee, protects the interests of the employee, but also slows down the development of the economy. Well paid employees are able to defend their rights themselves.
The possibility to avoid strict regulation of the Labor Code would be useful for business and employees, because more well–paid workplaces would be created.