Setting up a temporary (recruitment) agency in Lithuania

In recent years, Lithuania has emerged as a promising hub for business opportunities in Europe, attracting an increasing number of employers from both European and Asian markets. A notable trend is the establishment of recruitment (temporary) agencies in Lithuania, as companies recognize the nation’s strategic location, skilled workforce, efficient procedures for obtaining work and residence permits and business-friendly environment.

With a growing labour supply in the EU, international professionals find Lithuania an attractive destination, and companies have a unique opportunity to benefit.

However, companies aiming to expand their employee leasing business in Lithuania often face issues regarding the requirements for setting up such a company and transferring foreign labour.

Setting up a temporary (recruitment) agency in Lithuania

Lithuania’s business-friendly environment has made it an appealing destination for investors. The government has implemented reforms to simplify bureaucratic processes and create incentives for foreign investment. This proactive approach has not only attracted businesses but has also paved the way for the establishment of recruitment agencies, facilitating the matching of skilled professionals with the demands of the growing job market.

Setting up a temporary employment agency in Lithuania requires meeting the criteria and procedures established by the Government of the Republic of Lithuania.

Criteria for becoming a temporary agency:

the company’s activities are not suspended or restricted
the company is not the subject of insolvency proceedings and is not being liquidated
the company has received no more than one fine in the past year for illegal work, undeclared work, or infringements of the procedure for the employment of foreigners
the head of the company or another responsible person within the last year has not received an administrative penalty or has not been convicted for crimes
the company has no outstanding debts and has no salaries owed to employees
the company has submitted information about the number of temporary employees to the State Labour Inspectorate
the company has temporary employees for at least three consecutive calendar months

Transferring foreign employees

When it comes to transferring foreign employees to Lithuania under a temporary employment contract, the process is similar to that of regular employees. However, the process will vary depending on whether the employee’s occupation is included on the list of occupations for which there is a shortage of workers.

Employees with occupations on the list of occupations for which there is a shortage in Lithuania do not need a decision from the Employment Service on the conformity of their occupation to the labour market needs. However, there is a quota for the occupations on this list, and once it’s exhausted, the decision from the Employment Service must be obtained.

It has been observed that the quota for certain occupations is not used up quickly and sometimes only happens towards the end of the year. For instance, the quota for occupations in the construction sector in 2023 was met on December 14th, 2023. However, as of now, the quotas for services, industry, and agriculture are not used up and stand at 1397, 276, and 184, respectively.

ECOVIS ProventusLaw experts have extensive experience dealing with various migration and employment matters. We offer comprehensive support to our clients in acquiring temporary residence permits, national visas, work permits, and other related documents. We can also assist with the process of establishing a temporary employment agency in Lithuania. If you are exploring such opportunities in Lithuania, please feel free to contact us.

Prepared by ECOVIS ProventusLaw Head of Employment practice Brigida Bacienė and junior associate Gabija Bacevičiūtė