RegRally Insights: Labour law and Employment

ECOVIS ProventusLaw invites you to read about current trends and news in employment law in November 2024 and how companies in Lithuania can stay compliant.

Starting in 2025, Lithuania will overhaul foreign employment rules

Key changes to the Law on the Legal Status of Foreigners, effective January 1, 2025:

Labour Market Test Removed: Foreign workers will no longer be assessed for suitability, and the Shortage Occupations List will be discontinued, simplifying migration procedures.
Introduced Quota System: Work permits are capped at 1.4% of Lithuania’s population (~40,000 annually), except for graduates, those under temporary protection, or special circumstances. Employers exceeding quotas must pay at least 1.2 times the average wage.
Additional Quotas: From 2026, unions and employer groups can propose up to 20% additional quotas, subject to approval.

New Rules for Temporary Residence Permits and National Visas Starting December 2024

New rules tightened the submission process for temporary residence permits and national visas through external service providers from 1 December 2024.

Key Changes:

1. Eligibility Restriction: Applications are only accepted from citizens of the country where the external service provider operates.

2. Exceptions: Exemptions apply to specific categories of applicants, including those applying for:

Family reunification.

Study purposes.
High-skilled jobs.
Positions as lecturers or researchers.

These restrictions do not affect citizens of Australia, Japan, the United Kingdom, the United States, Canada, New Zealand, and South Korea and can continue to apply under existing procedures.

Amendments to the Labour Code and Administrative Offences Code on Violence and Harassment

Amendments to the Labor Code, which will enter into force on January 1, 2025, clarify the concept of violence and harassment. The amendments clarify that unacceptable behaviour of the employer itself (a natural person or the head of a legal entity) is considered violence or harassment.

At the same time, the Code of Administrative Violations of the Republic of Lithuania imposes fines from EUR 500 to EUR 3,000 on company managers or other responsible persons who violate the prohibition of violence and harassment by failing to take the necessary measures to ensure prevention, failing to provide active assistance to victims, or violating the prohibition of violence or harassment by the company manager.

The amendment to the Labor Code also stipulates that the Chief State Labor Inspector of the Republic of Lithuania shall approve a description of the minimum measures necessary for the elimination and/or control of violence and harassment and shall ensure the regularity of training on the prevention of violence and harassment.

We recommend the following actions:

1. Update Workplace Policies. Employers should revise internal policies to explicitly address violence and harassment, including unacceptable behaviour by employers or managers.

2. Implement Regular Training. We recommend conducting regular training for all employees and managers on preventing and addressing violence and harassment in the workplace.

3. Establish Confidential Reporting Channels.

4. Ensure Compliance. Employers should regularly review their practices and assign specific responsibilities to ensure compliance with the new regulations, avoiding fines.

5. Support Victims. Employers should provide victims with support, including access to counseling, legal advice, and necessary adjustments to the working environment.