Amendments to the Labour Code of the Republic of Lithuania as of 1st August 2020

As of 1 August 2020, amendments to the provisions of the Labour Code will enter into force. ECOVIS ProventusLaw has prepared a summary of the main changes to the Labour Code.

Termination of employment contracts with pregnant employees and employees raising a child under the age of three (Articles 57 (7) and 61 of the Labour Code)

Substantial changes have been adopted to remove restrictions on termination of employment contracts with pregnant employees and employees raising a child under the age of three when a court or body of the employer takes a decision ending the employer.

  • The pregnant employees will be able to be dismissed in case the employer has been liquidated or dissolved (a court or body of the employer has taken a decision ending the employer). The employment contract, at the initiative of the employer, without any fault of the employee, can be terminated with a pregnant employee by giving the employee 3 months’ notice, and if the employment relationship lasts less than one year – 6 weeks in advance.
  • The employees raising a child under the age of three will be able to be dismissed in case such employees do not agree to continuity of employment relations in the event of transfer of the employer’s business or part thereof or in case the employer is liquidated or dissolved.

Remote work (Article 52 (2) of the Labour Code)

The list of conditions under which the employer shall create opportunities for employees to work remotely has been supplemented in the Labour Code. From 1 August, not only pregnant employees, employees who have recently given birth or employees who are breastfeeding or employees raising a child under the age of three, and employees alone raising a child under the age of fourteen or a child with disability under the age of 18, but also employees having a reasonable opinion from a health care institution regarding their state of health will be able to ask the employer to allow them to work remotely. In this case, the employer will have to comply with the employee’s request for remote work, unless the employer can prove that the remote work would cause excessive costs due to production necessity or the peculiarities of work organization.

Termination of employment due to health condition (Article 60 of the Labour Code)

When an employee, according to a health care institution’s opinion, is no longer able to perform functions or work and does not agree to be transferred to another vacant position or work corresponding to his-her health at that workplace, or in case such positions  or work is not available, the employee will be able to be dismissed by paying him-her a severance payment equal to 2 months of his average salary (if the employment relationship lasts for less than one year – severance pay equal to his-her one month’s average salary).

Late payment of remuneration and other employment-related payments (Article 147 of the Labour Code)

In case, after employment termination the employer is late paying the employee, the forfeit will be calculated proportionally to the delay period, not in months, if payments are late for less than 1 month. In this case the amount of the forfeit will be employee’s average salary calculated proportionally to the delay period.

Work council membership (Article 172 of the Labour Code)

Membership in the work council shall end when its member becomes an employer or a person representing the employer in accordance with laws, powers of attorney or incorporation documents.

Preparation for investigating an application in the Labour Dispute Commission (Articles 225 and 228 of the Labour Code)

A new provision states that documents submitted electronically to a Labour Dispute Commission will have to be signed with an electronic signature. Labour Dispute Commission will also be required to provide the parties of the case with the original, not a copy, decision of the Labour Dispute Commission.

The apprenticeship employment contract (Article 83 of the Labour Code)

Employers who have up to 10 employees will be able to enter into one apprenticeship employment contract.

The project-based employment contract (Article 89 of the Labour Code)

In case the project lasts for more than 2 years, the project-based employment contract can be concluded for a maximum period of 5 years.

Compensations to employees (Article 144 of the Labour Code)

A new provision has been introduced – employees working outdoor will be reimbursed for the related costs, that have been incurred during factual duration of such work.

ECOVIS ProventusLaw lawyers are ready to provide prompt assistance in the event of employment related or other issues, so you are welcome to contact us.

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