Employee Training Costs: When Can Employers Legally Recover Expenses in Lithuania?

Investing in employees – but they leave. Now What? Many employers pay for professional development or pricey training only to see the employee resign soon after. Can those expenses be reclaimed? Lithuania’s State Labour Inspectorate (VDI) has clear guidance on when repayment is allowed.

Wage Deductions Are Strictly Limited

Article 150 of the Labour Code permits deductions from wages only in specific cases, such as:

• Repayment of unused employer-provided funds
• Correction of payroll calculation errors
• Compensation for proven employee-caused damage
• Repayment of unused leave if the employee resigns without valid reasons or is dismissed for fault.

Training costs are not on this list, so they cannot be deducted from wages unless other legal conditions are met.

Written Decision Required

Even in permitted situations, deductions can’t be unilateral. The employer must issue a written order or decision and give a copy to the employee, who can challenge it before the labour disputes commission within three months.

Recovering Training Costs: Advance Agreement Is Key

Under Article 37, repayment of voluntary training expenses is only possible if:

• The employee resigns without valid reasons or is terminated for fault.
• The training went beyond basic job requirements.
• The costs were incurred within two years of termination (or up to three years if a collective agreement allows).

For academic studies (e.g., bachelor’s or master’s degrees), an employer may require the employee to stay through the study period and up to three years afterwards, or reimburse the costs.

Mandatory Training = Employer’s Responsibility

Employers must cover training essential for job performance. Employees are never required to repay costs for mandatory instruction.

Practical Tips

To avoid disputes, employers should:

• Draft a clear written agreement before funding voluntary training.
• Ensure the agreement complies with the Labour Code and limits repayment to optional, job-enhancing courses.
• Keep thorough documentation.

Need guidance? Our employment and migration lawyers assist companies with complex compliance issues and strategic workforce matters – from navigating Lithuanian labour law and handling employment disputes to shaping long-term HR policies.

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