Posting of foreign citizens to the Republic of Lithuania – Amendments to the Labour Code as of 30th of July

The provisions of the Directive of the European Parliament and of the Council concerning the posting of workers in the framework of the provision of services have been implemented into the Labour Code of the Republic of Lithuania. In this way posted and local workers will receive an equal pay for equal work.

The amendments apply to employees of a foreign employer who are posted to the Republic of Lithuania to:

  • work temporarily under agreement;
  • work in employer’s branch or other workplace;
  • work as a temporary worker.

Main amendments to Articles 108 and 109 of the Labour Code:

  • Equal pay

When establishing guarantees for posted workers, the concept of “minimum wage” has been replaced by “wage”. If the duration of posting exceeds 30 days or if working in the construction sector, employees posted to Lithuania must be paid equally as local employees carrying out the same work, including increased payment for overtime, night work, rest periods or public holidays.

Important. Lithuanian company acting as a contractor will be subsidiary liable for the fulfilment of the financial obligations of the foreign subcontractor to the posted worker in the field of construction.

  • Reimbursement of expenses

When an employee is posted from a foreign state to the Republic of Lithuania, the employer will be obliged to reimburse the employee for accommodation costs and expenses incurred while traveling to the place of work, which is in the Republic of Lithuania.

  • Daily allowance

Employer will have to make a clear distinction between daily allowance and actual travel, accommodation and meal expenses, as the daily allowance, after the changes, forms a separate part of the salary.

  • Duration of posting

The procedure for calculating duration of an employee’s posting has changed significantly. When a posted worker is replaced by another posted worker carrying out the same work at the same place of employment, the duration of posting will be considered as total duration of these employees’ posting.

The calculation of duration of posting is important because postings of more than 12 months are subject to labour laws and higher than an employer level collective agreements, with the exception of the rules on the conclusion and termination of employment contracts and non-compete agreements. The 12-month term may be extended to 18 months if the employer submits a motivated notice to the State Labour Inspectorate electronically.

  • Temporary workers

In order to ensure the application of the principle of non-discrimination to temporary workers, user enterprise will be required to inform temporary employment agency of the working conditions and remuneration, maximum working hours and minimum rest periods, possible overtime, leave and other guarantees.

When a temporary worker is posted to Lithuania and is additionally posted to work, e.g. to Spain, temporary employment agency will have to be informed and the relevant legislation will apply.

  • Exemptions

Exemptions are provided for road vehicle drivers carrying goods or passengers on international routes. They are not subject to the new provisions on reimbursement of accommodation costs and expenses, also to the provisions for posting of more than 12 months. This group of workers is subject to a minimum wage requirement.

  • Administration of notices to the State Labour Inspectorate

From 30 July 2020, notices to the State Labour Inspectorate about a posted employee may be submitted only electronically by filling out the notice form on the website. Notice must be submitted no later than before the commencement of the employee’s work in the territory of the Republic of Lithuania, employer in a foreign jurisdiction can fill out and submit a notice in English.

ECOVIS ProventusLaw lawyers are ready to provide prompt assistance in the event of labour law issues, we kindly invite you to contact us.

Prepared by ECOVIS ProventusLaw assistant attorney, labour law expert at law Lina Bulovienė.

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