Financial Institutions and Fintech Licensing in the EU
Comprehensive advisory on financial institution licensing, passporting and regulatory compliance across the European Union and beyond.
LT
RU
CN
DEEmployment, Labour and Migration Lawyers
Employment, labour and migration law advice for businesses in Lithuania, Latvia and Estonia. Ranked lawyers advising on contracts, compliance, immigration and employee relations. Book your free initial consultation today.
Starting your business or expanding anywhere, make sure that your business complies with the applicable labour law regulations. Ecovis ProventusLaw employment lawyers will provide you with comprehensive legal advice in various labour law matters across the world as a one-stop-shop working across all industry sectors. Our experts offer the full range of employment and migration law services in one place.
The strength of Ecovis network is the combination of personal advice at local level with the general expertise of an international and interdisciplinary network of professionals. This diversified expertise provides the clients with effective support, especially in the fields of international transactions, staff secondment, relocation, taxation – from preparation in the client’s home country to support in the target country, dealing with international subsidiaries and branch offices as well as in cross-border issues.
Legal 500 ranking, which provides the most comprehensive worldwide coverage on recommended law firms, ranked ECOVIS ProventusLaw among the leading law firms in the employment law sector in Lithuania.
Why ECOVIS Proventuslaw?
- We are a highly experienced team. We are one of the leaders in employment law and hold high positions in lawyer rankings.
- We have long-lasting experience in this field. It has been one of the key practice areas of our law firm for more than 15 years already and our expertise in this sector is exceptional in the context of the Lithuanian legal services market.
- We lead our clients during their establishment in Lithuania, Europe. We are trusted by the clients regarding their employee-related strategies, the issues of employment and migration law from the beginning of their establishment in Lithuania.
- We have exceptional expertise in FinTech, IT, e-commerce industries. We have numerous clients in the financial, IT, e-commerce sectors who trust us.
- We are prime experts for start-ups to enter Lithuanian and EU markets. We guide start-ups to get necessary work permits, residence permits, national D visas, etc.;
- We provide the full spectrum of labour law services. We handle employment-related aspects from A to Z, such as preparation of employment contracts and dismissals, employment of foreigners in Lithuania from EU and third countries, secondment of employees, consulting on labour taxation matters, preparation of share options, employment handbook and other internal policies, management of complex situations of unfair competition or dispute resolution, etc.
- Our team has certified data protection experts. Our team members are certified as Information Privacy Professionals/Europe by the International Association of Privacy Professionals (IAPP), therefore, our team has comprehensive GDPR knowledge.
- International network. Where required and where issues on labour law span multiple jurisdictions, we are assisted by our partners from the ECOVIS network operating in over 80 countries worldwide.
ECOVIS ProventusLaw provides the following services:
- Advice and assistance to the companies in Lithuania regarding their employee-related strategies, employee-related documents, employment and migration law, tax issues.
- Representation of the employers in the cases related to unfair competition concerning existing or former employees.
- Advice to the employers on non-disclosure of confidential information during labour relations and after these relationships end.
- Data protection issues related to the employee’s personal data and transfer thereof to the third parties within Lithuania and other countries (EU and non-EU).
- Advice and assistance in leading the companies in Lithuania with regard to the possibility to use share option agreements.
- Representation of the clients in courts, State Labour Inspectorate and other institutions, assistance in termination of employment relations.
- Assistance in submission and getting work permits, residence permits, national D visas, etc.
- Labour and employment regulatory audit/due diligence.
- Organising of specialized labour law training for companies in different fields.
Our recent employment law practice
Pay Transparency
Advised a global technology company on the implementation of the EU Pay Transparency Directive, including gender pay gap reporting, remuneration transparency obligations and cross-border employment structures.
Restructuring
Advised a multinational corporation on a cross-border workforce restructuring project involving collective redundancy requirements, employee consultations and relocation of operational functions to another jurisdiction.
EOR Transfers
Advised an international fintech group on the transfer of employees to an Employer of Record (EOR) structure, including employee continuity, annual leave entitlements and employment transfer arrangements.
Operations Closure
Advised a global manufacturer on the closure of production operations in Lithuania, including collective redundancy procedures, employee consultation requirements and negotiations with employee representatives.
Cross-Border Mobility
Advised a leading European rail industry company on the posting of employees to Lithuania for major infrastructure projects and compliance with Lithuanian employment law requirements.
Executive Employment
Advised employers on executive terminations, senior management employment arrangements, restrictive covenants and post-employment obligations.
Employment law FAQ
We are terminating an employee in Lithuania. When exactly must we pay out their final settlement?
Currently (before 1 November 2026), all employment-related payments generally must be paid on the last working day of employment, though the parties may already agree to postpone payment by up to 10 working days. From 1 November 2026, there’s more flexibility on payment timing. The rules split by amount:
- The portion of the settlement up to 1 average monthly wage (VDU) must still be paid on the last working day, unless the parties agree to pay it within 10 working days instead.
- Any part exceeding 1 VDU may, by agreement between the parties, be paid later — but no later than 3 months after the termination date.
In both cases, postponement requires the parties’ agreement; the employer cannot unilaterally decide to delay payment. This is especially relevant where large severance or other significant payments are involved. Late payment penalties have also increased — default interest is now linked to the consumer price index and calculated at five times the usual rate.
From when can we agree a longer probationary period with our top earners, and how long can it be?
From 1 November 2026, employees earning at least twice the average monthly wage (2 VDU) may agree to a probationary period of up to six months, instead of the general three-month limit — particularly relevant when hiring executives, highly qualified specialists, or other strategically important staff whose suitability often takes longer to assess.
Can we dismiss an employee who no longer meets statutory “good reputation” requirements for their position?
Yes — from 1 November 2026, the Labour Code expressly introduces this as a distinct termination ground. Previously, employers in regulated sectors often faced uncertainty about the correct legal basis in such cases. Especially relevant in financial services, insurance, payment services, and other regulated sectors where specific positions carry reputation or fitness-and-propriety requirements.
Can we dismiss an employee for failing their probationary period, and what do we need to prove?
A probationary period can only be set when the employment contract is concluded, and under the general rule it can’t exceed three months — the parties cannot agree to extend it or set a new one afterwards. (From 1 November 2026, the exception above applies to higher earners.) If the employer decides the results are unsatisfactory, the decision to terminate must be made before the probation period ends, and the employee must be notified in writing at least three working days before termination.
The burden of proof is on the employer: it must show the employee failed to meet the professional or personal qualities needed to properly perform the job.
What pay transparency obligations already apply in Lithuania, and what's coming next?
Since 7 June 2026, most pay-transparency requirements implementing Directive (EU) 2023/970 are already in force: job postings must state the salary or salary range, employers can’t ask candidates about current or past pay, and employees may disclose their own pay without employer restriction where this is done to assess equal-pay compliance.
By 31 December 2026, employers must prepare or update their pay systems. From 1 January 2027: employees gain the right to receive pay information, and employers face new reporting duties to Sodra.
Employers with 100+ staff face gender pay gap reporting; those with 8+ staff will have aggregated pay-gap data published by Sodra; and a joint pay assessment is required where an unjustified gap of 5%+ is found (100+ staff). Administrative fines range from €460 to €6,000 for responsible individuals, and compensation in individual disputes is uncapped.
How-to prepare for the Pay Transparency Directive
1
Review and document your current pay structure.
2
Assess whether your pay-setting criteria are objective and gender-neutral.
3
Group roles into consistent categories.
4
Check for potential unjustified pay gaps within those categories.
5
Update recruitment materials — job ads must show salary or a salary range, and interviewers must not ask about current or past pay.
6
Update internal HR procedures ahead of the 31 December 2026 deadline for pay systems, and the 1 January 2027 reporting obligations.
Explore our employment law services
Restoration of Citizenship to Jewish Individuals in Lithuania
Services related to restoration of citizenship to Jewish individuals in Lithuania
Newsletter Subscription
Get in touch