The newest employment law update, June 2025, by ECOVIS explores the latest developments in employment law and looks at the issues that matter to employers.
Lithuanian Court Refers Question to CJEU on Residence Permit Restrictions for Dual Russian-Israeli Citizens
On 7 May 2025, the Lithuanian Supreme Administrative Court (LVAT) submitted a preliminary question to the Court of Justice of the EU (CJEU) regarding the compatibility of Lithuania’s Law on Restrictive Measures in Response to Military Aggression Against Ukraine with EU law. The case involves a dual citizen of Israel and Russia, whose application for a Lithuanian residence permit was denied due to the absence of a valid visa or EU residence permit, despite her visa-free status as an Israeli national. Lithuanian law suspends such applications from Russian citizens unless they hold a valid visa or permit. The LVAT seeks guidance on whether national rules may impose these conditions on dual nationals who enjoy visa-free access under EU Regulation 2018/1806. The proceedings are paused pending the CJEU’s interpretation.
Lithuanian Appellate Court Clarifies Jurisdiction in Cross-Border Labour Disputes
The recent Lithuanian appellate court ruling has clarified the rules of international jurisdiction in labour disputes involving foreign employees working for Lithuanian employers.
The case involved a Belarusian citizen employed by a Lithuanian company. After the employment relationship ended, the employee initiated a labour dispute by filing a complaint with the Lithuanian Labour Disputes Commission (LDC). Following the LDC’s decision, the employer challenged the outcome in court. Still, the first-instance court rejected the claim, citing a lack of jurisdiction due to the employee’s residence outside Lithuania.
The appellate court overturned the decision, holding that because the employee had voluntarily initiated the dispute in Lithuania, Lithuanian authorities — including the courts — retain jurisdiction throughout the proceedings. This means the employer could rightfully file a claim in Lithuanian court, even though the employee lives abroad.
Our recommendation:
We recommend that employers include a jurisdiction clause in employment contracts with foreign employees, specifying that disputes will be resolved in Lithuanian courts. This provides certainty and avoids future jurisdictional challenges.
Newsletter Subscription
Get in touch