RegRally Insights: Labour and Migration Law

The newest employment law update, August 2025, by ECOVIS explores the latest developments in employment law and looks at the issues that matter to employers.

Lithuania Moves to Enshrine ‘Right to Disconnect’ in Labour Code

The Lithuanian Parliament is considering Labour Code amendments granting employees an explicit right to be unavailable outside working hours, applying to both remote and on-site workers.

The measure aims to counter the growing issue of digital overconnectivity, ensuring that rest periods remain free from work obligations and preventing unpaid overtime. Inspired by similar laws in France, Belgium, and Italy, the proposal reflects ongoing EU-wide efforts to safeguard work-life balance in modern, technology-driven workplaces. Regardless of whether or when the legislative initiative is adopted, employers should proactively regulate after-hours communication to reduce legal risks and foster a healthy work culture.

Clear internal rules help ensure compliance with labour law requirements, improve employee satisfaction, and reduce burnout.

Our recommendations:

1. Establish or update internal policies (e.g., Work Rules, Remote Work Policy, Communication Policy)

2. Discourage routine after-hours communication

3. Design handover procedures for employee absences

4. Educate employees on their rights.

Read more in our article.

Lithuania’s State Labour Inspectorate warns of fatal workplace safety failures

The State Labour Inspectorate in Lithuania (VDI) has reported a series of serious workplace accidents in recent weeks, including multiple fatalities, raising concerns over gaps between formal compliance and actual occupational safety practices. Incidents include chemical exposure in Jonava, falling panels injuring three workers in Klaipėda, suspected fatal electrocution in Biržai, a balcony collapse killing a worker in Vilnius, and a fatality in Šilalė caused by an intoxicated colleague. VDI inspections and investigations are underway, with potential criminal liability if gross negligence is found. Employers are reminded that formal documentation alone is insufficient—they bear direct responsibility for ensuring safety measures are effectively implemented in practice.

Our Recommendations:

Go beyond formal OSH documentation—apply and enforce safety instructions, risk assessments, and protective measures in daily operations.
Provide continuous OSH training and test knowledge, and assign clear safety oversight roles to managers.
Strictly follow safety protocols for hazardous work, including permits, risk assessments, and personal protective equipment.
Maintain zero tolerance for intoxication or serious safety violations, with transparent internal reporting and enforcement procedures.
Fully cooperate with VDI inspections, promptly address findings, and submit corrective action evidence without delay.

Labour Dispute Commissions resolve over one-third of cases without final rulings in early 2025

In the first half of 2025, more than 24% of labour disputes reviewed by Lithuania’s Labour Dispute Commissions (DGK) ended with settlement agreements approved by the commissions. Including cases where claimants withdrew applications before or during hearings, approximately 37% of disputes were resolved without a formal ruling. This underscores the DGK’s effectiveness as an accessible, cost-free alternative to court litigation, which can incur legal fees up to €7,000.

Settlement agreements can be concluded at any DGK stage—even after a decision, if it is not yet legally binding—provided they comply with legal standards and ensure equal treatment of parties.

Our recommendations:

Encourage early amicable settlements before, during, or shortly after DGK decisions (if not final).
Foster open communication to resolve disputes before escalation.
Implement internal procedures to identify and assess disputes promptly, preparing for negotiation opportunities.
Engage legal or HR experts to ensure settlements are clearly drafted and legally compliant.

Proactive dispute resolution reduces legal costs and reputational risks and promotes a more positive workplace environment.

Director fined €1,500 for illegal employment of third-country nationals

By a decision dated 18 November 2024, the State Labour Inspectorate (VDI) fined the director of UAB “L.”, D. L., €1,500 for breaches related to employing third-country nationals without complying with legal requirements under Article 95(1) of the Code of Administrative Offences. Violations included failure to notify Sodra at least one day before hiring a Belarusian national, employing another Belarusian citizen without a valid work permit in a non-shortage occupation, and allowing work without valid permits or new contracts.

Despite an appeal claiming minor and unintentional violations, the District Court rejected it on 15 May 2025, confirming the director’s liability, the proportionality of the fine, and the principle that intent is not required for administrative offences of this kind.

Our recommendations to avoid sanctions:

Verify work permits before employment: Ensure all non-EU nationals hold valid Lithuanian work permits before starting employment.
Timely notifications to Sodra: Notify Sodra at least one day before employment commences; late notifications—even if accidental—may result in fines.
Understand strict liability: Administrative liability does not require intent; procedural or minor errors can still trigger penalties.

Strict compliance with employment rules for third-country nationals is essential to avoid legal consequences.

Supreme Administrative Court upholds employer liability in fatal forklift accident

On 2 July 2025, Lithuania’s Supreme Administrative Court confirmed the State Labour Inspectorate’s (VDI) findings in a fatal workplace accident where an employee of UAB “Agvala” was killed by a forklift operated by UAB “Klasmann-Deilmann Šilutė” on their premises.

Key factors included operator inattention, the victim’s intoxication, and lack of warning signs—but the court highlighted that UAB “Agvala” bore the primary responsibility for insufficient occupational safety oversight.

The court rejected the employer’s defense that safety instruction alone sufficed and stressed the non-transferable, continuous duty under Article 11(1) of the Law on Safety and Health at Work to ensure a safe work environment, even on third-party premises. It also underscored the necessity of formal written agreements to allocate safety responsibilities between companies.

Our recommendations to mitigate risks and avoid liability:

Maintain active control over safety practices, combining documented policies with ongoing monitoring and enforcement, especially for hazardous operations and employee sobriety.
Develop and enforce robust internal OSH systems with clear procedures, frequent inspections, and sanctions for violations.
Use formal written agreements to define occupational safety responsibilities when coordinating work with other companies; verbal arrangements are inadequate.
Recognize that employer liability persists despite employee misconduct; the legal duty to prevent harm is non-delegable.
Leverage accident investigations proactively as tools to identify systemic safety gaps and improve practices.

Diligent safety management and clear inter-company coordination are critical for compliance and protecting workers’ lives.