RegRally Insights: Employment, 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.

VDI: Evidence is Key in Psychological Harassment Investigations

The State Labour Inspectorate (VDI) highlights that psychological harassment at work must be assessed based on concrete evidence. Employers should ensure that internal procedures enable collecting and reviewing relevant proof, including witness statements, emails, meeting records, and other documentation. Prompt and structured responses are critical to prevent escalation to VDI or labour dispute commissions.

Key takeaways for employers:

Establish clear policies and procedures for preventing and addressing psychological harassment.
Maintain proper documentation of all reports, investigations, and remedial actions.
Train management and HR teams to recognise, respond to, and document potential harassment cases.
Act promptly and objectively on complaints to reduce legal and reputational risks.
Monitor compliance and follow up on corrective measures to ensure ongoing workplace safety and accountability.

As legal advisors, we help organisations comply with these obligations and mitigate legal and reputational risks through our Whistleblowing System:

Outsourced Whistleblowing Channel – a fully outsourced, secure, and confidential reporting channel.
Integrated Whistleblowing System—In addition to the reporting channel, we handle investigations, ensuring compliance while you retain oversight.

Can Employers Reclaim Employee Training Costs?

Employers often face the challenge of investing in expensive training, only for employees to leave shortly after. According to the State Labour Inspectorate (VDI), reclaiming costs is only possible in strictly defined cases.

Deductions from Wages – Limited by Law
Article 150 of the Labour Code permits deductions only in specific cases (e.g., unused funds, calculation errors, damage caused by an employee, or unused leave repayment). Training costs are not among them, so wage deductions are not allowed.

When Training Costs Can Be Reclaimed
Recovery is possible only if there is a prior written agreement (Art. 37 Labour Code) and if:

The employee terminates the contract without a valid reason, or is dismissed for fault.
Training was voluntary, beyond basic job requirements.
Costs were incurred within 2 years of termination (extendable to 3 years under a collective agreement).

Parties may agree to repay academic studies funded by the employer if the employee leaves during or up to 3 years after studies.

Mandatory training necessary for the job cannot be charged to employees.

VDI Guidance for Employers

Always conclude a clear written agreement before covering voluntary training costs.
Ensure compliance with the Labour Code and limit recovery to additional training only.
Without such agreement, reclaiming costs may be deemed illegal.

Transparent Worker ID Reduces Undeclared Work in Construction

The State Labour Inspectorate (VDI) reports a sharp decline in undeclared work in Lithuania’s construction sector in early 2025, following the introduction of the Transparent Worker ID. Since July 2024, this ID has been mandatory for all individuals performing construction work, regardless of employment status.

Inspections have increased by over 20%, with a 9% rise in the detection of undeclared workers compared to 2024. The measure has proven especially effective among foreign and posted EU workers, who are now more frequently obtaining IDs and working legally.

The ID strengthens worker protection, reduces the shadow economy, and ensures fair competition.

Penalties are significant: €500–€5,000 for individuals working illegally and €3,000–€12,000 per undeclared worker for legal entities.

Employer takeaway: Ensure every construction worker has a valid Transparent Worker ID. Regular compliance checks avoid fines and secure legal, fair, and competitive operations.

Employment Relationships Begin Before the Contract

The State Labour Inspectorate (VDI) reminds employers that obligations start from the moment a job is posted. Clear, honest communication and transparency in pre-contractual steps are essential for building trust and preventing disputes.

Key employer responsibilities:

Transparent job postings: Include salary or salary range; vague or missing compensation is a legal violation.
Fair pre-contractual conduct: Uphold gender equality, non-discrimination, fairness, confidentiality, and provide accurate information.
Clear contract terms: Ensure written agreements cover job role, compensation, workplace, working hours, and probation period.
Official notification: Notify the State Social Insurance Fund Board (Sodra) at least one day before the employee starts.

Potential consequences:

Cancel contracts if the employee does not start.
Pay compensation if the contract fails due to the employer’s fault.
Recover limited damages if the employee breaches pre-agreed terms.

Employer takeaway:

To prevent disputes and foster long-term trust, implement clear recruitment procedures, define all terms upfront, and maintain transparency from job posting to contract commencement.