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Project for Amendment to Labour Code in Lithuania

Abolishing contradictions within the Labour Code, strengthening rights of employees with diseases, extending terms for project-based work.

In mid-February 2020 the Lithuanian Government presented to the Parliament a project for amendment of the Lithuanian Labour Code.

This article lists the most important planned amendments.

1. Abolition of contradictions within the Labour Code

In order to prevent failure of a transfer of business because contracts with employees who have children up to three years cannot be terminated, the project foresees a possibility to terminate these employment contracts for employees who do not agree to continue their employment in the frame of the transferred business.

In future an employer will be able to terminate contracts with pregnant employees if it decides that the business will cease to exist.

Since the criteria for temporary employment agencies acting as employers need to be set in an Act of Parliament and not just in a legislative enactment, these criteria will be included in an additional article of the Labour Code.

Compensation to employees for additional costs of work done outdoors will in future explicitly be possible as is already the case for work without a permanent workplace. Compensation for additional costs instead of an increase in remuneration has the advantage that neither social security nor income tax has to be paid for such compensation.

2. Extension of terms for project-based employment contracts

Project-based employment contracts can at present be for a term of up to two years. As projects often last longer than two years, the possible term for such employment contracts will be extended to up to five years depending upon the length of the project.

3. Special protection for sick employees

One of the aims of the amendments is stronger protection for employees with a disease, especially those suffering from cancer.

Employees with a disease will:

  • be explicitly protected from discrimination;
  • enjoy a special right to work in a home office regime for up to one-fifth of their working time;
  • have the right to unpaid leave during their illness;
  • enjoy a priority right for confirmation of annual leave by the employer;
  • be paid two months’ severance (instead of one-month) if the employment contract cannot continue because of their illness.

Employees must provide the employer with a doctor’s certificate to confirm their claims.

Our bnt attorneys in CEE office in Vilnius / Lithuania looks forward to replying to all further questions you might have.

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