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New Labour Code

Lithuania postpones new Labour Code until 1 July 2017.

The new Lithuanian Labour Code (the “new LC”) is postponed for another half year, to 1 July 2017.

The purpose of the postponement is to consider possible amendments to the new LC and other laws of a social model to balance the interests of employees and employers and to meet the expectations of the Lithuanian people.

The new LC has already been modified before its initial day of entry into force (i.e. 1 January 2017). In November 2016 the Lithuanian Parliament decided to exclude from the new LC the highly debated “zero hours” employment contracts, to increase severance payments to employees who terminate employment for compelling reasons (e.g. illness or retirement) and to include other provisions beneficial to employees.