Overview of Lithuanian Labor Law and Employment Policies

Employment Law Overview

• Key Legislation:
  • Lithuanian Labor Code
  • Lithuanian Social Security Law
  • Lithuanian Tax Law
• Legal Characteristics:
  • Aims to protect employee rights and promote a fair employment environment.
  • Regulates matters such as minimum wage, working hours, leave, and social security benefits.

Employment Contract Requirements

• Contract Types:
  • Indefinite contracts
  • Fixed-term contracts
• Contract Provisions:
  • Must include information on job description, remuneration, working hours, leave, and termination clauses.
• Language and Currency:
  • Contracts must be written in Lithuanian and use the Euro (EUR) as the currency.

Working Time Regulations

• Standard Working Hours: 40 hours per week, 8 hours per day.
• Rest Days and Breaks: Minimum of 24 hours of rest per week, 12 hours of rest per day.

Leave Policies

• Annual Leave: 20 working days of paid annual leave per year.
• Public Holidays: 15 statutory public holidays.
• Special Leave:
  • Sick Leave: Paid by the employer for the first two days, then by the State Social Insurance Fund.
  • Maternity Leave: 126 days of paid maternity leave, including 70 days before and 56 days after childbirth.
  • Paternity Leave: Fathers are entitled to 30 days of paid paternity leave.
  • Parental Leave: Parents are entitled to two years of paid parental leave.

Employee Dismissal and Contract Termination

• Notice Period:
  • Employees with more than one year of service: 30 days
  • Employees with less than one year of service: 14 days
• Severance Pay:
  • Employees with up to 12 months of service: 50% of average monthly salary
  • Employees with more than one year and less than 20 years of service: 2 months' salary
  • Employees with more than 20 years of service: 6 months' salary
• Unfair Dismissal Protection:
  • Employees dismissed due to discrimination, trade union activities, or other protected reasons are entitled to compensation.

Tax Law

• Personal Income Tax:

  • Salary Range (EUR)	Tax Rate
    0 - 101,094	20%
    101,094+	32%

• Social Security Contributions:

  • Employee: 6%
  • Employer: 27.98%

Health Insurance

• Insurance Policy:
  • Both employers and employees are required to participate in the national health insurance scheme.
• Insurance Coverage:
  • Basic healthcare services, including hospital care, doctor visits, and prescription drugs.

Compensation and Benefits

• Minimum Wage: EUR 840 per month.
• Salary Structure:
  • Base salary
  • Bonuses
  • Allowances

Work Permits and Visas

• Permit Requirements:
  • Non-EU/EEA citizens require a work permit to work in Lithuania.
• Application Process:
  • Application is made by the employer to the Lithuanian Immigration Department.

Confidentiality and Non-Compete Clauses

• Enforceability:
  • Confidentiality and non-compete clauses are enforceable in Lithuania, but must be reasonable and not unduly restrict an employee's employment opportunities.
• Common Provisions:
  • Keeping employer's confidential information secret
  • Not working for competitors for a specified period

Training and Development

• Legal Requirements:
  • Employers must provide employees with safety training and professional development opportunities.
• Government Support:
  • Government provides funding and incentives to support employee training.

Workplace Diversity and Inclusion

• Legal Requirements:
  • Discrimination based on race, gender, religion, or other protected characteristics is prohibited.
• Enforcement Measures:
  • Employers must implement anti-discrimination policies and provide diversity and inclusion training.

Remote Work Policies

• Legal Framework:
  • Remote work is legally supported in Lithuania, but must comply with labor law regulations.
• Tax and Insurance Implications:
  • Tax and social security implications of remote work depend on the specific circumstances.

Authoritative Website Addresses

• Lithuanian Ministry of Social Security and Labor: https://www.socmin.lt/en/