The new Labour Code comes into force in Lithuania on 1 July 2017

The new Labour Code comes into force in Lithuania on 1 July 2017

On 6 June 2017 Lithuanian Parliament adopted the final amendments to the new Labour Code (the New LC) before its coming into force on 1 July 2017.

The main changes to the New LC:
• Summary working time regime can be announced if there is a business necessity and after consultations with employee representatives. The maximum working week under summary working time regime is 52 hours.
• A shift of a nighttime worker cannot exceed 8 hours on average per 3 months.
• Maximum default payment for the delay in settlement with former employee is increased up to 6 average monthly salaries.
• As of 1 July 2018 temporary employment services (employee rent) can be provided only by companies matching the requirements of special governmental act.
• Partial work can be announced under the terms and conditions of the Government (in such case part of salary costs will be compensated from special fund).
• If 1/3 of company employees belong to the trade union, the works council will not be elected and its functions will pass to the respective trade union (to representative body of trade unions, if company has several of them). Otherwise company trade union is entitled to one representative at the works council after nominating its 3 candidates in the election.
The main part of earlier adopted New LC remains unaffected. The New LC will provide more flexible working time conditions, more contractual freedom in employment relations, more options for employment termination and more flexible severance pay and notice conditions. At the same time the New LC establishes stricter requirements for salary system, new procedures of employment termination, mandatory forms of employee representation etc.

Please find the updated summary of the New LC here.

The main to-dos for employers in relation to the New LC:
• renewal of employment contracts and other agreements with employees in the light of increased flexibility and new requirements;
• renewal of working rules including new mandatory provisions and policies;
• preparing salary and bonus system;
• election of works council (employee trustee if the company has less than 20 employees) until 1 January 2018.

Venckute&Karnickas law firm will help you in preparing for the New LC:
• we draft tailored HR documents with innovative solutions;
• we advise how to use the new LC for the best of your business needs;
• we provide solutions on preventing new and old legal risks in employment relations.