Salary overdue? Legal options for recovering unpaid wages in Lithuania
Employers in Lithuania who delay wage payments can face financial penalties, and employees have several legal routes to recover what they are owed. The State Labour Inspectorate says late or unpaid pay is a breach of labour law.
An employer in Lithuania who pays wages late can be penalised, and employees have several ways to get their money: claiming late-payment interest, filing a labour dispute, and in certain cases suspending work or terminating their contract with severance pay. The topic was recently raised on the social platform Reddit, where a user asked what to do when wages are not paid on time. Lithuania's State Labour Inspectorate stresses that delayed or unpaid wages are not just a financial inconvenience but a violation of labour law.
Compensation for delays
When an employer is responsible for late payment of wages or other sums due, it must also pay late-payment interest, counted from the first day of delay until the debt is fully settled. The rate is set by the Ministry of Social Security and Labour, unless labour legislation sets a higher one. If employment ends and the employer fails to settle everything on time, additional compensation, called contractual penalties in Lithuanian labour law, may apply. Its size depends on the average monthly salary and the length of the delay; the inspectorate says such payments have reached as much as 10,000 euros in some cases.
Recovering the money
Employees can lodge a complaint with the Labour Disputes Commission, in writing or electronically. Its decisions are legally binding, and if the employer does not comply, a bailiff can enforce them. The commission can also penalise non-compliance by up to 500 euros per week, for a maximum of six months. Separately, employers who fail to pay wages on time or in full can face administrative fines of 300 to 6,000 euros, depending on the nature of the violation and whether it is repeated.
Employees do not have to contact their employer first, though they may try to settle the matter amicably.
Deadlines and documents
The application is generally due within three months of the employee learning, or being expected to learn, of the violation. Filing is free. It should explain what happened, state the demand and, if possible, the exact sum. Useful evidence includes the employment contract, payslips, bank statements, working-time records and correspondence with the employer.
Suspending work or quitting
If wages go wholly or partly unpaid for two or more consecutive months, the employee may temporarily suspend the contract after giving at least three working days' written notice. The suspension may last up to three months, with the employer paying at least the minimum monthly wage for each month. The employee may also terminate the contract and receive severance: two average monthly salaries after more than a year with the company, or one if the employment lasted less than a year.
