Lithuania's Labour Code amendments take effect: probation and dismissal rules change

Amendments to Lithuania's Labour Code took effect on November 1, changing the rules on probationary periods, dismissals, final payments and annual leave. The details were set out by the State Labour Inspectorate.

Probationary period

Employees earning at least twice the national average gross salary, currently about €5,256.40 before tax, may be given a probationary period of up to six months. Until now, probation generally could not exceed three months. If someone is hired on a fixed-term contract shorter than 12 months, the probationary period must be proportionately shorter. Employers will also gain more flexibility in negotiating employment conditions with staff paid at this level.

Dismissal at the employer's initiative

The dismissal procedure is changing as well. Employers must give a justified reason, three working days' notice, and severance of at least six times the employee's average monthly salary.

The Labour Inspectorate notes that under Article 59 of the Labour Code, employees may also be dismissed on the grounds listed in Article 57(1), for example when changes within a company make a position redundant. Employers will therefore be able to dismiss staff on their own initiative for reasons previously covered by a different legal ground, but they must justify the decision and pay the statutory severance.

Employers will also have more time to decide on dismissal for a breach of duties. The one-month time limit will no longer count periods when the employee is temporarily unable to work or is on leave.

Final payments

Currently, employers must pay everything owed to an employee on the last working day. From November 1, the parties can agree that part of the money is paid later, provided the total exceeds the employee's average monthly salary. All outstanding payments must be settled no later than three months after employment ends.

Remote work and annual leave

Employers must still allow remote work for employees entitled to additional guarantees, such as pregnant women and parents of young children. A request can no longer be refused solely because arranging remote work would be too costly.

Collective agreements will also be able to set new rules on the use of annual leave and compensation for unused leave. They may establish a shorter, two-year period after which employees lose the right to take all or part of their leave, provided they had a real opportunity to use it. In certain cases they may also provide financial compensation for part of the unused leave.