Official Translation

Official Translation Official Translation REPUBLIC OF LITHUANIA PROVISIONAL LAW ON DAMAGE COMPENSATION IN ACCIDENT AT WORK OR OCCUPATIONAL DISEASE CASES July 1, 1997. No. VIII - 366 (as amended by November 11, 1999) No. VIII - 1403 Vilnius FIRST SECTION GENERAL CONCEPTS ARTICLE 1. Purpose of the Law This Law shall establish the procedure and amount of damage compensation in accident at work or occupational disease cases and identify the persons having the right to this compensation. ARTICLE 2. The Basic Definitions of this Law 1. Enterprise denotes an economic unit identified in the Republic of Lithuania Law On Enterprises. 2. Farmer denotes a person, who is earning his livelihood through commercial agricultural production and utilising for this activity, land designated as agricultural land. 3. Accident at work denotes sudden damage done to the health of an employee due to the effect of a brief, dangerous, harmful factor (factors) occurring within the work environment, when the employee experiences incapacity to work, even for a period of just one day, or dies as a result of it. 4. Occupational Disease denotes the incidence of a health disorder occurring in the health of an employee, due to the harmful effect of a factor (factors) within the work environment, recognised according to established procedure, as an occupational disease. 5. Workplace is the location where the employee works or must work in accordance with the job agreed upon in the work contract. 6. Compensation Payers denotes legal or natural persons, who in accordance with this Law and other legal acts must pay the victim compensation for damage done to his health during work, falling victim to an occupational disease, or his death. 7.Victim denotes a person, who has fallen victim to an accident at work or contracted an occupational disease, if he has the right to obtain damage compensation in accordance with this Law. 8. Loss of the Capacity to Work denotes temporary or total occupational incapacity to work (further, work incapacity ) due to an accident at work or contracting an occupational disease. The work incapacity is expressed in percentages. If the victim dies due to an accident at work, it shall be deemed as a 100 per cent work incapacity. The State Medical Social Expert Analysis Commission (further SMSEAC) shall establish the percentage of incapacity due to an accident at work or occupational disease. 9. Coefficient in work Incapacity (

1. d)constitutes the amount expressed in parts of a unit, estimated by dividing the percentage of the work incapacity by one hundred. 10. Insurable Income (D) denotes the average monthly insurable income approved by the State Social Insurance Fund Council in accordance with the quarterly data. Article 14 of the Law on State Social Security Pensions establishes the procedure of their estimation and approval. 11. Coefficient of Compensation (
2. k)denotes the ratio of the average work pay of the victim (Article 11 of this Law) to the months according to which the average pay was calculated by the ratio of insured income. Thus, when the insurable income coefficient of a person who became a victim of an accident at work or occupational disease, is greater than the coefficient of compensation, applied to the coefficient of the person’s insured income, established in the social insurance pension case (to calculate the coefficient of compensation up to 1995, in place of the insurable income, payment shall be considered based upon calculation the average monthly work pay, indicated for the corresponding month by the State Social Insurance Pension Designation and Payment Regulations, while prior to 1991, the average work pay for the corresponding year shall be considered). If no monthly average work pay figures for the victim are available, or the determination thereof is not possible, or the estimated compensation coefficient is below 0.35, it shall be assumed that the compensation coefficient equals 0.35. The compensation coefficient shall not in any instance, exceed 3. ARTICLE 3. Application of the Law 1.This Law shall be applied to: 1) enterprises, institutions, organisations of all types which are located on Lithuanian Territory, and enterprises, institutions and organisations based abroad, which are under the jurisdiction of the Republic of Lithuania; 2) foreign capital enterprises, institutions and organisations, based on Lithuanian Republic Territory as well as, enterprises, institutions and organisations whose authorised capital part belongs to a foreign investor (joint enterprises, institutions, organisations) and which are located on Republic of Lithuania Territory, if it shall not be stipulated otherwise in international agreements or founding documents of these enterprises, institutions or organisations. 2. Damage compensation shall be paid to permanent residents of the Republic of Lithuania, whose health has been damaged or who have consequently died or contracted an occupational disease, while working in enterprises based abroad, in accordance with the procedure established in international agreements. SECOND SECTION GROUNDS FOR DAMAGE COMPENSATION. SINGLE BENEFIT PAYMENT ARTICLE 4. Responsibility for Caused Damages 1. The enterprises, institutions, organisations, agricultural associations, co-operative organisations (further - enterprise) and farmers, through whose fault damage has been sustained to the victim’s health or death has occurred and an occupational disease has been contracted, shall be obliged to compensate for the damage stipulated by this Law, if such has been sustained: 1) at the victim’s place of work, enterprise premises, on enterprise territory or outside its boundaries, when he shall engage in work contracted for or in an activity directed by his employer or in his interests; 2) when the employee of his own initiative, shall perform work at an enterprise for the employer’s benefit or in his interest, that has not been contracted for; 3) when a person shall perform at an enterprise, with the permission of the employer or his representative, any type of work for the benefit or interests of the employer, although the work has not been contracted for according to the established procedure; 4) when the employee shall perform work contracted with a farmer; 2. An accident which happened not due to the fault of the employee, while he’s on his way to work by way of his customary direct itinerary, or returning from work, shall be equivalent to an accident at work. The expenses incurred in paying compensation for damages, the enterprise or farmer by the right of claim and return shall collect from the natural or legal person responsible, namely the guilty party involved in the accident. ARTICLE 5. The Right to Damage Compensation The victims, whose health has been damaged due to an accident at work or through contracting an occupational disease, according to the circumstances stipulated in Article 4 of this Law, shall have the right to damage compensation. ARTICLE 6. The Compensation of Damages 1. Legal and natural persons, responsible for compensating damages to a victim’s health occurring at work, through contracting an occupational disease, or his death, shall be obligated to compensate the damage resultant from the loss of work pay or a part thereof, estimated according to the procedure established by this law, and also to compensate other losses suffered by the victim (additional expenses) accrued due to the harm inflicted upon his health or through contracting of an occupational disease (improved nutrition, prosthetics, nursing, treatment expenses etc.) 2. The damage compensation, indicated in part 1 of this Article, shall be payable regardless of any other income received by the victim. ARTICLE 7. Damage Compensation for the Loss of Breadwinner 1. Should death of the victim occur due to an accident at work, the right to damage compensation will be accorded to persons, who have been supported by the deceased and are unable to work or who at the time of his death had the right to be supported by him, and also a child (children) of the deceased, born after his death. The damages shall be compensated: 1) to minors until they reach 18 years of age, and if they are according to the established procedure, attending the day departments of university, college-level, vocational and secondary schools until they reach 24 years of age; 2) to persons, who have reached old age pension age, extending throughout their lifetime; 3) to the handicapped, throughout the extent of the term of their being handicapped; 4) to the spouse or father (mother), adoptive father, regardless of age and capacity to work, if he is unemployed and looks after the children, grandchildren adoptive children, brothers or sisters of the deceased, until they reach the age of 8. 2. The damage compensation to persons indicated in part 1 of this Article, which shall be equivalent to the periodic unemployment compensation (Article 13 of this Law), divided by the units increased by the number of persons stipulated in part 1 of this Article, shall be paid every month. 3. The damage compensation indicated in this Article shall be paid regardless of other income received by the persons receiving damage compensation. ARTICLE 8. Compensation Upon Death Resultant from an Accident at Work 1. An enterprise, where a fatal accident occurred due to a violation of the normative acts regarding safety at work, shall pay to the family of the deceased, a single payment to the amount established by the Republic of Lithuania Law on Labour Protection. This payment shall be made in equal parts to each member of the family of the deceased. 2.The spouse, children (adoptive children), parents (adoptive parents), child (children) of the deceased born after his death, shall be considered members of the family of the deceased. 3. The procedure of benefits payment shall be established by the Regulations on Allocation of Benefits, which shall be approved by the Government, following an employee’s death as a result of an accident at work. ARTICLE 9. The Proof of an Accident at Work, Contracting of Occupational Disease or Cause of Death The main proof of an accident at work, contracting of occupational disease or cause of death may be: 1) acts of investigation of an accident at work or the fact of contracting of professional disease; 2) court judgements, decisions; 3) documents establishing harmful factors in the work environment and hygienic assessment of working conditions; 4) other documents containing some information concerning an accident at work, contracting a professional disease or reason of death as a result of an accident at work. ARTICLE 10. Damage Compensation With Respect to the Fault of Victim 1. If gross carelessness on the part of the victim himself has contributed to causing damage or the increase thereof, damage compensation must be reduced or request for damage compensation must be denied in consideration of the degree of culpability on the part of the victim, unless the laws of the Republic of Lithuania shall establish otherwise. 2. Damage shall not be compensated in all cases if: 1) the cause of the accident is due to intoxication from alcohol, narcotics or toxic substances, not related to technological processes. 2) it occurred as a result of the victim committing a deliberate criminal act; 3) it occurred while the victim was engaged in unlicensed activity, without the permission (approval) of the employer, farmer, or performing work that was not for the benefit of the employer or farmer. THIRD SECTION DAMAGE COMPENSATION AND DETERMINATION OF ITS AMOUNT AND PROCEDURE OF PAYMENT ARTICLE 11. Average Work Pay 1. The average work pay of the victim shall be calculated according to the procedure of calculation of Government Approved Average Work Pay of Employee, according to work pay received prior to the accident at work or determination of a case of occupational disease. 2. In instances of occupational disease the average work pay shall, upon the request of the victim, be calculated according to the work pay of the period of any six consecutive months out of 24 months, selected by the victim, which precede the determination of the incidence of occupational disease, according to the procedure of Calculation of the Government-approved Average Work Pay of Employee. 3. In instances when it shall be established that contracting of a professional disease was brought about as a result of the job at the workplace, where the victim had been working up to the time of his dismissal from this workplace or his transfer to another less-paying job in the same workplace, upon the request of the victim, his average pay will be calculated according to the work pay received during six consecutive months of a 24-month period, preceding his transfer to a less-paying job or the day of dismissal from that work place, in keeping with the procedure of calculation of the average employee work pay, approved by the Government. ARTICLE 12. Single Compensation of the Loss of Capacity to Work 1. If the victim has sustained the loss of up to 20 per cent (inclusively) of his capacity to work, he shall be paid 10 percent of the amount of his 24-month work pay, subject to compensation, in a single compensation payment; if the victim has sustained the loss of more than 20 per cent, but less than 30 per cent of his working ability, he shall be paid a 20 per cent single compensation amount of his 24-month work pay, subject to compensation. 2. His average work pay shall be regarded as income subject to compensation for victims, to whom damage compensation has not been allocated prior to the coming into effect of this Law. 3. For victims, to whom damage compensation had been allocated, prior to the coming into effect of this Law, the pay to be compensated shall be calculated by multiplying the coefficient of their compensation (k)(part 11 of Article 2 of this Law), from insured income (D) (part 10 of Article 2 of this Law), i.e., according to the k x D formula. 4. If constant work incapacity has been established for the victim, a three times larger, single compensation payment shall be made, than the one indicated in parts 1 and 3 of this Article. 5. Single compensation may be paid in equal instalments, but not to extend for longer than one year. Per cent payments shall be calculated and paid from the sum which remained unpaid during the compensation payment in parts period, according to the procedure and amounts established by the Republic of Lithuania Law on Determination Of Late Payment of Payments Pertaining to Labour Relations 6.The single compensation indicated in this Article shall be paid regardless of other income received by the victim. ARTICLE 13. Periodic Compensation for Loss of the Capacity to Work 1. In the event it established that the victim has suffered a loss of 30 per cent or more in his capacity to work, he shall be paid periodic compensation for loss of the capacity to work. 2. The periodic compensation for loss of the capacity to work shall be paid to the victim every month, on days set forth by the payer of damage compensation, however not any later than the last work day of the month and shall be calculated as one half of the product of coefficient of loss of the capacity to work (
3. d)(paragraph 9 of Article 2 of this Law), coefficient of compensation (
4. k)( paragraph 11 of Article 2 of this Law) and the insurable income valid in the payment month (D) (paragraph 10 of Article 2 of this Law), i.e., according to the formula 0.5 x d x k x D. 3. As a result of this compensation not having been paid, per cent shall be calculated and paid according to the procedure and amounts of the Lithuanian Republic Law on the Determination of Late Payment of Payments Pertaining to Labour Relations. 4. The compensation for the loss of capacity to work, indicated in this Article, shall be paid the victim regardless of any other income he may be receiving. ARTICLE 14. Damage Compensation Upon Change in Capacity to Work 1. If the SMSEAC shall re-establish that a victim who previously had the right to receive a single compensation payment for loss of capacity to work, has lost 30 or more per cent of his capacity to work, a periodic compensation for the loss of his capacity to work, shall be paid according to the procedure established in Article 13 of this Law, from the day in which the change in ability of work occurred, while payment of the single compensation of loss of the capacity to work (Article 12 of this Law) shall be discontinued, with the exception of the arrears in that compensation, which arose due to its late payment. 2. Should it be newly established by the SMSEAC that a victim who had the right to receive periodic compensation for loss of the capacity to work (Article 13 of this Law), has suffered a loss of less than 30 per cent of his capacity to work and corresponds to the amounts established in part 1 of Article 12 of this Law, he shall be paid a single compensation payment for loss of the capacity to work, while the periodic loss of the capacity to work payment shall be discontinued. 3. Should the loss of the capacity to work by a victim, who is receiving the periodic compensation for loss of the capacity to work, decrease to the amounts established in part 1 of Article 12, the single compensation for the loss of the capacity to work, may only be paid once for that same accident at work or occupational disease. ARTICLE 15. The Duration of Periodic Compensation for the Loss of the Capacity to Work The periodic compensation for loss of the capacity to work shall be paid until the end of the term of loss of the capacity to work, established by the SMSEAC. ARTICLE 16. A Change in the Size of Damage Compensation Per Request of the Payer The payer of the compensation shall have the right to appropriately decrease damage compensation to the victim of an accident at work, or contracting an occupational disease, if the SMSEAC re-establishes that the victim’s loss of the capacity to work has diminished. If the damage compensation has been established by a court decision, it may be decreased, in a case stipulated in this Article, only according to court procedure. ARTICLE 17. A Change in the Size of Damage Compensation Per Request of the Victim, if the Capacity to Work Should Change The person who has suffered partial work incapacity due to an accident at work or contracting of an occupational disease, shall have the right to request, at any time, that the payer of damages, proportionately increase damage compensation if, it shall be newly established by the SMSEAC that his work incapacity has increased. ARTICLE 18. Payment of Damage Compensation Upon Reorganisation or Liquidation of an Enterprise 1. If the enterprise which has been tasked with the victim’s damage compensation, for an accident at work or an occupational disease or a person’s death due to an accident at work, is reorganised, the requirements of damage compensation are transferred to the successor to the rights of the enterprise. 2. If the enterprise, which had to pay damage compensation to the victim established by this Law, is being liquidated as a result of bankruptcy, damage compensation shall be paid according to procedure established by the Law on the Bankruptcy of Enterprises. If the enterprise is not being liquidated according to the procedure established by the Law on the Bankruptcy of Enterprises, it will upon request of the victim, pay all of the damage compensation at one time or capitalise it in accordance with the procedure established by Article 508 of the Civil Code. 3. (repealed 11 November 1999) ARTICLE 181. Transfer to State of Obligation of Damage Compensation Payment 1. The obligation of damage compensation indicated in this Law shall be transferred to the State in the following instances: 1) When bankruptcy proceedings have been initiated against the enterprise, when the enterprise is being liquidated due to bankruptcy, also, when the enterprise is not in operation and a procedure of bankruptcy is not being applied to it owing to the shortage of funds and assets at the enterprise, according to the documents of the office of bailiffs and there exists no possibility for victims to collect compensation for the damage awarded to them by court; 2) when an enterprise has been liquidated due to bankruptcy, however damage compensation has neither been paid, nor capitalised, nor has this liability been transferred to a higher organisation; 3) when the victims contracted an occupational disease or were injured as a result of an accident at work while employed in former state enterprises up to the time of privatisation thereof. Having determined the presence of an occupational disease following privatisation of an enterprise, the State shall compensate the victims who are employed by the same enterprise or in another enterprise where the work environment, owing to the effect of its harmful factor (factors) also had contributed to the breakdown of his health, the State shall compensate that portion of work disability, which the victim acquired while employed at the former state enterprise up to its privatisation, taking into account the conditions of work and the time worked at that enterprise. The other part of work disability shall be compensated by the enterprise where work after the privatisation of the enterprise contributed to contracting the occupational disease. The portion of work disability, which was acquired by the victim while employed at a former State enterprise up to the time of its privatisation, shall be established by SMSEAC. In the event of a dispute, the court shall establish the portions of work disablement and damage compensation in each instance. 2. The Government shall establish the procedure of the transfer to the State of the liability of damage compensation indicated in this Article. Having compensated the damage in instances specified in Paragraph one, item one of this Article, the State shall have the right of claim and return to the payer of damage compensation. ARTICLE 19. Compensation of Funeral Expenses If the victim should die as a result of an accident at work, the enterprise and farmer responsible for the damage incurred as a result of the victim’s death, shall compensate his family members or other persons who buried him, for his funeral expenses to the amount they exceed funeral allowances received according to other legal acts, however not to exceed more than double the amount of the average work compensation of republic economy, published by the Department of Statistics at the Republic of Lithuania Government. FOURTH SECTION FINAL PROVISIONS ARTICLE 20. Payment of Damage Compensation and Control Thereof 1. Employers, enterprises, institutions, organisations and farmers, who are responsible for the payment of damage compensation shall calculate and pay the damage compensation established by this Law. 2. Damage compensation shall be delivered, sent or transferred to the account of its recipients at any Republic of Lithuania Bank, by the enterprise and farmer obliged to pay these payments, in funds. 3. The State Labour Inspector’s Office at the Ministry of Social Security and Labour shall control calculation and payment of damage compensation. ARTICLE 21. Procedure of Application for Damage Compensation 1. Victims shall apply to the enterprise, institution, organisation or farmer including with their application all of the documents necessary to calculate the damage compensation if the victim does not have all of the necessary documents, these shall be demanded and obtained by the enterprise, institution, organisation and farmer. The application for damage compensation must be examined no later than within a course of 10 calendar days from the day it was received and the victim must be informed of the results of its examination within 5 calendar days following its examination. 2. Victims whose damage compensation had not been calculated prior to the day of the coming into effect of this Law or who did not apply for damage compensation, shall submit applications and these must be examined according to the procedure established in part 1 of this Article. 3. A victim who has not received a reply in time or who does not agree with the results of the examination, may apply to the court according to the procedure established by laws. ARTICLE 22. The Time Limits of Damage Compensation 1. Damage compensation shall be paid to a victim from the day of the accident at work or establishment of the fact of contracting the occupational disease, and if that should come to light at a later date, from the day it comes to light. 2. If the victim has applied for damage compensation, three years after the day he became eligible for damage compensation, it shall be paid from the day of his application. ARTICLE 23. The Coming into Effect and Implementation of the Law 1. This Law shall come into effect from September 1, 1997. 2. According to this Law, damage shall be compensated also to those persons, whose health has been damaged due to an accident at work, who have suffered the loss of the breadwinner (Article 7 of this Law), or who contracted an occupational disease prior to the coming into effect of this Law. 3. Provisions of Article 8 of this Law shall be implemented according to the Law on the Amendment of Article 79 of the Law On Labour Protection, passed on July 1, 1997. 4. For persons, whose right to damage compensation has come into existence prior to the coming into effect of this Law, the payment of damage compensation according to procedure previously in effect, shall be discontinued as of September 1, 1997. Single payments for persons entitled to payments for work incapacity, must be calculated according to the insurable income effective on September 12, 1998 and paid in accordance with the procedure established by this Law. Single work incapacity compensation payments to persons entitled to these in accordance with this Law, must commence from September 1, 1997, according to procedure established by this Law. 5. Should the periodic work incapacity compensation for persons entitled to it in accordance with this Law, be smaller that the damage compensation paid until the coming into effect of this Law, a periodic compensation equivalent to the damage compensation paid during the month of August 1997, shall be paid. This payment shall not be increased, in the event the average monthly insurable income changes or in other instances until such time as the periodic work incapacity compensation payable in accordance to this Law, shall exceed the damage compensation paid in August, 1997. 6. The Government shall by September 1, 1997: 1) amend and supplement the regulations for allocation of Benefits, upon the death of an employee due to an accident at work, approved by the Government on December 27, 1994 in accordance with Decree No. 1325. 2) approve the procedure of Damage compensation for victims who have sustained health damage or contracted an occupational disease at work, when this obligation passes over to the State. Entrance into Force and Implementation of the Law 1. This Law shall come into effect from December 1, 1999. 2. For persons’ whose right to damage compensation has come into existence prior to the coming into force of this Law, who according to the procedure established by law, have submitted a request to the payer, but no later than within 6 months from the coming into effect of this Law, the recalculated increased damage compensation shall begin to be paid for the period from December 1, 1999. If upon recalculation of damage compensation forms a larger sum, it will be paid as follows: 1) to those receiving periodic work disability compensation - no later than by June 30, 2000 2) to those who have received or are receiving a one-time work disability compensation - no later than by September 30, 2000. 3. If the payments stipulated in paragraph two of this Article shall not be paid, interest shall be calculated and paid in accordance with the procedure and amounts of the Republic of Lithuania Law on Determination of Interest for Late Payment of Payments, linked with Labour Relations. 4. If the amount of damage compensation recalculated according to this Law is less than the amount of damage compensation being paid until December 1, 1999, according to the coming into force of this Law. I promulgate this Law passed by the Seimas of the Republic of Lithuania. PRESIDENT OF THE REPUBLIC VALDAS ADAMKUS PRESIDENT OF THE REPUBLIC ALGIRDAS BRAZAUSKAS