REPUBLIC OF LITHUANIA

REPUBLIC OF LITHUANIA REPUBLIC OF LITHUANIA LAW ON COLLECTIVE AGREEMENTS This Law shall regulate the organization and legal basis of the formation and implementation of collective agreements. Chapter 1 GENERAL PROVISIONS Article

1. The Collective Agreement The collective agreement shall be the agreement between the employees working under an employment contract, the collective, and the employer. It shall include the character of work, wage rates, conditions of employment, the organization of work, safety at the workplace, working and leisure time, as well as other social and economic conditions. Article
2. Representatives of Parties to Collective Agreements Parties to collective agreements shall be represented by trade union organizations, which shall be authorized at meetings (conferences) of the collective of employees. If there are several trade unions, parties to collective agreements shall be represented by a joint representative body, formed by the consent of these trade unions. (All trade unions shall participate in the agreement with equal rights, regardless of their membership.) In the event that trade unions do not exist, or if the trade unions do not reach an agreement concerning the formation of the joint representative body, the parties to a collective agreement shall be represented by authorized representatives which shall be elected by the collective, the employer, or individuals authorized by the employer. Employees who are not members of trade unions shall have their interests represented by self-elected representatives. Parties to collective agreements which are concluded on a professional basis shall be represented by the organization of an appropriate trade union and the employer, or individuals authorized by the employer. Article
3. The Sphere of the Formation of Collective Agreements Collective agreements must be formed in enterprises, institutions and organizations (hereafter referred to as enterprises) in which employment contracts are concluded with employees, regardless of the form of ownership of the enterprise, and without taking into account whether the enterprise is a legal person or not, as well as in joint ventures and enterprises functioning in the Republic of Lithuania. Collective agreements shall be concluded in enterprises regardless of the number of employees. Upon the request of the employees, collective agreements shall also be concluded in branch enterprises. In newly formed enterprises, a collective agreement shall be concluded after the registration of the enterprise in accordance with the procedure provided in this Law. Collective agreements shall not be concluded with officials (State employees) in organs of State and executive power. Article
4. The Meeting (Conference) of the Collective of Employees The power to convene a meeting (conference) of a collective of employees on the conclusion, amendment or addition of a collective agreement shall be vested in trade unions as well as in representatives elected by the employees. In the event that there are several trade unions, the right to convene a meeting (conference) shall be vested in the joint representative body of trade unions. If trade unions do not exist, meetings (conferences) of the collective of employees shall be convened upon the written notice of 1/10 of the employees, or by the employer. Meetings (conferences) shall be held within 15 days of the date of submission of the written notice to the employer (administrative body of an enterprise). A meeting of a collective of employees shall be valid if at least 50% of all employees attend, whereas a conference of a collective of employees shall be valid if attended by at least 2/3 of the delegates. If the number of employees (delegates), as provided for in paragraph 3 of this Article, fail to attend the meeting (conference), another meeting (conference) shall be called within 15 days. This meeting (conference) shall be valid regardless of the number of participating employees (delegates). Upon the agreement of the employees (delegates), decisions shall be adopted at meetings by a majority vote, and by 2/3 majority vote at conferences. Article
5. The Application of Collective Agreements Collective agreements shall be binding to its parties as well as to the legal successor of the employer. The employer must acquaint new employees with the provisions of the collective agreement. The collective agreement shall be obligatory to employees if labour contracts provide therefor. Chapter 2 THE CONTENTS OF COLLECTIVE AGREEMENTS Article
6. The Contents of Collective Agreements Collective agreements shall establish the terms defining the rights and duties of the parties to the agreement, the procedure of their implementation, as well as the responsibility of the parties. Parties to a collective agreement shall establish additional provisions concerning the working, social and living conditions and privileges of employees, or such terms and regulations which are not set forth in the laws of the Republic of Lithuania, or which, pursuant to the laws of the Republic of Lithuania, may be established by the parties themselves. Collective agreements shall specify: the terms of concluding, amending and terminating collective agreements; the terms of work pay and organization of work (rate - qualification remuneration, wages according to posts, additional payments, other privileges and compensations, wage indexation, the systems and forms of wage payments and incentives, the order of wage payments and deductions as well as other regulations); the terms of working and leisure time; obligations concerning the establishment of safe and sound working conditions, and the provision of compensations and privileges in the event that the existing working conditions fail to comply with the standards set forth in laws and other legislative acts; conditions for the acquisition of speciality, the improvement of professional skill, and retraining, as well as guarantees and privileges related to them; and other economic and social regulations which are of importance to other parties. The contents of collective agreements concluded in joint ventures and enterprises of foreign states functioning on the territory of the Republic of Lithuania shall be established pursuant to the laws of the Republic of Lithuania and the documents of the foundation of an enterprise. Article
7. Invalidity of Collective Agreements Which Worsen Employee Conditions Terms, regulations, and obligations of a collective agreement which provide conditions for employees which are worse than the conditions established by the laws of the Republic of Lithuania shall be invalid. Article
8. The Structure of Collective Agreements The structure, parts, and supplements of collective agreements shall be defined by the parties involved. Chapter 3 THE CONCLUSION OF COLLECTIVE AGREEMENTS Article
9. Negotiations on the Conclusion of Collective Agreements The right to negotiate on the closing of a collective agreement shall be granted to the representatives of the both parties (Article 2 of this Law). The procedure for preparing a draft collective agreement as well as the procedure for negotiations shall be established by the mutual agreement of the parties and shall be recorded in the minutes. Prior to the beginning of the negotiations, representatives of the parties shall collect the proposals of employees and the necessary information concerning the economic, social and working conditions of an enterprise. Such information shall be provided by the employer and the representatives of employees. Article
10. Terms of Negotiations Parties must begin negotiating the conclusion of a collective agreement upon the request of one of the parties. The negotiations shall commence within either 10 days or other period agreed upon by the partners. In the case that a collective agreement has already been concluded, the parties shall begin negotiating the conclusion of a new collective agreement 2 months prior to the expiration of the existing collective agreement. Article
11. The Preparation, Discussion, and Signing of Draft Collective Agreements Parties to a collective agreement shall prepare the draft collective agreement, taking into consideration the proposals of the employees and agreements worked out during negotiations. The draft agreement must be discussed by the employees (at structural units) in accordance with the procedure established by the representatives of the parties, and must be submitted for further discussion to the meeting (conference) of the collective of employees. In the event that the draft collective agreement is not approved, representatives of the parties, taking into consideration the indicated remarks and proposals, shall introduce amendments and additions therein and repeatedly submit the draft to the meeting (conference) for discussion within 15 days. Upon the approval of a draft collective agreement at the meeting (conference), representatives of the parties shall sign the agreement within three days. Article
12. Entry into Force of Collective Agreements Collective agreements shall enter into force on the day that they are signed. Article
13. Validity of Collective Agreements Collective agreements shall be valid until a new collective agreement is signed. The term of validity of a collective agreement shall be established in the collective agreement, but may not exceed 2 years. Article
14. Amendments and Additions to Collective Agreements Within the term of validity of a collective agreement, parties to the collective agreement shall make amendments and additions therein in accordance with the procedure for the conclusion of collective agreements if the parties do not provide otherwise in the collective agreement. Chapter 4 EXECUTION AND CONTROL OF COLLECTIVE AGREEMENTS Article
15. The Execution of Collective Agreements Parties shall fulfil their obligations in accordance with the procedure, terms, and conditions provided for in the collective agreement. Article
16. Information Concerning the Implementation of Obligations and Regulations Established in Collective Agreements Upon the request of employees concerned with the implementation of a collective agreement, the employer shall impart information in accordance with the procedure set forth in the collective agreement within the period of 15 days. Article
17. Control of the Execution of Collective Agreements The right to exercise control over the implementation of obligations set forth in collective agreements shall be vested in the representatives of the parties, as well as in bodies authorized by the laws of the Republic of Lithuania. Representatives of the parties to a collective agreement shall present reports concerning the execution of the collective agreement to the collective of employees at least twice a year. Upon agreement of the parties, the procedure and terms of presenting reports shall be set forth in the collective agreement. Article
18. The Procedure for Resolving Disagreements and Disputes which Result from the Execution of Collective Agreements Disagreements and disputes which result from the negotiations, conclusion and execution of a collective agreement shall be resolved in accordance with the procedure of settling collective disputes (conflicts) provided in the laws of the Republic of Lithuania. Disputes arising between individual employees and employers as the result of failure to carry out a collective agreement or due to the improper implementation of a collective agreement shall be settled in court. Article
19. Liability for Violating the Procedure of Conclusion of a Collective Agreement or for Failing to Carry out a Collective Agreement Representatives of parties who have violated the established procedure of conclusion of a collective agreement and individuals guilty of failing to carry out a collective agreement shall be liable under the laws of the Republic of Lithuania. Vitiates Landsbergis President Supreme Council Republic of Lithuania Vilnius 4 April, 1991 No I-1201