LAW REPUBLIC OF LITHUANIA LAW ON SUPPORT OF THE UNEMPLOYED 13 December 1990 No I-864 Vilnius (As last amended by 16 June 2005 – No X-255) The law of the Republic of Lithuania on Support of the Unemplo

Article 4

. Mediating the Employment Abroad The Labour Exchange of Lithuania shall mediate the employment of citizens of the Republic of Lithuania and permanent residents of Lithuania abroad in compliance with international treaties and agreements of the Republic of Lithuania, concluded with an employment mediation agency or an employer of a foreign state. Other enterprises, establishments and organisations may mediate the employment of citizens abroad only when possessing licences issued by an institution authorised by the Government. The Government or an institution authorised by it shall approve the procedure for issuing licences to mediate the employment of citizens of the Republic of Lithuania abroad. Article 5.

Chapter II

State Guarantees of Employment In cases provided for by this Law the State shall guarantee the citizens: free vocational counselling and consultation services, as well as information concerning available jobs; free labour exchange services when getting employed; free vocational training in the event of unemployment; the possibility, in the event of unemployment, to perform public works and works financed from the Employment Fund. Local labour exchanges (hereinafter referred to as a “labour exchange”) shall draw up individual plans of employment for the unemployed who have registered with such labour exchanges. The plans shall specify active measures of a labour market policy, agreed upon by the unemployed and the labour exchanges, as well as measures for the unemployed provided for in other legal acts. The Minister of Social Security and Labour shall approve rules for registration of the unemployed with labour exchanges and drawing-up of individual plans of employment. Article

1. The Unemployed Additionally Supported on the Labour Market Unemployed individuals who have or may have difficulties to get employed because of inadequate qualification or work experience, long-term unemployment or loss of working capacity, may be additionally supported when employing them. The unemployed persons who are additionally supported on the labour market by applying to them employment support referred to in Article 8 of this Law shall be as follows: 1) persons with the recognised 30-40 per cent working capacity level (before 1 July 2005 – persons with group I or II disability), with the recognised 45-55 per cent working capacity level (before 1 July 2005 – persons with group III disability) or persons with the medium disability level; 2) persons aged between 16 and 25 seeking their first job; 3) graduates of schools of post-secondary and higher education, who start doing the job they have been trained for; 4) the long-term unemployed whose unemployment period lasts more than 2 years from the date of registration with a labour exchange; 5) persons who are within 5 years of becoming eligible to receive an old-age pension; 6) pregnant women, a mother or a father as well as other persons who actually raise a child under 8 years old; 7) persons who have been released from places of imprisonment, when the duration of imprisonment lasted more than 6 months. Persons referred to in subparagraph 7 of paragraph 2 of this Article shall be regarded as unemployed persons who are additionally supported on the labour market, when they apply to a labour exchange not later than within 6 months after the expiration of the reasons because of which they did not work. Article
2. Support of Employment of the Unemployed who are Additionally Supported on the Labour Market On the recommendation of the labour exchange, municipalities shall prescribe for the employers quotas for employment or creation of additional jobs for persons with the recognised 30-40 per cent working capacity level (before 1 July 2005 – persons with group I or II disability) or the medium disability level; the said quotas shall make up from 2 to 5 per cent of the total number of employees of an enterprise, if not less than 50 employees work in the enterprise. Employers who fail to comply with the quotas for employment or creation of additional jobs shall make payments into the Employment Fund in the amount of 15 minimum monthly wages for each disabled person they have not employed, except in cases where the labour exchange has not applied for the employment of the disabled. These funds shall be used to create jobs for the disabled. The employers who have employed persons with the recognised 30-40 per cent working capacity level (before 1 July 2005 – persons with group I or II disability) or the medium disability level in the jobs established by additional quotas, shall, for the duration of their employment, be paid the following employment support subsidies to cover expenses related to creation of jobs or adjustment thereof: 1) during the first 12 months - in the amount of one minimum monthly wage for each month; 2) during the following 6 months – in the amount of half of a minimum monthly wage for each month. The employment support subsidies in the abovementioned amounts shall be also paid to the employers who have employed persons with the recognised 30-40 per cent working capacity level (before 1 July 2005 – persons with group I or II disability) or the medium disability level in the enterprises employing less than 50 employees. In the event that the labour exchange has not within 3 months offered job to persons with the recognised 45-55 per cent working capacity level (before 1 July 2005 – persons with group III disability) or with the medium disability level, and to other unemployed persons referred to in subparagraphs 2-7 of paragraph 2 of Article 7 of this Law, the employers, who have employed such persons according to a placement of the labour exchange, shall be paid employment support subsidies to cover expenses related to creation of jobs: 1) during the first 6 months - in the amount of one minimum monthly wage for each month; 2) during the following 6 months – in the amount of half of a minimum monthly wage for each month. In the event that persons are employed not for the whole working time, the fixed employment support subsidies shall be reduced in proportion to the actually worked time. The implementation of the terms and conditions of an agreement concluded between the labour exchange and the employer shall be the grounds for payment of employment support subsidies to such employer. In the cases when employment support measures provided for in this Law are not sufficient in order to eliminate the disproportion between the offer of employment and the demand for employment which formed because of the structural changes, liquidation or reorganisation of enterprises, programmes concerning the employment of residents of specific localities. These programmes shall be prepared first of all for the employment of the unemployed persons referred to in Article 7 of this Law. The Government of the Republic of Lithuania, county governors or municipal councils shall take a decision concerning preparation of programmes on population employment, taking into consideration their importance. Implementation of measures of the employment programmes shall be financed with the funds of the state budget of the Republic of Lithuania, municipal budgets, the Employment Fund and other funds provided for territorial development. The Minister of Social Security and Labour shall lay down the procedure for the support of employment of the unemployed who are additionally supported on the labour market. Article 9.

Article 10

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Article 11

. Registration of Job Vacancies Employers who look for employees must inform territorial labour exchanges about job vacancies, work functions and work nature, remuneration and other conditions as well as qualification requirements for candidates for employment. Territorial labour exchanges register job vacancies, publicly announce them and offer to persons who seek employment. The procedure of registration of job vacancies in a territorial labour exchange shall be laid down by the Minister of Social Security and Labour. Chapter III ECONOMIC PREREQUISITES OF EMPLOYMENT OF THE POPULATION Article

1. The Employment Fund The Employment Fund shall be set up for financing the population employment measures. The financial resources of the Employment Fund shall comprise resources specified in Article 13 of this Law. The financial resources of the Employment Fund shall be used to finance the measures indicated in Article 14 of this Law. The financial resources of the Employment Fund shall be administered by the Ministry of Social Security and Labour which shall publicly announce the ways the financial resources are used. The Ministry of Social Security and Labour shall submit to the Tripartite Council of the republic of Lithuania for consideration a project concerning the distribution of the financial resources of the Employment Fund, as well as the information regarding the use of the financial resources. The Tripartite Council of the Republic of Lithuania shall present to the Ministry of Social Security and Labour proposals with regard to a project concerning the distribution of the financial resources of the Employment Fund and the use of the financial resources. The estimate of the financial resources of the Employment Fund shall be approved by the Minister of Social Security and Labour. He shall be responsible for adequate distribution of these financial resources. The Ministry of Social Security and Labour shall, according to the approved estimate of the financial resources of the Employment Fund, transfer financial resources to the Labour Exchange of Lithuania and the Lithuanian Labour Market Training Authority to finance the measures specified in Article 14 of this Law. The Labour Exchange of Lithuania and the Lithuanian Labour Market Training Authority shall, in the manner prescribed by laws and the Minister of Social Security and Labour, dispose of the financial resources received from the Employment Fund and present to the Ministry of Social Security and Labour a quarterly report on their activities and the use of the received financial resources. The Labour Exchange of Lithuania and the Lithuanian Labour Market Training Authority shall be responsible for proper use of the financial resources received from the Employment Fund. Article
2. Financial Resources of the Employment Fund The Employment Fund shall consist of: 1) unemployment social insurance funds which are transferred by The State Social Insurance Fund Board under the Ministry of Social Security and Labour in the manner and during the transitional period fixed by the Law on Unemployment Social Insurance; 2) charitable contributions from legal and natural persons; 3) the income of the labour exchange; 4) additional payments of employers, as specified in Articles 8 of this Law; 5) subsidies from the state budget; and 6) other income. The State shall be the guarantor of the Employment Fund. Article
3. Use of Employment Fund Resources Employment Fund financial resources shall be used for: 1) financing measures of active labour market policy. The said measures shall include: vocational training of the unemployed and of the employees given notice of the termination of employment; employment support in order to employ the unemployed persons who are additionally supported on the labour market, as specified in Article 7 of this Law; implementation of projects of local initiatives for employment; financing the works supported by the Employment Fund, as well as public works; extending loans to the unemployed desirous of setting up their own business; other measures; 2) financing active labour market policy measures provided for in population employment programmes and referred to in subparagraph 1 of this Article; 3) paying unemployment social insurance benefits under the Law on Unemployment Social Insurance; 4) maintaining and development of the Labour Exchange of Lithuania and its territorial labour exchanges, as well as Lithuanian Labour Market Training Authority and its territorial labour market training and counselling offices; 5) jointly financed EU and international projects in the field of unemployment. Chapter IV Social Guarantees for the Unemployed Citizens Article 15.

Article 16

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Article 161

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Article 17

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Article 18

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Article 19

. Vocational Training of Unemployed Individuals and Employees who Have Been Given a Notice of Dismissal Unemployed individuals to whom the labour exchange is not in the position to offer, in the established manner, work suitable for their professional qualification and state of health, also unemployed individuals who lack adequate training may be placed into vocational training to acquire requisite skills meeting the local market demands or to upgrade their qualification. During the period of training the unemployed individuals shall be paid training allowance payable to the unemployed in the amount of 1.5 of a minimum living standard valid in the month of payment. The Employment Fund resources shall be used to finance vocational training of unemployed individuals and pay the unemployed individuals’ training allowance for the maximum period of 6 months. In certain cases, where vocational training lasts longer, the financing of vocational training and payment of training allowance may be extended for up to 10 months on the proposal of the tripartite commission at the labour exchange. Vocational training financed from the Employment Fund may also be organised for the employees who are given notice of the termination of an employment contract under Articles 9 and 10 of this Law. Vocational training financed from the Employment Fund may also be organised for the employees who are given notice of the termination of an employment contract. The Minister of Social Security and Labour shall lay down the procedure of vocational training of the labour market. Article

1. Public Works Temporary public works shall be organised for the unemployed and other persons who have registered with the labour exchange. Public works shall be organised by the labour exchange together with local governments. Citizens performing public works shall receive payment for the time of work which is calculated by applying the hourly payment which is not less than the minimum hourly wage fixed by the Government. Individuals performing public works shall not be entitled to unemployment benefit if their wages are higher than the benefit. If the wage is lower than the received benefit, the difference between the wage and the benefit shall be paid by the labour exchange. Persons employed for public works shall continue their registration with the labour exchange and the state employment and social guarantees prescribed by this and other laws shall be applicable to them. The procedure for the performance of public works shall be established by the Government of the Republic of Lithuania or the institution authorised by it. Article
2. Works Financed from the Employment Fund Works financed from the Employment Fund shall be offered to the unemployed individuals specified in Article 7 of this Law, also to individuals to whom the labour exchange is not in the position to offer a permanent job after their completion of a vocational training course in accordance with the procedure laid down in Article
3. The national labour exchange shall organise works financed from the Employment Fund for a maximum period of 6 months, concluding contracts with employers regarding the employment, by order of priority, first of all of the unemployed individuals who commence their labour activity, providing them with opportunities to acquire basic vocational skills and helping them towards permanent employment. Should it transpire that additional vocational training is required for permanent employment, the duration of such works may be extended for up to 8 months. Employers who, following the job placements of the labour exchange, employ unemployed individuals in works financed from the Employment Fund, shall be reimbursed from the Employment Fund on a monthly basis for their expenses in the amount of minimum monthly wages and social insurance contributions calculated as payable for the amount. The procedure of employment in the works financed from the Employment Fund shall be laid down by the Minister of Social Security and Labour. Article
4. Projects of Local Initiatives for Employment Projects of local initiatives for employment – projects for creation of new jobs helping to muster the efforts of local community, enterprises, establishments and tripartite social partners with the aim to increase employment of the municipal population by developing a local socio-economic infrastructure. Projects of local initiatives for employment may be implemented within the territories of the municipalities (wards) in which the level of unemployment exceeds the average level of national unemployment or in which such level of unemployment is expected because of dismissal of a group of employees. These projects are intended for employment of unemployed individuals who registered with territorial labour exchanges. The Labour Exchange of Lithuania at the Ministry of Social Security and Labour shall organise the implementation of projects of local initiatives for employment. Implementation of projects of local initiatives for employment shall be partly financed from the state budget of the Republic of Lithuania, municipal budgets and the Employment Fund. The Minister of Social Security and Labour shall lay down the procedure for preparation, selection, financing of implementation and control of projects of local initiatives for employment. Chapter V THE LABOUR EXCHANGE OF LITHUANIA Article
5. Organisation of Management of the Labour Exchange of Lithuania Services and support, set out by this Law and the legal acts implementing it, to the unemployed and the persons seeking employment, as well as to employers looking for employees of relevant qualifications shall be rendered by the Labour Exchange of Lithuania at the Ministry of Social Security and Labour (hereinafter referred to as the “Labour Exchange of Lithuania”) and its territorial labour exchanges. The Labour Exchange of Lithuania shall be established by the Government of the Republic of Lithuania. Regulations of the Labour Exchange of Lithuania shall be approved by the Government of the Republic of Lithuania or an institution authorised by it. The Labour Exchange of Lithuania and its territorial labour exchanges shall be state establishments. They shall be legal persons, having their bank accounts, seals and the common symbols. The Labour Exchange of Lithuania shall co-ordinate, control and methodically direct the work of its territorial labour exchanges. The Labour Exchange of Lithuania shall be headed by the director. He shall be appointed and dismissed by the Minister of Social Security and Labour in the manner established by the Law on Civil Service. The director of the Labour Exchange of Lithuania shall be accountable to the Minister of Social Security and Labour. The Labour Exchange of Lithuania shall establish territorial labour exchanges and approve their regulations. The Labour Exchange of Lithuania and its territorial labour exchanges shall be maintained with the financial resources of the Employment Fund and shall provide their services free of charge. Tripartite commissions functioning on a voluntary basis shall be set up at the Labour Exchange of Lithuania and its territorial labour exchanges for the consideration of issues concerning the state of the labour market and the implementation of measures and services of the labour market policy. The said commissions shall consist of an equal number of members with equal rights: representatives of the employees (trade unions, federations, associations, etc.), the employers (associations, confederations, etc.), and state and municipal institutions. The Minister of Social Security and Labour shall approve the regulations of the Tripartite Commission at the Labour Exchange of Lithuania and model regulations of a tripartite commission at a territorial labour exchange. Article 22.

Article 23

. The Rights of Tripartite Commissions Tripartite commissions shall: consider and give recommendations to the labour exchange on employment policy, labour market regulation, the priorities of social assistance offered to the unemployed, as well as greater viability of the system; make recommendations on such matters as employment of the population, measures for limiting unemployment, job creation and setting of employment quotas for those who are not in the position to compete with other individuals under equal conditions in the labour market, also vocational counselling of the unemployed citizens and issues of their training and retraining; regularly consider the activities of labour exchanges and the application of the Employment Fund resources and make appropriate recommendations. Chapter VI FINAL PROVISIONS Article

1. Control over the Compliance with the Law on Support of the Unemployed Compliance with the Law on Support of the Unemployed shall be controlled by the State Labour Inspectorate. Article
2. Dispute Resolution Disputes arising from the application of this Law shall be settled in court. Article
3. The Consequences of Illegal Use of the Employment Fund Resources Persons who fail to disclose a material fact or make a false statement and by reason thereof obtain unemployment social insurance benefits or make use of any other measures financed from the Employment Fund must within a month from the application day reimburse the related expenses to the Employment Fund. In the event of a dispute the above expenses shall be recovered into the Employment Fund by legal action. Chairman Supreme Council Republic of Lithuania Vytautas Landsbergis