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official translation official translation REPUBLIC OF LITHUANIA LAW ON THE EMPLOYMENT CONTRACT (as amended by 25 September 1997, No.VIII-429) Chapter I. General Provisions Article

  1. Relations Regulated by this Law This law shall establish the general procedures for drawing up, altering, and terminating employment contracts. Specific requirements for drawing up, altering, and terminating employment contracts with employees of elective offices, employees who are selected to fill a vacancy and employees whose performance is being subjected to evaluation, employees of public and executive authorities, employees of court and prosecutor’s office, employees of commercial banks and other credit institutions, servicemen of the professional military service, craftsmen working at home, apprentices, trainees, persons with limited functional capacity, and other persons shall be determined by laws and other statutory acts which regulate labour relations with such employees and servicemen, unless it is prohibited by this Law. (Amended 14 July 1993, 1 February 1996 and 25 September 1996) Specific characteristics of labour relations which are formed on the basis of membership in partnerships, public companies, private companies, and agricultural partnerships shall be determined by laws which regulate the operations, bylaws, and collective agreements of such enterprises. The Government of the Republic of Lithuania shall determine the distinctions of employment contracts of special-purpose enterprises which are concluded with persons whose activities may cause the disruption of the activity of the said enterprises, related with especially serious consequences of major extent to people and nature, as well as of contracts which are concluded for providing seasonal work, and of contracts which are concluded for rendering service to individual persons. (Amended 14 July 1993) Article
  2. Principles of Legal Regulations of Labour Relations Relations specified by Article 1 of this Law shall be regulated in accordance with the following principles: 1) equality among the parties involved in the employment contract; 2) the establishment of additional guarantees for groups of citizens who are socially vulnerable; 3) the prohibition of unilaterally modifying the terms that the parties have agreed upon; 4) the right of each employee to terminate an employment contract in accordance with the procedures established by law; 5) the right of the employer to terminate an employment contract only on lawful grounds; and 6) equality for all employees, regardless of their sex, race, nationality, citizenship, political convictions, religious beliefs, or any other factors which do no affect their professional qualifications. Article
  3. The Employment Contract The employment contract shall be the agreement between the employer and the employee in which the employee shall pledge to work in a certain profession, speciality, qualification, or office in accordance with the established rules and regulations, and in which the employer shall pledge to pay the employee, and shall guarantee working conditions which conform with employment laws, the collective agreement, and other legislative acts or agreements between the parties. All works performed at an enterprise, institution, organisation, which a natural person does having agreed upon with an employer or a person authorised by him, must be set out in an employment contract. This provision shall not be applied to the works performed under author’s contract, and to the natural persons who have a patent to perform these works. (Supplemented 1 July 1997) Article
  4. The Employee Permanent residents of Lithuania who are 16 years of age or older may legally be employed. Persons 14 years of age and over may be employed in jobs which have been approved according to the procedures established by the Law on Labour Protection of the Republic of Lithuania, provided that the health conditions at the establishment permit them to work in such a job. Minors between the ages of 14 and 16 may be employed only if this does not interfere with their school attendance and only with the written consent of the school and that of one of their parents or the persons who actually raise them. (Amended 14 July 1993) Foreign nationals and stateless persons who have arrived in the Republic of Lithuania in the prescribed manner for a temporary stay with the purpose of getting a job, shall have the right to get a job in accordance with this and other laws. Their employment procedure shall be established by international agreements and the Government of the Republic of Lithuania. (Amended 23 May 1995) Article
  5. The Employer; the Person Authorised by Him (Supplemented 17 April 1996) Under this Law, employers shall be the owners, managers of all types of enterprises, institutions, and organisations (hereafter referred to as "enterprises"), who are appointed, elected, or authorised in some other manner, according to the laws (articles of association, regulations, incorporation documents) of the appropriate enterprises, including partnerships and individual (personal) enterprises) to draw up, alter, and terminate employment contracts in the name of the enterprise, as well as to perform other actions while implementing the provisions of employment laws. (Amended 17 April 1996) When an employment contract between natural persons is concluded for the provision of services, the employer shall be a natural person. A person authorised by an employer shall be the person to whom the employer has transferred part of his rights and duties related to the issues of the Law on Employment Contract. (Supplemented 17 April 1996) Article
  6. Validity of the Law The provisions of this Law shall be applied to labour relations, as established in Article 1 of this Law, at enterprises located on the territory of the Republic of Lithuania, as well as at enterprises which are located outside the boundaries but are within the jurisdiction of the Republic of Lithuania. Labour relations at foreign capital enterprises and at enterprises where a portion of the authorised capital belongs to a foreign investor (i.e., joint ventures), shall be regulated by this Law and by documents on the founding of the enterprises, except in cases when international agreements provide for other regulations applicable to the employees of the enterprises. Chapter II. The Contents and Composition of Contracts of Employment Article
  7. The Contents of Contracts of Employment The employment contract shall include the rights and obligations of the employee and the employer as established by an agreement between them. The parties may not establish working conditions which would be less favourable to the employee than those provided by the laws of the Republic of Lithuania. Article
  8. The Conditions of Contracts of Employment In each employment contract, the parties must agree upon the following conditions: 1) the employee's place of work (enterprise, its subsidiary, etc.); 2) the functions of employment - in regard to a certain profession, speciality, qualification, or post; and 3) the salary. For certain employment contracts, employment laws and collective agreements may provide for other requisite conditions to be discussed by the parties upon the conclusion of such a contract (agreement on the duration of the contract, the nature of seasonal work, etc.). Upon the agreement of both parties, other conditions of the employment contract (i.e., probation periods, shorter working hours) may be established, provided that employment laws do not prohibit such provisions. Article
  9. The Duration of an Employment Contract An employment contract may be concluded for an either an indefinite or a fixed period of time, but the duration may not exceed five years unless laws provide otherwise. It shall be prohibited to conclude a contract for a fixed period of time if the employment is of a permanent nature, except in cases where such a contract is concluded at the employee's request, or when it is provided for in other laws. Employment contracts with employees who are appointed to their posts by elective bodies in accordance with the law shall be concluded for the term of office of the elective bodies. Article
  10. Determining the Term of an Employment Contract The term of an employment contract may be determined by a certain calendar date, or upon the emergence of, changes in, or termination of certain circumstances, except in the cases specified in paragraph 3 of Article
  11. If the term of an employment contract is not specified therein, or if it is not specified in the appropriate manner, the duration of the employment contract shall be considered indefinite. Article
  12. The Expiration of a Fixed-Term Employment Contract Upon the expiration of an employment contract, the employee shall have the right to discontinue work, and the employer shall have the right to dismiss the employee. If neither of the parties acts in the specified manner, the employment contract shall be considered indefinite. Article
  13. The Probation Period of an Employment Contract Upon concluding an employment contract, a period of probation may be established upon mutual agreement of the parties. The period of probation may be established in order to assess the employee's competence in the field, or at the employee's request, to ascertain whether the job is suitable. Provisions concerning probation must be established in the employment contract. All employment laws shall be applicable to the employee during the period of probation. Probation periods established for the purpose of assessing the employee's competence shall not be applicable when employing: 1) persons under 18 years of age; 2) persons who, upon the agreement of the employers, are transferred to work from another enterprise; 3) persons who must be employed in order to fulfil employment quotas; 4) persons by way of tender or persons who have passed qualifying examinations; and 5) in other cases specified by law. (Amended and supplemented 17 April 1996) Article
  14. The Period of Probation The period of probation may not exceed three months. In cases specified by law, the period of probation may be extended. During the probation period, absence from work shall not be recorded. Article
  15. The Results of Probation If an employer is not satisfied with the results of a probation period established to assess the employee's competency, he or she may dismiss the employee by the end of the probation period without adhering to the procedures established in Articles 33 and 34 of this Law, and without paying the employee the severance pay. If a probation period is established to ascertain if the work is suitable for the employee, the employee shall be free to assess the results of probation. During the probation period, the employee may terminate the employment contract with three days notice. If the employee continues to work upon expiration of the probation period, the employment contract may be terminated only in accordance with the established regulations. Article
  16. Documents Required for Employment Employers may require that applicants present their personal identification certificates. If, pursuant to employment laws, a certain occupation requires specific education or professional background, health condition, the employer must requisition documents certifying necessary education, professional background, health condition from the applicant, and, to employ minors between the ages of 14 and 16, an employer must require a birth certificate and a written consent of the school he attends and of one of the applicant's parents or the person who actually raises him. Persons liable to military service must present documents proving that they have got registered with local territorial military institutions according to their place of residence. The employer also has the right to request other documents as provided for by law. (Amended 17 April 1996 and 22 October 1996) Article
  17. The Employer's Responsibility to Require that Employees Present State Social Insurance Certificates The employer must require that employees present state social insurance certificates, and must register these certificates in the established manner. Regulations for the distribution and management of state social insurance certificates shall be established by the Government of the Republic of Lithuania. Article
  18. Drawing up Contracts of Employment An employment contract shall be considered complete when the parties have agreed upon the requisite conditions specified in paragraphs 1 and 2 of Article 8 of this Law. Employment contracts must be concluded in writing according to the standard form of this contract (appended). Employment contracts must be signed in two copies by the employer and the employee. Each employment contract must be registered in the employment contracts record book of an enterprise, the form whereof and employment contracts registration rules shall be approved by the Government of the Republic of Lithuania on the recommendation of the Ministry of Social Security and Labour. The employer shall be responsible for conclusion and registration of an employment contract. If the employer violates the requirements of this provision, he shall be held liable according to the procedure established by law. (Amended 17 April 1996) The employee must commence work one day following the signing of the contract, unless the parties agree otherwise. If an employee has actually begun working in agreement with the employer or the person authorised by the employer, the employment contract shall be considered complete and must be executed immediately. Upon signing the employment contract, the employer or the person authorised by the employer must give the applicant written information concerning the working conditions, the collective agreement, internal rules and regulations, and other internal standard acts regulating working conditions. The applicant's signature shall confirm that this has been done. Article
  19. Illegal Work The illegal work shall be the work: 1) done without having concluded an employment contract with an employer or the person authorised by him, with the exception of the cases when, according to other legal acts, it is not necessary to conclude an employment contract; 2) performed under a contract agreement or other economic-commercial agreements without having established an enterprise or without having a patent, with the exception of the work under author’s contracts; 3) done by foreign nationals or stateless persons, failing to comply with the procedure of their employment stipulated by legal acts. Employers or the persons authorised by them who have permitted to perform illegal work, as well as the persons performing illegal work shall be liable according to the procedure established by law. (Supplemented 1 July 1997) Article
  20. Illegal Work Control The State Labour Inspectorate at the Ministry of Social Security and Labour shall control whether on not illegal work is being performed. (Supplemented 1 July 1997) Article
  21. Restrictions on Employment of Relatives Persons who are immediate relatives or who are related by marriage (parents, foster parents, spouses, brothers, sisters, children, adopted children, as well as brothers, sisters, parents and children of spouses) shall be prohibited from working together in one state and local authority institution, and one state (municipal) enterprise if such employment is connected with direct subordination of one of them to the other or with the right of one of them to control the other. Exceptions to this rule may be established by the Government of the Republic of Lithuania. (Amended 17 April 1996) Article
  22. Employment Guarantees The employer shall be prohibited from refusing employment: 1) on the grounds specified in item 6 of Article 2 of this Law; 2) in jobs reserved for residents of corresponding categories (paragraph 1 of Article 7 and Article 8 of the Republic of Lithuania Law on Employment of the Population); 3) if there is a written agreement between employers concerning the transfer of an employee to another job; and 4) in other cases provided by law. If a person specified in item 1 hereof is refused employment, he or she may bring the employer to court within one month. If the court concludes that a person has been refused employment unlawfully, the employer shall be obligated by court order to employ the person from the day of application of employment, and to pay the employee minimum wage for the expired period. Chapter III. Fulfilment and Modification of an Employment Contract Article
  23. The Employee's Duty to Personally Carry out Assigned Work Employee do not have the right to assign their work to other persons without the permission of the employer or the person authorised by the employer. Article
  24. Prohibition of Requiring an Employee to Perform Work which is not Specified in the Employment Contract An employer does not have the right to require an employee to perform work that is not agreed upon in the employment contract. Another employment contract must be concluded for additional work. Article
  25. Changing Working Conditions An employer has the right to change an employee's working conditions (to change the working place within the same enterprise and locality, or to assign work with another machinery or device), or to change other conditions (benefits, the work regime, the amount of material liability, posts, etc.), only when this change is related to changes in production or technology, or when the organisation of labour is being changed and the employer has to change the working conditions of certain employees as a result. The employee must be given written notice of the planned changes in working conditions no later than one month prior to the introduction of such changes. If the changes are related to production technology, the employer must provide conditions for the employees to improve their qualifications or change their specialisation so that they will be able to work after the changes in production or production technology are introduced. The collective agreement may require a longer notice period, as well as additional obligations for the provision of conditions which would enable the employee to prepare for work after the introduction of changes in production or production technology. If an employee refuses to work under changed working conditions, he or she may be dismissed from work in the manner established in item 9 of Article 26 of this Law. If changes are introduced and as a consequence an employee's salary is reduced for reasons beyond his or her control, the employee shall be compensated for the disparity in wages for at least three months after the introduction of the changes in working conditions. Article
  26. Transference at the Request of the Employer If an employer wishes to transfer an employee to another job or locality (i.e. to change the requisite conditions of the employment contract), even if the entire enterprise is being transferred, it shall only be permitted if the employee gives written consent. Exceptions are provided for in Article 24 of this Law. Article
  27. Temporary Transference in Cases of Emergency An employer shall have the right to transfer an employee to a job other than the one agreed upon in the employment contract, either in the same enterprise (on the territory of a forest district) or in another enterprise situated in the same locality, for the period of one month if the purpose of such a transfer is: to avert a natural calamity or industrial accident, to liquidate or immediately eliminate the consequences of such an accident, to distinguish a fire, or to prevent a fire from spreading. It shall be prohibited to transfer an employee to a job which is incompatible with his or her health. If an employee's salary is decreased after being transferred to another job for reasons beyond his or her control, the employee shall be paid the equivalent of the former average wage. Article
  28. The Lay-off, Registration thereof and the Legal Status of the Employee The lay-off through no fault of the employee shall be a situation in an enterprise when the employer does not provide the employee with the work agreed upon in the employment contract due to objective reasons (industrial, etc.). The lay-off which continues not more than one workday shall be recorded in the working time sheet, and when it exceeds the length of one workday - shall be also recorded as an order (directive) of the employer, and the employees who do not work due to the lay-off shall be notified thereof. By the written consent of the employees, they shall, taking into consideration their profession, speciality, qualification and health condition, be transferred to alternative work in the same enterprise for the length of the lay-off. If an employee gives his consent, he may be transferred to alternative work without taking into consideration the profession, speciality, qualification. If the wage of the employee, who has been transferred to alternative work as a result of the lay-off, decreases for reasons beyond the employee’s control, he shall be paid an average payment he got before being transferred. If in the event of the lay-off, the employee receives no offer of alternative work available at the enterprise, which he could do without prejudice to his profession, speciality, qualification, health condition, he shall be paid the payment equal to two-thirds of his average hourly wage he received before the lay-off, but not less than the minimum hourly payment, approved by the State, for every hour of the lay-off. If the employee rejects an offer of alternative work which he could do without prejudice to his profession, speciality, qualification and health condition, he shall, for every hour of the lay-off, receive the payment which is not less than the State-established minimum hourly pay. The employer has no right to require an employee who is not working due to the lay-off, to stay at his workplace for more than one hour per workday (shift). The workpay established in paragraph 5 of this Article shall be paid for the stay in the enterprise for the time specified in this provision. The cases of full absence from work may be provided for in the collective agreement, employment contract or by agreement between the parties. (Supplemented 17 April 1996) Article
  29. Dismissal from Work If an employee comes to work under the influence of alcohol, drugs, or other toxic substances, the employer shall not allow him or her to work that day (shift). Employees may be dismissed from work (office) or have their wages suspended in other cases specified by laws. Chapter IV. Termination of an Employment Contract Article
  30. Grounds for the Termination of an Employment Contract An employment contract shall be terminated : 1) by agreement between the employer and employee (Article 27); 2) upon the expiration of the term of the contract, with the exception of the case specified in Article 11 of this Law; 3) upon the application of the employee (Article 28); 4) upon the initiative of the employer in cases provided for in this Law (Article 29) or at the will of the employer (Article 30); 5) upon the execution of a court sentence which prevents an employee from continuing work; 6) when an employee is deprived of the right to work a certain occupation according to the procedure established by law; 7) when an enterprise goes into liquidation following the adjudication of bankruptcy; (Amended 17 April 1996) 8) when the employee refuses to be transferred together with the enterprise (its unit) to another locality; 9) when the employee refuses to work after the introduction of changes in working conditions set forth in Article 22 of this Law; 10) when the medical commission or the commission for the establishment of disability concludes that an employee is unable to hold his or her post or work in such an occupation; 11) when, in cases provided for by law, the former employee returns to work; 12) when an employee takes an elective office or an office for which a vacancy is announced; as well as when an employee is not re-elected or appointed to that office for a new term or is removed from office in cases provided by law, or when he is transferred to another enterprise by agreement between the employers and upon his own consent. (Amended 14 July 1993) 13) when a parent of or the person, actually raising an employee who is between the ages of 14 an 16, or the school which the said employee attends, demands that the employment contract be terminated; (Amended 17 April 1996) 14) when the employment contract contradicts requirements of laws (Article 31); 15) upon the motivated demand of bodies and officers authorised under law; 16) when it appears that State or local authority officials have been tried for major crimes, crimes against the civil service; 17) when State or local authority officials do not declare their property and income in accordance with the procedure established by law; 18) when State or local authority officials violate the provisions of laws, which prohibit them from being employed in other enterprises, offices and organisations, being members of their managing bodies (unless the law provides otherwise), being employed in another elective or appointive post, receiving any other salary with the exception of payment for creative activities; 19) when State or local authority officials violate the provision of laws, which prohibits them from being the owner of a personal enterprise, or general or limited members of a partnership, acquiring or holding in trust more than 10% of securities of one enterprises; 20) when State or local authority officials do not comply with the provision of Law of the Republic of Lithuania on Officials, which requires that they resign; (Supplement 23 May 1995) and 21) when the temporary administrator (administrator) of a commercial bank exercises the right granted to him to terminate employment contracts with the employees specified in paragraph 3 of Article 40 and paragraph 4 of Article 47 of Law of the Republic of Lithuania on Commercial Banks. (Supplemented 18 April 1996) 22) when the administrator of the enterprise under bankruptcy exercises the right granted to him to terminate the employment contract with the employees specified in item 2 of paragraph 6 of Article 14 of the Republic of Lithuania Enterprise Bankruptcy Law. (Supplemented 24 June 1997) 23) upon expiry of the powers of the elective body (paragraph 3 of Article 9) or any other body, formed in a manner prescribed by the law, which has appointed an employee to the job (has confirmed his appointment) for the term of office of this body. (Supplemented 25 September 1997) Article
  31. The Procedure for Terminating an Employment Contract upon the Agreement of Both Parties One party of an employment contract may submit to the other party a written proposal concerning the termination of an employment contract by bilateral agreement. If the other party agrees with the proposal, it must, within five calendar days, present a written reply to the party which submitted the proposal concerning the termination of an employment contract. Upon agreeing to terminate an employment contract, the parties shall also agree upon the date and other terms of termination (compensations, granting unused vacation, etc.). If the other party does not announce its agreement to terminate the employment contract within the time period specified in paragraph 1 hereof, the proposal to terminate the employment contract by bilateral agreement shall be considered to have been rejected. Article
  32. Termination of an Employment Contract upon the Application of the Employee The employee shall have the right to terminate an employment contract of indefinite duration provided that he or she gives the employer 14 days notice. The collective agreement may provide for a shorter period of notice. At the end of the period the employee shall have the right to leave the job, and the employer shall register dismissal papers. If termination of an employment contract of indefinite duration is requested because an employee's illness or disability is interfering with adequate work performance, or for other sound reasons provided for in the collective agreement, the employment contract must be terminated from the day specified in the employee's application. Employees may withdraw applications concerning the termination of an employment contract within three calendar days from the presentation of the application. After this period, applications may be withdrawn only with the consent of the employer. Employees shall have the right to terminate fixed-term employment contracts before the date of expiration provided that they give written notice to the employer and that there are reasons set forth in paragraph 2 hereof. Such a contract may also be terminated if the employer has violated the rights of the employee provided for in the employment laws and in the collective agreement or the employment contract. In the event of a controversy concerning the termination of a fixed-term employment contract before its expiration, the dispute shall be resolved, upon the application of the employee, by bodies settling labour disputes. Article
  33. Termination of the Employment Contract due to Circumstances outside the Control of the Employee The employee shall have the right to terminate an employment contract of an indefinite duration, as well as a fixed-term employment contract which has been concluded for the period exceeding 6 months when in his work-place during the employment hours set forth in the employment contract a lay-off, not due to the fault of the employee, continues for more than 30 days in succession or totals up to more than 60 days during past 12 months, also when he does not receive his normal workpay (monthly wage) for more than 2 months in succession. The employee shall be entitled to terminate an employment contract when the bankruptcy procedure is being initiated at an enterprise in the manner prescribed by the Law on Enterprise Bankruptcy. . The employment contract must be terminated from the day indicated in the employee’s application, but not earlier than 7 calendar days from filing the appeal. (Supplemented and amended 23 May 1995 and 1 July 1997) Article
  34. Termination of an Employment Contract on the Initiative of the Employer An employment contract may be terminated on the initiative of the employer for the following reasons: 1) liquidation of an enterprise, restriction or termination of economic activity of an enterprise under bankruptcy; (Amended 17 April 1996 and supplemented 24 June 1997) 2) reduction of the number of employees due to changes in production or production organisation; 3) inability of the employee to adequately perform the assigned work for due to deterioration in health or lack of required qualifications; 4) absence from work due to temporary disability for more than 120 consecutive calendar days, or during the last year of work, for more than 140 calendar days, unless the law has a provision which reserves the place of employment (office) for an employee in the event of a certain illness. The place of employment (office) shall be reserved for an employee who has lost capacity to work due to an industrial accident or occupational disease until the employee regains his or her capacity to work or the disability is certified; 5) if an employee fails to return to work within two months of release from the national defence service; 6) if an employee neglects assigned work or is guilty of other violations of labour discipline, provided that he or she has been penalised for disciplinary reasons at least once during the 12 months prior to the violation; 7) if the employee commits misappropriation of property (theft) at the working place, or any other deliberate unlawful action thereby incurring damage to the employer; 8) if a court sentence convicting the employee for a deliberate offence comes into effect; 9) if the employee is under the influence of alcohol, drugs or other toxic substances during working hours; 10) if the employee is absent without reason for the entire working day (shift); 11) if the employee makes public the commercial or technological secrets of the enterprise, or divulges information thereon to a rival company; 12) if employees who are empowered to give directions (instructions) which are to be carried out, grossly violate official duties, on one occasion; (Amended 14 July 1993) and 13) if an employee is unfit to perform his duties according to the performance evaluation results. (Amended 16 January 1997) An employer may terminate an employment contract with employees whose work is related to the stock-taking, security, acquisition, delivery, or transportation of things of value, when the said employees can no longer be trusted to perform the duty assigned to them due to guilty actions at work. State and local authority officials and employees performing educational functions may be dismissed from work if their conduct, even outside the employment hours, is immoral and consequently incompatible with their position. (Amended 23 May 1995) Employers shall be prohibited from dismissing an employee on their own initiative during the period of temporary disability (except dismissal under items 1 and 4 hereof) or during the vacation period (except dismissal under item 1 hereof) of the employee in question. If an employment contract is terminated in violation of this provision, the first working day after the vacation period or period of temporary disability shall be considered the day of termination of the contract. The employee shall be paid wages at a double rate as well as disability benefits and holiday pay for the period during which the termination of the employment contract is postponed. It shall be illegal for an employer to dismiss an employee on the basis of political conviction, religious views, nationality, citizenship or other factors which are not related to his or her professional qualifications. Article
  35. Termination of Employment Contracts at the Request of the Employer The employer, with the exception of a state (municipal) enterprise, institution and organisation, shall have the right to terminate an employment contract on grounds which are not provided for in Articles 26 and 29 of this Law, but on the basis of other important circumstances, by paying the dismissed employee the compensation when the length of employment of the employee in this enterprise is the following (Amended 14 July 1993 and 17 April 1996): 1) under 1 year - 6 average monthly wages; 2) 1 to 5 years - 12 average monthly wages; 3) 5 to 10 years - 18 average monthly wages; 4) 10 to 20 years - 24 average monthly wages; and 5) over 20 years - 36 average monthly wages. (Amended 14 July 1993) The provisions of paragraph 4 of Article 29, and Articles 34 and 40 of this Law shall not be applied in the cases specified above. Article
  36. Elimination of Terms of Employment Contracts Which Contradict the Law If constituent part(s) of an employment contract contradict the prohibiting provisions of laws, and the contradicting terms cannot be eliminated, or if it is not possible to transfer an employee with his or her consent to another place of work, the employment contract shall be terminated. If the employee does not accept the proposed job, he or she shall be paid a severance pay equalling an average monthly wage upon the termination of the employment contract. If there is not a place for the employee to be transferred, the employee shall be paid a severance pay equalling three average monthly wages. Disputes concerning the termination of an employment contract or discrepant terms within the contract shall be resolved by court. Employment contracts which violate laws or international agreements which regulate the employment of persons temporarily residing in the Republic of Lithuania (paragraph 3 of Article 4 of this Law) must be terminated. Sanctions provided by law shall be applied to the employer or authorised representative who is guilty of the said violation. Article
  37. Restrictions on Terminating Employment Contracts during the Reorganisation of an Enterprise Employment contracts shall not be terminated due to a change in ownership, jurisdiction, or name of an enterprise. Upon the merger, division, or take-over of an enterprise, or upon the change of the type of an enterprise, labour relations of the employee shall continue. (Amended 17 April 1996) Article
  38. The Consent of Trade Union Bodies to Dismiss Employees Employers may not dismiss an employee who is a member of the trade union, functioning in the enterprise, on their own initiative (except under items 1 and 8 of Article 29 of this Law) and will without a preliminary consent of the elective body of the trade union in the enterprise. Employees who have been elected to the elective bodies of the trade union and who have not terminated the employment contract, concluded with the employer, cannot be dismissed from the work on the employer's initiative (except under items 1 and 8 of Article 29) and will or transferred to another job (except under paragraph 1 of Article 24) without a preliminary consent of the elective body of the trade union. (Amended 14 July 1993 and 24 May 1994) Trade union bodies must consider dismissal consent applications from employers within 14 calendar days of receipt of the application. If a trade union does not give consent to dismiss an employee, the employer may appeal this refusal. The court shall revoke the decision of the trade union body if the employer proves that the decision expressly violates his or her interests. In cases provided by law, employees may not be dismissed on the initiative of the employer (except under item 1 of Article 29 of this Law) without the consent of other bodies. Employees who are dismissed in violation of this Article, or who are dismissed after more than one month from the day the consent is received, must, upon the decision of the court, have their previous job restored. Article
  39. Requirements of Employment Contract Termination when the Employee is not at Fault When the employee is not at fault, an employer may terminate the employment contract at his or her own initiative in accordance with the procedures established by law only after giving the employee a written notice of two months. Persons who are within five years of being entitled to full pension, minors under 18 years of age, disabled persons, women who have children under 14 years of age, and men who are the sole supporters of children under 14 years of age must be given a written notice 4 months prior to the dismissal. A longer term of notice may be established in the employment contract or collective agreement. The notice shall become invalid after 1 month ( excluding periods of temporary disability or vacation) from the expiration of its term. In the event that the period remaining until a fixed-term employment contract expires is shorter than the period of notice provided by this Article, the employer may not dismiss an employee at his or her own initiative if the employee is not at fault. If an employee is dismissed before the expiration of the term of notice, his or her dismissal shall become effective prior to the date of the expiration thereof. Terms of notice provided for in this Article shall not be applied when an employee is dismissed under Article 30 of this Law. It shall be permissible to dismiss an employee on the employer's initiative when the employee is not at fault, on the grounds set forth in items 9, 10, and 11 of Article 26 of this Law, and when the employee refuses to be transferred to another locality when only the unit of the enterprise wherein he or she is employed is being transferred (item 8 of Article 26), or when the employee is not re-elected for a new term to the previous office held by him, or is removed from office, when he is not at fault (item 12 of Article 26), if transference to another job is impossible with the employee's consent. (Amended 14 July 1993) Article
  40. Restrictions for Terminating Employment Contracts of Pregnant Women or Women who Have Children under 3 Years of Age Employers shall be prohibited from terminating, at their own initiative and own will, employment contracts of pregnant women. Employers shall be prohibited from terminating, at their own will, employment contracts of women who have children under 3 years of age or of fathers and other persons who are the sole supporters of children under 3 years of age. Employers shall also be prohibited from terminating employment contracts of said persons at their own initiative if the employee is not at fault. Guarantees provided by paragraphs 1 and 2 hereof shall not be applied in cases when an employment contract is terminated under item 1 of Article 29 of this Law. (Amended December 10, 1991) Article
  41. Restrictions for Terminating Employment Contracts of Persons Liable to Established Employment Quotas and of Conscripted Persons Except in cases specified in item 1 of Article 29 of this Law, employers may not terminate the employment contracts at their own initiative of: disabled persons; employees who are liable to established employment quotas, or for whom additional working places are provided under the established quotas; employees who are not at fault, and whose total number does not exceed the quotas established by the local government; or employees conscripted to the national defence service. Article
  42. Preference to Retain Employment during Employee Reduction In the event that the number of employees is being reduced, preference to retain employment shall reside with the following employees: 1) who have sustained work-related injuries or have contracted an occupational disease at that workplace; 2) who are single parents, supporting children (foster-children) under 16 years of age or other family members, recognised as the disabled of group I and group II; 3) whose continuous length of service at that enterprise, institution or organisation amounts to no less than 10 years; 4) for whom less than 3 years remain till their old age pension; and 5) to whom this right is granted by the collective agreement. The preference to retain employment, provided for in items 2, 3 and 4 of this Article shall be applied only to those employees whose qualification and labour productivity are not lower than the qualification and labour productivity of the employees with the same speciality who work in that enterprise, institution or organisation. (Amended 14 July 1993) Article
  43. The Employee's Right to be Informed of the Reasons for Dismissal Employees shall have the right to file written applications within 10 days of being dismissed to demand that the employer impart the reasons for their dismissal. Within 5 days of receipt of such an application, the employer must notify the applicant in writing of the precise reasons for dismissal, and must specify the findings whereon the dismissal was based. If the employer fails to satisfy this requirement, and the employee appeals against his or her dismissal in court, the employer shall be subject by court to pay the employee the equivalent of the salary of 20 working days, even if the employee's job is not restored. Article
  44. Employment Contract Termination Statements In the event that an employment contract is terminated, the wording in the documents must comply with the conditions and laws of the termination contract. Article
  45. Severance Pay Upon the ending of an employment contract on the grounds set forth in items 8, 9, 10, 11 and 23 of Article 26 of this Law, and on the termination of an employment contract at the initiative of the employer and .through no fault of the employee, or on the application of the employee and on reasonable grounds (paragraphs 2 and 4 of Article 28 of this Law), the employee shall be paid a severance pay equivalent to his average monthly workpay. Upon dismissing under item 7 of Article 26, and the provision of item 12 of Article 26 providing for the dismissal of the employee when he is not re-elected or re-appointed to the post for a new term of office or when he is dismissed from of his post before the expiration of his term of office in the cases laid down in laws and not due to the fault of the employee, as well as under Article 281 and items 1 and 2 of Article 29, the employee shall be paid the severance pay in the amount of his two average monthly workpays.(Amended 23 May 1995 and 25 September 1997) The amount of severance pay specified in paragraph 1 hereof shall be increased: one and a half times for employees who have worked at the enterprise for more than 5 consecutive years; two times for employees who have worked at the enterprise for more than 10 consecutive years; three times for employees who have worked at the enterprise for more than 20 consecutive years. Said increases in the amount of severance pay shall not prolong the term on the expiration of which the person is liable to receive unemployment benefit (paragraph 2 of Article 16 of the Republic of Lithuania Law on Employment of the Population). When terminating the employment according to Article 281 of this Law, a severance pay may be paid by equal instalments within three months from the date of termination of the employment contract. (Supplemented 23 May 1995) Article
  46. The Obligation of the Employer to Pay the Dismissed Employee the Total Amount of the Money Due On the day of dismissal, the employer must pay the dismissed employee any moneys to which he is entitled, except the payment of severance pay when the employment contract is terminated in the cases specified in Article 281 of this Law. This severance pay shall be paid in the manner set forth in paragraph 3 of Article 40 of this Law. (Amended 23 may 1995 and 17 April 1996) If the employer fails to pay the due amount on time through his or her own fault, the employee shall be paid an average wage for the entire period of delay in payment. Article
  47. Reinstatement of an Employee to Work If the employee disagrees with his or her dismissal, removal from work, or transfer to another job, he or she shall have the right to appeal to court within one month of receiving the document confirming the dismissal, removal from work, or transfer to another job. If the employee is dismissed, removed from work, or transferred to another job without legal grounds, or in violation of the procedures established by law, he or she shall be reinstated in his last employment by court. Upon reinstating in his last employment the employee who was unlawfully dismissed, transferred to another work, or removed from work, the court shall subject the employer to the liability of payment of the employee's wages for the entire period of enforced idleness, or of the unpaid amounts of his last average wage for the period he had to work for lower remuneration. When an unlawfully dismissed employee declares, that upon his reinstatement in his last employment unfavourable conditions would be created for him, the court, declaring the dismissal unlawful, may, at the employee's request, refrain from reinstating him in his last employment, and adjudge to him compensation in the amount of up to 12 average monthly wages. In this case, the employee shall be considered to have been dismissed from work under Article 28 of this Law. VYTAUTAS LANDSBERGIS President Supreme Council Republic of Lithuania Vilnius 28 November 1991 No. I-2048 Appendix to Law of the Republic of Lithuania No.I-1285, enacted 17 April 1996 EMPLOYMENT CONTRACT No.________ _____ __________ 199___ Enterprise, institution, organisation (further - enterprise)__________________________ (name) ___________________________________________________________________________ (address) ___________________________________________________________________________ Employer or the person authorised by him (further - employer)_____________________ (position; for the ___________________________________________________________________________ authorised person - indicate the position as well; name and surname) Applicant__________________________________________________________________ (name, surname) ___________________________________________________________________________ (passport data - date of birth, personal number, in the absence of the passport - data according to alternative ID) ___________________________________________________________________________ (place of residence) have concluded this employment contract: 1.________________________________________________________(further - employee) (name and surname of the applicant) is employed 1.
  48. _______________________________________________________________________ (state the division) 1.2.________________________________________________________________________ (specify precisely job, position title, qualification grade; if admitted ___________________________________________________________________________ as an apprentice, indicate this) 1.
  49. under the employment contract of an indefinite duration, fixed-term employment contract (cross out the unnecessary word)_______________________________________ ___________________________________________________________________________ (for a fixed-term employment contract, indicate duration according to Article 10 of the Law on Employment Contract)
  50. Established trial period_____________________________________________________ (specify duration)
  51. Established short-time working ______________________________________________ (indicate what is being shortened - working week, ___________________________________________________________________________ workday, and length of short time)
  52. Employer assumes an obligation to pay the employee the workpay________________ (indicate the sum, ___________________________________________________________________________ hourly wage rate, monthly wage, bonuses, etc.; how many times per month, on which days) ___________________________________________________________________________
  53. Other obligations of the employer which are not binding under legal statutes, but which are not in contradiction with them and which are not regulated by the collective agreement or collective bargaining_____________________________________________ (additional guarantees, compensations, etc.) ___________________________________________________________________________ ___________________________________________________________________________
  54. Obligations of the employee which are not regulated by the collective agreement, collective bargaining and which are not binding under legal statutes, but which are not in contradiction with them____________________________________________________ _________________________________________________________________________________________________________________________________________________________________________________________________________________________________
  55. This employment contract comes into force____________________________________ (date)
  56. Employment begins________________________________________________________ (date)
  57. Disputes relating to this employment contract shall be settled according to the procedure for settling labour disputes.
  58. This employment contract may be terminated on the grounds established by law.
  59. Employment contract is executed in two copies - one copy shall be kept at the enterprise, the other shall be furnished to the employee. Signatures of the employment contract parties: Employer Employee (name and surname) (signature) (name and surname) (signature) locus sigilli Employment contract has been changed_________________________________________ (indicate which initial employment contract ___________________________________________________________________________ conditions have been changed, when) ______________________________________________________________________________________________________________________________________________________ Signatures of parties: Employer Employee (name and surname) (signature) (name and surname) (signature) locus sigilli Employment contract has been terminated______________________________________ (indicate the date and ground for) ___________________________________________________________________________ Signatures of parties: Employer Employee (name and surname) (signature) (name and surname) (signature) locus sigilli

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