Controversy over limit on number of contract employees under new Labour Code

The new Labour code allows no more than 10% of employees in one company to work under project-based contracts.

“The limit to employ only 10% of people under project work contracts is illogical and does not meet the needs of the market. It is inconceivable that someone else can decide how much project work will a company have,” said Laimonas Marcinkevičius, advocate at Marcinkevičius ir partneriai Juridicon law firm and Lithuanian Project Management Association board member.

“The provision stipulating that no more than 10% of the workforce can be hired under the project work contracts can really cause problems for companies whose main activity is related to the implementation of certain projects, because usually in such enterprises all employees are recruited to carry out the project,” said Laimonas Marcinkevičius.