Experts to start work on changing Lithuania’s labour laws

“We’ll see which option will be approved. However, some articles of the Labour Code date back to the Soviet times. They are outdated and not in line with this period, with the spirit of this age. Moreover, Lithuania ranks 124th in Doing Business index in terms of labour market regulation, the Labour Code articles, which is also a subject of concern,” Prime Minister Algirdas Butkevičius told reporters after the government’s meeting on Monday.

Starting in March, amendments to the Labour Code will be considered by ministries and the draft bill should be handed over to the Seimas (parliament) in May, he says.

MP Remigijus Žemaitaitis has proposed to introduce more flexible terms and conditions of work contracts for those earning 1.5 times the average salary (EUR 1,045). He has also proposed to legalize fixed-term employment contracts for permanent employment by mutual consent, to establish a dismissal notice period of one or two months (vs. the current term of 2 and 4 months) and to limit the severance pay to the maximum of three monthly average wages (vs. current 6 monthly average wages).

Butkevičius added that those proposals were still being considered and had not yet been approved.

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