Lithuanian PM says new labour code to bring more flexibility

Vida Press

“I can guarantee that the legislation will not favour employers over employees or vice versa. It will put in place very good conditions both to employees and employers. We will not ignore either side. We will find a solution that will help make the labour market much more flexible and help attract foreign direct investment,” he said on the radio Žinių Radijas.

Butkevičius said that those who have a negative opinion about the draft amendments simply have not read the proposed legislation carefully enough.

He also noted that Lithuania now ranks 124th in the world in terms of labour relations and lags well behind its neighbours.

A group of scientists propose, among other things, to transfer restrictions on dismissal of employees and guarantees from the Labour Code to national collective agreements, to reduce the minimum period of notice on termination of employment and reduce the legally-required severance pay to one month’s salary.

They also recommend scrapping the maximum limit on daily working hours, leaving in place the 40-hours-per-week limit.

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