Outrage as Lithuanian MPs cut severance payments for workers but not their own

Lithuanian parliamentarians have adopted a new Labour Code which reduces employees’ severance payments, but it will not affect the MPs themselves.

This year’s budget provides around €2 million for MPs‘ severance payments.

ILAW lawyer Tomas Bagdanskis said that parliamentarians should be treated the same way as others who work under fixed term contract. Under the new labour code a severance payment the size of one monthly wage will only apply to those who have worked for longer than two years under a fixed term contract.

“Unfortunately, parliamentarians decide on their severance for themselves, and it is a never-ending conflict of interest,” said Bagdanskis.

Under the old labour code, an ordinary employee hired for a period of four years of work could receive severance payment the size of 3-monthly salaries. Meanwhile, under the new labour code the same person can expect the severance payment of only two monthly salaries and only after five years employment.

The Seimas Statute provides that a Seimas member shall be paid as many severance payments equal to the size of the average monthly salary of a Seimas member for as many years the person worked in the parliament, but not less than 2 and not more than 6.

Civil servants can expect severance of the same size but only after four years in service.

The maximum severance payment in Lithuania in the private sector, the civil service and the Parliament is equal to six month’s of salary. However, the difference between Seimas members and all of the remaining workers is that the former earn the maximum severance only after six years while all others only hit that level after 20 years of work.