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DISMISSING AN EMPLOYEE IN LITHUANIA

The main source of employment law in Lithuania is a new Labour Code, which came into force on July 1, 2017. Comparing to the old Code (and to the legislation applied in many other European countries), it liberalizes employment regulations and regulates flexible relations between the employers and employees. Among the core new developments is a simplified termination of an employment contract. Regulations on severance pay and notice period are changed.

Standard notice period entitled to an employee in case of dismissal without employee’s fault is 1 month (2 weeks – when the duration of employment is less than one year). Notice periods of 2 months is applied for the employees who are raising a child under 14 years old or who have less than 5 years remaining until the retirement age. 3-month notice period is applied to disabled people and those who have less than two years remaining until the retirement age.

Dismissed employees are entitled to a severance pay of 2 average monthly wages (only in case if they are dismissed without their fault). For employment lasting less than a year, a severance pay of 50% average monthly wage will apply.

Employer and employee may agree in written on different terms of termination of employment agreement. Employee may also terminate the employment agreement by giving a written notice 20 day in advance.

In any case, we would recommend consulting with a professional lawyer on questions concerning the termination of employment contracts.

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