In Lithuania, various employment types are recognized by local law, ensuring flexibility and compliance with legal standards. The key employment categories include:

1. Employment Contracts:

   • Open-Ended Contract: This contract has no specified end date and provides long-term job security.
   • Fixed-Term Contract: This type of contract is valid for a specific period or for the duration of a particular task, but cannot exceed five years. It’s important to note that fixed-term contracts cannot be used for permanent roles unless permitted by law or collective agreements.

2. Independent Contractors or Consultants: These individuals operate independently and provide services to clients without an employment contract.

3. Additional Work and Secondary Jobs: Employees may take on supplementary roles alongside their primary job, provided they adhere to legal restrictions.

4. Teleworking Contract: This agreement allows employees to work remotely, reflecting the growing trend of flexible work arrangements.

• Working Hours:

  • The standard working time is capped at 40 hours per week.
  • Daily working hours cannot exceed 8 hours.
  • The maximum allowable working time, including overtime, is 48 hours per week.

• Annual Leave:

  • Employees are entitled to a minimum of 20 business days of annual leave, which increases to 24 business days for those working 6 days a week.
  • Any single installment of annual leave must not be shorter than 10 business days, or 12 business days for those on a 6-day work week.

• Maternity Leave:

  • Employees are entitled to 18 weeks (126 days) of paid maternity leave, administered by SODRA.
  • Maternity leave begins 70 days before the expected birth date and continues for 56 days post-delivery.
  • In cases of multiple or complicated births, the maternity leave is extended by an additional 14 days.

In Lithuania, one of the most sought-after employee fringe benefits is supplementary health insurance. This benefit is particularly valued because, while state healthcare is generally regarded as good, it often lacks coverage for specific services such as dental care.

Other notable fringe benefits that employers frequently offer include:

• Mobile Phone Allowance: This benefit helps employees cover their communication costs, which can be particularly beneficial in roles requiring frequent contact.

• Wellbeing Allowance: Many companies provide this allowance to support employees’ physical and mental health, promoting a healthy work-life balance.

These benefits not only enhance employee satisfaction but also contribute to a positive work environment, which can help in attracting and retaining talent.

In Lithuania, individuals arriving from another European Union (EU) country, an Economic Area country, or Switzerland are not required to obtain a work permit. The process involves validating their status by filling out the appropriate form.

However, there are restrictions concerning the employment of non-EU foreigners through Employment Agencies and Recruiting (EOR) agencies in Lithuania. Legislation mandates that non-EU workers must be employed directly by the actual employer, circumventing any intermediary agencies. This approach is designed to simplify the hiring process and ensure clarity in employment agreements between employers and employees.

1. Termination by Employer’s Initiative:
In Lithuania, employers can terminate an employment contract for reasons specified in the Labour Code. The standard notice period is one month, but if the employee has been with the company for less than one year, a two-week notice period applies. Notice periods are extended for specific circumstances:

• Doubled notice for employees with less than five years until statutory retirement.
• Tripled notice for employees raising a child under 14, raising a disabled child under 18, pregnant employees, disabled employees, or those with a serious illness as recognized by the Minister of Health. Additionally, those with less than two years until retirement also receive tripled notice.

2. Termination by Employee’s Initiative:
Employees may terminate their contract by providing a written notice to the employer at least twenty calendar days in advance. This notice period can be shortened if the employer agrees.

3. Termination by Mutual Agreement:
Termination of the contract can also occur by mutual agreement between the employee and employer. The severance amount and termination date are determined through this mutual agreement.

In Lithuania, employees who are dismissed are entitled to severance pay. The standard severance amount is equivalent to two average monthly salaries. However, if the employment relationship lasted less than one year, the dismissed employee is entitled to 0.5 of their average monthly salary as severance.

Additionally, employees may receive a severance payment from a special state fund, which is determined by their continuous length of employment. This ensures that the amount reflects their tenure, offering further financial support during their transition.