Labour Code amendments in Lithuania: what changes for employers from 1 November 2026

From 1 November 2026, amendments to the Labour Code of the Republic of Lithuania take effect. They cover both individual employment relationships and collective (employee representation) relations. Below is an overview of the key changes.

Part 1. Changes in the employer-employee relationship

Employment contract conclusion & terms

• For employees earning at least twice the national average wage (currently: ~€5,300 gross), the employment contract may contain provisions differing from those laid down by law regarding the termination of the contract and the minimum wage, and the probationary period may be up to 6 months (currently up to 3 months).
• An employee requesting a reduction in their working hours due to their state of health will only need to provide any relevant certificate issued by a healthcare provider confirming their medical condition – a medical report, disability assessment or care assessment will no longer be required.

Performance of the employment contract & working hours

• It will be easier for employers to refuse remote working arrangements: they will no longer need to prove excessive costs – it will be sufficient to indicate that the nature of work organization or the production process prevents it.
• Working hours on the day before a public holiday will be shortened by 1 hour, for which the employee will receive full pay as if they had worked the full day. Employees whose remuneration depends on output will receive their average wage.
• An employee with a disability may be assigned to passive on-call duty, passive on-call duty at home, and overtime solely upon obtaining their consent. An additional opinion from a healthcare institution will no longer be required.

Remuneration

• Greater flexibility is introduced for agreeing with an employee on a later final settlement upon termination of the employment relationship: the portion of remuneration exceeding 1 average wage may be paid no later than within 3 months; the portion not exceeding 1 average wage – no later than within 10 working days from the date of termination.
• The rate of penalties applicable in employment relations will henceforth be approved annually by 1 February based on the consumer price index, multiplied by 5.

Termination of the employment contract

• An employer who becomes aware of an employee’s misconduct will still be required to issue a warning within 1 month of becoming aware of it, however this time limit will be suspended during the employee’s sick leave or annual leave.
• When applying dismissal on the grounds of “employer’s will” (with a severance payment of 6 average wages), the list of prohibited grounds for dismissal will be removed – instead, a requirement will remain that the dismissal be carried out for any “justified” reason.
• In addition to the existing ground for termination of contract due to loss of a special right to work, a new ground will be introduced – where an employee no longer meets the requirements of an impeccable reputation.
• If an employment contract is terminated without the will of either party and the breach of law arose through the fault of the employee, the employer may be exempt from paying severance compensation.

Part 2. Changes in collective (employee representation) relations

Employee representation

• The employer will be required to cover the costs of the works council’s activities and the professional development of its members, whereas currently the employer and the council may agree otherwise.
• Members appointed as employee representatives to the company’s board or supervisory board in cases established by law will be entitled to professional development at the employer’s expense.

Collective labour disputes

• The maximum fine in collective disputes will increase from €3,000 to 10 minimum monthly wages.
• Currently, the employer must appoint members to the collective dispute commission within 5 working days, and the commission must examine the dispute within 10 calendar days (unless the parties agree otherwise). These time limits are being shortened: members must be appointed within 3 working days, and the dispute must be examined within 5 working days. The parties will still be able to agree on different time limits.

Adjustment of employee guarantees by collective agreement

• A collective agreement may provide that the time limit for taking annual leave is reduced to 2 years, and that the employee receives monetary compensation for accumulated unused leave exceeding 2 working years.
• A collective agreement may provide for compensation other than the payment of the average wage to an employee during a period of temporary suspension from work.

Content and application of the collective agreement

• Additional remote working expenses may be compensated at the rates and under the conditions set out in a collective agreement.
• Higher-level collective agreements may establish rules for the termination of employment contracts that differ from those provided by law, provided that a balance of the parties’ interests is achieved.
• A general meeting of employees may, at its own discretion, approve for universal application within the company not only the entire collective agreement concluded between a trade union and an employer, but also individual provisions thereof.

Declaration and conduct of a strike

• The maximum duration of a warning strike will be extended from 2 to 4 hours.
• When declaring a strike, it will be sufficient to indicate how many trade union members voted in favor of it. Currently, documents evidencing the vote must also be submitted.
• The provision of minimum services during a strike is currently ensured by the strike committee together with the employer, with the parties agreeing on the scope of such services. Under the amended procedure, the employer will be responsible for this, while the strike committee will only cooperate.

Challenging the legality of a strike and protection

• Employees who participated in a strike will be protected against deterioration of their working conditions. The amendments will establish a 3-month protection period and a prohibition on incentivizing employees not to strike.
• Currently, the employer may apply to court within 5 working days to have a strike declared unlawful. This time limit is being reduced to 3 working days.
• A court ruling on the lawfulness of a strike may be appealed within 5 working days of its adoption, and the appellate court must examine it within 10 working days.