Lithuania Labor Code amendments take effect November 1

Starting November 1, several significant amendments to the Labor Code will take effect in Lithuania, impacting employment contracts, termination procedures, and collective agreements.

For employees earning at least two times the average monthly gross wage (VDU), employers may now agree to a probationary period of up to six months, an increase from the previous three-month maximum. This period excludes time spent on leave or temporary incapacity for work. These changes also allow for greater flexibility regarding notice periods for both parties, potentially reducing risks associated with hiring high-cost employees.

A new ground for termination will be introduced: when an employee fails to meet legally established impeccable reputation requirements. This is particularly relevant for regulated sectors where specific reputation criteria are mandated by law. Additionally, the prohibition against terminating contracts under certain specific conditions previously outlined in the Labor Code is being removed.