Press release, 3 November 2016
The Seimas adopted amendments (draft No XIIP-4726(2)) to the new Labour Code, which is to take effect from the beginning of the next year. The amendments are aimed at enhancing guarantees and social security for employees. The amendments were adopted by 83 votes in favour, with 1 vote against and 4 abstentions.
The Seimas restored the provision in the new Labour Code stipulating that when terms and conditions of labour contact are called into question, they should be interpreted in favour of the employee. The Seimas also decided to abolish the contract of indeterminate scope.
In accordance with the amended Labour Code, the termination of a labour contract by an employee due to illness, disability, downtime, failure to pay wages by the employer or retirement age, and also the need to nurse a family member will entitle the employee to a severance pay in the amount of two average monthly wages, in contrast to one average monthly wage as proposed before. For employment lasting less than a year, a severance pay in the amount of one average monthly wage will apply.
The Seimas decided to extend threefold the period of notice for employees raising own or adopted children under 14 years of age and for employees raising disabled children under 18 years of age. This means that the period of notice on the termination of a labour contact is extended from one to three months. For employment lasting less than a year, the period of notice is six weeks.
The amended Labour Code establishes shorter working hours before holidays. On the eve of holidays, the working day will be one hour shorter, with the exception of employees with short-time working arrangements.
The amendments also extend annual leave not only for employees under 18 years of age and disabled employees, but also for employees who are single-parenting children under 14 years of age and disabled children under 18 years of age. Thus, employees working five days per week will be entitled to 25 working days of annual leave and employees working six days per week will be entitled to 30 working days of annual leave.
Moreover, working time will include overtime, work on holidays and days off, work at night and work under additional work arrangements. The procedures for granting annual leave are also specified by the amendments.
Finally, the Seimas restored the provision whereby the duration of and terms and procedures for granting additional annual leave for long uninterrupted employment at the same work place, for working under abnormal working conditions that cannot be repaired, and for work of extraordinary nature will be established by the Government, rather than collective agreements.
Rimas Rudaitis, Senior Specialist, Press Office, Information and Communication Department, tel. +370 5 239 6132, e-mail: rimas.rudaitis@lrs.lt