New Labour Code

More flexibility for business and lots of preparation – that is what companies should be expecting from 1st July, 2017

This Tuesday the Lithuanian parliament passed amendments to the new Labour Code, which will come into force from 1st July. The new Labour Code will bring more opportunities and flexibility for business, e.g. new types of employment contracts, more contractual freedom with personnel of higher income, variety of working time regimes, etc. However, some steps should be taken immediately in order to make the most from the new regulation and to be prepared for the requirements in the Labour Code since they should be implemented in less than a month.

Bellow please find a short overview of actions that should be taken to accommodate new obligations.

Changes that should be implemented in the company
Starting with 1st July 2017 the employers should:

  • revise employment agreements in relation to:
  1. confidentiality provisions;
  2. non-competition obligations;
  3. wage size;
  4. amount of annual leave;
  5. overtime;
  6. termination of employment contracts.
  • convert the amount of annual leave for each employee;
  • organize elections of the Work Council (companies with the average number of the employees less than 20 may organise election of employees’ Representative).

New internal documents
Starting with 1st July 2017 the employers are obliged to:

  • to prepare a policy on work shifts;
  • to prepare a policy on remuneration system (applies to companies where the average number of employees is 20 or more);
  • to prepare a policy on use of IT resources and communications, as well as procedures for monitoring and controlling the employees at a workplace;
  • to prepare a policy on personal data privacy (applies to companies where the average number of employees is more than 50);
  • to prepare a policy on equal opportunities (applies to companies where the average number of employees is more than 50).

Please bare in mind that this is a short overview of the incoming changes and should not be considered a detailed consultations as there are different obligations, exceptions and options in the new Labour Code based on the current size, status of the company and other factors.

Our team is ready to help with any questions you might have regarding the new Labour Code.

For more information please contact NJORD Law firm:
Laimonas Markauskas, M: +370 659 686 59 e-mail: laimonas.markauskas@njordlaw.lt
Eglė Vaikasaitė, M: +370 640 604 60 e-mail: egle.vaikasaite@njordlaw.lt