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Lithuania

How to Hire Workers in Lithuania | Employer of Record (EOR) in Lithuania

Navigating the labor laws and regulations of Lithuania is made easy with our EOR services. We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in Lithuania. Expand into the Lithuanian market with confidence, knowing that you have a reliable partner managing your international employment needs.

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Lithuania, known for its medieval architecture, stunning landscapes, and rich cultural heritage, is an attractive destination for businesses looking to expand internationally. TCWGlobal serves as your trusted partner in navigating the complexities of hiring in Lithuania, offering comprehensive solutions for building your contingent workforce.

With a population of over 2.7 million people, Lithuania boasts a skilled and educated workforce. From the historic streets of Vilnius to the sandy beaches of the Curonian Spit, the country offers a unique blend of culture and natural beauty.

When expanding your business into Lithuania, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, minimizing risks for your organization.

In addition to compliance, TCWGlobal provides personalized services tailored to your specific needs. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to supporting you.

Partnering with TCWGlobal guarantees a seamless and successful expansion into Lithuania. Our expertise and local knowledge make us the ideal partner for businesses looking to establish a contingent workforce in this dynamic market.
Fixed-Term Contracts

Fixed-term contracts are permitted in Lithuania. They are for a maximum period of 2 months, but can be renewed for up to 2 years.  After 2 years, the contract automatically converts to indefinite. Fixed-term contracts exceeding 1 year require 5 working days' written notice to terminate. In exceptional circumstances where the fixed-term contract is allowed to be longer than two years, severance equal to one month's salary is due upon termination. In addition, if the fixed-term contract is allowed to be three years or longer, 10 working days' written notice is required to terminate in addition to severance.

Probationary Periods

Probationary periods of up to 3 months are permitted. During the probationary period, only 3 days' written notice is required for termination, and no severance is required if it can be proven that the Worker is not suitable for the work.

Holidays

Workers in Lithuania recognize 13 paid public holidays. If work is performed on a public holiday, it must be compensated at 200%.

Vacation

After 6 months, a Worker becomes eligible for 20 days of annual leave accrued at a rate of 1.67 days per month. Accrued but unused leave carries over from year to year and must be paid upon termination. Workers must take annual leave of no less than 10 consecutive days each year.

Sick Leave

Workers are entitled to two paid sick days at the beginning of an injury or illness with a doctor's note if the days fall on normal workdays. After the two days expire, Workers are compensated by the Lithuanian Social Insurance Fund. Workers who are on sick leave cannot be terminated until they are absent for 120 days.

Working Hours

A standard full-time workweek is Monday through Friday, 8 hours per day and 40 hours per week. Workers may also be contracted for part-time work. Workers may not work more than 6 consecutive days. Workers must receive an unpaid lunch break after 5 hours of work. Workers are further entitled to 11 consecutive hours of uninterrupted rest between workdays and 35 consecutive hours of rest weekly provided on 2 consecutive days, usually the weekend.

Overtime

Overtime is considered any hours over the regular workweek. Overtime is payable at 150% or 200% on a public holiday. Overtime may not exceed 8 hours in 1 week (up to 12 if agreed upon by the Worker), and 180 hours per year.

Mandatory Bonuses

There are no mandatory bonuses in Lithuania, however, it is customary to give Workers 13th and 14th-month bonuses.

Termination

Termination is permitted and commonly achieved by mutual agreement. The State Social Insurance Fund Board must be notified no later than the day after the termination occurs. Otherwise, except under specific circumstances such as misconduct, unilateral termination generally requires a dismissal procedure, written justification, advance written notice or pay instead of notice, and severance. The amount of notice required depends upon the justification for dismissal. When due to objective reasons, the notice required is 2 weeks for employment relationships lasting shorter than 1 year or 1 month's notice for those exceeding 1 year. Additional notice may be required based on circumstances such as age, pregnancy, or disability. Severance is generally one average month's salary or 50% of an average salary when the employment is less than one year or two average months' salaries when the employment exceeds a year. 

Resignation

Workers are required to provide written notice of resignation equal to 20 calendar days.

Other End of Employment Rules

Specific procedures are required in the case of collective dismissals, which are defined depending on the number of employees employed and the amount of that population that is dismissed.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.