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

Workers in Lithuania recognize the following 14 paid public holidays: New Year's Day, Day of Restoration of the State of Lithuania, Day of Restoration of the Independence of Lithuania, Easter, International Labour Day, Mother's Day, Father's Day, Day of Dew and St. John's Day, Statehood and National Song Day, Assumption Day, All Saints' Day, All Souls' Day, Christmas Eve, and Christmas. If work is performed on a public holiday, it must be compensated at 200%.

After one full workday, 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 3 years and must be paid upon termination. After 3 years from the end of the calendar year in which the leave was earned, the Worker may lose the right to use the leave or receive compensation for it. Mothers and fathers with one child under 12 years old are entitled to the additional rest time of 8 hours once every 3 months, with additional time off granted to parents with a disabled child and/or more children under the age of 12 years old.

Probationary periods up to 3 months are permitted. Probationary periods for fixed-term contracts lasting less than 6 months must be proportional to the term of the length of service agreed upon in the contract. During the probationary period, only three working days' written notice is required to terminate a contract, and no severance is required.

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.

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.

Overtime is considered any hours over the regular workday or workweek. Overtime is payable at 150%, 200% on a rest day or at night, or 250% on a public holiday. Overtime may not exceed 8 hours over 7 consecutive days. The maximum amount of overtime per year is 180 hours.

There are no mandatory bonuses in Lithuania.

Termination is permitted and commonly achieved by mutual agreement. Otherwise, except under specific circumstances such as misconduct, unilateral termination generally requires a dismissal procedure, written justification, advance written notice or pay in lieu of notice, and severance. The amount of notice required depends upon the justification for dismissal. When due to objective reasons, the notice required is usually two weeks for indefinite contracts lasting shorter than one year or one month's notice for those exceeding that amount.

Workers are required to provide written notice of resignation equal to 20 calendar days. In cases of resignation for what is considered an ‘important reason’, Workers only need to provide five working days' notice and are entitled to severance.

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. When a Worker is terminated due to economic or organizational reasons, the following severance amounts apply: Under 12 months – one month’s average wage; 12 to 36 months – two months’ average wages; 36 to 60 months – three months’ average wages; 60 to 120 months – four months’ average wages; 120 to 240 months – five months’ average wages; Over 240 months – six months’ average monthly wages. For all other terminations without fault on the part of the Worker, the Worker is due severance pay equal to two months’ average wages