We invite you to review the latest amendments to labour laws adopted in October, which are relevant to businesses. Most changes will take effect on 1 January 2025, although some are already in force.
New rates of overtime pay and other changes
From 1 January 2025, overtime on public holidays during the night must be paid at a rate of at least 2.5 times an employee’s regular salary. Previously, the Labour Code did not specify an overtime rate for work on public holidays during the night. Employers will now also require written consent from employees for overtime work, whereas previously verbal consent could have been considered sufficient.
If an employer cannot reduce an employee’s working time by one hour the day before a public holiday, as the Labor Code requires, this hour must be paid as overtime (this does not apply to part-time workers). This change took effect on 25 October 2024.
Works council election requirements
In case the election of the works council is considered not to have taken place (e.g., due to an insufficient number of candidates), a new election must be held six months after the adoption of the decision of the works council’s election commission to consider an election not to have taken place. Previously, the Labour Code did not specify a deadline for re-elections. This amendment is effective from 25 October 2024.
Prohibition of violence and harassment against managers
Amendments effective from 1 January 2025 specify the definition of violence and harassment by establishing that violence and harassment are prohibited not only against employees but also against managers. Also, the amendments specify that unacceptable behaviour by the employer (a natural person or the head of the entity) will also be considered violence or harassment.
Additionally, under the Administrative Offences Code, fines between EUR 500 and EUR 3,000 were introduced, which may be imposed on the head of the entity or other responsible persons for failing to prevent or actively address violence or harassment, or for engaging in such behaviour.
Moreover, the amendment to the Labor Code also establishes that the Chief State Labor Inspector of Lithuania will approve the description of the necessary minimum measures for the elimination and/or control of violence and harassment dangers and will provide for the regularity of violence and harassment prevention training.
Sodra notification for the head of the entity recruitment
From 1 January 2025, companies must notify Sodra of the start of employment of the head of the entity at least one hour before the start of work. Previously, the legal requirement was one working day’s notice. Failure to comply will mean the work will be classified as illegal.
Long-term employment allowance for bankruptcy-related redundancies
As of 1 January 2025, employees dismissed due to company bankruptcy will qualify for long-term employment allowances, the same as in the case of those dismissed as a result of company liquidation. This allowance applies to employees with five years or more of service and varies based on service length.
Requirements for temporary employment companies
From 1 January 2025, the requirements for companies seeking to be included in the list of temporary employment companies are relaxed by determining that the head of the company will be able to have one fine imposed for illegal work in the last year. Until now, the Labor Code restricted companies, the heads of which had at least one fine imposed for illegal work to be included in the list of temporary employment companies. Non-compliant companies shall be removed from the official list and will only be eligible for re-admission after six months.
Document retention periods
As of 1 October 2024, changes to the index of general document storage terms entered into force, changing certain personnel document storage terms and establishing new categories of documents to be stored. For example, individual employee personal file documents that do not belong to other categories of documents will need to be stored for no longer than 3 years instead of the previously applicable 10 years; also, employers will have an obligation to store employment contracts that did not come into force for up to 3 years (previously, the index did not expressly cover the duty to store employment contracts that did not come into force). It is recommended that employers evaluate if actual personnel document retention periods do not exceed statutory retention periods in order to respect the requirements of the General Data Protection Regulation.
In light of these Labour Code changes, we recommend reviewing and adjusting internal policies and informing HR managers about the planned changes.
Our team is ready to support clients in the implementation of these amendments.