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Written Agreements

Lithuania's Labour Code makes it mandatory to conclude employment contracts in writing and duplicate copies. Employment contracts must contain the following information:

• Necessary terms including job function, remuneration, extra pay, allowances, bonuses or other additional payments, and place of work
• Additional terms including monthly salary, working hours, bonuses, probationary period, conflict resolution, and other details.

An employment contract is considered to have been concluded when the parties agree on the necessary terms.

Oral Agreements

Lithuania's Labour Code mandates the use of written employment contracts. There are no provisions regarding the use of oral agreements in labor law.

Implied Agreements

Lithuania's Labour Code mandates the use of written employment contracts. There are no provisions regarding implied agreements in labor law.

An employee's working hours are fixed under their employment contract. Usually, working hours total 40 hours per week. An employee's average working hours can be 48 hours a week maximum. Working time, including overtime and work done according to an agreement on additional work, may not exceed 12 hours per workday/shift and 60 hours over 7 days. The working time of employees working the night shift cannot exceed 8 hours per shift.

Working remotely is done at the employee's request or through mutual agreement between employee and employer. An employee's refusal to work remotely is not a legal reason to terminate the employment contract or change the working conditions.

The employer is responsible for proving that remote work is incongruent with production or the type of work the organization performs and would result in excessive costs.

New Year’s Day (January 1), Day of restoration of the state of Lithuania (February 16), Day of the restoration of Lithuania’s independence (March 11), Christian Easter (date may vary), International Labor Day (May 1), Mother’s Day (date may vary), Father’s Day (date may vary), Day of Death and Jonah (June 24), Day of the State (July 6), Herbaceous (August 15), All Saints Day (November 1), Christmas Eve (December 24), Christmas Day (December 25 and 26).

In Lithuania, the Labour Code states that employment contracts can include a probationary period where the employee and the employer agree. The probationary period cannot last more than 3 months. Probationary periods for fixed-term contracts lasting less than 6 months must be proportional to the term of the employment agreement. The contract can be terminated during this period by providing a 3-day notice with no severance pay.

Notice Period

Notice period requirements vary as follows:

• No notice period is required when the contract is terminated due to disciplinary issues.
• A notice period of 1 month is generally required when an employee who has served the employer for more than 1 year is dismissed due to no fault of their own, such as when there are organizational changes or work changes.
• No notice period is required when the contract is terminated due to reasons beyond the employee and employer's control.
• An employee can terminate their employment contract by giving a notice of at least 5 days in case of a valid reason and 20 days in case of no valid reason.

Severance Benefits

Per Lithuanian labor law, employees are eligible for severance pay from their employer as follows:

• If an employee resigns due to their employer's fault (salary not paid on time for 2 or more consecutive months, or the employee being idle for more than 45 days) or because of illness, disability, or to take care of a family member, the severance pay is 2 times the employee's average monthly remuneration, provided the employee had worked for more than a year. Employees who have worked for less than a year are eligible to receive 1 month's salary as severance.
• Employers are also allowed to terminate employment contracts at will by giving a notice period of 3 days to their employees and a severance pay equal to 6 times their monthly remuneration.
• Fixed-term employees who have worked for more than 2 years with the same employer are entitled to severance pay in the amount of 1 month's remuneration upon their contract's termination.
• Employees whose contract is terminated during probation are not entitled to severance benefits. Employees terminated for gross violation of their duties are also not entitled to receive severance benefits.

Minimum Wage

Effective January 1, 2025, the minimum monthly wage is EUR 1,038 (Euros).

No employee can be paid less than the minimum wage. Collective agreements may establish minimum hourly rates and minimum monthly salaries higher than the government's.

Employees are to be paid twice a month unless they request to be paid once a month, but no later than 10 working days after the end of the month. Employers must pay employees all employment payments upon contract termination or within 10 days if the employee accepts it. The employer is fined if they are late in paying the employee.

Overtime, Holiday & Vacation Pay

Lithuania's labor law provides that any overtime performed by the employee is to be compensated with a salary of at least 1.5 times the employee's regular salary. Employees working on their days off are entitled to twice their remuneration. Overtime at night is to be compensated with twice the normal remuneration. For overtime work on a holiday, employees must be paid at least 2.5 times their usual wages. At the employee's request, overtime hours multiplied by their corresponding premium rates can be added to their annual leave time. During annual leave, employees are paid their normal wages.

Visas

The types of visa issued in Lithuania are the following:

• Schengen visa - issued for a stay of less than 3 months
  • Airport transit visa (A) – for a stay in the transit area of the international airport during a layover
  • Short-stay visa (C) – for a stay in Lithuania of up to 3 months, valid for 6 months
• National visa - issued to foreigners who wish to stay in Lithuania for more than 3 months; single-entry or multiple-entry.

Work Permits

Non-EU nationals who wish to work in Lithuania are required to obtain a work permit. Those who intend to stay in Lithuania for no longer than a year require a National visa (Type D). For longer stays, a temporary residence visa is required. A temporary residence visa is a multiple entry visa valid for 2 years (3 years for highly qualified workers).

An employer intending to employ a foreigner to work under an employment contract must register a vacancy with an employment office in the Employment Service. A work permit is issued if no specialist in Lithuania meets the employer's qualification requirements. The Lithuanian Labor Exchange is responsible for issuing, extending, and revoking work permits for foreign nationals.

The work permit is issued for up to 2 years, and it specifies the job position and organization address where the foreigner would be employed. The work permit's duration for seasonal work is 6 months, and it is 1 year for persons entering as an intern or trainee.