REPUBLIC OF LITHUANIA                                     
                                                                                
                                                                                
                               LAW                                              
               ON THE EMPLOYMENT OF THE POPULATION                              
                                                                                
     The law  of the  Republic of  Lithuania on the Employment of               
the  Population,  together  with  other  laws  regulating  labour               
relations, shall establish state guarantees of the constitutional               
right of  the citizens  of the  Republic of Lithuania to work and               
choose an occupation.                                                           
                                                                                
                            Chapter 1                                           
                       GENERAL PROVISIONS                                       
                                                                                
     Article 1. Employment of Citizens of the Republic of                       
               Lithuania                                                        
                                                                                
     Citizens of  the Republic  of Lithuania shall have the right               
to freely choose work or engage in other activities which are not               
prohibited by law.                                                              
     The rights  and  duties  of  citizens  of  the  Republic  of               
Lithuania employed  in foreign  countries shall be established by               
the laws  of those countries, unless bilateral agreements provide               
otherwise.                                                                      
                                                                                
     Article 2. Application of the Law to Foreign Citizens and                  
               Stateless Persons                                                
                                                                                
     This law  shall apply  to  foreign  citizens  and  stateless               
persons according to the general procedure, with the exception of               
cases regulated by other laws or international agreements.                      
                                                                                
     Article 3. Implementation of the Right to Work                             
                                                                                
     Citizens shall  implement their  right  to  work  either  by               
directly applying  to employers  or through  the mediation of the               
labour exchange.  Employment contracts  shall be  drawn  up  upon               
agreements  between  citizens  and  employers  according  to  the               
procedure established by law.                                                   
     Citizens may choose not to work.                                           
                                                                                
     Article 4. The Right to be Employed under Contract                         
                                                                                
     Citizens, according to the procedure established by law, may               
conclude employment  contracts with  employers in other countries               
or in  places other  than the permanent place of residence of the               
person concluding the contract.                                                 
     If the  labour exchange  mediates the  conclusion of  such a               
contract, the  procedure for the compensation for expenses of the               
conclusion thereof  and for  additional related expenses shall be               
established by the Government of the Republic of Lithuania.                     
     Mediating the employment of citizens abroad is the exclusive               
right of  the State  and  shall  be  implemented  by  the  labour               
exchange  of  Lithuania.  Other  organizations  may  mediate  the               
employment of citizens abroad only with appropriate authorization               
(licences).                                                                     
     Authorization (licences)  shall be issued by the Ministry of               
Social Security of the Republic of Lithuania.                                   
                                                                                
     Article 5. The Unemployed                                                  
                                                                                
     The unemployed  shall be persons who are capable of work and               
for reasons  beyond their  control have  no salary,  and who have               
either registered  themselves with their local labour exchange as               
persons willing to and capable of performing certain work, or who               
are prepared  to undergo  training or  retraining if  the  labour               
exchange does  not offer  work corresponding  to their vocational               
training, previous  vocational  activities,  or  their  state  of               
health.                                                                         
                                                                                
                            Chapter 2                                           
          EMPLOYMENT RIGHTS AND GUARANTEES OF CITIZENS                          
                                                                                
     Article 6. State Guarantees of Employment                                  
                                                                                
     In cases  provided by  this law,  the State  shall guarantee               
citizens:                                                                       
free vocational  guidance and  consultation services,  as well as               
information concerning available jobs;                                          
free labour exchange services upon employment;                                  
free vocational training or retraining facilities in the event of               
unemployment;                                                                   
the  opportunity,  in  the  event  of  unemployment,  to  perform               
municipal jobs; and                                                             
unemployment benefit.                                                           
                                                                                
     Article 7. Employment Programmes and Additional Guarantees                 
                                                                                
     If necessary, the labour exchange of Lithuania shall prepare               
state or,  together with  local governments,  local programmes of               
employment, which shall be approved by state government bodies or               
local governments and financed from the appropriate budgets. Such               
programmes shall  be prepared  primarily for  the  protection  of               
individuals who are the most socially vulnerable, as specified in               
Article 8  of this  law, from unemployment. Local governments, on               
the  recommendation  of  the  labour  exchange,  shall  establish               
employment or  creation of new jobs quotas for employers of up to               
5 percent  of the total number of employees for the employment of               
such persons.  Employers who  do not  fulfill employment  or  job               
quotas shall,  in either case, pay the Employment Fund additional               
payments equaling  12 average  monthly wages  of the employees of               
that enterprise,  institution or  organization, except  in  cases               
when the  labour exchange  has not  applied for the employment of               
persons specified in Article 8 of this law.                                     
     These resources  shall be  used at  the discretion  of local               
governments for  the financing  of programmes specified in part 1               
of this Article.                                                                
                                                                                
     Article 8. Individuals for whom Special Employment                         
               Guarantees are Applicable                                        
                                                                                
     Additional Employment Guarantees shall apply to:                           
individuals under 18 years of age;                                              
women with  children under 14 years of age and men who are singly               
bringing up children of the same age;                                           
persons who  are within  5 years  of becoming eligible to receive               
full old-age pension;                                                           
persons who have returned from places of imprisonment; and                      
disabled persons,  in accordance  with the procedure provided for               
in the Law of the Republic of Lithuania on the Social Integration               
of Disabled Persons.                                                            
                                                                                
     Article 9. Employer Obligation to Give Employees Notice of                 
               Employment Contract Termination                                  
                                                                                
     If the  employee is  not at  fault, employers  may terminate               
unfixed-period  employment  contracts  on  their  own  initiative               
according to  the procedures established by law only after giving               
the employee  a 2-month  written notice. A 4-month written notice               
must be  given to  employees who  are within  5 years of becoming               
eligible to  receive full  old-age pension, minors under 18 years               
of age,  disabled persons,  women with children under 14 years of               
age, and men who are singly bringing up children under 14 years.                
Employment  contracts  or  collective  agreements  may  establish               
longer terms of notice.                                                         
     Terms of  notice established in part 1 of this Article shall               
also  apply   in  the   termination  of  fixed-period  employment               
contracts.                                                                      
     In cases  when the  time remaining until the expiration of a               
fixed-period employment contract is less than the terms of notice               
established  in   this  Article,  employers  may  only  discharge               
employees on  their own  initiative when the employees are not at               
fault upon the expiration of the employment contract.                           
     If an  employee is  being discharged prior to the expiration               
of an  employment contract,  the date of discharge shall be moved               
to the expiration date of the term of notice.                                   
     Employers  may  not,  on  their  own  initiative,  terminate               
employment contracts  of employees set forth in Article 8 of this               
law, provided  that such  employees are  not at  fault and  their               
total number  among the  employees is  less than  the  quotas  of               
employment or  the establishment of new work places as determined               
by local governments.                                                           
                                                                                
     Article 10. The Obligations of Employers in the Discharge of               
               Groups of Employees                                              
                                                                                
     Employers who are reducing the number of employees according               
to the  procedure established  by law, or who are terminating the               
activities of  an enterprise,  institution or organization and by               
reason thereof  are planning  within 30 days to discharge a group               
of employees  (10 or  more employees in enterprises, institutions               
and organizations  wherein up to 100 people are employed, or more               
than 10  percent of the employees in enterprises, institutions or               
organizations wherein  more than  100 people  are employed), must               
notify the labour exchange and local governments about such plans               
3 months prior to the discharge.                                                
     Local governments,  on  the  recommendation  of  the  labour               
exchange, may, on a temporary basis of up to 6 weeks, suspend the               
discharge of  employees. Part of the expenses related thereto may               
be defrayed  for the  employers from the Employment Fund or local               
government budgets.                                                             
     If an  employer discharges  a  group  of  employees  without               
complying with  the procedure  established  in  part  1  of  this               
Article, the  employees' dates  of discharge  may be moved to the               
date when the notification was to have expired.                                 
                                                                                
     Article 11. Registration of Available Jobs                                 
                                                                                
     Employers must  register  available  jobs  with  the  labour               
exchange, and  the latter must make them available to the public.               
Upon the  decision of  the labour exchange, employers who violate               
the procedure  for registration  of available  jobs shall  pay  a               
penalty to  the Employment Fund equaling one average monthly wage               
of the employees of that enterprise, institution, or organization               
for each unregistered available job.                                            
     The procedure  for registration  shall be established by the               
Ministry of Social Security of the Republic of Lithuania.                       
                                                                                
                            Chapter 3                                           
     ECONOMIC PREREQUISITES FOR THE EMPLOYMENT OF RESIDENTS                     
                                                                                
     Article 12. The Employment Fund                                            
                                                                                
     The Employment  Fund shall  be established for the financing               
of measures for the employment of residents.                                    
                                                                                
                                                                                
     The estimate  of the  Employment Fund shall be approved, and               
the procedure for its composition and use shall be established by               
the Ministry of Social Security of the Republic of Lithuania.                   
     The Employment  Fund shall  be managed and made available to               
the public by the Labour Exchange of Lithuania.                                 
                                                                                
     Article 13. Financial Resources of the Employment Fund                     
                                                                                
     The Employment Fund shall consist of:                                      
compulsory payments of employers for unemployment insurance;                    
charitable contributions from legal and natural persons;                        
the income of the labour exchange;                                              
additional payments  of employers, as specified in Articles 7 and               
11 of this law;                                                                 
subsidies from the state budget; and                                            
additional income.                                                              
The guarantor of the Employment Fund shall be the State.                        
                                                                                
     Article 14. Use of Employment Fund Resources                               
                                                                                
     Employment Fund resources shall be used for:                               
the organization  of training,  retraining or  requalification of               
unemployed residents,  and for  the defrayal of expenses relative               
thereto, as well as for the payment of stipends;                                
the financing of employment programmes, the creation of new jobs,               
as well as for the employment of residents specified in Article 8               
of this law;                                                                    
the financing of municipal jobs;                                                
the payment of unemployment benefits;                                           
credits to  unemployed persons  for the organization of their own               
businesses; and                                                                 
the financing  of  the  activities  of  the  Labour  Exchange  of               
Lithuania.                                                                      
                                                                                
                            Chapter 4                                           
           Social Guarantees for Unemployed Residents                           
                                                                                
     Article 15. The Right to Unemployment Benefits                             
                                                                                
     The  following   persons  who   are  deemed   unemployed  in               
accordance with  the procedure  provided for in Article 5 of this               
law shall be eligible for unemployment benefits:                                
persons dismissed  on the  initiative of  the employer, when they               
are not at fault;                                                               
persons who have returned from the national defence service;                    
persons who have returned from places of imprisonment;                          
graduates from secondary schools of general education, vocational               
training schools, colleges, and institutions of higher education;               
persons who,  in cases provided by law, were not employed because               
they were raising young children; and                                           
guardians of  persons  declared  legally  incapable  and  persons               
nursing Group  I and  II invalids  when guardianship (nursing) is               
not necessary.                                                                  
                                                                                
     Article 16. Unemployment Benefits                                          
                                                                                
     Unemployment benefits shall be granted to unemployed persons               
according to the procedure established by the labour exchange. In               
the course  of 12 months, benefits shall be payable over a period               
not  exceeding   6  months,   commencing  on   the  8th   day  of               
registration.                                                                   
     The beginning  of benefit  payments shall be postponed until               
the period for which discharge gratuity was paid ends.                          
Unemployed persons who, over the past 3 years, have been employed               
for 24  months or  more under  employment contract  and who  have               
                                                                                
unemployment insurance  shall receive  monthly  payments  in  the               
following amounts:                                                              
during the first two months -70 percent;                                        
during the next two months - 60 percent;                                        
during the following two months -an unemployment benefit equaling               
50 percent  of the  average monthly wage received in the previous               
place of employment.                                                            
     For persons  who are of pensionable age (who are within five               
years of  becoming eligible  to receive  full  old-age  pension),               
unemployment  benefit  payments  equaling  50  percent  of  their               
average wage  shall be  extended for  two  more  months.  Benefit               
payments shall  be discontinued when a person becomes entitled to               
pension.                                                                        
     Benefit payments  shall also  be extended  for the amount of               
time that a person performs municipal works.                                    
     Unemployed persons  with unemployment  insurance who  have 2               
years work experience but who have interrupted contracted job for               
more than  1 year  shall be  paid benefits  for 6  months in  the               
amount of  income security  provided for in the Law on the Income               
Security.                                                                       
     Citizens who  take leave of a contracted job for more than a               
year for  a valid  reason (illness,  child care,  nursing sick or               
disabled persons,  etc.) as  well  as  graduates  from  secondary               
schools  of   general  education,  vocational  training  schools,               
colleges and  institutions of  higher education,  shall  be  paid               
benefits for  6 months  which equal  state  supported  income  as               
established by the Law on Income Security.                                      
     If citizens  who voluntarily  terminate employment contracts               
without a  valid reason,  who have  been discharged from work for               
misconduct, who  have returned  from the national defence service               
or places  of imprisonment,  as well  as graduates from secondary               
schools  of   general  education,  vocational  training  schools,               
colleges, or  institutions of  higher education,  do not apply to               
the labour  exchange for  employment within 6 months of returning               
or graduating,  they  shall  only  begin  receiving  unemployment               
benefits 6  months after  their registration  at the local labour               
exchange.                                                                       
     Unemployment benefits  may not,  in any  case, be lower than               
the  income  security  established  according  to  the  procedure               
provided for  in the  Law on  Income Security  of the Republic of               
Lithuania, and  may  not  be  higher  than  two  indexed  minimum               
standards of living.                                                            
                                                                                
     Article 17. Ineligibility for Unemployment Benefits                        
                                                                                
     Unemployment benefits shall not be granted to persons who:                 
have refused  offers of  employment in cases specified in Article               
18 of this law;                                                                 
for no valid reason, have failed to report to the labour exchange               
to receive a job offer;                                                         
are receiving  pension or  benefit from state or social insurance               
budgets.                                                                        
                                                                                
     Article 18. Reduction and Termination of Unemployment                      
               Benefits                                                         
                                                                                
     Unemployment benefits  shall be  reduced by  50 percent  for               
unemployed persons  who have  refused offers  of employment which               
correspond to  their vocational  training, previous  professional               
activities, and  state of  health, and which require a commute of               
no more  than 3 hours per day, or 2 hours for women with children               
under 14  years of  age or  men who  are singly  raising children               
under 14 years of age.                                                          
     Unemployed persons shall have the right to choose jobs which               
correspond to  their vocational training or previous occupational               
activities for  no longer than 6 months. Thereafter, they will be               
offered jobs  which require  a  lower  skill  level,  or  may  be               
directed to  learn another  profession according to the procedure               
prescribed by Article 19 of this law.                                           
     Unemployed persons shall loose unemployment benefits if:                   
they have,  within 30  days, turned  down job  offers twice under               
conditions provided for in part 1 of this Article;                              
they were  hired while  receiving benefits and did not notify the               
labour exchange.                                                                
                                                                                
     Article 19. Training, Retraining and Requalification of                    
               Unemployed Persons                                               
                                                                                
     Unemployed persons  who have  not, within  6 months of their               
registration, been  offered a  permanent job which corresponds to               
their  profession   by  the  labour  exchange  according  to  the               
established  procedure,  shall  be  directed  for  retraining  or               
improving their  skill level pursuant to agreements concluded for               
this purpose with enterprises, institutions or organizations.                   
With  the   consent  of   unemployed  persons,   their  training,               
retraining or requalification may start earlier.                                
     Upon acquisition  of a  new profession,  a citizen  shall be               
employed  by  the  employer  with  whom  the  contract  has  been               
concluded.                                                                      
     During the  training period, citizens who have been employed               
under contract  for less than 24 months over the past three years               
and who  have unemployment  insurance  shall  receive  a  stipend               
equaling the average monthly wage received in their previous job,               
although  this   stipend  may  not  exceed  two  indexed  minimum               
standards of living.                                                            
     Citizens who  have unemployment  insurance as  well  as  two               
years of  work experience and whose absence from a contracted job               
does not  exceed 1  year shall receive a stipend in the amount of               
income security  established according  to the procedure provided               
for in the Law on Income Security.                                              
     Other citizens  (part 7  of  Article  16)  shall  receive  a               
stipend  equaling   state  supported   income,  which   shall  be               
established according to the procedure provided for in the Law on               
Income Security.                                                                
     Individuals who have independently found employment, learned               
another  profession,  or  acquired  higher  qualification  either               
directly through  practice or  by being  sent by  an  enterprise,               
institution  or   organization  to  a  corresponding  educational               
institution, shall receive stipends during the period of training               
in an amount established in the contract between the employer and               
the employee.                                                                   
     The  procedure   for  vocational   training,  retraining  or               
requalification shall  be established  by the  Government of  the               
Republic of Lithuania.                                                          
                                                                                
      Article 20. Municipal Jobs                                                
                                                                                
     Together with  local  governments,  labour  exchanges  shall               
organize  temporary   (up  to   2  months)  municipal  works  for               
unemployed citizens for whom it is difficult to find work.                      
     If the  individuals agree,  they may  have  their  municipal               
works extended.                                                                 
     Citizens performing  municipal works shall be compensated in               
the manner established by law.                                                  
     Unemployment benefits  shall not  be payable  to individuals               
performing municipal  works if  their wages  are higher  than the               
benefits. If  the wage is lower than the benefits, the difference               
between the  wage and  the benefit  shall be  paid by  the labour               
exchange.                                                                       
     Citizens performing municipal works shall be entitled to all               
social  guarantees   applicable  to  employees  of  corresponding               
professions.                                                                    
     The procedure  for the  performance of municipal works shall               
be established by the Government of the Republic of Lithuania.                  
                                                                                
                            Chapter 5                                           
                THE LABOUR EXCHANGE OF LITHUANIA                                
                                                                                
     Article 21. Structure of the Labour Exchange                               
                                                                                
     State guarantees  for the  employment of  residents shall be               
implemented in  the labour  market  by  the  Labour  Exchange  of               
Lithuania under the Ministry of Social Security. It shall consist               
of the national and local labour exchanges.                                     
     Three-party committees  shall be  established by  the labour               
exchange  for   the  consideration   of  issues   concerning  the               
employment of  residents. The  following parties  shall  have  an               
equal  number   of  members  having  equal  rights:  employees  (               
representatives of  trade unions,  mergers, associations,  etc.),               
employers (representatives  of mergers,  associations, etc.), and               
representatives of  state government  bodies. Representatives  of               
employees and  representatives of employers shall be appointed by               
said organizations,  whereas representatives  of State government               
bodies shall  be appointed  by the  Government of the Republic of               
Lithuania as well as by local governments.                                      
     The regulations  of the  Labour Exchange  and of  the three-               
party committees  shall be  approved by  the  Government  of  the               
Republic of Lithuania.                                                          
                                                                                
     Article 22. Functions of the Labour Exchange                               
                                                                                
     The Labour Exchange shall:                                                 
analyze supply and demand of labour and forecast possible changes               
in the labour market;                                                           
register available jobs and unemployed persons;                                 
look for job openings and inform persons seeking employment;                    
mediate the employment of citizens;                                             
organize,   together    with    companies,    institutions    and               
organizations, vocational guidance services, training, retraining               
and requalification of residents seeking employment;                            
mediate the employment of residents abroad;                                     
manage the  financial resources  of the Employment Fund according               
to the  established procedure  and make  recommendations for  its               
formation and use;                                                              
prepare State  programmes, and  together with  local governments,               
local programmes  for  employment,  intended  primarily  for  the               
portion  of  the  population  which  cannot  compete  with  other               
residents in the labour market under equal conditions;                          
make recommendations  to  local  governments  for  the  temporary               
suspension  of  employee  discharges  or  for  the  extension  of               
discharge terms  if  the  employment,  training,  retraining,  or               
requalification of  the discharged persons is not possible, or if               
an employer,  having discharged  a group  of employees,  did  not               
inform the labour exchange about the dismissal in due time;                     
administer  penalties   for  employers   who  have  violated  the               
procedure for registration of available jobs;                                   
organize, together  with local  governments, municipal  works and               
direct unemployed individuals to them; and                                      
administer unemployment benefits.                                               
                                                                                
     Article 23. The Rights of Three-Party Committees                           
                                                                                
     Three-party committees shall:                                              
consider and  make recommendations  to  the  labour  exchange  on               
employment  policy,   regulation  of   the  labour   market,  the               
priorities of social assistance to the unemployed, as well as the               
improvement of the system;                                                      
                                                                                
make recommendations  concerning programmes for the employment of               
residents, measures  for limiting unemployment, the establishment               
of additional  jobs and  employment quotas  for those  who cannot               
compete with  other individuals  under equal  conditions  in  the               
labour  market,   and  the   organization  of   municipal  works,               
vocational  guidance,   training  and  retraining  of  unemployed               
persons;                                                                        
regularly consider  the activities  of labour  exchanges and  the               
utilization  of   the  Employment   Fund  and   make  appropriate               
recommendations.                                                                
                                                                                
                            Chapter 6                                           
              CONTROL OF THE OBSERVANCE OF THE LAW                              
               ON THE EMPLOYMENT OF THE POPULATION                              
                                                                                
     Article 24. Control of the Observance of this Law                          
The observance  of the  Law on  the Employment  of the Population               
shall be controlled by the State Labour Inspectorate.                           
                                                                                
     Article 25. Appeals against the Actions of Employers and the               
               Labour Exchange                                                  
                                                                                
     An individual  may appeal to court against the actions of an               
employer or  the  labour  exchange  according  to  the  procedure               
established by law.                                                             
                                                                                
Vytautas Landsbergis                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
Vilnius                                                                         
13 December, 1990                                                               
No. I-864