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