REPUBLIC OF LITHUANIA                                     
                                                                                
                                                                                
                   LAW ON EMPLOYMENT CONTRACT                                   
                                                                                
                            Chapter 1                                           
                       General Provisions                                       
                                                                                
                                                                                
     Article 1. Relations Regulated by this Law                                 
                                                                                
     This law   shall  establish    the  general  procedures  for               
drawing up, altering, and terminating employment contracts.                     
     Specific requirements    for  drawing    up,  altering,  and               
terminating  employment  contracts    with  elected    employees,               
employees  who are chosen to fill a vacancy, certified employees,               
employees of  State bodies  of    authority    and    government,               
employees   of   court   and procurator  offices,   temporary and               
seasonal   workers,   craftsmen working  at   home,  apprentices,               
trainees, handicapped  workers, and  other  persons,    shall  be               
determined by  laws and  other legislative  acts which   regulate               
labour relations  with such employees, unless it is prohibited by               
this Law.                                                                       
     Specific characteristics   of  labour  relations  which  are               
formed on  the   basis  of  membership  in  partnerships,  public               
companies, private  companies,   and  agricultural   partnerships               
shall   be determined  by   laws which  regulate the  operations,               
bylaws,  and collective agreements of such enterprises.                         
     Specific requirements   of  employment  contracts  concluded               
with persons  who   provide   service   to   individual   persons               
shall   be determined  by  the  Government  of  the  Republic  of               
Lithuania.                                                                      
                                                                                
     Article  2.   Principles  of  Legal  Regulations  of  Labour               
               Relations                                                        
     Relations specified   by  Article   1 of  this Law  shall be               
regulated in accordance with the following principles:                          
     1)   equality    among   the   parties   involved   in   the               
employment contract;                                                            
     2) the   establishment  of   additional    guarantees    for               
groups  of citizens who are socially vulnerable;                                
     3) the   prohibition  of   unilaterally modifying  the terms               
that the parties have agreed upon;                                              
     4) the  right of  each employee  to terminate  an employment               
contract in accordance with the procedures established by law;                  
     5) the   right  of the  employer to  terminate an employment               
contract only on lawful grounds; and                                            
     6) equality   for all  employees, regardless  of their  sex,               
race,   nationality,    citizenship,    political    convictions,               
religious beliefs,   or     any   other    factors  which  do  no               
affect  their professional qualifications.                                      
                                                                                
     Article 3. The Employment Contract                                         
                                                                                
     The employment  contract  shall  be  the  agreement  between               
the employer  and   the employee   in  which the  employee  shall               
pledge   to   work   in   a   certain   profession,   speciality,               
qualification,   or office  in   accordance with  the established               
rules and  regulations, and  in  which the  employer shall pledge               
to pay  the employee,  and shall  guarantee   working  conditions               
which conform  with employment  laws, the   collective agreement,               
and other  legislative acts  or agreements between the parties.                 
                                                                                
     Article 4. The Employee                                                    
                                                                                
                                                                                
     Permanent residents  of Lithuania who are 16 years of age or               
older may legally be employed.                                                  
     Persons 14   years of  age and  over may be employed in jobs               
which have  been approved according to the procedures established               
by the  Law on   Labour  Safety of  the  Republic  of  Lithuania,               
provided that  the health  conditions at the establishment permit               
them to work in such a  job. Minors between the ages of 14 and 16               
may be  employed only  with   the   written  consent  of  one  of               
their  parents  or guardians.                                                   
     The right   to  employ persons  temporarily residing  in the               
Republic of  Lithuania   shall be   regulated  by other  laws and               
international agreements.                                                       
                                                                                
     Article 5. The Employer                                                    
                                                                                
     Under this   Law,  employers shall be the owners or managers               
of all  types of   enterprises,  institutions, and  organizations               
(hereafter referred  to   as "enterprises"),  who are  appointed,               
elected,   or authorized in  accordance with  the laws  (by-laws,               
regulations, documents  on   the  founding)  of  the  appropriate               
enterprises (including  partnerships   and private   enterprises)               
to  draw  up, alter, and  terminate employment  contracts in  the               
name   of   the enterprise,   as     well  as   to  perform other               
actions   while implementing the  provisions of employment  laws.               
     When   an employment  contract   between natural  persons is               
concluded for  the provision of services, the employer shall be a               
natural person.                                                                 
                                                                                
     Article 6. Enforcement of the Law                                          
                                                                                
     The provisions   of  this Law  shall be  applied  to  labour               
relations, as  established   in  Article    1  of  this  Law,  at               
enterprises located  on the   territory  of   the  Republic    of               
Lithuania,   as well   as  at  enterprises  which    are  located               
outside the   boundaries  but  are within the jurisdiction of the               
Republic of Lithuania.                                                          
     Labour  relations   at  foreign   capital  enterprises   and               
at enterprises where  a portion of the authorized capital belongs               
to a foreign  investor (i.e.. joint ventures), shall be regulated               
by this  Law   and by   documents  on    the  founding    of  the               
enterprises, except  in   cases when    international  agreements               
provide for  other regulations applicable to the employees of the               
enterprises.                                                                    
                                                                                
                                                                                
                            Chapter 2                                           
     The Contents and Composition of Contracts of Employment                    
                                                                                
     Article 7. The Contents of Contracts of Employment                         
                                                                                
     The  employment   contract  shall  include  the  rights  and               
obligations of  the  employee and  the employer as established by               
an agreement between them.                                                      
     The parties   may  not   establish working  conditions which               
would be less favourable  to the  employee than those provided by               
the laws of the Republic of Lithuania.                                          
                                                                                
     Article 8. The Conditions of Contracts of Employment                       
                                                                                
     In each  employment contract,  the parties  must agree  upon               
the following conditions:                                                       
- the  employee's place  of  work  (enterprise,  its  subsidiary,               
etc.);                                                                          
-  the   functions  of  employment  -  in  regard  to  a  certain               
profession, speciality, qualification, or post; and                             
- the salary.                                                                   
     For certain    employment  contracts,  employment  laws  and               
collective  agreements  may    provide  for    other    requisite               
conditions  to  be discussed by  the parties  upon the conclusion               
of such  a contract  (agreement on   the    duration    of    the               
contract,  the  nature  of seasonal work, etc.).                                
     Upon the  agreement of  both parties,  other  conditions  of               
the  employment  contract    (i.e..  probation  periods,  shorter               
working hours)  may   be established,   provided  that employment               
laws do not prohibit such provisions.                                           
                                                                                
     Article 9. The Duration of an Employment Contract                          
                                                                                
     An  employment  contract  may  be  concluded for  an  either               
an indefinite  or  a fixed  period of  time, but the duration may               
not exceed five  years unless  laws provide  otherwise. It  shall               
be prohibited to  conclude a  contract for a fixed period of time               
if the  employment   is of   a permanent  nature, except in cases               
where such  a   contract is  concluded at the employee's request,               
or when it is provided for in other laws.                                       
     Employment contracts   with employees  who are  appointed to               
their posts by  elected bodies  in accordance with the law  shall               
be concluded for the term of office of the elected bodies.                      
                                                                                
     Article 10. Determining the Term of an Employment Contract                 
                                                                                
     The term  of an  employment contract  may be determined by a               
certain calendar   date,   or  upon  the  emergence  of,  changes               
in,   or termination   of     certain  circumstances,  except  in               
the  cases specified in paragraph 3 of Article 9.                               
     If the   term  of   an employment  contract is not specified               
therein, or if it is not specified in the appropriate manner, the               
duration  of   the  employment   contract  shall   be  considered               
indefinite.                                                                     
                                                                                
     Article 11.  The Expiration  of  a  Fixed-Period  Employment               
               Contract                                                         
                                                                                
     Upon the  expiration of an employment contract, the employee               
shall have  the   right to   discontinue  work, and  the employer               
shall have  the right  to discharge  the employee.  If neither of               
the parties  acts in   the  specified   manner, the    employment               
contract shall be considered indefinite.                                        
                                                                                
     Article 12. The Probation Period of an Employment Contract                 
                                                                                
     Upon  concluding   an  employment   contract,  a  period  of               
probation may  be established    upon  mutual  agreement  of  the               
parties. The  period of  probation may be established in order to               
assess the  employee's competence  in   the   field,   or at  the               
employee's  request, to ascertain whether  the job  is  suitable.               
Provisions   concerning probation  must  be  established  in  the               
employment contract.                                                            
     All employment   laws  shall  be applicable  to the employee               
during the period of probation.                                                 
     Probation  periods    established  for    the  purpose    of               
assessing the  employee's competence  shall  be  applicable  when               
employing:                                                                      
1) persons under 18 years of age;                                               
2)  persons  who,  upon  the  agreement  of  the  employers,  are               
transferred to another enterprise;                                              
3) persons  who must  be employed  in order to fulfill employment               
quotas; and                                                                     
4) other persons specified by law.                                              
                                                                                
                                                                                
                                                                                
     Article 13. The Period of Probation                                        
                                                                                
     The period   of probation  may not  exceed three  months. In               
cases specified by law, the period of probation may be extended.                
During the  probation period,  absence from  work  shall  not  be               
recorded.                                                                       
                                                                                
     Article 14. The Results of Probation                                       
                                                                                
     If an   employer  is   not satisfied  with the  results of a               
probation period established to assess the employee's competency,               
he or she may discharge  the employee by the end of the probation               
period without adhering to the procedures established in Articles               
33 and  34 of   this   Law,   and  without  paying  the  employee               
discharge gratuities.                                                           
     If a   probation  period is  established to ascertain if the               
work is  suitable for   the employee,  the employee shall be free               
to assess  the results   of   probation.   During  the  probation               
period,   the employee  may   terminate the   employment contract               
with three days notice.                                                         
     If  the  employee  continues  to  work  upon  expiration  of               
the probation  period,  the employment contract may be terminated               
only in accordance with the established regulations.                            
                                                                                
     Article 15. Documents Required for Employment                              
                                                                                
     Employers may   require  that   applicants   present   their               
personal identification certificates.                                           
     If, pursuant   to  employment   laws, a   certain occupation               
requires  specific  educational,    professional,    or    health               
standards,   the employer must  requisition documents  certifying               
qualification in  the aforesaid   area  from   the applicant.  To               
employ minors  between the  ages   of  14  and  18,  an  employer               
must   require   a   birth certificate and  a written  consent of               
one   of   the   applicant's parents  or  guardians. The employer               
also has  the right to request other documents as provided for by               
law.                                                                            
                                                                                
     Article 16.  The Employer's  Responsibility to  Require that               
               Employees Present State Social Insurance                         
               Certificates                                                     
                                                                                
     The employer   must  require   that employees  present state               
social  insurance   certificates,    and  must    register  these               
certificates in  the established   manner.   Regulations for  the               
distribution   and management   of   state    social    insurance               
certificates   shall   be established  by the  Government of  the               
Republic of Lithuania.                                                          
                                                                                
     Article 17. Drawing up Contracts of Employment                             
                                                                                
     An employment  contract shall  be considered  complete  when               
the parties  have    agreed  upon    the  requisite    conditions               
specified in paragraphs 1 and 2 of Article 8 of this Law.                       
Employment contracts must be concluded in writing. Contracts must               
be signed by either the employer or by a person authorized by the               
employer, as well as by the employee.                                           
     The employee   must  commence work  one  day  following  the               
signing of the contract, unless the parties agree otherwise.                    
     If an   employee  has   actually begun  working in agreement               
with the  employer or  the person authorized by the employer, the               
employment contract  shall   be   considered  complete  and  must               
be  executed immediately.                                                       
     Upon signing   the  employment contract, the employer or the               
person authorized  by   the  employer  must  give  the  applicant               
written information  concerning   the working   conditions,   the               
collective agreement,  internal   rules  and    regulations,  and               
other   internal standard  acts  regulating  working  conditions.               
The  applicant's signature shall confirm that this has been done.               
                                                                                
     Article 18. Restrictions on Employing Relatives                            
                                                                                
     Persons who  are  immediate relatives  or  who  are  related               
by  marriage   (parents,    fosterparents,  spouses,    brothers,               
sisters, children,  adopted   children,  and  brothers,  sisters,               
parents and children of spouses) shall be prohibited from working               
together in  one state   enterprise  or   state stock  company if               
such employment  causes one  of them becomes directly subordinate               
or controlled  by the  other.   Exceptions to   this rule  may be               
established by  the Government.                                                 
                                                                                
     Article 19. Employment Guarantees                                          
                                                                                
     The employer shall be prohibited from refusing employment:                 
1) on  the grounds  specified in paragraph 6 of Article 2 of this               
Law;                                                                            
2) in  jobs reserved  for residents of corresponding categories (               
part 1  of Article  7 and  Article 8 of the Republic of Lithuania               
Law on Employment of the Population);                                           
3) if  there is  a written agreement between employers concerning               
the transfer of an employee to another job; and                                 
4) in other cases provided by law.                                              
     If   a    person   specified    in  paragraph  1  hereof  is               
refused employment,  he   or she  may bring the employer to court               
within one month.                                                               
     If the   court  concludes that  a person  has  been  refused               
employment unlawfully,  the   employer shall   be  obligated   by               
court  order to employ the  person from the day of application of               
employment, and  to pay the employee minimum wage for the expired               
period.                                                                         
                                                                                
                            Chapter 3                                           
     Fulfillment and Modification of an Employment Contract                     
                                                                                
                                                                                
     Article 20.  The Employee's  Duty to  Personally  Carry  out               
               Assigned Work                                                    
                                                                                
     Employee do   not have  the right  to assign  their work  to               
other persons  without   the permission  of the  employer or  the               
person authorized by the employer.                                              
                                                                                
                                                                                
     Article 21.  Prohibition of Requiring an Employee to Perform               
                                                                                
     Work which  is  not Specified  in  the  Employment  Contract               
An employer  does  not have  the right  to  require  an  employee               
to perform  work   that is  not agreed  upon  in  the  employment               
contract. Another  employment   contract must   be  concluded for               
additional work.                                                                
                                                                                
     Article 22. Changing Working Conditions                                    
                                                                                
     An employer   has   the   right   to  change  an  employee's               
working conditions   (to     change  the   working  place  within               
the  same enterprise and locality, or to assign work with another               
machinery or device),  or to  change other  conditions (benefits,               
the work  regime, the amount of material liability, posts, etc.),               
only when  this change  is related  to changes  in production  or               
technology, or  when the  organization of labour is being changed               
and the  employer has  to   change the   working  conditions   of               
certain employees as a result.                                                  
     The employee   must  be given  written notice of the planned               
changes in  working  conditions no  later than  one  month  prior               
to   the introduction  of   such changes.   If  the changes   are               
related   to production  technology,   the employer  must provide               
conditions for  the employees   to  improve  their qualifications               
or change   their specialization so  that they  will be  able  to               
work  after  the changes in  production or  production technology               
are introduced.  The collective   agreement may  require a longer               
notice period,  as well  as   additional  obligations    for  the               
provision of  conditions which  would   enable  the  employee  to               
prepare for  work after the introduction of changes in production               
or production technology.                                                       
     If an   employee  refuses  to  work  under  changed  working               
conditions, he or  she may  be discharged from work in the manner               
established in paragraph 9 of Article 26 of this Law.                           
     If changes   are  introduced   and as   a  consequence    an               
employee's salary  is   reduced for   reasons  beyond  his or her               
control,   the employee  shall  be compensated  for the disparity               
in wages  for at  least three   months after  the introduction of               
the  changes  in working conditions.                                            
                                                                                
     Article 23. Transference at the Request of the Employer                    
                                                                                
     If an   employer  wishes  to transfer an employee to another               
job or  locality   (i.e.   to  change  the  requisite  conditions               
of   the employment  contract),   even if  the entire  enterprise               
is   being transferred,  it   shall only   be  permitted   if the               
employee gives written consent.  Exceptions are  provided for  in               
Article  24 of this Law.                                                        
                                                                                
     Article 24. Temporary Transference in Cases of Emergency                   
                                                                                
     An employer  shall have the right to transfer an employee to               
a job  other than the one agreed upon in the employment contract,               
either in  the same  enterprise (on  the territory  of  a  forest               
district) or  in another   enterprise  situated   in  the    same               
locality,   for   the period  of   one month   if the  purpose of               
such a   transfer  is: to avert a  natural calamity or industrial               
accident, to liquidate or immediately eliminate  the consequences               
of such  an accident, to distinguish a fire, or to prevent a fire               
from spreading.                                                                 
     It shall   be  prohibited to  transfer an  employee to a job               
which is  incompatible with  his or  her health. If an employee's               
salary is  decreased after   being  transferred   to another  job               
for   reasons beyond  his  or her  control,  the  employee  shall               
be  paid  the equivalent of the former average wage.                            
                                                                                
     Article 25. Dismissal from Work                                            
                                                                                
     If an   employee  comes   to work   under  the  influence of               
alcohol, drugs,  or  other toxic  substances, the  employer shall               
not allow him or her to work that day (shift).                                  
     Employees may  be dismissed from work (office) or have their               
wages suspended in other cases specified by laws.                               
                                                                                
                            Chapter 4                                           
              Termination of an Employment Contract                             
                                                                                
                                                                                
     Article 26.  Grounds for  the Termination  of an  Employment               
               Contract                                                         
                                                                                
     An employment contract shall be terminated :                               
1) upon the agreement of both parties (Article 27);                             
2) upon  the expiration  of the  term of  the contract,  with the               
exception of the case specified in Article 11 of this Law;                      
3) upon the application of the employee (Article 28);                           
4) upon  the initiative  of the employer in cases provided for in               
this Law  (Article 29)  or at  the will  of the employer (Article               
30);                                                                            
5) upon  the execution  of a  court sentence  which disenables an               
employee to continue work;                                                      
6) when  an employee  is deprived of the right to work  a certain               
occupation according to the procedure established by law;                       
7) when  an enterprise goes bankrupt or is liquidated against the               
will of the employer;                                                           
8) when  the employee refuses to be transferred together with the               
enterprise (its unit) to another locality;                                      
9) when  the employee  refuses to  work after the introduction of               
changes in  working conditions  set forth  in Article  22 of this               
Law;                                                                            
10) when  the  medical  commission  or  the  commission  for  the               
establishment of  disability concludes that an employee is unable               
to hold his or her post or work in such an occupation;                          
11) when,  in cases  provided for  by law,  the  former  employee               
returns to work;                                                                
12) when  an employee  takes an  elected office  or an office for               
which a  vacancy is  announced; when an employee is not reelected               
to office or is removed from office;                                            
13) when  a parent  or guardian of an employee who is between the               
ages of  14  an  16  demands  that  the  employment  contract  be               
terminated;                                                                     
14)  when   the  employment   contract   contradicts   provisions               
established by law (Article 31); and                                            
15) upon  the motivated demand of bodies and officials authorized               
under law.                                                                      
                                                                                
                                                                                
     Article 27.  The Procedure  for  Terminating  an  Employment               
               Contract upon the Agreement of Both Parties                      
                                                                                
     One party  of an employment contract may submit to the other               
party a  written   proposal concerning   the  termination   of an               
employment contract  by  bilateral agreement.  If the other party               
agrees with the proposal,  it must,  within five  calendar  days,               
present  a written  reply   to  the   party  which submitted  the               
proposal concerning  the  termination of an employment  contract.               
Upon agreeing  to  terminate an  employment contract, the parties               
shall also   agree     upon   the   date   and other  terms    of               
termination (compensations, granting unused vacation, etc.).                    
     If the   other  party   does not  announce its  agreement to               
terminate the  employment   contract within   the   time   period               
specified   in paragraph  1   hereof, the  proposal to  terminate               
the   employment  contract  by    bilateral  agreement  shall  be               
considered to have been rejected.                                               
                                                                                
     Article 28.  Termination of  an Employment Contract upon the               
                                                                                
     Application of  the Employee  The employee   shall have  the               
right  to terminate an employment contract of indefinite duration               
provided that  he or  she gives  the employer 14 days notice. The               
collective agreement  may provide for a shorter period of notice.               
At the  end of  the period  the employee shall have  the right to               
leave  the job, and the employer shall register discharge papers.               
     If termination   of  an   employment contract  of indefinite               
duration  is  requested    because  an  employee's  illness    or               
disability   is interfering  with  adequate work  performance, or               
for  other   sound  reasons  provided    for  in  the  collective               
agreement, the employment contract must  be terminated  from  the               
day  specified  in  the employee's application.                                 
     Employees   may   withdraw   applications   concerning   the               
termination of  an employment   contract   within  three calendar               
days   from   the presentation  of   the application.  After this               
period, applications  may be  withdrawn only  with the consent of               
the employer.                                                                   
     Employees   shall   have  the   right  to  terminate  fixed-               
period employment  contracts    before  the  date  of  expiration               
provided that  they give   written  notice   to the  employer and               
that   there  are reasons set forth in paragraph 2 hereof. Such a               
contract may  also be  terminated  if the  employer has  violated               
the  rights of  the employee  provided   for  in  the  employment               
laws   and   in   the collective  agreement   or  the  employment               
contract. In  the event  of a    controversy    concerning    the               
termination   of  a  fixed-period employment contract  before its               
expiration, the dispute shall be resolved, upon  the  application               
of  the  employee,  by  bodies settling labour disputes.                        
                                                                                
     Article 29.  Termination of  an Employment  Contract on  the               
               Initiative of the Employer                                       
                                                                                
     An employment  contract may  be terminated on the initiative               
of the employer for the following reasons:                                      
1) liquidation of an enterprise at the employer's will;                         
2) reduction  of the  number  of  employees  due  to  changes  in               
production or production organization;                                          
3) inability  of the  employee to adequately perform the assigned               
work for  due to  deterioration in  health or  lack  of  required               
qualifications;                                                                 
4) absence  from work  due to  temporary disability for more than               
120 consecutive  calendar days,  or during the last year of work,               
for more  than 140  calendar days, unless the law has a provision               
which reserves  the place  of employment (office) for an employee               
in the   event  of  a certain  illness. The  place of  employment               
(office) shall  be reserved for an employee who has lost capacity               
to work  due to  an industrial  accident or  occupational disease               
until the  employee regains  his or  her capacity  to work or the               
disability is certified;                                                        
5) if  an employee  fails to  return to work within two months of               
release from the national defence service;                                      
6) if  an employee  neglects assigned  work or is guilty of other               
violations of labour discipline, provided that he or she has been               
penalized for  disciplinary reasons  at least  once during the 12               
months prior to the violation;                                                  
7) if  the employee  commits misappropriation of property (theft)               
at the  working place,  or any  other deliberate  unlawful action               
thereby incurring damage to the employer;                                       
8) if  a court  sentence convicting the employee for a deliberate               
offence comes into effect;                                                      
9) if  the employee  is under  the influence of alcohol, drugs or               
other toxic substances during working hours;                                    
10) if  the employee  is absent  without reason  for  the  entire               
working day (shift); and                                                        
11) if  the employee makes public the commercial or technological               
secrets of  the enterprise,  or divulges information thereon to a               
rival company.                                                                  
     An employer   may  terminate   an employment  contract  with               
employees whose work  is related  to the  stock-taking, security,               
receival, delivery, or  transportation of  things of  value, when               
the said employees can  no longer  be trusted to perform the duty               
assigned to them due to guilty actions at work.                                 
     People employed   as  public    officers    and    employees               
working   in educational  fields   may be  dismissed from work if               
their conduct,  either during   or   outside  of  working  hours,               
is  immoral  and consequently incompatible with their office.                   
     Employers shall be prohibited  from discharging  an employee               
on their own initiative during the period of temporary disability               
(except discharge  under paragraphs 1 and 4 hereof) or during the               
vacation period  (except discharge  under paragraph  1 hereof) of               
the employee in question. If an employment contract is terminated               
in violation  of this  provision, the first working day after the               
vacation period  or  period  of  temporary  disability  shall  be               
considered the  day of  termination of the contract. The employee               
shall be  paid wages  at a  double rate  as  well  as  disability               
benefits  and  holiday  pay  for  the  period  during  which  the               
termination of the employment contract is postponed.                            
     It shall   be  illegal   for an  employer  to  discharge  an               
employee on  the basis  of political conviction, religious views,               
nationality, citizenship  or  other factors which are not related               
to his or her professional qualifications.                                      
                                                                                
     Article 30.  Termination  of  Employment  Contracts  at  the               
               Request of the Employer                                          
                                                                                
     The employer (with the exception of state enterprises) shall               
have the  right  to terminate  an employment  contract on grounds               
which are  not   prohibited by   Articles 26  and 29 of this Law,               
provided that  the discharged  employee is  compensated  for  the               
amount of:                                                                      
1) 3  average monthly  wages, if  the employee  has worked at the               
enterprise for up to 1 year;                                                    
2) 6  average monthly  wages, if  the employee  has worked at the               
enterprise from 1 to 5 years;                                                   
3) 9  average monthly  wages, if  the employee  has worked at the               
enterprise from 5 to 10 years;                                                  
4) 12  average monthly  wages, if  the employee has worked at the               
enterprise from 10 to 20 years;                                                 
5) 18  average monthly  wages, if  the employee has worked at the               
enterprise for more than 20 years.                                              
The provisions  of paragraph 4 of Article 29, and Articles 34 and               
40 of this Law shall not be applied in the cases specified above.               
     Article 31.  Elimination of  Terms of  Employment  Contracts               
               Which Contradict the Law                                         
                                                                                
     If constituent part(s) of  an employment contract contradict               
the prohibitory  provisions   of   laws,   and the  contradicting               
terms cannot  be   eliminated, or   if  it   is not  possible  to               
transfer an  employee with  his or  her consent  to another place               
of work, the employment contract shall be terminated.                           
     If the  employee does not accept the proposed job, he or she               
shall be  paid   discharge gratuity  equaling an  average monthly               
wage upon the termination  of the  employment contract.  If there               
is not a place for  the employee  to be transferred, the employee               
shall be  paid  discharge    gratuity  equaling    three  average               
monthly   wages. Disputes  concerning    the  termination  of  an               
employment contract or discrepant terms within the contract shall               
be resolved by court.                                                           
     Employment  contracts which violate laws  or   international               
agreements which  regulate the  employment of persons temporarily               
residing in  the Republic  of Lithuania (paragraph 3 of Article 4               
of this  Law) must be terminated. Sanctions provided by law shall               
be applied  to the  employer or  authorized representative who is               
guilty of the said violation.                                                   
                                                                                
     Article 32. Restrictions on Terminating Employment Contracts               
               during the Reorganization of an Enterprise                       
                                                                                
     Employment contracts   shall  not   be terminated  due to  a               
change in ownership, jurisdiction, or name of an enterprise.                    
     Upon  the    merger,  division,    or  realignment    of  an               
enterprise, or  upon the change of the type of enterprise, labour               
relations shall not be  terminated  provided  that  the  employee               
gives   consent thereto.  In   such a    case,  terminating    an               
employment contract on the initiative  of the  employer shall  be               
                                                                                
permitted   only in  the event  that the  number of  employees is               
being reduced.                                                                  
                                                                                
     Article 33.  The Consent  of Trade Union Bodies to Discharge               
               Employees                                                        
                                                                                
     Employers may   not  discharge   an employee  on  their  own               
initiative or will  (except under  paragraph 1  of Article  29 of               
this Law)  without the   consent of the elective trade union body               
whereto the employee has been elected.                                          
     Collective agreements  may establish that trade union bodies               
must give  their   consent to discharge employees who are members               
of  the  trade  union  under  Article  29  of  this  Law  (except               
paragraphs 1, 6, 7, 8, 9, 10, and 11).                                          
     Trade  union    bodies  must    consider  discharge  consent               
applications from   employers   within   14   calendar   days  of               
receipt  of  the application.                                                   
     If a   trade  union does  not give  consent to  discharge an               
employee, the  employer  may appeal this refusal. The court shall               
revoke the  decision of   the  trade union  body if  the employer               
proves that the decision expressly violates his or her interests.               
     In cases   provided  by law, employees may not be discharged               
on the  initiative of  the employer  (except under paragraph 1 of               
Article 29 of this Law) without the consent of other bodies.                    
     Employees who  are discharged  in violation of this Article,               
or who  are discharged after more than one month from the day the               
consent is  received,   must, upon   the decision  of the  court,               
have their previous job restored.                                               
                                                                                
     Article 34.  Requirements of Employment Contract Termination               
               when the Employee is not at Fault                                
                                                                                
     When the employee is not at fault, an employer may terminate               
the employment  contract   at his  or  her    own  initiative  in               
accordance with  the   procedures established  by law  only after               
giving   the employee  a   written notice  of two months. Persons               
who are  within five  years  of being  entitled to  full pension,               
minors under  18 years  of  age, disabled persons, women who have               
children under  14 years  of   age, and   men  who  are the  sole               
supporters of  children under 14  years of  age must  be given  a               
written notice 4 months prior to the discharge.                                 
     A longer   term  of   notice may   be  established   in  the               
employment contract or collective agreement.                                    
     The notice  shall become  invalid after  1 month ( excluding               
periods  of   temporary    disability  or    vacation)  from  the               
expiration of its term.                                                         
     In the   event that  the period  remaining  until  a  fixed-               
period employment contract  expires is shorter than the period of               
notice provided  by   this Article,   the  employer    may    not               
discharge   an employee  at   his or   her  own initiative if the               
employee is not at fault. If an employee is discharged before the               
expiration of  the term  of notice,  his   or her discharge shall               
become effective prior to the date of the expiration thereof.                   
     Terms of  notice provided  for in  this Article shall not be               
applied when  an employee  is discharged under Article 30 of this               
Law.                                                                            
     It shall   be  permitted to  discharge an  employee  on  the               
employer's initiative  when  the employee is not at fault, on the               
grounds set  forth in  paragraphs 9,  10, and 11 of Article 26 of               
this Law,  if the employee  refuses to  be transferred to another               
locality when  only the   unit  wherein he  or she is employed is               
being transferred  (paragraph 8  of  Article  26),  or  when  the               
employee   is  not reelected or is removed from office (paragraph               
12 of  Article  26),  if  transference  is  impossible  with  the               
employee's consent.                                                             
                                                                                
                                                                                
     Article  35. Restrictions   for  Terminating  Employment                   
               Contracts of  Pregnant Women  or Women  who Have                 
               Children under 3 Years of Age                                    
                                                                                
     Employers shall  be prohibited  from terminating,  at  their               
own initiative  and own  will, employment  contracts of  pregnant               
women.                                                                          
     Employers shall  be prohibited  from terminating,  at  their               
own will,  employment   contracts of   women  who   have children               
under 3  years of  age or  of fathers  and other  persons who are               
the sole  supporters of  children under 3 years of age. Employers               
shall also be prohibited from  terminating  employment  contracts               
of   said persons  at their own initiative if the employee is not               
at fault.                                                                       
     Guarantees provided  by paragraphs  1 and 2 hereof shall not               
be applied  in cases  when an  employment contract  is terminated               
under paragraph  1 of  Article 29  of this Law. (Amended December               
10, 1991)                                                                       
                                                                                
     Article  36. Restrictions   for   Terminating   Employment                 
               Contracts of  Persons Liable to Established                      
               Employment Quotas and of Conscripted Persons                     
                                                                                
     Except in  cases specified  in paragraph  1 of Article 29 of               
this  Law,  employers    may  not    terminate  the    employment               
contracts  at their own initiative of:                                          
     disabled persons;                                                          
     employees   who   are  liable  to    established  employment               
quotas, or  for whom  additional working   places   are  provided               
under  the  established  quotas; employees who  are not at fault,               
and whose  total number  does not exceed  the  quotas established               
by  the  local  government;                                                     
     or employees conscripted to the national defence service.                  
                                                                                
     Article 37. Employment Precedence during Employee Reduction                
                                                                                
     In the   event  that an  enterprise reduces  the  number  of               
employees, the right  to retain  employment shall reside with the               
employees who  have   sustained  work-related  injuries  or  have               
contracted an  occupational disease,  as  well    as  with  other               
employees   to whom  this right  is provided  by  the  collective               
agreement.                                                                      
                                                                                
     Article 38.  The Employee's  Right to  be  Informed  of  the               
               Reasons for Discharge                                            
                                                                                
     Employees  shall     have   the  right   to   file   written               
applications within 10  days of  being discharged  to demand that               
the employer impart the reasons for their discharge.                            
     Within 5   days  of   receipt of   such an  application, the               
employer must  notify   the applicant   in writing of the precise               
reasons for  discharge, and   must  specify  the findings whereon               
the discharge was based.                                                        
     If the  employer fails  to  satisfy  this  requirement,  and               
the employee  appeals  against his  or her  discharge  in  court,               
the employer  shall  be subject  by court  to  pay  the  employee               
the equivalent  of  the  salary  of  20  working  days,  even  if               
the employee's job is not restored.                                             
                                                                                
     Article 39. Employment Contract Termination Statements                     
                                                                                
     In the  event that  an employment  contract  is  terminated,               
the wording  in the documents must comply with the conditions and               
laws of the termination contract.                                               
                                                                                
     Article 40. Discharge Gratuity                                             
                                                                                
     Upon the  termination  of  an  employment  contract  on  the               
grounds set  forth in  paragraphs 8,  9, 10, and 11 of Article 26               
of this Law, and when  an employee  is discharged  for failure to               
be reelected  for a   new  term   of office,   as well  as on the               
termination of  an employment  contract at  the initiative of the               
employer and  through no  fault   of the   employee,  or  on  the               
application  of   the  employee   and   on   reasonable   grounds               
(paragraphs 2   and  4 of  Article 28  of this Law), the employee               
shall  be  paid  a  discharge  gratuity equivalent to  an average               
monthly salary.   Upon  discharge   under paragraph 7  of Article               
26, and paragraphs 1 and 2 of Article 29  of this  Law, discharge               
gratuity shall   be  paid in  the amount of the average salary of               
two months.                                                                     
     The amount   of  discharge gratuity specified in paragraph 1               
hereof shall  be   increased: one  and a half times for employees               
who have  worked at   the enterprise  for more than 5 consecutive               
years; two  times for   employees  who    have  worked    at  the               
enterprise for more than 10  consecutive years;  three times  for               
employees   who have  worked at  the enterprise  for more than 20               
consecutive years.  Said increases  in   the amount  of discharge               
gratuity shall not prolong the term  on the  expiration of  which               
the   person is    liable    to  receive  unemployment    benefit               
(paragraph   2 of  Article 16 of the Republic of Lithuania Law on               
Employment of the Population).                                                  
                                                                                
     Article 41.  The Obligation  of  the  Employer  to  Pay  the               
               Discharged Employee the Total Amount of the Money                
               Due                                                              
                                                                                
     On the   day  of   discharge,  the  employer  must  pay  the               
employee the entire sum of money due.                                           
     If the   employer  fails   to pay  the due  amount  on  time               
through his  or her   own  fault, the  employee shall  be paid an               
average wage for the entire period of delay in payment.                         
                                                                                
     Article 42. Reinstatement of an Employee to Work                           
                                                                                
     If the employee disagrees with his or her discharge, removal               
from work,  or  transfer to another job, he or she shall have the               
right to  appeal   to court   within one  month of  receiving the               
document confirming  the   discharge, removal   from   work,   or               
transfer   to another job. If the employee is discharged, removed               
from work,  or transferred  to another job without legal grounds,               
or in violation of the  procedures  established  by  law,  he  or               
she  shall  be reinstated in his last employment by court.                      
     Upon reinstating  in his  last employment  the employee  who               
was unlawfully  discharged,   transferred to   another  work,  or               
removed from  work,   the court shall subject the employer to the               
liability of  payment   of the  employee's wages  for the  entire               
period   of enforced  idleness,  or of  the unpaid amounts of his               
last average  wage for  the period  he  had  to  work  for  lower               
remuneration.                                                                   
     When an   unlawfully  discharged   employee declares,   that               
upon his  reinstatement in   his   last  employment  unfavourable               
conditions would be  created for  him, the  court, declaring  the               
discharge unlawful,  may,   at the employee's  request,   refrain               
from reinstating him  in his  last  employment,  and  adjudge  to               
him compensation  in   the amount  of up  to 12  average  monthly               
wages. In  this   case, the   employee  shall   be  considered to               
have  been discharged from work under Article 28 of this Law.                   
                                                                                
                                                                                
                                                                                
                                                                                
VYTAUTAS LANDSBERGIS                                                            
President                                                                       
Supreme Council                                                                 
Republic of Lithuania                                                           
                                                                                
Vilnius                                                                         
28 November 1991                                                                
No. I-2048                                                                      
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