What you need to know before hiring in Lithuania: A guide to terminations

When making your first Lithuanian hire, termination policies might be far from your mind. But if you don't know the basics about terminations, you might find yourself in a tough spot when you later decide part ways with a Lithuanian employee.

Employees in the Republic of Lithuania have strong protections against hasty or unwarranted dismissals. If you don’t adhere to minimum notice or remuneration requirements, all while failing to prove a just cause for involuntary termination, you could be subject to wrongful dismissal claims from Lithuanian courts.

Read on to learn everything you need to know before hiring Lithuanian employees—and how hiring through an Employer of Record (EOR) can spare you from bungling any local dismissal requirements.

6 essential things to know before hiring in Lithuania

Termination rules in Lithuania: What are acceptable grounds for firing an employee?

Lithuanian employees can leave their job voluntarily for any reason, so long as they give the advance notice stipulated in their employment agreement—usually 10-20 business days but as few as five in an urgent situation. Here are the reasons an employee can be terminated involuntarily in Lithuania:

Note that certain groups of employees are entitled to special protection from dismissal. This includes pregnant women who are employees, employees on maternity, paternity, or parental leave, and those with children under three years of age.

Lithuania’s termination requirements might differ from those in other countries where you hire, and it’s crucial to keep your global hiring compliant with local laws.

What are the mandatory notice periods and termination pay for Lithuanian employees?

The Lithuanian Labour Code sets dismissal requirements and establishes notice periods and severance pay. These are based on the length of employment. In most cases, workers are entitled to up to 10 business days of notice and up to two months of severance pay. In certain cases, the notice periods can be doubled (for example, an employee entitled to an old-age pension within five years) or tripled (if the employee is pregnant, a parent or single parent raising a child (under 14) or disabled child (under 18), or pensionable within two years).

Frequently asked questions about terminating employees in Lithuania

Do you need a reason to terminate an employee in Lithuania?

There are several ways an employee can be dismissed in Lithuania. If the termination is a mutual agreement, then no reason is required. If either party desires termination of the employment contract, then a reason is required. If the employee terminates, the reason may be that the employer breached the conditions of the agreement. In the case of the employer terminating, performance issues could be considered the cause. Lithuanian labor regulations cover notice periods, severance, and other legal obligations.

What is considered just cause for terminating an employee in Lithuania?

In Lithuania, termination with just cause is when an employee is let go for actions related to serious misconduct. This can include:

Poor performance or incompetence can be just cause for termination, but Lithuanian laws encourage employers to consider other disciplinary proceedings first. Most workplaces try to correct less severe misconduct with verbal and written warnings before firing an employee outright.

Employers should ensure they have strong evidence of any serious breach of conduct before terminating an employee without the minimum required advance written notice.

What qualifies as wrongful dismissal in Lithuania?

According to Lithuanian employment law, wrongful dismissal is when an employee is terminated without a legitimate reason. It can happen when an employer:

Employees who think they’ve been wrongfully dismissed can appeal to Lithuania’s State Labour Inspectorate or the Labour Dispute Committee for reinstatement or compensation.

What is always required when an employer terminates an employee in Lithuania?

Once a Lithuanian employee is terminated, they must be given the reason for termination, notice (where applicable), severance pay (where applicable), and information on their legal rights and how to appeal the termination.

What is the law for dismissing a contractor in Lithuania?

The termination process for independent contractors in Lithuania can vary depending on the terms of the contract. Typically, either party may terminate before the contract’s expiry by providing notice as specified in the contract. Contractors are not entitled to most protections and benefits like sick leave, extended health care, additional social security contributions, minimum wage, and maternity leave.

If an independent contractor is found to be misclassified, they may be entitled to employment standards legislation protections and notice and/or termination pay.

What are layoffs in Lithuania?

A layoff is called a collective dismissal or collective redundancy in Lithuania and is based on the number of employees. Terminations are considered to be collective if, in a 30-day period:

In the event of a collective termination, employers must:

Additional notification requirements may apply. These include labour councils and in the case of a collective agreement, trade unions.

Manage the entire lifecycle of your international employees with Rippling

From onboarding to offboarding, Rippling helps you streamline the entire employee lifecycle—globally, and all in one place.

Catch Rippling in action and learn how Rippling can manage the tangled web of global termination requirements—so you don’t have to.

Run your global workforce with Rippling

See Rippling