Global Compliance – Lithuania
Lithuania: Upcoming Labour Law Amendments
Effective January 1, 2025, significant amendments to the Labour Code of the Republic of Lithuania (“Amendment Act”) will come into force, introducing notable changes in the regulation of overtime work, compensation for work under specific conditions, etc. These amendments aim to enhance employee protection and ensure greater clarity in employment relationships.
The upcoming changes are as follows –
Changes to Overtime Work Regulations
Written Consent Requirement
Currently, if an employee is required to do overtime work, their verbal consent is considered sufficient.
Effective January 1, 2025, the amended law mandates that employers obtain written consent from employees before assigning overtime work. However, exceptions to this requirement will remain applicable in certain circumstances, such as emergencies or other situations as expressly permitted by law.
Overtime Pay Rates
Currently, the law does not specify the premium to be paid when an employee works overtime during the night on a public holiday.
Effective January1, 2025, the amendments specify that employees working overtime on public holidays, including nighttime hours, will be entitled to compensation of at least 2.5 times (250%) at employee’s regular rate of pay.
Overview of Overtime Pay Rates from January 1, 2025
Standard Overtime: Employees are entitled to receive a premium of at least 1.5 times (150%) their regular rate of pay.
Overtime During Day and Night Work on Rest Days: Employees are entitled to receive a premium of at least 2 times (200%) their regular rate of pay.
Overtime During Day and Night Work on Public Holidays: Employees are entitled to receive a premium of at least 2.5 times (250%) the regular rate of pay.
Shortening of Working Hours Before Public Holidays
Currently there are no provisions for shortening of working days before the Public Holidays.
Effective January 1, 2025, the amendments require employers to reduce the working day by 1 hour on the day immediately preceding a public holiday, except for employees working reduced-hour schedules.
For example, If a public holiday falls on a Wednesday and an employee typically works an 8-hour shift, their working hours on the preceding day (Tuesday) must be reduced to 7 hours.
If an employer is unable to shorten the working day due to operational requirements or the nature of their continuous activities, the extra hour worked must be compensated as overtime. This provision does not apply to employees working part-time.
Take away- Employers must take proactive steps to comply with the amendment and must review and revise their policies at the earliest in order to align with the upcoming changes to the existing statutory requirements.
