Your Rights as an Employee in Lithuania: What to Do in Case of Dismissal or Unpaid Wages

In Lithuania, employment relationships are governed by the Labour Code. An employee has the right both to terminate an employment contract on their own initiative and to protection in the event of dismissal by the employer. It is important to understand your rights and act promptly, especially if wage payments are being delayed.

Resignation on the Employee’s Initiative

An employee can terminate an employment contract in several ways:

• By mutual agreement — the simplest and fastest option, where the terms of termination are agreed with the employer, though generally without compensation unless otherwise specified in the agreement.
• For a valid reason — the employee has the right to resign without a long notice period. Valid reasons include non-payment of wages, the employer’s breach of labour law or occupational safety rules, downtime not caused by the employee, health issues, or the need to care for a close relative. The employer must respond to such a request within 5 working days.
• Without a valid reason — in this case, the employee must give the employer 20 calendar days’ notice.

When an employment contract is terminated for a valid reason, the employee is entitled to a severance payment equal to two average monthly salaries (or one average monthly salary if the length of service is less than one year).

Dismissal on the Employer’s Initiative

An employer may terminate an employment contract in the following cases:

• By mutual agreement — possible at any time with mutual consent.
• Due to the employee’s fault — permitted only in the case of a serious breach of job duties, or in cases of a repeated violation within the preceding 12 months. Before dismissal, the employer must request a written explanation from the employee. In this case, no severance pay is due.
• Through no fault of the employee — for example, in cases of staff reduction, position elimination, or reorganisation. The notice period is 1 month (or 2 weeks if the employment relationship lasted less than a year). This period is doubled for employees nearing retirement age with fewer than 5 years left to work, and tripled for parents raising children under fourteen, employees raising a disabled child under eighteen, pregnant employees, employees with disabilities, and employees who have less than two years left before retirement age.
• Without stating a reason — the employer may terminate the employment contract without explanation, giving the employee 3 working days’ notice. In this case, the employee is entitled to compensation of at least six average monthly salaries.

What to Do if Wages Are Withheld or You Are Dismissed

When labour rights are violated, it is important not to delay taking action. The sooner you begin protecting your interests, the higher the chances of a positive outcome.

It is recommended to take the following steps:

• Check the legality of the dismissal and the grounds stated in the employment contract and dismissal order.
• Send the employer a written demand for payment of outstanding wages and any compensation due.
• File a complaint with the Labour Disputes Commission and/or the State Labour Inspectorate. For most labour disputes, the limitation period is 3 months from the date the employee became aware, or should have become aware, of the violation of their rights. In the case of unlawful dismissal, it is 1 month.
• File a claim in court if necessary.
• Turn to a bailiff (antstolis) to recover any outstanding debts.

It is important to bear in mind that if the employer is a limited liability company and the company becomes insolvent, actually recovering compensation may become more difficult.

Labour disputes require prompt and correct action. Mistakes made at the initial stage can significantly complicate the protection of your rights later on. For this reason, if a conflict arises with your employer, it is advisable to obtain professional legal advice as early as possible.

Seeking help in good time allows you to properly assess the situation, choose the most effective way to protect your rights, and avoid further losses. The Legal Mechanic team is ready to help you navigate a labour dispute and protect your rights in Lithuania.