In Lithuania, the Labour Code outlines the legal requirements for notice periods during employment termination, which vary based on the circumstances of termination and the employee's situation.

Standard Notice Periods

• If an employee initiates the termination, they must provide a written notice to their employer 20 calendar days in advance. The reason for resignation does not need to be specified.
• If an employer initiates the termination without fault, such as in cases of company restructuring or redundancy, the standard notice period is one month.
• For employees who have been employed for less than one year, employers can provide a shorter notice period of two weeks.

Extended Notice Periods

Certain employee groups are entitled to extended notice periods:

• Employees who are five years away from retirement age are entitled to a doubled notice period, meaning two months' notice from the employer.
• The following employee groups benefit from a notice period tripled the standard length:
  • Employees raising children under 14 years old
  • Employees raising disabled children under 18 years old
  • Disabled employees
  • Pregnant employees
  • Employees within two years of retirement age

During the notice period, employers must grant these employees time off work to search for a new job, with paid leave amounting to at least 10% of their working time.

In Lithuania, employees are entitled to severance pay under certain termination scenarios as per the Lithuanian Labour Code. The severance pay amount is determined by the reason for termination and the employee's service duration.

Severance Pay Conditions

Severance pay is required in the following scenarios:

• Termination Without Fault: If an employee is dismissed without fault, such as in cases of redundancy, company restructuring, or unsuitability for the role, they are entitled to severance pay.
• Employee Termination Due to Employer's Fault: If an employee terminates their contract due to a significant breach by the employer, they are entitled to severance pay.

Calculating Severance Pay

The severance pay is calculated based on the employee's average monthly salary and their service length:

• Less Than One Year of Service:
  • Termination without fault: One average monthly salary
  • Termination due to employer's breach: 0.5 average monthly salary
• Over One Year of Service: Two average monthly salaries.

Special Severance Circumstances

There are also special circumstances where severance pay is applicable:

• Fixed-Term Contract Termination: If a fixed-term employee's contract ends and they have worked for the company for at least two years, they receive one average monthly salary.
• Termination at Will: Employers can exceptionally terminate employment "at will" with a severance payment equal to six average monthly salaries.

In Lithuania, the termination process must adhere to strict regulations defined within the Lithuanian Labour Code. The various termination scenarios and their corresponding procedures are as follows:

Termination by Mutual Agreement

In this simplest termination method, both the employer and employee agree in writing to end the employment relationship and determine the terms of separation. There is no legally mandated notice period, allowing for flexibility. Severance entitlements are negotiated between parties but may still follow standard legal requirements if applicable.

Termination at Employer's Initiative

Without Employee Fault

The employer must provide a written notice stating the reasons for termination and the effective termination date, respecting the required notice periods. Valid grounds for termination include redundancy, company restructuring, employee's unsuitability for the role, or economic reasons. The employer must pay severance according to the legally prescribed amounts.

With Employee Fault

Employers can immediately terminate employment for gross misconduct such as theft, serious safety breaches, etc. Employers must rigorously document the employee's misconduct to justify the dismissal. Gross misconduct dismissals generally don't include severance pay.

Termination at Employee's Initiative

The employee must submit written notice of resignation at least 20 calendar days in advance. Employees do not need to provide a reason for their resignation.

Additional Considerations

Employers with more than 20 employees may need to consult with a works council before implementing mass dismissals. Termination cannot be based on discriminatory grounds protected under Lithuanian law.

Final Steps

Employers must notify the social insurance agency (SODRA) about the termination within one working day. Upon termination, the employer must pay any outstanding salary, compensation for unused vacation time, and severance pay.