LFMI Welcomed Proposals to Amend the Labour Code

LFMI submitted comments to the Government and the Ministry of Social Security and Labour, welcoming Government-proposed amendments to the Labour Code. LFMI believes that removing the requirements to keep employment contracts record books, to issue monthly pay statements and to conclude labour contracts according to the model form will reduce the high administrative burden for companies. LFMI is of the opinion that such proposals as the permission to conclude fixed-term labour contracts for permanent jobs, shortening the period of notice upon dismissal, cutting down the size of severance payments, fixing average recording of the working time and others would help to transfer to the Labour Code provisions that would correspond to the existing needs of the labour market. LFMI also submitted recommendations regarding some proposals that would restrict employment regulation instead of loosening it.

As Lithuanian labour unions started to mislead the society, threatening that these changes would significantly worsen employee’s conditions and bring back serfdom to Lithuania, LFMI issued a press release and a comparative analysis of the existing and the proposed provisions of the Labour Code. The Institute highlighted that the proposed changes to the Labour Code were not drastic liberalisation, but a consistent easing of the administrative burden, which would not impinge on the employees’ rights.