Lithuanian Employment Contracts

Lithuanian Contracts

In Lithuania, employment contracts must be presented to employees in writing and there are a variety of contract types to choose from, depending on business needs and employment types. An indefinite contract, however, is the standard. 

Employment law, the Labor Code, and (in some cases) collective agreements govern employment conditions, benefits, and health and safety regulations, and must be adhered to. It is best to confirm with the Labor Inspectorate on what regulation applies, as this may vary according to industry and sector.

Labor law in Lithuania is based on both employer and employee protection. The employment relationship and its terms are hierarchically determined by the Constitution, international treaties, the local labor law, collective employment agreements, employment rules and business practices, with the individual contract being last in the order.

Employment Contracts in Lithuania

There are a few types of employment contracts one can use in Lithuania, which are stipulated by the Labor Code, that depend on the employment relationship and the business’ needs:

• Open-ended/Indefinite employment contract – the standard and most used type of employment contract in Lithuania, which is used for indefinite employment.

• Fixed-term employment contract – the standard duration of this contract may not exceed 2 years (with exceptions – the maximum duration is 5 years), of which there is more than one type:
• Apprenticeship employment contract – a fixed-term contract that is used when the person is employed for the purpose of acquiring qualifications or gaining skills required for the profession.
• Project-based employment contract – a fixed-term contract where an employee carries out their job functions for a particular project.
• Temporary employment contract – a contract for temporary workers, that cannot exceed more than 2 months.
• Seasonal employment contract – a contract used for seasonal workers, which can be valid for up to 8 months in a year.
• Contracts on additional work: this contract type stipulates that the employee will perform certain additional duties (that were not agreed to in the first employment contract) at the same workplace.
• Contracts with home workers: contracts for work functions being performed at home.
• Job-sharing employment contract: A contract between 2 employees and an employer, where one job position is shared among the employees.
• Secondary job employment contract: a contract with an employee who will be performing the same job function for more than one job and must be signed by both the employee and employers involved.

All employee contracts, irrespective of type, should contain the following conditions: 

1. The place of work
2. The job function
3. The salary. 

If the contract has expired, and neither the employer nor employee have requested its termination, then it is considered extended for an indefinite period.