Termination of the Employment Contract in Lithuania

An employment contract is terminated:

1. By mutual agreement – either party may propose in writing to terminate the contract by mutual consent. If the other party agrees, they must notify the proposer within seven days;
2. Upon expiration of the term – when the fixed-term contract expires, either the employer or the employee may terminate it. If neither party takes action, the contract is considered converted into an indefinite-term contract;
3. Upon employee’s request – the employee may terminate both indefinite and fixed-term contracts before their end date by giving written notice at least 14 days in advance. The notice period is shortened to three days if the termination is due to illness, disability, other serious reasons (such as those defined in a collective agreement), or if the employer fails to fulfil obligations under the contract, violates legal provisions or the collective agreement;
4. Due to circumstances beyond the employee’s control – the employee may terminate an indefinite-term contract or a fixed-term contract longer than six months if there is downtime at the workplace (not caused by the employee) lasting more than 30 consecutive days or more than 60 days in the last 12 months, or if wages have not been paid for more than two consecutive months;
5. At the employer’s initiative, without employee’s fault – the employer may terminate an indefinite-term contract only for valid reasons, giving at least two months’ written notice. For employees who are less than five years away from retirement, minors, persons with disabilities, and employees raising children under 14, the notice period is extended to four months;
6. Without notice – the employment contract must be terminated in cases such as: A final court judgment sentencing the employee to a penalty preventing them from continuing work; Revocation of special rights required to perform the job; Requirement by authorized public bodies; Medical or disability commission conclusion that the employee cannot perform the job; For employees aged 14 to 16 – upon the request of a parent, legal guardian, doctor, or school; Liquidation of the employer without a legal successor; Gross or repeated breaches of work discipline;
7. In the event of employer’s bankruptcy – employment contracts may be terminated in accordance with bankruptcy laws;
8. Upon employer’s liquidation without a legal successor;
9. Upon employee’s death – if the contract was concluded for personal service; upon employer’s death – if the contract was for personal service to the employer and there is no legal successor.

Restrictions on Termination of Employment Contracts

It is prohibited to give notice of termination or dismiss an employee:

1. During the employee’s temporary incapacity for work or while they are on leave, except when the employment contract is terminated by a final court ruling or a final judgment sentencing the employee in a way that prevents them from continuing the work;
2. When the employee is called up for compulsory military service or other civic duties in Lithuania, except when the termination is based on a final court decision or judgment that prevents the employee from continuing the work;
3. In other cases specified by law.

An employment contract cannot be terminated with a pregnant woman from the day the employer is presented with a medical certificate confirming the pregnancy until one month after the end of maternity leave, except when the contract is terminated by a final court decision, a final judgment, or if the employee, under the law, loses the special rights required to perform the job. Similarly, employees raising a child (children) under the age of three cannot have their contracts terminated unless there is fault on the employee’s side.

Employees who have lost their ability to work due to a workplace injury or an occupational disease retain their position and duties until their ability to work is restored or a disability is officially established.

Employees elected to representative bodies cannot be dismissed during their term without the prior consent of the respective body.

In cases where the number of employees is reduced due to economic or technological reasons or structural reorganization of the workplace, the priority right to remain employed is given to employees:

1. Who were injured at work or contracted an occupational disease in that workplace;
2. Who are single parents raising children (including adopted children) under the age of 16 or who care for family members recognized as disabled in the first or second group;
3. Who have at least 10 years of uninterrupted employment with that employer (except for employees entitled to or already receiving a full old-age pension);
4. Who are within three years of reaching the retirement age;
5. Who have this right specified in a collective agreement;
6. Who have been elected to employee representative bodies.