Key Provisions of the Employment Contract
An employment contract is an agreement between an employee and an employer under which the employee undertakes to perform work corresponding to a certain profession, specialty, or qualification, or to hold a specific position while complying with the internal rules of the workplace, and the employer undertakes to provide the employee with the agreed job, pay the agreed salary, and ensure working conditions as established by labour laws in Lithuania, other legal acts, the collective agreement, and the agreement between the parties.
The content of the employment contract consists of the agreed terms that define the rights and obligations of the parties. The parties may not set conditions that worsen the employee’s situation compared to the standards provided by the Labour Code, laws, other legal acts, or the collective agreement applicable in Lithuania.
The parties to the contract must agree on the essential terms, including the employee’s workplace (company, institution, organization, structural unit, etc.) and the employee’s duties — that is, work related to a specific profession, specialty, qualification, or position. The contract also sets out the conditions of remuneration (payment system, salary amount, payment procedures, etc.). Other terms may also be agreed upon if not prohibited by labour laws, other legal acts, or a collective agreement (for example, a probation period, combining positions, or material liability).
The employment contract is considered concluded when the parties agree on its terms. It must be drawn up in writing in accordance with the standard form applicable in the Republic of Lithuania. The written contract is prepared in two copies — one for the employee and one for the employer. The contract must be signed by the employer or an authorized representative and by the employee. When concluding the contract, the employer or the authorized person is obliged to familiarize the new employee with the working conditions, the collective agreement, internal work regulations, and other internal acts regulating the employee’s work within the organization.
Employment contracts may be:
- Open-ended (permanent) – concluded for an indefinite period;
- Fixed-term – concluded for a specific period or for the completion of specific work, but not exceeding five years;
- Temporary – concluded for a period not exceeding two months;
- Seasonal – concluded for seasonal work. Seasonal work refers to tasks that, due to natural or climatic conditions, are performed only during certain periods (seasons) of the year, not exceeding eight months within a consecutive twelve-month period, and are included in the official list of seasonal jobs in the Republic of Lithuania;
- For additional work or secondary positions – if not prohibited by law, an employee may agree to take on certain additional duties or perform additional work (not specified in the main contract) at the same workplace, or take a secondary position in another company;
- With home-based workers – the contract may specify that the agreed work functions will be performed at the employee’s home;
- For household services – the employee undertakes to provide personal household services to the employer;
- Other types.
The employer may not require the employee to perform work that is not agreed upon in the employment contract. Any additional work or duties must be mutually agreed upon and included in the contract.