Labour legal relationships and their subjects
Labour legal relationships are specific social relationships characterized by subordination. The subjects of these relationships are the employee and the employer, as well as organizations representing employees and employers.
Full labour legal capacity and the ability to acquire labour rights and create labour obligations through one’s actions (labour capacity) arise when a person reaches the age of sixteen. Exceptions are provided by the Labour Code and other labour laws. Employers’ legal capacity and labour capacity arise from the moment of their establishment. Employers acquire and implement labour rights and obligations through their bodies and administration. These bodies are formed and operate according to the laws and organizational documents of the employer. Owners of individual enterprises, farmers, and natural persons as employers may implement labour rights and obligations themselves.
Organizations established by employees and employers to represent their interests play an important role in regulating labour relations. Article 35 of the Constitution of the Republic of Lithuania guarantees Lithuanian citizens the right to freely form associations, political parties, or organizations, provided their goals and activities are not contrary to the Constitution and laws. The Supreme Court of Lithuania also emphasizes that a fundamental element of the constitutional legal status of such associations is their autonomy from state power, other state and municipal institutions, and public authorities. It is also important that this right includes not only the freedom to join representative institutions and participate in their activities, but also the right not to belong to such an organization.
A necessary prerequisite for the establishment of an employment relationship between an employer and an employee is an employment contract. An employment contract is an agreement between an employee and an employer, in which the employee agrees to perform work of a certain profession, specialty, or qualification, or to hold a certain position while complying with the internal work rules, and the employer agrees to provide the employee with the work specified in the contract, pay the agreed wage, and ensure working conditions established by labour laws, other legal acts, collective agreements, and agreements between the parties.
Each employment contract must include the following essential terms:
Workplace: The Supreme Court of Lithuania in case No. 3K-3-274/2008 defined the difference between the terms “workplace” and “job location” as used in the Labour Code. Often, “workplace” is understood as the employer (e.g., a company), while “job location” refers more narrowly to the specific location where job duties are performed. Indicating the workplace is mandatory; the job location is specified only by mutual agreement.
Job functions: Usually not detailed in the employment contract—only the job title is mentioned. The job functions are listed in a separate document.
The terms of remuneration must also be specified in every employment contract. These terms can only be changed with the employee’s prior written consent (except when the wage is increased via a collective agreement or by law). If wage payments or other employment-related payments are delayed due to the employer’s fault, the employee must be paid statutory interest along with the delayed payments. Interest is due if two conditions are met: the delay was not the employee’s fault and seven calendar days have passed since the employer was obliged to make the payment.
An employment contract ends:
- upon its termination on the grounds provided by the Labour Code or other laws;
- if the employer is liquidated with no legal successor;
- upon the employee’s death;
- when it is impossible to determine the whereabouts of the employer (if the employer is a natural person) or their representatives.
An individual labour dispute is a disagreement between an employee and an employer regarding the implementation of rights and obligations established by labour laws, other legal acts, the employment contract, or a collective agreement. These disputes are handled by the Labour Disputes Commission and the court. All disputes, except those specifically provided for in the Labour Code or other laws, must first be resolved by the Labour Disputes Commission.
Without applying to the Labour Disputes Commission, the following disputes are resolved directly by the courts:
- disputes arising from cases provided in Article 297(1) and (3) of the Labour Code (e.g., if the employee disagrees with changes to essential terms of the employment contract, suspension from work at the employer’s initiative, dismissal, or if dismissal was unlawful or procedurally incorrect);
- disputes regarding the modification of the wording of the dismissal;
- disputes between trade unions or other employee representatives and the employer regarding failure to fulfill duties or obligations established by law or agreement;
- lawsuits filed by trade unions when the employer fails to timely review or grant a union’s request to revoke employer decisions that violated the labour, economic, or social rights of union members;
- when the employment relationship between the employer and the employee has already ended;
- in other cases provided by law.
- Courts also examine the following individual labour disputes:
- decisions of the Labour Disputes Commission appealed in accordance with the established procedure;
- disputes that were not resolved through the Labour Disputes Commission;
- disputes in which the commission was not formed or the dispute was not resolved within the prescribed time limits.