What Does the Labour Code Reform Adopted on 25 June 2026 Change?
The Seimas adopted a wide-ranging package of Labour Code amendments (Law No. XV-1058) amending more than 30 articles of the Code. Most provisions enter into force on 1 November 2026. (Source: Seimas of the Republic of Lithuania)
What Penalties Apply for Late Payment of Wages?
Default interest for late payment of wages increases fivefold, significantly raising the financial risk for employers who delay settlements with employees.
How Does Final Settlement on Dismissal Change?
On termination of an employment contract, amounts up to one average monthly salary (VDU) must be paid on the day of dismissal. Larger amounts may be paid in instalments over no more than 3 months — but only with the employee’s agreement.
What Changes for Remote Work?
An employer will be able to refuse an employee’s request to work remotely only for reasons of work organisation or production processes — cost alone will no longer suffice. Compensation for remote-work expenses may be regulated by collective agreement.
What Protections Do Strike Participants Gain?
- Warning strikes extended from 2 to 4 hours;
- For 3 months after a strike, essential contract terms of participating employees may not be worsened;
- Mediator costs in collective disputes will be covered by the state;
- Fines for labour-law violations in collective relations rise to 10 minimum monthly salaries (approx. EUR 11,530).
Our Advice
We recommend employers review their dismissal settlement procedures and remote-work policies before 1 November — these are the areas where the reform carries the toughest consequences. Our employment law team is ready to assist with specific situations.
