European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Labour code (218, 232), Code of administrative offences (96)
According to the Labour code, if an employee is dismissed from work in the absence of a legal basis or in violation of the procedure established by law, the labour dispute resolution body, that is the labour dispute commission or the court, can take a decision to recognise the dismissal as unlawful and to order the employee's reinstatement, his or her remuneration for the period of forced absence (up to one year) and payments for material and non-material damage incurred. The employee is reinstated no later than the next working day after the enactment of the labour dispute resolution body's decision (article 218).
If the dispute resolution body establishes the impossibility of a reinstatement due to economic, technological, organisational, or similar reasons, the existence of unfavourable conditions to work or the employer's opposition to the reinstatement, the body can recognise the dismissal as unlawful and can order the employee's remuneration for the period of forced absence (up to one year) and payments for material and non-material damage incurred. The employee can be as well awarded compensation equal to one average salary for every two years of employment, but no more than six times the employee’s average salary (article 218).??When an employer does not comply with a decision, court order or judgement, the dispute resolution body can impose a fine to the employer up to €500 for each week of delay from the day of the decision's adoption to the day of its enforcement, but for no more than six months. The fine can be requested by and is awarded to the employee. Parties may appeal with respect to the size and the validity of the fine in accordance with the procedure established by law (article 232).
In force since 1 January 2017, the Code of administrative offences foresees fines from €240 to €880 for employers violating labour laws (article 96). The State Labour Inspectorate (SLI) is responsible for monitoring the legal implementation. Thus, employees (or their representatives) can file a complaint to the inspectorate in case of non-compliance with dismissal regulations.
It should be noted that employers generally comply in practice with the established statutory procedures. However, according to the State Labour Inspectorate, pandemic-related lockdown and restrictions on economic activities have resulted in the increased number of violations on the part of employers involving psychological pressure on employees to prompt their voluntary redundancy (in accordance with article 55 of the Labour code - Termination of an employment contract on the initiative of the employee without a valid reason).
Eurofound (2015), Lithuania: Effects of non-compliance with dismissal regulations, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/effects-of-non-compliance-with-dismissal-regulations/lithuania
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