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.
Lithuania: Staff information and consultation on business transfers
Phase
Labour code No XII-2603
Native name
Darbo kodeksas Nr. XII-2603
Type
Staff information and consultation on business transfers
Added to database
08 May 2015
Article
Labour code (208, 209)
Description
According to article 208 of the labour code, before taking a decision on a business transfer, the employer must inform and hold consultations with the works council. At least five working days before the beginning of the planned consultation, the employer must provide the works council with written information on:
the date of transfer or the proposed date of transfer;
the legal basis for the transfer;
the legal, economic and social consequences of the transfer for the employees;
measures planned for the employees.
When a company does not have a works council or an employee trustee implementing the functions thereof, the employer must provide the information above to the employer-level trade union as well as to the employees, either directly or at a general meeting of the employees of the employer. The trade union is entitled to express its opinion to the employer concerning the employer’s upcoming decisions. The employer must hold consultations for at least five working days from the first day of consultation, unless the works council agrees to a different term.
If an employer has violated the obligations of information and consultation, the works council or the trade union is entitled to initiate a labour dispute on rights within two months of finding out about the violation. The State Labour Inspectorate controls how employers fulfil the obligation of informing and consulting employees (article 209).
Labour relations on ships are regulated by Lithuanian labour law provisions if these ships sail under the flag of the Republic of Lithuania.
Law No XIV-453 (came into force since 15th of July, 2021) establishes that similar provisions under Article 208 of the Labour Code apply not only in the case of a transfer of a business or a part of a business, but also in the case of a restructuring case against an employer opened after 14 July 2021. The same law also adds to the Labour Code an obligation for employers to provide information to the works councils for consultation on "ways and means envisaged to avoid or mitigate negative legal, economic and social consequences for employees".
Commentary
No information available.
Additional metadata
Cost covered by
None
Involved actors other than national government
Trade union
Works council
Other
Involvement (others)
The State Labour Inspectorate
Thresholds
Affected employees: No, applicable in all circumstances Company size: No, applicable in all circumstances Additional information: No, applicable in all circumstances
Eurofound (2015), Lithuania: Staff information and consultation on business transfers, Restructuring legislation database, Dublin,
https://apps.eurofound.europa.eu/legislationdb/staff-information-and-consultation-on-business-transfers/lithuania
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