Lithuanian Labour Code Amendments Effective 1 November 2026: 6-Month Probation, Settlement Rules, and Higher Sanctions

On 25 June 2026, the Seimas of the Republic of Lithuania adopted Law No. XV-1058 (TAR code 2026-11231), amending 38 articles of the Labour Code. These amendments take effect on 1 November 2026 and introduce significant changes to employment contracts for high-earning professionals, final wage settlements, on-call compensation, and financial liabilities for employers.

A key change is the extension of the statutory probation period. Under the amended Article 36(2) of the Labour Code, employers and employees may agree on a probationary period of up to 6 months—up from the standard 3-month limit—provided the employee's agreed monthly gross salary equals at least 2 national average monthly wages (VDU). Furthermore, under Article 33(4), employment contracts for this earnings tier may deviate from mandatory Labour Code rules (such as notice periods or severance arrangements), with strict exceptions: rules governing maximum working time, minimum rest periods, the conclusion and grounds for termination of employment contracts, occupational health and safety, gender equality, and non-discrimination cannot be waived.

The framework for final settlements upon employment termination has also been modified (Article 146(2)). On the day of dismissal, the employer must pay all outstanding amounts, or at least the portion up to 1 VDU. Paying this base amount up to 10 business days after termination requires a specific written agreement concluded at the time of dismissal. Any remaining settlement portion exceeding 1 VDU may be paid in instalments by mutual written consent over a period not exceeding 3 months.

Financial sanctions and late payment penalties have been substantially tightened. In the statutory formula calculating late payment interest (delspinigiai) for unpaid wages and related benefits, the consumer price index multiplier has been increased fivefold. Additionally, the maximum fine that the Labour Dispute Commission can impose for breaches of collective bargaining agreements and collective labour relations procedures has risen from the previous fixed cap of €3,000 to 10 minimum monthly wages (MMA).

Finally, the regulation of passive standby (on-call duty outside the workplace, Article 118) has been restructured. Passive standby at home or another agreed location is capped at 168 hours per 4-week period. Compensation is now fixed at a statutory minimum of 20% of the employee's regular hourly wage for each hour on call, replacing the previous weekly proportional allowance.

Practical implementation requires enterprise payroll and HR systems to configure split-settlement workflows for amounts exceeding 1 VDU, update default interest formulas with the 5x multiplier, and adjust hourly standby compensation algorithms to the mandatory 20% rate.