Navigating Employment Termination and Notice Periods in Lithuania

Terminating employment contracts in Lithuania can occur through mutual agreement between employer and employee or via unilateral action by either party. The rights and procedures differ significantly based on the termination grounds, requiring careful adherence to Lithuanian labor regulations.

Essential Components of Dismissal Notices

Employers must provide written termination notices at least two months in advance, detailing:

Clear justification for termination
Specific termination date
Settlement procedures with the employee

During the notice period, employees are entitled to paid time off for job searching—minimum one-tenth of their working hours—while maintaining their regular salary. This time allocation should be mutually agreed upon between both parties.

Categories of Employment Termination

Summary Dismissal: Applicable for serious contractual breaches or misconduct
Employer-Initiated Termination: Requires formal written notice with valid justification
Employee-Resignation: Standard written notice indicating final work date
Probationary Period Termination: Three-day written notice required from either party without severance obligations

Lithuanian Severance Pay Structure

Mandatory severance payments scale with employment duration:

Employment Duration	Severance Equivalent
Under 12 months	0.5 months' salary
12-35 months	1 month's salary
36-59 months	2 months' salary
60-119 months	3 months' salary
120-239 months	4 months' salary
240+ months	6 months' salary

Economic redundancies guarantee minimum two months' severance, while termination for gross misconduct typically voids severance rights. Fixed-term contracts exceeding two years warrant one month's pay upon expiration.

Protected Employee Categories

Termination is prohibited for:

Employees on temporary disability leave
Workers fulfilling mandatory national defense duties
Pregnant employees from pregnancy notification until one month post-maternity leave
Parents caring for children under three years (absent misconduct)

Unlawful Dismissal Consequences

Violations of the Labor Code may lead to legal disputes resolved through Lithuania's labor dispute institutions. SailGlobal's expertise helps multinational companies avoid costly litigation through compliant termination practices.

Termination Procedure Checklist

Formal notification and consultation
Written notice delivery
Notice period rights fulfillment
Termination confirmation
Final wage and severance settlement

Unemployment Benefit Eligibility

Registered unemployed individuals qualify for benefits if they have:

12 months of social insurance coverage within preceding 30 months
Completed mandatory military/service requirements

Benefit Calculation Methodology

Nine-month benefits combine fixed (23.27% of minimum wage) and variable components:

Months 1-3: 38.79% of average insured income
Months 4-6: 31.03% of average insured income
Months 7-9: 23.27% of average insured income

Total monthly benefits cannot exceed 58.18% of national average wage.

Lithuania Employment Termination Guide: Notice Periods & Severance Pay