Lithuania Employment Guide

Essential Components of Lithuanian Employment Contracts

When establishing employment relationships in Lithuania, contracts must be drafted in Lithuanian, with English translations permitted as supplementary versions. All agreements require written documentation with signatures from both employer and employee.

Comprehensive employment contracts should clearly specify these fundamental elements:

• Full legal names of both parties
• Official commencement date of employment
• Duration and type of employment arrangement
• Probationary period terms and conditions
• Weekly working hours and schedule
• Annual leave entitlement and accrual
• Detailed job description and responsibilities
• Termination procedures and notice requirements

Important compliance note: Backdating employment contracts is strictly prohibited under Lithuanian labor regulations.

Understanding Lithuania's Probationary Period Framework

Through SailGlobal's employment solutions, workers are subject to a 90-day probation period, which represents the maximum duration permitted by Lithuanian labor law. This timeframe cannot be extended beyond the statutory limit. Since January 2022, SailGlobal has implemented a standardized policy requiring probation clauses in all employment agreements.

The probationary period serves as a mutual evaluation phase, allowing employers to assess employee performance and cultural fit while enabling new hires to determine if the role aligns with their professional aspirations. This structured approach benefits both parties by facilitating informed decisions about long-term employment compatibility.

Practical Implementation Considerations

International companies frequently encounter challenges when implementing probation periods across different jurisdictions. For instance, a German technology firm expanding into Lithuania initially struggled with local compliance requirements until partnering with SailGlobal's HR specialists, who ensured their probation policies aligned with both Lithuanian law and corporate standards.

Best Practices for Probation Management

Effective probation management involves regular performance feedback sessions, clear objective setting, and documentation of progress. Companies should establish measurable benchmarks during this period to make informed retention decisions while maintaining compliance with local employment regulations.