Lithuania Employment Guide

Navigating Employee Termination: A Guide for International Employers

Terminating an employment relationship requires careful adherence to complex regulations and local laws in the employee's country of work. The offboarding process must be managed collaboratively by the employer and key stakeholders, often involving specific procedures and potential costs depending on the termination scenario.

Legally Compliant Termination Methods

Employers must ensure that any termination of employment falls within recognized legal categories to avoid disputes. The primary methods include:

• Voluntary resignation by the employee
• Mutual agreement to terminate the contract
• Unilateral termination by the employer, which can be based on:
  • Probationary period assessments
  • Objective grounds such as role redundancy due to restructuring
  • Disciplinary dismissal for misconduct
  • Performance issues related to job suitability

Understanding Notice Period Obligations

The required notice period varies significantly based on the termination reason and length of service.

Termination by Employer Without Cause:

• Standard notice: One month
• For employment under one year: Two weeks' notice
• Extended notice periods (three times standard) apply to employees who:
  • Are raising a child under 14 years (including adopted children)
  • Care for a disabled child under 18
  • Have a recognized disability
  • Are eligible for retirement pension within two years

Summary Dismissal by Employer:

• Minimum three days' notice
• Not permitted for pregnant employees or those on maternity/paternity/parental leave

Employee Resignation Without Cause:

• Requires written notice with minimum 20-day advance notice

Employee Resignation With Cause:

• Employee cannot unilaterally shorten the notice period
• Parties may agree on garden leave, where the employee is paid but does not work during the notice period

Severance Pay Requirements

Severance entitlements are determined by the termination context and employment duration.

Termination by Employer Without Cause:

• Employment exceeding one year: Two months' average salary
• Employment under one year: Half-month's average salary
• Additional severance may be available from national funds based on years of continuous service

Summary Dismissal by Employer:

• Minimum six months' average salary

Employee Resignation With Cause:

• Employment exceeding one year: Twice the average monthly salary
• Employment under one year: One month's average salary

Mitigating Termination Risks With SailGlobal

To protect against unexpected financial liabilities from employment termination, SailGlobal implements severance accruals for all employment agreements in this jurisdiction. With extensive global experience in litigation risk management, our severance calculations are based on current statutory rights and local best practices. If an employee resigns or is not entitled to severance, any unused accrued amounts are returned to your organization.