What do Lithuania’s new employment rules change for organisations staffing and managing work connected with public contracts?
A broad change with procurement consequences
From 1 November, Lithuania will bring into force the most extensive changes to its Labour Code in recent years, revising 38 articles. The changes cover probation, investigations into workplace breaches, termination of employment contracts and payment deadlines. The source is a media statement from Bitė Lietuva, whose People’s Ambassador head, Eglė Staniulionė, describes the changes as substantial rather than cosmetic. For public buyers and bidders, the practical issue is how employment terms feed into delivery planning: a supplier’s ability to assess staff, manage departures and meet payroll obligations can affect the continuity and cost of a contract. The amendments do not change procurement procedure itself, but they alter some employment risks behind supplied services.
Longer probation requires an express agreement
The current maximum probationary period is three months. From 1 November, it may extend to six months for highly qualified employees whose monthly salary before tax exceeds €5.2 thousand. The longer period must be agreed by both sides when the employment contract is signed; it is not an automatic condition for every employee. Bitė gives the example of an IT architect whose main project begins only after several months, making the existing period less useful for assessing competence. In procurement, this distinction matters when a bidder must assemble specialist staff for a lengthy or technically demanding assignment. A longer assessment window may support recruitment decisions, while the written agreement keeps the arrangement visible to the worker.
Investigations will pause during absence
The deadline for an employer to establish whether a workplace breach occurred and whether dismissal is justified remains one month. From 1 November, however, an employee’s holiday or sickness absence will no longer count towards that period. Bitė says this will allow an investigation to resume when the employee returns, rather than ending because the deadline expired during absence. The source also stresses that an investigation into a possible breach does not establish that misconduct occurred or that disciplinary action will follow. For contractors working on public assignments, the change may give employers more time to resolve a staffing issue fairly, but it also makes absence and investigation status relevant to workforce planning and any replacement arrangements.
Severance can be spread by written agreement
When employment ends, the employee and employer will be able to agree in writing that severance exceeding one month’s salary is paid in instalments. The amount equal to one month’s salary must be paid on the final working day, or, if the parties agree, within 10 days. The balance may then be paid over the following three months. Bitė says this could help companies plan cash flow during restructuring or reductions in staff, while emphasising that instalments require agreement from both sides. In a public contract, that rule can affect a supplier’s financial planning when a project changes or a workforce is reduced. It does not remove the immediate payment obligation for the first month’s salary equivalent.
IN NUMBERS
The amendments make employment terms a relevant delivery consideration for suppliers and buyers monitoring contract continuity. The main transferable point is that written agreements, investigation timetables and payment plans should be checked alongside the operational requirements of a contract.
Reported from 15min.lt, 2026-10-29. The Tender Wire is published by Otnox.
