Employment contracts Lithuania

What should an employment contract in Lithuania include?

Employment contracts in Lithuania should cover the following essential elements:

• Personal information for both the employer and employee, including names, addresses, and contact details.
• Job position title and detailed description of rights and obligations.
• Working hours and time of the day when the employee is expected to work.
• Salary/wage and benefits entitlements.
• Non-disclosure clauses to safeguard employers’ proprietary rights.
• Termination of employment policies, notice periods, and severance pay, if applicable.

It’s of great importance for both parties to comprehensively read, understand, and agree to each of the terms of the contract before signing.

What types of employment contracts exist in Lithuania?

Employment contracts in Lithuania can be divided into a few categories:

1. Employee contracts

There are 2 general types of employee contracts:

• Indefinite-term employment contracts: Indefinite or permanent contracts are the most common type of agreement used to regulate long-term employment arrangements. As such, permanent contracts don’t specify end dates and can be terminated by either party with the applicable notice period. 
• Fixed-term employment contracts: In contrast to permanent contracts, fixed-term contracts should clearly define a start and end date. Fixed-term contracts are automatically not effective at the specified date of ending unless they’re previously extended or renewed. 

2. Project-based employment contracts

These contracts are similar to fixed-term contracts, with the difference that they’re established for the purpose of performing a specific task or project. The contract should outline crucial terms and conditions, such as duration, scope of work and responsibilities, payment terms, and others.

3. Seasonal work employment contracts

Seasonal work contracts are commonly used for jobs, tasks, or projects that are directly related to seasonal activities in agriculture, construction, tourism, hospitality, and other sectors. These contracts must also specify start and end dates, and employment conditions such as working hours, leave entitlements, remuneration, and other applicable benefits.

How to hire employees in Lithuania? 

In Lithuania, companies must adhere to laws regarding employees’ entitlements, such as minimum wage, working hours, and other obligatory benefits.

Before hiring anyone from Lithuania, it’s also mandatory to register a legal entity, obtain a tax number, open a bank account, and act in accordance with the regulations set by the country’s authorities.

As an alternative to navigating complex employment laws, businesses can rely on a company that offers global recruitment services, such as Native Teams. With our Employer of Record solutions, you can have peace of mind that you’re hiring compliantly. We will take care of all the paperwork, including payroll, taxes, and HR administration, while you keep your focus on your business’s growth.