On 12 May 2005 the Lithuanian Parliament (Seimas) adopted the Law on Guarantees for Posted Workers (hereinafter the "Law"), implementing Directive 96/71/EC concerning the Posting of Workers in the Framework of the Provision of Services. The purpose of the implementation is to abolish existing obstacles for the free movement of employees between Member States of EU and EEA, as well as to clarify the rules applicable to the employment relationship in the EU Member State where the work is performed.

The Law shall be applicable when undertakings established in Lithuania post workers for a limited time to the territory of other EU Member State, as well as when undertakings established in other EU Member States post workers for a limited time to Lithuania. It is worth mentioning that undertakings established in a non-Member State can not be given more favourable treatment in comparison with those established in EU Member States.

The Law does not specify the term "for a limited time". The worker, however, is considered to be performing work for a limited period time of his secondment to Lithuania or to another EU Member State and he/she continues working for his employer (i.e., during the posting the employment relationships do not expire). However, importantly, this Law shall not be applicable in respect of business trips (i.e., which last for maximum of 30 days).

In case there is an employment relationship between the undertaking making the posting and the worker during the period of his posting, the Law shall apply to the extent that the employer takes one of the following transnational measures:

  • post workers to the territory of another Member State under an agreement concluded between Lithuanian employer and the company, to whom the services are intended, operating in that EU Member State; or

  • post workers to a company, belonging to the same group of associated companies, Lithuanian employer’s branch or representative office in the territory of another EU Member State; or

  • being a temporary employment undertaking or placement agency, hire out a worker to a company established or operating in the territory of another EU Member State.

In addition, the Law shall also apply when the employee is posted to Lithuania from another EU Member State on the aforementioned conditions.

Notwithstanding the choice of law by the parties to the employment agreement, Lithuanian laws (including territorial and sectoral collective agreements) should be applied with regard to the employee, posted to Lithuania. Such applicable rules establish protective guarantees and include inter alia maximum work and minimum rest periods; minimum paid annual holidays; minimum rates of pay (including overtime rates); health, safety and hygiene at work guarantees; protective measures with regard to the terms and conditions of employment of pregnant women or women who have recently given birth, as well as of young people; non-discrimination provisions. However, in case the law chosen by the parties to the employment agreement establishes more favourable conditions for the employee rather than those provided for in Lithuanian law, provisions of the applicable law chosen by the parties shall be applied.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.