Probation periods are optional in Lithuania and cannot exceed three months. Periods of absence due to approved leave, such as sickness on unpaid leave, do not count towards the probation period.
If the probation period leads to unsatisfactory results, the employer may dismiss the employee by giving a written three business days’ notice (the employee has the same right). The employee is not entitled to severance pay.
Employees have the right to a grievance procedure before being terminated by their employer. The Lithuanian Labour Code sets out the disciplinary procedure that companies must follow before firing an employee. To be dismissed, the employee must have been guilty of repeated misconduct and have been previously issued a warning about it in the past year. Employers must act on it no later than one month after they are made aware of the misconduct and no later than six months after the misconduct takes place. In case the employee has made a gross breach of working duties, the employment contract can be terminated immediately (after the employee is given a possibility to explain the breach).
Employees who believe that their rights have been violated can bring the case to the Labour Dispute Commission within three months. (If the dispute is related to wrongful suspension, wrongful dismissal, and breach of a collective agreement, the term is one month). If the employer is found to not have followed the correct termination procedure, the employee may be awarded their remuneration for the time between the dismissal and the court decision. If the court considers it reasonable, the employee may be reinstated back to their job. In addition, the employee is entitled to compensation for any non-economic damages. If the employee is not reinstated, they are entitled to one average monthly salary for every two years of continuous employment with the company, capped at six average monthly salaries.
