The new Labor Code which was supposed to be flexible in balancing employee-employer interests is to take effect as of 1 July 2017. It was already approved by the previous government, but vetoed by the President. Therefore, its entry into force was postponed and so began the process of its improvement. The work was continued by the new government.
The Lithuanian Free Market Institute has compared the effective Labour Code with the new one based on the World Bank’s Doing Business Methodology and produced a comparative analysis, showing Lithuania’s labour relations in the context of ten other European states. As regards strictness of labour regulation, the study shows that the new Labour Code will only slightly affect 33 Wold Bank indicators, will not result in any change in 30 others and will provide for more flexibility in merely three of them.
The full research paper Facts and Analysis. Comparing Labour Codes Based on Doing Business Methodology is available here.