44 |OU!NA ON IGA AN ICONOMC ISSUS O \NT!A IU!

O
Termination of Employment Contracts in Lithuania and Slovakia
Tomas Bagdanskis
1
, Ester Fodorov
2
Abstract
The increasing demands for flexibility on the labour market jeopardize employment security. Most countries are reinforcing relationship known as
the flexicurity thesis. One of main aspects of flexibility is using principle easy hire, easy fire. Using comparative data for Lithuania and Slova-
kia, we assess the differences across the countries in the field of termination of employment contracts. The outcomes confirm that different countries are
using same principles for termination of employment relations. It must be stated that employment security is in higher level than flexibility in terms
of termination of employment relations. It is relatively difficult for an employer to fire employees because of the notices and the necessity for a reason
for the dismissal. By such formal and strict firing process, the countries create hesitation among employers to hire when the economy is changing.
Key words: flexibility; flexicurity; employer; employee; employment contract; termination of employment contract.
Introduction
Lithuania and Slovakia, both the member states of the Eu-
ropean Union, though with different rules relating to employ-
ment issues. The Labour Code of the Republic of Lithuania was
entered into force in 2003; the Slovak Republic uses its Labour
Code since 2001.
Flexicurity is a welfare state model with a pro-active labour
market policy. The term refers to the combination of labour
market flexibility in a dynamic economy and security for work-
ers. The European Commission considers flexicurity as an inte-
grated strategy to simultaneously enhance flexibility and secu-
rity in the labour market. As there are many types of flexibility
3

and it is understood differently depending on country imple-
menting it, seems it is quite complicated to discuss flexicurity as
a homogeneous and universal instrument.
The aim of this paper is to describe the present regulation
on termination of employment relationship in Lithuania and
Slovakia.
Though the principle of flexicurity has been gradually imple-
mented in Lithuania, the role of social partners and industrial
relations has remained inadequate. This is primary due to a very
feeble role of the social dialogue in the country on the whole;
on the other hand, the social partners have not fully realised the
necessity and unavoidability of labour market flexibilisation in
Lithuania. Since 2003, the New Labour Code (LC) and other
legal acts regulating labour relations liberalized the conditions
for the termination of employment contract without any fault
on the part of an employee if compared with the previous regu-
lation. On the other hand it should be noted that according to
employers opinion existing employment protection legislation
in Lithuania is still too strict. Relative rigidity of employment
protection legislation is even more amplified by low levels of
atypical work.
4
An open-ended contract no longer ensures a guarantee of
job security various crises show that even the secure perma-
nent contract can be threatened, due in particular to the pro-
cesses of globalisation and the financialisation of the economy,
leading to considerable company restructuring help to improve
provisions of the Labour Code giving recommendations for the
changes to be made
5
.
Flexicurity is designed and implemented across four policy
components in all countries, so, according to our topic espe-
cially in two areas, in Slovakia:
1. flexible and reliable contractual arrangements: they are regu-
lated by new Labour Code, e.g. fixed-term/open ended con-
tracts, full-time/part-time work, home work/telework, per-
formance of work by external employees, flexible working
time, rules for dismissals. Amendments to the Labour Code
demanded by employers, increased the employment flexibili-
ty and decreased the employment security since 1 July 2003.
Next changes were initiated by trade unions and aimed at
increasing the employment security. The changes initiated
by trade unions increased the employment security at the
expense of some decrease in flexibility since 1 September
2007. Involvement of trade unions and employer associa-
tions in above changes was substantial.
1
Dr. Tomas Bagdanskis, Department of Labour Law and Social Security, Faculty of Law, Mykolas Romeris University, Vilnius, Lithuania.
2
Ester Fodorov, Faculty of Law, Comenius University Bratislava, Slovak Republic.
3
Reichold H., Krauch S. The impact of New Forms of Labour on Industrial Relations and the Evolution of Labour Law in Germany. Europische Zeitschrift fr
Arbeitsrecht, No. 4, 2008: p. 487 494.
4
http://www.eurofound.europa.eu/eiro/studies/tn0803038s/lt0803039q.htm.
5
Flexible forms of work: very atypical contractual arrangements. Eurofound study 2010.
4 42011
2. modern social security systems providing adequate income
support during employment transitions: The Labour Code
allows provision of redundancy payment as well as wages
during the period of notice. Statutory redundancy pay can
be increased in collective agreements.
6
In both countries there are two main types of the employment
contract, so the fixed-term which ends the employment relation-
ship by the expiry of the contract, and the contract with indefi-
nite duration. The second one is used as general principle.
There are two stages of legislation in Lithuania concerning
fixed-term employment contracts: 1) from 1991 to 2003 under
Law on Employment Contract
7
, and 2) from 2003 to present
under the Labour code. Since 2003 the essential conditions
for conclusion of a fixed-term employment contract were in-
troduced: 1) the term of an employment contract and 2) the
sufficient circumstances allowing to conclude it. According
to Lithuanian Supreme Court there is a breach of employees
rights when fixed-term contract is concluded without sufficient
background provided by the Law
8
. Traditionally the fixed-term
employment contracts were treated as worsening employees
rights in Lithuania therefore it was decided to regulate it by laws
or collective agreements. The Court practice is maintaining the
same opinion and explaining that the restriction to conclude fix-
term contract just on will of the parties is based on security of
employee in order to prevail from abuse of employees rights.
9

If the term of an employment contract has expired, whereas
employment relationships are actually continued and neither
of the parties has, prior to the expiry of the term, requested to
terminate the contract, it shall be considered extended for an
indefinite period of time. If an employment contract, upon the
expiry of its term, is not extended or is terminated, but within
one month from the day of its termination another fixed-term
employment contract is concluded with the dismissed employ-
ee for the same work, then, at the request of the employee, such
a contract shall be recognised as concluded for an indefinite
period of time. A fixed-term contract may be terminated by
the employer already before the expiry thereof where the em-
ployee cannot, with his consent, be transferred to another work
or upon the payment of the average wage to the employee for
the remaining period of the employment contract.
In Slovakia a fixed-term employment relationship may be
agreed for a maximum period of two years. This is a general
rule. This shall also apply to every further fixed-term employ-
ment relationship between the same parties within this period.
Where a period of at least six months expired from the ter-
mination of the previous fixed-term employment relationship,
such previous employment relationship between the same par-
ties shall not be taken into account. A fixed-term employment
relationship terminates on the expiry of the agreed period but
according to the Labour Code of the Slovak Republic such a re-
lationship also may be terminated by agreement, by instant
termination, by notice of termination, by termination within
the trial period, upon the death of the employee
10
. Where the
duration of such employment relationship is restricted by a pe-
riod in which specified working tasks are to be performed, the
employer shall notify his employee in time that the work will
be completed, as a rule, at least three days in advance. If after
expiry of the agreed term the employee continues his work per-
formance and the employer is aware of it, such employment
relationship shall be deemed to change into an employment re-
lationship for an indefinite period
11
.
There are several main backgrounds of termination of the
employment relationship (with indefinite employment con-
tracts) by initiative from an employer side. In both countries
the common manners for terminating an indefinite-term employ-
ment relationship are by:
mutual agreement, -
notice (without fault of an employee), -
immediate termination (by fault of an employee) -
within a probationary period. -
12

The Slovak Labour Code adapted the case of an alien or
stateless person with who it is necessary to end up the employ-
ment relationship in three cases, as follows:
if he looses his residence permit, -
if his residence permit is expired, -
if he has to leave the territory of the Slovak Republic accord- -
ing to a verdict imposed against him.
13
On the other hand, the Lithuanian Labour Code does not
directly regulate the termination of employment relations with
an alien and refers it to special law.
14
Termination of Employment Relationship
by Agreement
In general, there are no substantive conditions for a mutual
agreement in labour legislation. There are no specific prohibited
clauses either. Such an agreement is valid even if it is concluded
during the so-called protected periods or with the employees
who enjoy stronger protection against dismissal. If there is
a valid mutual agreement on termination of employment, the
rules of labour legislation governing dismissals do not apply.
Although labour law does not prescribe any substantive conditi-
ons, a mutual agreement on termination of employment has to
fulfil certain substantive conditions according to general rules
on contracts in order to be valid. Both in Lithuania and Slova-
kia, it is required that the agreement is genuine, that the mutual
6
http://www.eurofound.europa.eu/eiro/studies/tn0803038s/sk0803039q.htm.
7
Law on Employment Contract // Parliamentary record. 1991, No. 36-973.
8
Decision of the Supreme Court of Lithuania No. 3K-7-4/2003 from 16 January 2003.
9
Decision of the Supreme Court of Lithuania No. 3K-3-74/2006 from the 30 January 2006.
10
Article 65 paragraph (1) of the Labour Code of the Slovak Republic.
11
Article 65 paragraph (2) of the Labour Code of the Slovak Republic.
12
Barancov H.: Eurpske pracovn prvo. SPRINT, 2003: p. 79 82.
13
Article 59 paragraph (3) of the Labour Code of the Slovak Republic.
14
Article 124 paragraph (1) of the Labour Code of the Republic of Lithuania.
4o |OU!NA ON IGA AN ICONOMC ISSUS O \NT!A IU!O
agreement between the parties really exists, that the employees
will to terminate an employment relationship is serious and free,
that the agreement was not concluded under force or threat or
by fraud of an employer. It is necessary to protect an employee
against the misuse of this mode of employment termination by
the employer
15
.
In Lithuania, there is a period of 7 days to notify thereof the
party which has put forward the offer to terminate the employ-
ment contract. If other party agrees, such an agreement has to
be written, otherwise it is not valid and also it shall indicate
the date when the contract shall be terminated as well as other
conditions of the termination of the contract (compensation,
granting of unused leave, etc.).
According to the Slovak law, the agreement must stipulate
the reasons for the termination of employment relationship
if requested by the employee, or if the employment relation-
ship was terminated by agreement for reasons of organizational
changes. It is not pronouncedly imposed the 7-day period.
16

The termination by mutual agreement is the best and the
most often way in case labour laws are strict and not flexible.
Termination of Employment Relationship by Notice
of an Employer
If the employer initiates the termination of the employment
contract without any fault of the employee, there have to be val-
id reasons for it, like circumstances related to the qualification,
professional skills or conduct of an employee or on economic or
technological grounds or due to the restructuring of the work-
place. It is expressed that such dismissal of the employee is al-
lowed if the employee cannot, with his consent, be transferred
to another work. The Lithuanian Labour Code expressly forbids
to terminate the employment relationship on discriminatingly
bases (like gender, sexual orientation, race, etc.), also age, mem-
bership in a trade union, if the employee has been before a par-
ticipant in the proceedings against the employer charged with
violations of laws or also if he is obliged to perform military or
other duties and obligations of the citizen of the Republic of
Lithuania. There are other restrictions on the termination of
an employment contract, like in case of temporary incapacity
for work of the employee or who has lost his capacity for work
as a result of injury at work or occupational disease. There are
special guarantees of course for pregnant women and employees
raising children which are expressed in Article 132 of the Lithu-
anian Labour Code. The Lithuanian Labour code (Article 134)
provides that Employees, who are elected to employee repre-
sentative bodies, may not be dismissed from work without the
prior consent of the body concerned during the period for which
they have been elected. The employer shall be entitled to con-
test the refusal of the representative body of employees to give
its contest to the dismissal of the representative of employees
in court. The court may reverse such a decision if the employer
proves that this decision substantially violates his interests.
With the employer the Slovak law is also strict, while it is
allowed to terminate an employment contract by notice for rea-
sons which are expressly stipulated in the Labour Code. Such
reason may be when there are organisational changes within
the employer, for medical reasons the employee is not able to
perform his previous work, etc. (expressly stipulated in 63 of
the Labour Code of the Slovak Republic). Where the employer
gives notice to an employee by virtue of 63 paragraph (1),
letter b), which says that if an employee becomes redundant
at the employer, the employer may not within 3 months create
the wound-up work post anew and employ another employee to
the same post. Notice that was delivered to the other party may
only be revoked with the consent of both parties. Revocation
of notice, and the consent to its revocation must be made out
in writing
17
.
According to the decisions of the Supreme Court of the Slo-
vak Republic
18
it must be proved that the employer offered an
other workplace for the employee according to 63 paragraph
(2), letter b) of the Labour Code of the Slovak Republic
19
.
In Slovakia, the employer may dismiss the employee in case
of a long-term loss of the employees work capacity. Either
a medical opinion or a decision of a public health authority is
necessary. A dismissal of an employee with disabilities requires
a prior consent of the Office of Labour, Social Affairs and Fam-
ily. The Slovak law provides additional reasons for dismissal,
which are in relation to the employees person: an employee
fails to meet the statutory requirements for the performance
of the agreed work; an employee fails to meet, without the em-
ployers fault the requirements for proper performance of work
as defined in the employers internal rules, or an employee fails
to properly fulfil the work duties and, although the employer
has urged him in writing during the last six months to rem-
edy the deficiencies, the employee did not do so in due time;
an employee, elected or appointed to a managerial position,
has ceased to meet the necessary requirements. The employer
has to observe the period of notice. The minimum periods of
notice are prescribed by law and are the same irrespective of
the grounds for the dismissal. The minimum period of notice
amounts to two months. The same legal provision is provided
by the Labour Code of Lithuania. For the employees with five
years of service with the employer or more, the minimum peri-
od of notice amounts to three months in Slovakia. For part-time
employees with less than 20 hours a week, a 15 days period
of notice has to be observed
20
. According to the Lithuanian
15
Kresal B.: Termination of employment relationships Legal situation in the following Member States of the European Union: Bulgaria, Cyprus, the
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. 2007. <ec.europa.eu/social/BlobServlet?docId
=4636&langId=en>. P. 35.
16
Barancov H., Schronk R.: Pracovn prvo. SPRINT, 2nd edition, 2004: p. 335.
17
Barancov H., Schronk R.: Pracovn prvo. SPRINT, 2nd edition, 2004: p. 338 348.
18
Rybrov M., Kovov J.: Zvzn sdne rozhodnutia k pracovno-prvnej problematike. Epos, 1999: p. 23 78.
19
Decision of the Supreme Court of the Slovak Republic No. 3 MCdo 14/2010 from the 30 March 2011.
20
Kresal B.: Termination of employment relationships Legal situation in the following Member States of the European Union: Bulgaria, Cyprus, the
Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia and Slovenia. 2007. <ec.europa.eu/social/BlobServlet?docId
=4636&langId=en>. P. 83.
4/ 42011
Labour Code the minimum period of notice amounts to four
months for the employess who are entitled to the old-age pen-
sion when not more than five years are left, persons under eigh-
teen years of age, persons with disabilities and employees with
children up to fourteen years of age.
In Lithuania generally the dismissed employee (according to
Article 129 of the Labour Code, so without the fault of the
employee and also according to paragraph 1(6) of Article 136
of the Labour Code, so upon the liquidation of an employer)
is entitled to receive a severance pay in amount of his aver-
age monthly wage but it depends on the continuous length of
service of the employee concerned at that workplace. So it is
defined as the following:
under 12 months 1 monthly average wage; -
12 to 36 months 2 monthly average wages; -
36 to 60 months 3 monthly average wages; -
60 to 120 months 4 monthly average wages; -
120 to 240 months 5 monthly average wages; -
over 240 months 6 monthly average wages. -
When the employment contract is finished not by the fault
of the employee, he shall be paid a severance pay in the amount
of his 2 monthly average wages.
21
In Slovakia the employee shall be entitled to severance pay
on the termination of the employment relationship amounting
to at least twice his average monthly income. If an employee
has worked for an employer for at least 5 years, he shall be
entitled to severance pay amounting to at least 3 times his ave-
rage monthly earnings. This conditions are valid in case of the
employer ends the employment contract with the employee be-
cause of he became redundant at the workplace or the employer
is wound-up.
22

In case of the employee is suffering from working injury or
occupational illness, he is entitled to severance pay equal to at
least 12 times his average monthly earnings.
23
In conclusion, only by provision of reasons, stated by the
law, and with notice period and severance pay it is possible to
dismiss an employee in both countries, in case termination is
without fault of an employee. Amount of the severance pay
provided by the law differs (but not significantly) in both coun-
tries. In Lithuania it depends on the continuous length of ser-
vice of the employee concerned at that workplace. Minimum
amount of severance pay is 1 monthly average wage, maximum
6 monthly average wages. Slovak labour law provides sever-
ance pay in the amount of at least 2 monthly average wages
and 12 monthly average wages as a maximum. Even though
Slovak legal basis ensures better guarantees for employees who
had been working under 12 months at the particular workplace
and for those who are suffering from working injury or occupa-
tional illness, but Lithuanian labour law is more useful for em-
ployees with over 60 months length of service at the particular
workplace.
Termination of Employment Relationship
by Immediate Termination
According to the Slovak law the employer is entitled to
terminate an employment relationship without notice by im-
mediate termination.
24
An employer may do so in cases where
the employee was lawfully sentenced for committing a wilful
offence or was in serious breach of labour discipline. The em-
ployer has 2 months to terminate the employment relationship
from the day that he became acquainted with the reason for
immediate termination, however by the maximum of 1 year
from the day such reason occurred
25
. In the case of ongoing
but less serious breaches of some duty that ensues from statu-
tory provisions and relates to the work performed by the em-
ployee, this employee may be given notice of termination by
his employer provided that in the last six months the employer
advised the employee of this possibility in writing (with regard
to the employees breaching some duty that relates to his work
performance).
Immediate termination of employment contract by the em-
ployee may be made if the employee is no longer able to keep
performing work according to a medical opinion or also in case
of the employer has not paid him a wage or wage compensa-
tion, travel expenses, payment for work standby or alternative
income in the event of the employees temporary incapacity
for work or part thereof within 15 days of payment becoming
due.
26
According to the Article 136 of the Labour Code of the Re-
public of Lithuania An employment contract must be termi-
nated without notice in the following cases:
1) upon an effective court decision, or when a court judgement
whereby an employee is imposed a sentence, which prevents
him from continuing his work, becomes effective;
2) when an employee is deprived of special rights to perform
certain work in accordance with the procedure prescribed by
laws;
3) upon the demand of bodies or officials authorised by laws;
4) when an employee is unable to perform these duties or work
according to a medical conclusion or a conclusion of the Dis-
ability and Working Capacity Assessment Office under the
Ministry of Social Security and Labour;
5) when an employee under 14 to 16 years of age, one of his
parents, or the childs statutory representative, or his attend-
ing paediatrician, or the childs school demand that the em-
ployment contract be terminated;
6) upon the liquidation of an employer, if under laws his labour
obligations were not placed on another person.
21
Articles 129, 136, 140 of the Labour Code of the Republic of Lithuania.
22
Barancov H., Schronk R.: Pracovn prvo. SPRINT, 2nd edition, 2004: p. 358 362.
23
Article 76 of the Labour Code of the Slovak Republic.
24
Kuril M. a kol.: Zklady pracovnho prva. vysok kola ekonmie a manamentu verejnej sprvy v Bratislave, 2009: p. 155 157.
25
Paulikov A.: Otzky a odpovede v rmci pracovnoprvnych vzahov plne znenie Zkonnka prce; vybran kapitoly z pracovnoprvnych vzahov
s nvodmi na rieenie. Eurounion, 2001: p. 246 247.
26
Barancov H., Schronk R.: Pracovn prvo. SPRINT, 2nd edition, 2004: p. 352 355.
48 |OU!NA ON IGA AN ICONOMC ISSUS O \NT!A IU!O
An employer shall be entitled to terminate an employment
contract without giving an employee prior notice thereof:
1) when the employee performs his duties negligently or com-
mits other violations of labour discipline provided that disci-
plinary sanctions were imposed on him at least once during
the last 12 months;
2) when the employee commits one gross breach of duties
27
.
In conclusion, there are special cases, provided in the law
in both countries, when it is possible to terminate an employ-
ment relationship without notice. In case an employee com-
mits breach of the duties, the employer must prove that it was
fault of an employee and that the breach is such that reasonably
trust to the employee is lost. Lithuanian labour law provides
two different lists of circumstances in which the employer ei-
ther is obliged to dismiss an employee or entitled to terminate
an employment contract without giving him a prior notice. La-
bour Code of the Slovak Republic provides narrower list of such
circumstances.
Termination of Employment Relationship
within a Probationary Period
The Slovak Labour Code deals also with the case of complet-
ing an employment relationship within a probationary period.
To this kind of termination, both the employer and employee
are entitled. The only obligation is to have it in writing and to
deliver it at least 3 days prior to the day the employment rela-
tionship is to terminate. There is no need to provide any rea-
sons.
28
According to the Article 35 paragraph (1) of the Labour
Code of the Slovak Republic trial period may not be longer than
three consecutive months.
In Lithuania, if an employer recognises that the results of
a trial to assess the suitability of an employee for the assigned
task are unsatisfactory, he may dismiss the employee from work
before the expiry of the trial period by giving the employee
written notice thereof 3 working days in advance, without pay-
ing him a severance pay. According to the Labour Code of the
Republic of Lithuania, probationary period may not be longer
than three months, but in some cases established by Law this
period may be up to the six months long.
Rights and Duties Concerning the Termination
of an Employment Contract
Slovak labour law with 77 provides the possibility to claim
in court the invalidity of termination of an employment rela-
tionship at the latest within a period of 2 months from the due
day of employment relationship termination. In a case in the
Supreme Court of the Slovak Republic (decision No. 5 Cdo
213/2010 from the 31 March 2011) the claim was baseless whi-
le the claimant (employer) wanted to get a decision about the
nullity of the termination of the employment relationship but
while there was no valid court ruling about it (because the clai-
mant missed the 2 month-period for claiming it in the court),
it was not possible; so the termination was valid. Furthermore,
the employee provided a letter about immediate termination
of the employment relationship to the employer together with
the medical opinion that he is not longer able to work at the
same place but he did not provide the 15-day period to the
employer to suggest him an other work place while according
to 69 paragraph (1) letter a) the employer should transfer the
employee to other work appropriate to him within 15 days from
the submission of such opinion.
29
If an employee disagrees with changes to the principal condi-
tions of the employment contract, suspension from work on the
employers initiative, dismissal from work, he shall be entitled
to apply to the court within 1 month from the day of receipt of
the appropriate notice (document). If it is established that the
principal conditions of the employment contract were changed,
the employee was suspended from work without a valid reason
or in breach of laws, the violated rights of the employee must
be restored and he must recover the average wage for the entire
period of involuntary idle time or the difference in the wage for
the time period of being employed in a lower paid job.
30
The demands of officers or bodies that are granted under law
the right of suspension from work may be appealed against by
the employer and the employee in accordance with the proce-
dure established by laws.
If an employee is dismissed without a valid reason or in
violation of the procedure established by laws, the court shall
reinstate him in his previous job and award him the average
wage for the entire period of involuntary idle time from the day
of dismissal from work until the day of execution of the court
decision.
Where the court establishes that the employee may not be
reinstated in his previous job due to economic, technological,
organisational or similar reasons, or because he may be put in
unfavourable conditions for work, it shall take a decision to
recognise the termination of the employment contract as un-
lawful and award him a severance pay in the amount specified
in paragraph 1 of Article 140 of the Labour Code of the Re-
public of Lithuania as well as the average wage for the period
of involuntary idle time from the day of dismissal from work
until the effective date of the court decision. In this case the
employment contract shall be considered terminated from the
effective date of the court decision. According to the Lithuanian
Supreme Court, reduction of benefits to employee because of
his work in another job with a wage after the unfair dismissal
would be an unjustified dismissal from the employers liability
as a result of his illegal actions. With respect to employee, this
could mean nothing other than material sanctions for him. The
law does not restrict to get employment and payment elsewhere
for employee in case of his unfair dismissal, as well as the gen-
27
Article 235 of the Labour Code of the Republic of Lithuania.
28
Barancov H., Schronk R.: Pracovn prvo. SPRINT, 2nd edition, 2004: p. 348 350.
29
Decision of the Supreme Court of the Slovak Republic No. 5 Cdo 213/2010 from the 31 March 2011.
30
Paulikov A.: Otzky a odpovede v rmci pracovnoprvnych vzahov plne znenie Zkonnka prce; vybran kapitoly z pracovnoprvnych vzahov
s nvodmi na rieenie. Eurounion, 2001: p. 263 265.
49 42011
eral rule does not prohibit work for different employers at the
same time
31
. It should be noted that precisely in this direction
practice of the Supreme Court of Lithuania is formed
32
.
According to the Lithuanian Labour Code the employer has
obligation to make a full settlement of accounts with an em-
ployee being dismissed from work. He must pay the employee
all the amounts due. The employee has possibility to desire that
the employer would issue him a certificate about his work in-
dicating his functions (duties), the dates of its commencement
and end, and, at the request of the employee, the amount of his
wage and performance assessment (character reference).
33
Termination of Employment Relationship
with Pregnant Woman or with Employee Raising
a Child (Children) under Three Years of Age
Certain legal provisions of the Labour code of the Republic
of Lithuania are part of social security and not labour law. In
practise it often causes much controversy, because workers with
particular security arrangements often do not want to reach
a mutual agreement between the employer and them. Accord-
ing to the Lithuania Labour Code, pregnant women and parents
of children under three years have a strongest legal protection
from a dismissal. If a pregnant woman has committed a seri-
ous breach of discipline, she can not be dismissed. Parents of
children under three years old can not be dismissed by the rea-
son of business restructuring or economic reasons either. It is
impossible to terminate an employment contract with a preg-
nant woman even when the employer admitted that the results
which employee has showed during all the probationary period
were unsatisfactory. If employee presented a medical certificate
of her pregnancy employer has no right to dismiss her.
If an employee does not intended to use protection against
dismissal in case of her pregnancy and wishes to terminate an
employment contract according to the Article 127 (1) of the
Labour Code of the Republic of Lithuania, employer is obliged
to terminate such a contract. Lithuanian Supreme Court stated
that the employees intention to terminate the employment
contract must be given voluntarily, without employer influence
or interference
34
.
If the Court approves that the employment termination
agreement between the parties has no true will of the employee,
in this case the termination of the employment contract may be
declared illegal
35
. According to the Lithuanian Supreme Court
the employees will of the essential terms of the agreement the
contract termination agreement between the parties expressed
in a written proposal was formed exclusively for the employer
acts and it was solely his will
36
.
In the case of fixed-term contract with pregnant woman she
also has a protection from dismissal, but this protection contin-
ues only through whole pregnancy time and one month after it.
According to the Supreme Court of Lithuania the woman has
the law providing guarantee the prohibition to dismiss her
for the particular time, if she has been working under a fixed-
term contract and during which becomes pregnant. Law does
not require that employers would be informed of every case of
such employees facts of life as soon as they are clear
37
. Such
employee has the right to request for parental leave at the end
of her maternity leave. In this case fixed-term contract could be
extended for the parental leave time. This is confirmed by the
Lithuanian Supreme Court which stated that provisions of the
Labour Code of the Republic of Lithuania guarantee the right
to choose between opportunity to take whole leave at once or
part of it. It should be noted that the parental leave until the
child turns three years old, paid not from the employer, but
from the Social Insurance Fund, thus fulfilling the principle of
overwhelming support for the family established by the Article
38 of the Constitution of the Republic of Lithuania
38
.
Article 132 (2) of the Labour Code of the Republic of Lithu-
ania provides a guarantee for employees raising a child (chil-
dren) up to three years, which prohibits termination of the em-
ployment without a fault. Employees raising a child (children)
up to three years can not be dismissed by the reason of business
restructuring or economic and technological reasons, job struc-
tural adjustment or similar important reasons, and also because
of inadequate staff skills, professional abilities and his behavior
at work.
According to the Slovak Labour Code the employer may not
give notice of termination of the employment contract to his
employee during a period while a female employee is pregnant
or is on maternity leave or while a female or male employee
is on parental leave
39
. The employer has no right to termi-
nate employment contract with such persons due to breaches
of duties ensuing from statutory provisions that relate to the
employees work performance. Immediate termination of the
employment relationship by the employer (instant dismissal)
can not be applied either.
Termination of Employment Relationship by Notice
of the Employee
According to the Slovak Labour Code it is possible to do for
any reason or without giving a reason. It has to be obligatory
written and delivered to the other party, otherwise it shall be
invalid (without regard to if it is the employee or the employer
who gives the notice). There is the notice period for an em-
ployee 2 months which shall commence on the first day of
31
Decision of the Supreme Court of Lithuania No. 3K-3-153/2009 from 27 April 2009.
32
Decision of the Supreme Court of Lithuania No. 3K-3-218/2008 from 30 April 2008.
33
Article 140 of the Labour Code of the Republic of Lithuania.
34
Decision of the Supreme Court of Lithuania No. 3K-3-845/2002 from the 12 june 2002.
35
Article 297 of the Labour Code of the Republic of Lithuania.
36
Decision of the Supreme Court of Lithuania No. 3K-7-290/2005 from the 26 May 2005.
37
Decision of the Supreme Court of Lithuania No. 3K-3-92/2005 from the 9 February 2005.
38
Decision of the Supreme Court of Lithuania No. 3K-3-423/2005 from 26 September 2005.
39
Article 53 paragraph 1 (d) of the Labour Code of the Slovak Republic.
0 |OU!NA ON IGA AN ICONOMC ISSUS O \NT!A IU!O
the calendar month following the delivery notice, and shall ter-
minate upon expiry of the final day of the respective calendar
month. If the employee was employed for more than 5 years by
the same employer, a notice period is 3 months. The notice pe-
riod in Slovakia is one of the longest in the European Union.
40

Nowadays there are discussions about the changes of the notice
period as the followings: an employee, who has been working at
the same employer for less than 1 year, is entitled for a notice
period in length of 1 month (until now it was 2 months). But an
employer is not entitled to end up the employment relationship
with its employee earlier than 5 months if the employee was
working at him at least 20 years.
41
The Lithuanian law is in this case a bit more specific. An
employee shall be entitled to terminate an indefinite-term em-
ployment contract, as well as a fixed-term employment contract
prior to its expiry. Concerning the period of notice in Lithuania,
there is a big difference if it is the employee or the employer
who gives the notice. For the employee it is generally 14 work-
ing days in advance (it may be prolonged by collective agree-
ment but for not more than 1 month).
According to Article 128 of the Labour Code of the Republic
of Lithuania the employee is also entitled to terminate an em-
ployment contract due to circumstances beyond the employees
control (without regard to if it is fixed-term or indefinite-term
contract), if the idle time at the employees workstation dur-
ing the working time set in the employment contract without
any fault on the part of the employee concerned lasts for over
30 successive days, or if it amounts to over 60 days in the last
12 months, as well as if the employee is not paid his full work
pay (monthly wage) for over 2 successive months. An employee
shall be entitled to terminate an indefinite-term employment
contract, as well as a fixed-term employment contract prior to
its expiry by giving the employer written notice thereof at least
3 working days from the date of the application, where the re-
quest to terminate the employment contract is justified by the
employees illness or disability restricting proper performance
of work, or other valid reasons set out in the collective agree-
ment, or where the employer fails to fulfil his obligations under
the employment contract, violates laws or the collective agree-
ment. An employee shall be entitled to terminate an indefinite-
term employment contract by giving the employer written no-
tice thereof at least 14 working days in advance, provided he
has become entitled to the full old-age pension working in that
enterprise, establishment or organisation. In such cases the em-
ployment contract must be terminated from the date indicated
in the application of the employee.
42
Conclusions
Analysis of legal regulation and practical application of ter-
mination of employment relations in Lithuania and Slovakia
leads to the following conclusions:
1. Both Lithuanian and the Slovak Labour Codes came into
force in a similar time (the year 2003 and 2001). However
unlike in Slovakia, Lithuanian Labour Law is fundamentally
based on soviet labour law principles therefore it lacks flex-
ibility and acknowledgment freedom of will of employment
parties.
2. In both countries there are two main types of the employ-
ment contract, so the fixed-term which ends the employment
relationship by the expiry of the contract, and the contract
with indefinite duration. The second one is used as general
principle in order to protect an employee.
3. Slovak Labour Code provides for a maximum 2 years fixed-
term employment contract and establishes a period of at
least six months from the termination of the previous fixed-
term employment relationship in order to conclude a new
fixed-term employment contract between the same parties.
Lithuanian Labour Code, meanwhile, provides a longer and
at the same time better maximum term of such employment
contract but establishes a period of only 1 month break
to the new fixed-term employment contract between the
same parties concluding. Meanwhile, a fixed-term employ-
ment relationship in general may be agreed more easier in
Slovakia because its legal basis does not prohibit to conclude
a contract for a fixed period of time if the employment is of
a permanent nature, what is required in Lithuania.
4. Although labour law does not prescribe any substantive con-
ditions, a mutual agreement on termination of employment
has to fulfil certain substantive conditions according to gene-
ral rules of contracts in order to be valid. Both in Lithuania
and Slovakia, it is required that the mutual agreement on
termination of employement is genuine, really exists, that
the employees will to terminate an employment relations-
hip is serious and free, that the agreement was not concluded
under force or threat or by fraud of an employer.
5. There have to be valid reasons for the termination of the
employment contract without any fault of the employee, like
circumstances related to the qualification, professional skills
or conduct of an employee or on economic or technological
grounds or due to the restructuring of the workplace. In such
case the employer has to observe the period of notice and
pay severance payment. The minimum period of notice in
both countries amounts to two months. Amount of the sev-
erance pay provided by the law differs (but not significantly)
in both countries.
6. There are special cases, provided in the law in both countries,
when it is possible to terminate an employment relationship
without notice (immediate termination). Lithuanian labour
law provides two different lists of circumstances in which
the employer either is obliged to dismiss an employee or
entitled to terminate an employment contract without giv-
ing him a prior notice. Labour Code of the Slovak Republic
provides more narrow list of such circumstances.
7. Lithuanian Labour code is more favourable to an employee
in the case of termination of employment relationship by
initiative by an employer.
8. The notice period in Slovakia, if termination is by an em-
ployee will, is one of the longest in the European Union.
40
https://www.cfe-eutax.org/taxation/labor-law/slovakia.
41
http://www.pravnarevue.sk/domov/spravodajstvo/1031-poslanci-schvalili-novelu-zakonnika-prace.html.
42
Articles 127 128 of the Labour Code of the Republic of Lithuania.
1 42011
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