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Newsletter 2012 April

  • Lithuania
  • Other

01-05-2012

Labour Law

Amendment to the Labour Code adopted

On 1 September of each year, parents of schoolchildren usually prepare and accompany them to school, whereas a lot of employers show good will and give such parents an unofficial day off or at least part of the day free from work. In order to legalise this actual practice which has lasted for many years, the Parliament of the Republic of Lithuania (hereinafter “the Parliament”) supplemented Article 214 of the Labour Code of the Republic of Lithuania (hereinafter “the Labour Code”) with new part 2. According to this amendment, parent employees with a schoolchild under 12 shall be given at least half of a working day free from work on the first day of each school year. Such free time shall be paid with the employee’s average salary and shall not be granted to parent employees who raise a disabled child under 18 or 2 or more children under 12 and who are already entitled to additional privileges under Part 1 of Article 214 of the Labour Code.

The amendment became effective on 24 April 2012.

Company Law

No longer required to indicate VAT payer’s code

Previously Part 3 of the Civil Code of the Republic of Lithuania provided that where a legal entity has to pay value-added tax, the VAT payer’s code shall have to be indicated, in addition to other mandatory data, in the documents of the legal entity used in its business relations with other entities (business letters, invoices, trade documents, etc.). On 29 March 2012 the Parliament repealed this provision and it is no longer required to indicate the VAT payer’s code in the above-mentioned documents as of 14 April 2012.

Competition Law

Amendments to the Law on Competition adopted

On 22 March 2012, the Parliament made extensive amendments to, and restated the Law of the Republic of Lithuania on Competition (hereinafter “the LC”). The amended LC, inter alia, stipulates for an increased threshold (from 30 million LTL to 50 million LTL) of the combined aggregate income of the undertakings participating in the concentration and the duty, in case this threshold is exceeded, to notify the Competition Council (hereinafter the CC) and to obtain its permission. In addition, the CC has been conferred with greater powers in the investigation of infringements and collection of proof. From now on, the CC can obtain all necessary information not only from commercial undertakings, but also from any natural persons and from other legal entities; also, subject to the court permission, the CC may use the data that the service providers of electronic communications accumulate on the intercommunication of commercial undertakings. The amended LC also regulates in greater detail the protection of commercial secrets, restricted-use and other information; moreover, it grants authorisations to the CC to exempt, on its own initiative, from liability cooperating infringers who provided valuable information.

Notice should be taken that the place for publishing public official information on behalf of the CC has changed. Both all the information related to the examination of concentrations, final decisions by the CC and all other official resolutions and notices shall be announced at the website of the CC at www.konkuren.lt.

The amendments came into force on 1 May 2012.

Case Law

Lithuanian case law

Concerning the recognition of a court judgement on the bankruptcy of a natural person in Lithuania

On 4 April 2012 a panel of the Civil Division of the Supreme Court of Lithuania (hereinafter referred to as “the SCL”) ruled in civil case No. 3K-3-151/2012, in which a dispute arose around the recognition and enforcement, in the Republic of Lithuania, of a court judgment, passed in another EU Member State, on opening a bankruptcy proceedings against a natural person.

A party concerned (a commercial bank) asked to deny the application of an applicant (a natural person) to recognise and enforce in the Republic of Lithuania an order, passed by a court of Your County, Great Britain, on the bankruptcy of the applicant. On the grounds that the Lithuanian law does not have an institution of bankruptcy of a natural person, according to the party concerned the Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings (hereinafter the Regulation) should be applied, in Lithuania, only in respect of recognition and enforceability of enterprise bankruptcy and restructuring proceedings; otherwise, should the order of the court of Great Britain be recognised and granted enforcement, such recognition or enforcement would be manifestly contrary to the public policy of the Republic of Lithuania, fundamental principles of the Lithuanian law and the constitutional rights and liberties of individuals residing in Lithuania.

The SCL noted that the public policy exemption as provided in the Regulation does not include cases, where, on account of his capacity, bankruptcy proceedings cannot be brought against the debtor in the country where the recognition is sought; therefore, the legal situation under examination may not be deemed as contrary to the public policy of the Republic of Lithuania and as the grounds to refuse recognition of the court order.

The SCL clarified that in accordance with the Regulation any judgment opening insolvency proceedings handed down by a court of a Member State which has jurisdiction shall be recognised in all the other Member States from the time that it becomes effective in the State of the opening of proceedings.

In addition, the SCL noted that in the matter under investigation the order of the court of Great Britain is declarative; therefore, it may not be enforced in Lithuania, as the order does not indicate specific actions to be executed in Lithuania.

Other News

Eversheds Saladžius sponsored IBA Legal Business Conference

Eversheds Saladžius sponsored the IBA European Regional Forum and Law Firm Management Committee conference IBA Legal Business Conference. The conference was held on 2-4 May in Vilnius.

Managing Partner of the law firm Jonas Saladžius is a member of the IBA European Regional Forum.

Eversheds Saladžius sponsored the Annual Lithuanian Bar Association Conference

Eversheds Saladžius sponsored the Annual Lithuanian Bar Association Conference held on 20 April.

The Trademark Practitioners Guide will publish an article by Associate Tomas Jakubauskas Upcoming amendments of Lithuanian IP laws

The Trademark Practitioners Guide Country Index will publish an article by Eversheds Saladžius IP expert, Associate Tomas Jakubauskas Upcoming amendments of Lithuanian IP laws. The article deals with the Lithuanian Government's confirmed amendments of laws proposed by Lithuanian Ministry of Justice. The suggested amendments will liberalize and simplify procedures related to the registration of intellectual property and protection in the Republic of Lithuania and will result significant reduction of related costs.

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