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Newsletter 2012 March

  • Lithuania

    02-04-2012

    LABOUR LAW

    Amendments to the Labour Code proposed

    On 31 January 2012, the Parliament was submitted a draft law to amend the Labour Code of the Republic of Lithuania (hereinafter the LC). Taking into account that a draft law on the prohibition of illegal work was also submitted for consideration by the Parliament, it is proposed to remove the definition of illegal work from the LC and to replace it with a reference to the soon-expected law on the prohibition of illegal work. According to currently valid provisions of the LC, the employee may start working immediately after an employment contract is concluded; it is proposed, however, to amend the LC so that an employee could start working no sooner than the next day after the conclusion of an employment contract. In addition, in order to facilitate the administrative burden on employers, it is proposed to abandon the requirements for concluding employment contracts and issuing employee ID cards according to the Government-approved model templates, for recording working time according to the Government-approved model timesheets, for registration of employment contracts in respective journals, and for issuing pay statements, except upon a request of an employee. Moreover, it is proposed to cancel the type of employment contracts for the provision of personal services, since rather than being employed under this type of employment contract, persons who provide personal services as a rule provide their services under business licences.

    Amendment to the Procedure on Reimbursement of Expenses Related to Business Trips

    By resolution No. 116 of 2 February 2012, the Government of the Republic of Lithuania amended its resolution no. 1365 of 3 November 2004 “Regarding the amount of expenses related to business trips and the procedure of their payment”. The amendment provides for an exception in the application of the Regulations for Deductions of Business Trip Costs from the Revenue, where the business trip costs of an employee, who participates in the implementation of a project financed by the EU and/or another international financial aid, are paid from the funds of a project financed by the EU and/or another international financial aid according to the terms of an agreement for such a project (except for a project financed by an EU- and/or another international financial aid programme, the funds of which are planned in the state budget of the Republic of Lithuania).

    FINANCE LAW

    Amendments to the Law on Securities proposed

    The currently valid Part 5 of Article 38 of the Law of the Republic of Lithuania on Securities (hereinafter the LS) provides that where a management body of an issuer that operates on a regulated market in the Republic of Lithuania intends to delist its shares from the trade on a regulated market in the Republic of Lithuania, such body must prepare and publicly announce of its intention at least 30 days before the scheduled consideration of the issue at the general meeting of shareholders. On 13 February 2012, the Parliament was submitted a draft law to amend the LS by shortening the said term to 21 days. In addition, it is proposed to supplement the LS with a new article on the procedure of implementation of the supervisory institution and to provide that financial fines must be paid to the state budget no later than within 1 month from the receipt by a person/entity of a decision of the supervisory institution to impose a fine.

    CONSUMER RIGHTS PROTECTION

    Amendment to the Rules for Investigation of Violations of the Law on Unfair Commercial Activities

    On 9 January 2012, the Minister of Justice of the Republic of Lithuania issued an order to announce the operative parts of the decrees of the Commission of the State Consumer Rights Protection Service, which relate to violations of the Law on Unfair Commercial Activities of the Republic of Lithuania, on the website of the Service at www.vvtat.lt, in accordance with the order established in the Regulation of the Service. The order became effective on 13 January 2012.

    Amendments to the Law on Food proposed

    On 17 February 2012, the Parliament was submitted a draft law to supplement the Law of the Republic of Lithuania on Food with a definition of an energy drink and to prohibit persons under 18 to drink energy drinks. The draft law proposed to define an energy drink as one which contains vitamins and tonic or stimulant substances (caffeine, guaranine, ginsenoside, taurine, etc.). It is planned that the amendments shall be effective as of 1 January 2013.

    Amendments to the Law on Advertising proposed

    On 17 February 2012, the Parliament was submitted a draft law to amend and supplement the Law of the Republic of Lithuania on Advertising. The amendments propose to ban references to energy drinks as products of sponsors of charitable and/or sponsorship events, campaigns, and competitions the target audience of which is persons under 18, as well as their advertising in educational institutions attended by persons under 18. Moreover, the amendments propose to ban advertising of energy drinks in newspapers, magazines, books, TV and radio shows, events, campaigns, and competitions for children and teenagers. In addition, if amendments are adopted, it would be required to include a warning “not to be mixed with alcoholic drinks”, where energy drinks are advertised. It is planned that the amendments will be effective as of 1 November 2012.

    CASE LAW

    Lithuanian case law

    Concerning the continuity of employment in case of reorganisation of enterprises

    On 26 January 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-3-8/2018, in which a dispute arose around the interpretation and application of provisions regulating the legal status of employees of an enterprise under reorganisation. The SCL clarified that, based on the provisions of Council Directive 2001/23/EC on the approximation of the laws of the Member States relating to the safeguarding of employees' rights in the event of transfers of undertakings, businesses or parts of undertakings or businesses, and according to Article 138 of the LC (which implements the said directive), it should be understood that, where an enterprise is being reorganised, employment of employees, who work at a subdivision which is transferred to a newly established enterprise, is not terminated during the reorganisation; the rights and obligations arising from the employment relationships are not terminated and are transferred to the new employer regardless of whether the employers agreed on the transfer of employees, or not. The new employer may not refuse to take over the rights and obligations which arise from employment relationships. If there are any industrial or structural changes in the enterprise that has taken over the employer’s rights and obligations from the enterprise under reorganization and if they cause changes in the functions performed and reduction of the workforce or give rise to any other circumstances which constitute the LC-prescribed grounds for employment termination, the issue of dismissals of employees must be resolved in accordance with the respective provisions of the LC (for example Article 129) and according to the procedure for employment contract termination; however, it does not constitute grounds to refuse to take over employees who worked at a subdivision of an enterprise under reorganisation at the time of transfer.

    Other News

    Eversheds Saladžius organised traditional celebration of International Women's Day on 8th March

    For a third year already Eversheds Saladžius in Lithuania organised the celebration of International Women's Day on 8th March. This year again we served Traditional English Afternoon Tea to our guests at the Shakespeare Hotel Restaurant.

    Fashion designer Kristina Kruopienytė shared a cup of tea with us and showcased her fashion collections, both old and new. Kristina is well known for the innovative and modern touch with traditional fabrics, and has been presenting her fascinating collections for more than 10 years.

    Eversheds Saladžius continues its involvement with sports projects: sponsorship of the Lithuanian National Youth Ice Hockey League

    In 2009 Eversheds Saladžius signed the sponsorship agreement with the Lithuanian National Youth Ice Hockey League and since then we continue on supporting the league. We have just signed the agreement for the year 2012 and will be happy to present our further projects.

    Eversheds Saladžius is a Lithuanian partner of non-profit membership association TRACE International

    For four years already Eversheds Saladžius is a Lithuanian partner of non-profit membership association TRACE International. Trace International pools resources to provide practical and cost-effective anti-bribery compliance solutions for multinational companies and their commercial intermediaries.

     

     

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