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Lithuanian president vetoes new labor code, requires corrections

Xinhua, July 5, 2016 Adjust font size:

Lithuanian President Dalia Grybauskaite on Monday rejected the new labor code approved by the country's parliament two weeks ago.

The president didn't sign the new labor code but instead sent it back to the Seimas, the country's parliament, requiring corrections to 22 out of 260 provisions of the document, announced the president's office.

Grybauskaite claims the majority of the provisions have to be implemented as soon as possible, since the old labor code "dampens the development of the country," however the new document violates "the needs of the most vulnerable people."

The president claimed the balance between the interests of employers and employees had to be restored.

"Foremost, the president has reinstated the constitutional provision that employees are the socially weaker party that has less negotiating powers," said the office in an announcement.

Grybauskaite also proposed corrections to legislation around dismissal procedures and increase severance pay.

Lithuanian prime minister and the leader of Social Democrat-led, center-left ruling coalition, Algirdas Butkevicius, reacted by saying the president had vetoed one of the most significant and progressive laws in the country's history.

"It's obvious that the head of state didn't take into account the voice of academics, representatives of advanced businesses, international institutions, Lithuanian youth organizations, employers and MPs representing all political powers," Butkevicius was quoted as saying in an announcement.

He said the parliament would have to reconsider the president's proposals and decide on the approval of the new labor code again in an extraordinary session scheduled for July 11 and 12.

Lithuanian parliament adopted the new labor code after a long period of discussions, negotiations, and protests from trade unions. The parliament expects the new regulation will contribute to bigger labor market flexibility in the Baltic country.

Among the most notable changes to the law are the annual holiday scheme, regulation of overtime work, dismissal procedures, and the size of severance pay. Endit