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Lithuanian parliament adopts new labor code, rejects president's veto

Xinhua, September 15, 2016 Adjust font size:

Lithuanian parliament (Seimas) endorsed a new labor code on Wednesday, rejecting president Dalia Grybauskaite's veto and giving the green light for new regulations on labor relations to come into effect as of 2017.

Seventy-four members of parliament against 39 voted in favor of the legislation, with ten abstentions.

The labor code was passed back in June, however, it was vetoed by the president due to, according to the presidency, imbalance between the interests of employers and employees.

Lithuanian prime minister Algirdas Butkevicius welcomed the parliament's decision and stressed it was leading toward "one of the most important reforms after gaining independence."

"Seimas today made a decision which creates preconditions to strengthen our country's competitiveness in the field of investments and increases Lithuania's immunity to possible economical shocks," Butkevicius was quoted as saying in a statement released by the government.

He noted that the new labor code could be fixed if necessary.

Grybauskaite, the head of state, is obliged to sign the new legislation within three days after her veto was snubbed. The new Labor Code will come into force as of 2017.

Lithuanian Business Confederation, one of Lithuanian employers' organizations, praised the decision aimed at "modernizing labour relations in Lithuania," according to the body's statement.

"Today we have a labour code which includes interests of all sides," Valdas Sutkus, president of the confederation, was quoted as saying by local website vz.lt.

Lithuanian employers' organizations earlier criticized the new labor legislation which, according to the employers' representatives, only benefits employers and aggravates the situation of workers.

The labor code intends to increase flexibility in the Baltic country's labor market and to strike a new balance between the employers' and the employees' interests.

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