After 1,636 euros, more employees will be able to receive: it is proposed to change the order of these benefits

The Ministry of Social Security and Labor prepared and registered the amendments to the law, which, after their adoption, would allow these benefits to be received even if the employer were to go bankrupt.

According to the currently valid procedure, the right to a long-term work allowance is granted to a person whose employment relationship with the employer has continued continuously for more than 5 years according to a terminable employment contract and who is dismissed from work on the grounds specified in Article 57 of the Labor Code.

That is, when the employment contract is terminated at the initiative of the employer without the fault of the employee.

The employer has the right to terminate an open-ended or fixed-term employment contract before the deadline for the following reasons:

• the work function performed by the employee becomes redundant for the employer due to changes in work organization or other reasons related to the employer’s activities;
• the employee does not achieve the agreed work results in accordance with the results improvement plan provided for in paragraph 5 of this article;
• the employee refuses to work under changed necessary or additional conditions of the employment contract or to change the type of working time regime or workplace;
• the employee does not agree with the continuity of the employment relationship in the event of the transfer of the business or its part;
• the court or the employer’s body makes a decision that terminates the employer.

Changes in work organization or other reasons related to the employer’s activities can be a reason to terminate the employment contract only if they are real and lead to the redundancy of the work function or work functions performed by a specific employee or their group.

The Ministry of Social Security and Labor proposes, through registered amendments, to provide for the possibility of paying long-term employment benefits from the Long-Term Employment Benefits Fund to employees dismissed in accordance with Article 62 of the Labor Code, that is, upon termination of the employment contract in the event of the employer’s bankruptcy.

If an employee works in one workplace for 5 to 10 years, he owns 77.58 percent. a payment in the amount of one average monthly salary of a person; if working for 10 to 20 years – 77.58 percent. payment in the amount of two average monthly wages; if 20 years or more – 77.58 percent. a payment in the amount of three average monthly wages.

According to the data of the State Data Agency, the average wage in Lithuania is currently 2110 euros.

Thus, if a person worked at one workplace for at least 5 years, he would be entitled to a long-term employment allowance of 1,636.9 euros.

The Ministry estimates that 2,329 employees who had worked for one employer for at least 5 years were dismissed last year under Article 62 of the Labor Code.

It is planned that approximately the same number of workers may additionally receive long-term employment benefits after the adoption of the proposed amendments.