Employment support policy

Employment support policy and institutions

The Law on Employment of the Republic of Lithuania

The Law on Employment of the Republic of Lithuania No XII-2470 was adopted on 21st  June 2016 and came into force on 1st  July 2017 (valid version of the Law).

This Law establishes the main forms of employment and the system thereof, the legal framework, objectives and tasks of the system for the support of employment of job seekers, the functions of entities implementing the employment support policy, the organisation and funding of the provision of labour market services and the implementation of the employment support measures, and liability for illegal work, violations of the foreigners‘ employment procedures, undeclared work and undeclared self-employment.

Employment means lawful independent, partially independent or dependent activities of a natural person, either paid or unpaid, which provide the person with funds for subsistence, as well as activities in which the person is engaged in order to obtain labour or professional skills, or other continued activities that the person exercises in cases and according to a procedure prescribed by law.

Employment form means the method of the person’s activities due to the exercise of which the person is deemed to be employed.

Employment support policy means a set of labour market services, employment support measures, and other economic and social measures applied in order to increase the rates of employment of job seekers, to reduce unemployment, and to mitigate the negative consequences of unemployment.

Employment support system means a set of legal, economic, social and organisational measures implemented in order to support employment of job seekers.

Purpose and tasks of the Employment Support System
The purpose of the employment support system shall be to endeavour at full employment of the residents, at reduction of social seclusion, and at strengthening of social cohesion.
The tasks of the employment support system shall be the following:
1) ensure the balance of labour supply and demand in the labour market;
2) increase employment opportunities for job seekers of working age.

Entities responsible for the Employment Support Policy

The employment support policy makers responsible for the organisation of the policy, its coordination and control are as follows:

1. the Government of the Republic of Lithuania;
2. the Ministry of Social Security and Labour of the Republic of Lithuania (hereinafter referred to as the ‘Ministry of Social Security and Labour‘) and other ministries.

The employment support policy is implemented by:

1. Employment service under the Ministry of Social Security and Labour and other state institutions and bodies;
2. municipal institutions and organisations;
3. other legal and natural persons.

Persons receiving additional support in the labour market

The following persons shall be entitled to additional support in the labour market:
1) unemployed persons with disabilities of working age with the level of participation up to 25% or severe disability;
2) unemployed persons with disabilities of working age with the level of participation from 30 to 40% or moderate disability;
3) unemployed persons with disabilities of working age with the level of participation from 45 to 55% or mild disability;
4) unqualified unemployed persons who have not acquired any professional qualification or their professional qualifications acquired abroad have not been recognised according to a procedure prescribed by law governing recognition of professional qualification, as well as the unemployed who do not have any informally acquired competence that would recognised according to a procedure prescribed by law governing recognition of competence;
5) long-term unemployed under 25 years old who have been unemployed for longer than 6 months, and long-term unemployed over 25 years old who have been unemployed for longer than 12 months counting from the date of registration with the Employment Service;
6) the unemployed over 45 years old;
7) persons entitled to additional employment guarantees under the Law of the Republic of Lithuania on Additional Employment and Social Guarantees to Employees of the State Enterprise Ignalina Nuclear Power Plant;
8) the unemployed under 29 years old;
9) the unemployed who are starting work according to the acquired qualification or competence for the first time;
10) the persons who were granted the status of a refugee or a relocated person, or persons, to whom additional or temporary protection was granted, or persons entitled to temporary protection until the decision whether to grant temporary protection is made, but not longer than for the period of temporary protection;
11) pregnant women, child’s (adoptive) mother or (adoptive) father, a foster parent, caregiver or persons factually raising a (adopted) child under 8 years old or a (adopted) child with disabilities under 18 years old (a child recognised as disabled before 1 July 2005), and persons taking care of family members with disabilities, to whom permanent nursing or care is established by the decision of the Agency for the Protection of the Rights of Persons with Disabilities under the Ministry of Social Security and Labour of the Republic of Lithuania (former – the Service for Determination of Disability and Capacity for Work under the Ministry of Social Security and Labour) 
12) persons who return from imprisonment institutions after imprisonment of at least 6 months, provided they refer to the Employment Service within 6 months after their return;
13) addicts to alcohol, narcotic, psychotropic and other substances affecting mind, who complete the programmes of psychological social and/or professional rehabilitation, provided they refer to the Employment Service within 6 months after completion of the psychological social and/or professional rehabilitation;
14) employed persons, to whom downtime is declared in accordance with Sub-Paragraph 2 of Paragraph 1 of Article 47 of the Labour Code of the Republic of Lithuania;
15) revoked on 01/07/2021;
16) persons of working age with the level of participation up to 25% or severe disability, who were employees of a social enterprise on 31 December 2022, and whose employment contract with an employer who had the status of a social enterprise has not been terminated;
17) persons of working age with level of participation from 30 to 40% or moderate disability, who were employees of a social enterprise on 31 December 2022, and whose employment contract with an employer who had the status of a social enterprise has not been terminated;
18)  persons of working age with level of participation from 45 to 55% or mild disability, who were employees of a social enterprise on 31 December 2022, and whose employment contract with an employer who had the status of a social enterprise has not been terminated.

Labour market services:
1) registration of vacant jobs and job seekers;
2) information;
3) consulting;
4) assessment of employment opportunities;
5) employment intermediation;
6) planning of individual employment activities;
7) assisted employment. 

Employment support measures:
1) active labour market policy measures;
2) programmes on increasing employment;
3) arrival benefit for employees recruited from abroad;
4) benefit to the employer, who has recruited an employee from abroad.

Active Labour Market Policy Measures
The active labour market policy measures aimed at assisting job seekers to increase their employment opportunities and to achieve the balance between labour supply and demand:
1) support for learning;
2) support for mobility;
3) supported employment;
4) support for job creation or adaptation.

The measures of support for learning:
1) vocational training; 
2) employment under an apprenticeship employment contract;
3) internship (traineeship);
4) recognition of competences acquired in the manner of non-formal education or self-education;
5) non-formal adult education;
6) acquisition of qualifications and competences of high added value.

The measures of supported employment:
1) subsidized employment;
2) subsidy for the costs of job assistant.

The measures of support for job creation or adaptation

1) subsidising of job adaptation;
2) implementation of local employment initiative projects;
3) support for business creation.