Business owners employ various recruitment strategies when hiring employees to find the ideal match for both the job role and the company as a whole. From referrals and interviews to screening, each method is meant to assess individual skills and qualifications. Unfortunately, these techniques don’t always guarantee employing the right person for the position. 

The probation period provides employers with a safe and legal means to evaluate the abilities of potential employees. An employer can observe an employee’s on-the-job skills along with their general attitude. The probation period is beneficial for employees as they get a feel for the company and can determine whether they want to commit to the job. 

If you’re hiring employees in Lithuania, discover the importance of the probation period, what is legally required, and how it can benefit employers and employees. 

Definition of a Probation Period in Lithuania

Probation periods are defined as the timeframes employers use to assess an employee’s performance for specific job roles. The employer will only secure a permanent or fixed-term contract after the probation period. This process allows you to identify whether the individual is fully qualified for the position and suits the corporate culture. 

Employees can showcase their skills while on probation and determine whether they are satisfied with the work environment. This includes getting along with co-workers and becoming accustomed to the way business is conducted. 

Lithuanian employees attending their first day on the job are placed on probation. An employer does not have to wait until the end of the probation period to make a permanent hiring decision. The employee can be offered a secure contract while on probation, or the contract may be terminated. Both employers and employees in Lithuania can end the employment contract by issuing a formal notice. 

Lengths of Probationary Periods in Lithuania

In Lithuania, the probation period is three months. It cannot be extended beyond the three-month limitation, even with the employee’s consent, as per the Lithuanian Labor Code. Even though probation periods are not mandatory in Lithuania when included in the employment contract, they cannot surpass three months, which is the local standard. 

Permanent or Indefinite Contracts

The type of employment contract does not influence the duration of probation in Lithuania. Permanent or indefinite contracts are subject to the three-month probation limitation. 

Fixed-term or Definite Contracts

Employers offering fixed-term or definite employment contracts should provide a probation period that is proportionate to the employment term. They can be offered a shorter probation, but it cannot go beyond the standard three-month term. 

If employees are absent during probation, whether due to illness or a family emergency, their time off will not count towards the length of the probationary period.

Legal Considerations for the Probation Period in Lithuania

When an employer is dissatisfied with the performance of a probationary employee, they can move forward with terminating employment. Likewise, if an employee is unhappy with the work environment or certain aspects of employment, they can cancel the employment contract. In terms of extending the probation period, in Lithuania, employers cannot increase probation past the three-month mark even with the employee’s consent. 

Lithuanian employees are entitled to a few statutory benefits that permanent employees receive. These include social security contributions, health insurance, annual leave, and sick leave. 

Employees do not have to specify why they are absent from work while on probation if they use approved annual or sick leave. Annual leave and sick leave are not part of the probation period in Lithuania. In addition to employee benefits, workers on probation must be given the same protections as full-time staff. Employers cannot discriminate against probationary employees and must always treat every worker fairly. 

Pay and Working Conditions

Lithuanians work for 40 hours over a five-day week, which is eight hours per day. Employees who work beyond the daily eight-hour requirement must be paid overtime. Overtime is paid at 150% of the standard hourly wage; however, work between 10 pm and 6 am is paid at a rate of 200% of the hourly wage. 

Lithuania has a monthly payroll cycle, and employees are paid around the 10th of the month. Employees are generally paid by electronic bank transfer, but most employers use the SEPA, or Single Euro Payments Area, system to directly deposit employee salaries. All payments are made in euros (EUR).

It is important to note that Lithuanian probationary employees do not receive severance pay when their contract is terminated before the end of the probation period. 

Employers are responsible for creating a safe and productive working environment for all employees, including those on probation. 

Termination and Notice

If the employer deems the employee’s performance unsatisfactory while they’re on probation, they can terminate the probation period. Both employers and employees in Lithuania must provide a three-day written notice if they wish to end the probation period. 

It is certainly easier to end an employee’s probation than terminate an employment contract; however, employers must uphold anti-discrimination practices at all times. 

Vacation / Holidays

Regular employees in Lithuania receive 20 days of annual leave if they work full-time for five days. For those who work for six days a week, annual leave increases to 24 days. Employees on probation also receive annual leave, based on accrual. From their first day at work, they accrue annual leave, which is calculated as a twelfth of the standard annual leave for each month of employment. 

Probationary employees in Lithuania are encouraged to take their leave, but not exceeding 14 days at a time. Lithuanian probationary employees receive the same 16 holidays as permanent employees. Some of these holidays include Labor Day, King Mindaugas’ Coronation Day, and Christmas Day. 

Benefits of Probation Periods in Lithuania

More employers are incorporating probation periods to evaluate the performance of employees before offering a permanent or fixed-term employment contract. Consider the following benefits of probation periods in Lithuania: 

  • Pros

New employees can use the probation period to showcase their skills and prove they are qualified for the job.

The probation period allows Lithuanian employees to get settled in their new position and determine whether they fit within the company culture.

Employees have the freedom to end the probation period by giving employers a three-day written notice.

Employees can improve their chances of receiving a permanent contract with training and employer feedback provided during probation.

  • Cons

Employers can avoid the legal red tape associated with ending permanent or fixed-term employment contracts by placing employees on probation. 

If the employer is not satisfied with an employee’s performance, they can end the Lithuanian probation period by issuing a three-day notice.

Employers may assess the performance of employees in real-time and in the actual work environment. 

Lithuanian employers can determine whether employees have the skills and qualifications to execute the job tasks. 

Employers have up to three months to train and assess new hires before making them a permanent part of the business. 

Conclusion

While probation periods in Lithuania are legally regulated, they remain a practical tool for both employers and employees. New hires can use this period to assess whether the role aligns with their expectations and skills, while employers can evaluate the employee’s performance and suitability for the position. It also allows time for onboarding and training, helping new team members integrate effectively into the workplace. As such, probation periods serve as a mutually beneficial starting point for long-term employment.