Written.

An employee who intends to resign must provide the employer with written notice at least 20 working days in advance.

Generally, employees who resign voluntarily are not entitled to statutory severance pay. Exceptions may exist under collective agreements or company internal policies.

• Employees are entitled to payment of their salary up until termination and for unused annual leave (Labour Code, Article 161).

• Any contractual bonuses or accrued benefits payable under company policy should be settled on the final pay date.

Grounds for terminations with cause include repeated neglect of duties, serious breaches of work discipline, or failure to improve after prior disciplinary actions within the last 12 months.

Valid grounds for such termination must directly relate to the employee's qualifications, skills, or behavior, and must be documented in detail.

Written notice is required.

No notice period is required when terminating for cause due to serious employee fault (Labour Code, Article 58).

Employees terminated for cause are generally not entitled to statutory severance pay unless a collective agreement states otherwise. Any company-specific severance is subject to internal policies or collective agreements.

• Employees are entitled to payment for unused annual leave accrued until the termination date (Labour Code, Article 161).

• Any earned wages up to the termination date must be paid in full.

Written notice specifying the reason for termination. Under Article 61, termination by the employer can occur under several circumstances, including employee's incompatibility.

• Employees with less than five years of service are entitled to a one-month notice period.

• For employees with five to 10 years, the notice period is two months

• For employees with more than 10 years of service, the notice period is three months.

Mandatory severance pay applies under certain conditions:

• For employees with less than 12 months of service, the severance pay is equal to 1 month's average wage.

• Employees who have served between 12 and 36 months are entitled to two months' average wages.

• For those with 36 to 60 months of service, the severance pay increases to three months' average wages.

• Employees with 60 to 120 months of continuous service receive four months' average wages.

• Those who have served between 120 and 240 months are entitled to five months' average wages.

• For employees with over 240 months (20 years) of service, the severance pay is capped at six months' average wages.

If a collective agreement or internal company policy provides more generous benefits, those apply.

• Payment for unused annual leave accrued up to the termination date (Labour Code, Article 161).

• Any earned but unpaid wages, bonuses, or contractual benefits.

A mutual termination agreement is a voluntary arrangement in which both the employer and employee agree to terminate the employment contract by mutual consent. It is regulated under Labour Code, Article 54, which allows parties to terminate the contract at any time if both agree.

Written agreement signed by both parties.

Determined by mutual agreement; there is no statutory minimum unless otherwise specified in the contract.

Severance is not mandatory unless stipulated in the contract or company policy. Any severance or gratuity is determined by the mutual agreement terms.

• Employees are entitled to payment for unused annual leave accrued until the termination date.

• Any earned wages, contractual bonuses, or other benefits must be settled according to the agreement.

No statutory notice is required if the contract reaches its agreed end date. If the parties agree in the contract to give notice before the end, that agreement applies.

Employees are not entitled to mandatory severance pay at the end of a fixed-term contract, unless otherwise provided in the employment contract or company policy.

• Payment for unused annual leave accrued up to the end date (Labour Code, Article 161).
• Payment of any earned wages, bonuses, or contractual benefits due under the agreement.

• Written notice must be provided to the employee.
• Notice period follows the same rules as indefinite contracts.

Mandatory severance may apply if the early termination is not due to employee fault, based on length of service, similar to indefinite contracts (Labour Code, Article 123).

• Payment for unused annual leave accrued until termination.
• Payment of earned wages, contractual bonuses, or other benefits.
• Any other benefits provided under internal company policy or collective agreements.

Upon terminating an employment contract, Lithuanian law mandates that employers must settle all financial accounts with the departing employee on the day of dismissal. This immediate settlement includes payment for any wages due, compensation for unused annual leave, and any other amounts owed under the employment contract.

In cases where the employee is entitled to severance pay, the law stipulates that this payment must be made in equal installments over a period not exceeding three months from the day of dismissal. Employers are obligated to make these payments at least once a month, providing a steady source of income for the employee during their initial period of unemployment.

Failure to make timely payment can result in administrative fines imposed by the State Labour Inspectorate, and the employee may claim the outstanding amounts through the courts. Employers are legally required to provide a final payslip detailing all payments and deductions, and ensure all social security contributions and taxes are reported and remitted to Sodra and the State Tax Inspectorate.