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Lithuanian news

Poor knowledge of employees: salary reduction or dismissal?

TV3.lt
in 2025 January 08 16:36
2 1
4 min. reading
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Last year was not successful for all businesses. Therefore, in the New Year, some of them informed employees not about salary increases, but about salary reductions. Labor law specialists advise what to do after hearing this news.

On the social network, residents shared that they were greeted by bad news after returning to work after the holidays.

"The employer announced that he would reduce the salary. He also handed over the documents he wanted me to sign. I haven't signed anything yet. Can I object to a pay cut? Can the employer arbitrarily cut the salary without listening?" asked the man.

Another commenter said that the employer did not even wait for the New Year.

"The December salary was already lower. However, the employer paid an annual bonus. He assures that the supplement will cover that difference. However, supplements are paid only once a year.

And what to do in the following months, when we receive a lower salary, who will then cover the difference", complained the woman.

Another woman testified that employers openly indicate salary only when writing job advertisements.

"And then everything happens, they can reduce the salary or delay the payment. I had to leave my previous job precisely for this reason. The employer kept paying the salary late.

I began to fear that one day it would not be paid at all. That's why I quit my job," the woman shared another story.

It is not possible to reduce the salary without the employee's knowledge 

The State Labor Inspectorate (VDI) noted that when concluding an employment contract, the parties must agree on wages, the change of which is carried out at the initiative of the employer in accordance with the Labor Code.

"It stipulates that changing the necessary conditions of the employment contract, additional conditions of the employment contract, the established type of working time regime or transferring the employee to work in another location at the initiative of the employer is possible only with the written consent of the employee," commented VDI.

According to its specialists, the employee's agreement or disagreement to work under the proposed changed necessary or additional conditions of the employment contract, in a different type of working time regime or in a different location must be expressed within the deadline set by the employer, which cannot be shorter than 5 working days.

"An employee's refusal to work for a reduced salary cannot be considered a legitimate reason for terminating the employment contract.

However, the employee's refusal to work under the proposed changed conditions can be considered a reason for terminating the employment relationship at the initiative of the employer without the fault of the employee," observed VDI.

According to VDI, if an employee is fired without fault, he must be paid a severance payment equal to two of his average wages, and if the employment relationship lasts less than one year, a severance payment equal to half his average wages.

Will not only reduce wages, but also lay off workers?

At that time, business representatives notice that recently the situation of some companies is so bad that they have to declare bankruptcy.

Vidmantas Janulevičius, president of the Confederation of Lithuanian Industrialists, calculated that on average every second industrial company in the country faces the problem of insufficient production demand.

Two out of five industrial companies face insufficient demand in export markets.

"The problems of insufficient production demand and demand in the export markets are most felt by the companies in the manufacturing sectors of clothing and metal products (excluding machines and devices).

Only every fourth company in the rubber and plastic products production sector expects an increase in demand in the export markets", commented the representative of the industrialists.

According to him, companies in the manufacturing sectors of clothing and other non-metallic mineral products usually consider reducing the number of employees.

According to the Employment Service, five companies reported laying off 400 employees in Lithuania last December alone.

Author: Vilija Mačiulskytė, TV3.lt

TAGS:Employees
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