VDI Chancellor Šarūnas Orlavičius emphasizes that the first approved settlement agreements are important primarily because they show that employees’ appeals are not just a formal process.
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“We understand that some employees have been living in uncertainty for some time: there is practically no work, salaries or other benefits are awaited, and at the same time they have to decide whether to remain in employment or terminate it. The first settlement agreements show that initiated labor dispute processes are moving forward and that the dispute can be resolved by mutual agreement of the parties. Therefore, it is important for employees whose rights may have been violated not only to wait for the employer to resolve the situation but also to use the legal remedies provided by law to protect their rights,” says Š. Orlavičius.
77 labor disputes – mostly concerning UAB “Valientė”
As of September 11, the Labor Dispute Commissions (LDC) had received 77 requests regarding labor disputes related to three companies operating under “Mere”. Most – 55 – were related to UAB “Valientė”, 19 – to UAB “Litproduktai”, and 3 – to UAB “Next Logistic”.
VDI had also received 26 complaints: 17 concerning UAB “Valientė”, 8 concerning UAB “Litproduktai”, and 1 concerning UAB “Next Logistic”.
In two disputes related to UAB “Valientė”, the LDC has already approved settlement agreements. By a settlement agreement, the parties to the labor dispute agree themselves on how to resolve the dispute, and their agreement is approved by the LDC. VDI points out that each employee’s situation is individual, so the first settlement agreements do not necessarily mean that all other disputes will be resolved in the same way.
“It is important not to get the impression that there is one solution suitable for all employees. Some employees’ situations may be related to unpaid wages, others to downtime, termination of the employment contract, or other due benefits. The LDC evaluates each dispute according to its specific circumstances,” notes Š. Orlavičius.
Downtime is not a period for which payment can simply be withheld
VDI has previously pointed out that if the employer cannot provide work to the employee for objective reasons, a specific decision compliant with the Labor Code must be made. One of these is properly formalized downtime.
For the first day of downtime, the employee is paid their average wage; for the second and third days – two-thirds of their average wage; and for the subsequent downtime period – 40% of the average wage. If the full working time norm is agreed upon in the employment contract, the employee’s monthly wage cannot be less than the minimum monthly salary.
If there is no work, downtime is not properly formalized, or the employee is not paid the due amounts, they can appeal to the LDC for their violated rights.
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To leave work as soon as possible, it is important not to choose an unfavorable path
VDI also draws attention to a dilemma currently very relevant to employees – whether to wait for the employer’s decision or to terminate the employment contract themselves.
According to Š. Orlavičius, rushing here can have financial consequences.
“It is natural that a person who does not know when they will get work or salary again wants to end the employment relationship as soon as possible and move on. However, the basis for terminating the employment contract is not a formality – it may affect the right to severance pay and other guarantees. Therefore, before submitting a resignation request, it is worth evaluating all the specific circumstances of the situation and, if in doubt, consulting,” emphasizes the VDI chancellor.
If the employee terminates the employment contract on their own initiative without important reasons, severance pay is not provided. However, the Labor Code also provides other grounds for terminating the employment contract, so it is important for employees to first clarify which applies in their specific situation.
If it is truly impossible to contact the employer or their representatives and their whereabouts cannot be determined, the employee can also apply to VDI for the establishment of the termination of the employment contract. However, even in this case, it is important to know that such termination of the employment contract does not by itself resolve the issue of unpaid wages or other amounts due to the employee – these can be claimed through the LDC.
The right to compensation and the possibility to transfer it are different issues
VDI reminds that freezing company funds due to international sanctions does not by itself eliminate the employee’s right to claim their due wages, severance pay, or other benefits. The Labor Dispute Commission resolves the labor dispute and assesses what amounts are due to the employee.
Another question is whether, due to the applied financial sanctions, a specific payment can actually be made from the frozen funds. The Financial Crime Investigation Service (FNTT) decides on exceptions to financial sanctions and permits to make payments.
“It is important for the employee to distinguish these two processes. The fact that sanctions create obstacles to transferring money does not mean that the employee loses the right to claim the amounts due to them. Therefore, our main message remains very clear – if the employee’s rights are violated, they should not think that all that remains is to wait,” emphasizes Š. Orlavičius.
VDI recommends that employees who are unsure what decision would be most appropriate in their specific situation consult with VDI before making a decision to terminate the employment contract. For unpaid wages, downtime payment, and other claims arising from employment relationships, employees can apply to the labor dispute commission.
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