Amendment to the labor code: new obligation for the employers to indicate the remuneration offered in the job ad

07.08.2019 Amendment to the labor code: new obligation for the employers to indicate the remuneration offered in the job ad

Note that as of 27 July 2019 the job advertisements in Lithuania must provide information on the offered: a) amount of the basic (rate) remuneration (hourly rate, monthly wage) or the base amount of the basic salary or ii) amount range thereof. This obligation does not apply only in cases provided for by laws. This obligation for the employers is established in the new part 6 of Article 25 of the Labour Code.

It is proclaimed that the main purpose of the amendment is to ensure more transparency and impartiality in the process of job searching. However, in practise, there is a growing tendency to establish a dual remuneration system where remuneration consists of not only the base amount but also a variable amount of remuneration. Therefore, the base remuneration indicated in the job advertisement may not reflect the true potential remuneration.

Taking into account the aforementioned, it is advisable in the job advertisements to indicate not only the information required by the Labour Code, but also the possibility to earn a variable part of remuneration. In addition, the information about the job advertisement must be correct. This should encourage the employers that still has not yet approved the Remuneration systems to approve them as soon as possible.

Also, the laws do not provide for specific control of compliance with this amendment, therefore such control will be exercised under the general procedure by the State Labour Inspectorate. Article 96 of the Code of Administrative Offences imposes liability on the managers of legal persons or other responsible persons for infringement of labour laws (such offence shall carry a fine of 80 to 880 EUR).