Transitional period regarding the duration of unused annual vacation is coming to an end

24.09.2015 Transitional period regarding the duration of unused annual vacation is coming to an end

In accordance to the Labour Code of the Republic of Lithuania (official gazette Valstybės Žinios, 2012, No.135-6859), transitional period regarding the duration of unused annual vacation is coming to an end. 

Employees that had unused annual vacation for more than three years of work on 1 December 2012 still have the right to use it till 1 December 2015. In case of termination of employment contracts with such employees before 1 December 2015, monetary compensation will have to be paid for the unused annual vacation in full.

Please also note that on 1 December 2015 the amendment to Article 175 of the Labour Code of the Republic of Lithuania is coming into effect. It provides for a new procedure of giving unused annual vacation when an employee is dismissed from work: when an employee is dismissed from work (except for cases when an employee is dismissed from work through his own fault), unused annual vacation, if the employee wishes so, will have to be given by postponing the date of dismissal, but not more than unused annual vacation for three working years if the employee was actually able to use it and if the collective bargaining agreement does not provide for otherwise.

If due to the manner of termination of the employment relationship the employee cannot be given annual vacation or if the employee does not wish to have it, then, following Article 177 of the Labour Code of the Republic of Lithuania, he is paid a monetary compensation the amount of which is limited to vacation pay for three working years if the employee was actually able to use vacation and if the collective bargaining agreement does not provide for otherwise. But, as it has been mentioned, from 1 December 2015 the amount of compensation for unused vacation will be limited for all employees, i.e. including those employees who had unused annual vacation for more than three years of work on 1 December 2012.