Updated on 21 April 2020

Additional conditions for declaring idle time

On 8 April 2020 amendments to the Labour Code regulating idle time due to the state of emergency and quarantine came into effect. For this reason, in order to declare idle time additional conditions will apply from now on:

  • due to the nature of work organisation there is no possibility to work remotely;
  • the employee does not agree to work in another job offered (if available at the company).

Failing to satisfy these conditions means that idle time may only be declared and paid for under regular terms (ie unrelated to the state of emergency and quarantine); however, the employer will not be able to claim state subsidies for regular idle time.

After declaring idle time due to the state of emergency and quarantine, the employer must notify the State Labour Inspectorate no later than within 1 business day. If idle time was declared before 8 April 2020, information on idle time must be submitted within 3 business days.

Read more here (in Lithuanian).

Subsidies on wages paid during idle time

The amendments of laws concerning the payment of subsidies which substantially changed the amounts and conditions of subsidies paid for the period of idle time, entered into force on April 10, 2020.

Due to the state of emergency and quarantine, subsidies will be paid to employers who declare idle time because they cannot provide employees with agreed work, and due to the work organisation there is no possibility to work remotely or the employee does not agree to work another job.

Subsidy amounts

The employer may choose the subsidy amount:

  • 70% of the employee’s wage during idle time, (not more than before the announcement of quarantine), but not more than EUR 910.50 gross (for a full month of idle time), or
  • 90% of the employee’s wage during idle time (not more than before the announcement of quarantine), but not more than EUR 607 gross (for a full month of idle time).

If employees are working part-time or partial idle time is declared, the subsidy will be paid in proportion to the idle time declared.

During idle time due to the state of emergency and quarantine employees cannot be paid less than the minimum wage set by the Government.

Obligation to retain jobs

Employers must retain at least 50% of the jobs for which subsidies were paid for at least 3 months after the end of the subsidy payments.

Payment term

Subsidies will be paid as long as the state of emergency and quarantine declared by the Government continues. 

Additional conditions:

  • employees must not work during idle time;
  • the company must not be bankrupt or in liquidation;
  • during the past year the company and its representatives have not had any administrative penalties for illegal or undeclared work, or violations for employing foreign nationals;
  • during the last year the company’s representatives have not had more than one administrative penalty for violations of labour laws, occupational safety and health regulations, or the terms of commercial activities;
  • the company does not have the status of a budgetary entity.

The rules for claiming subsidies

All employers except for those who are budgetary entities may claim subsidies.

Applications should be submitted to the Labour Office. Documents that are submitted electronically should be signed using a qualified electronic signature. 

Application and documents

The following documents must be submitted when applying for the subsidy for the first time:

  • a claim for wage subsidy during idle time;
  • a claim for payment of subsidy for the salary of employees on idle time;
  • copies of documents confirming that idle time has been declared.

Applying for the subsidy in subsequent months:

  • a claim for payment of subsidy for the salary of employees on idle time;
  • copies of documents confirming that idle time has been declared;
  • documents proving that the previous month’s wage for which the subsidy was granted was paid to employees.

An employer who applies for the subsidy only once, or where the payment of the subsidy is terminated, must submit to the Labour Office documents confirming that employees were paid the last month’s salary for which subsidy was granted. These documents must be submitted within 30 days.

Timing

When applying for the first time, employers should apply for subsidies by the end of April, and subsequent applications should be submitted by the 15th day of the next month.

If the idle time is announced only from April, the documents can be submitted in May as well.