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Deductions from the employee’s remuneration   2022-03-07

The Ministry of Social Security and Labour and the State Labour Inspectorate have been receiving information that unscrupulous employers have been unlawfully collecting funds from employed third-country nationals for the purpose of covering losses which might be inflicted upon the employer in the future, making use of the fact that they do not know Lithuanian laws, do not speak the state language and are afraid of applying to institutions.
Should you have any questions regarding legal employment relationship, please contact the STATE LABOUR INSPECTORATE for a consultation. Consultations are provided by phone: (8 5) 213 9772 (+370 521 39 772) or in writing (having filled in an electronic inquiry form or through Facebook).
Please find below the explanation of such collection of funds:

  • Collection of funds for the purpose of compensation for damage possibly caused by the employee to the employer in the future is UNJUSTIFIED AND UNLAWFUL.
  • Deductions from the employee’s remuneration can ONLY be made IN ACCORDANCE WITH THE PROVISIONS OF THE LABOUR CODE.
  • Deductions from remuneration regarding compensation for damage can ONLY be made UPON ESTABLISHMENT BY THE EMPLOYER OF VIOLATION OF THE EMPLOYEE’S WORK-RELATED DUTIES DUE TO THE FAULT OF THE EMPLOYEE.
  • THE LIMITS OF COMPENSATION FOR DAMAGE – not exceeding the employee’s average remuneration multiplied by 3 (where material damage was caused by employee’s gross negligence – not exceeding the employee’s average remuneration multiplied by 6).
  • CASES OF FULL COMPENSATION FOR DAMAGE BY EMPLOYEES: intentional damage; damage done by the employee’s activity in which constituent elements of a crime are present; damage done by the employee who was drunk or intoxicated with narcotic, toxic or psychotropic substances; the damage is done upon violating a non-compete agreement or the duty to protect confidential information; non-material damage inflicted upon the employer; full compensation is stipulated in a collective agreement.
  • Upon the employer’s written instruction on the recovery of damages from the employee’s remuneration MAXIMUM AMOUNTS OF DEDUCTIONS provided for in the Civil Code of Procedure must be adhered to. It means that the amount of deductions from a wage that does not exceed the minimum monthly salary (EUR 730 as of 1 January 2022) cannot exceed the amounts foreseen in the Code of Civil Procedure. Deductions from the portion of the debtor’s share of wages or equivalent payments and allowances up to the minimum monthly wage set by the Government are made based on enforcement instruments until the amounts to be recovered are fully covered: when enforcing maintenance by periodic payment or compensation for damage caused by mutilation or other health impairment or death of the breadwinner, the rate shall be 30 per cent, unless otherwise stipulated by the enforcement order or required by the laws or by the court. Deductions from the part of wages and equivalent payments and allowances in excess of the minimum monthly wage set by the Government shall be equal to 50 percent unless otherwise required by the laws or by the court (Article 736 of the Code of Civil Procedure). Article 739 of the Code of Civil Procedure also defines the amounts of money that are not subject to recovery (for instance, maternity and paternity benefits, childcare benefits, etc.).
  • If a person believes that recovery of damages is unjustified and/or does not comply with the procedure of recovery of damages provided for in the Labour Code, he has the right to apply to the LABOUR DISPUTE COMMITTEE within 3 months from the date when the person learnt or had to learn about violation of his rights. The contacts of labour dispute commissions are available at https://www.vdi.lt/Forms/DGK_kontaktai.aspx.