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International Internet Magazine. Baltic States news & analytics Monday, 20.05.2024, 23:45

New social model presented at Lithuanian Seimas

BC, Vilnius, 15.10.2015.Print version
After submission on Thursday, the Lithuanian Parliament approved amendments to the Labour Code and accompanying legislation regulating the new social model, informs LETA/ELTA.

The draft laws were presented by Social Security and Labour Minister Algimanta Pabedinskiene and supported in a vote by 82 MPs, 16 voted against and 16 abstained.

 

On behalf of the Liberal Movement political group MP Gintaras Steponavicius proposed to adopt the new social model under a matter of urgency but the proposal was rejected.

 

The leader of the Parliament's Opposition Andrius Kubilius called the procedure "a circus and chaos" and ironically proposed to adopt the new social model with extreme urgency.

 

MP Rimantas Jonas Dagys opposed the project altogether and said it included "a couple of masterpieces". "What quality of the code are we talking about? I have never seen such an unqualified and poor document," said Dagys. Speaking about the new social model the politician emphasised that it is proposed to extend retirement age to 67 years.

 

Meanwhile, Prime Minister Algirdas Butkevicius urged not to give in to propaganda of the conservatives who "managed to take away salaries in one night".

 

Chairwoman of the Parliamentary Committee on Social Affairs and Labour Kristina Miskiniene hoped that the Parliament would begin constructive discussions and all sides would be heard.

 

It is expected that the new social model will attract additional foreign investment, increase employment and wage growth.

 

The new social model includes 7 main and 27 accompanying laws related to employment increase, improvement of regulation of labour relations and sustainability of social insurance. The new provisions would simplify conclusion of employment contracts, their amendment or termination. More types of employment contracts would be created. It has been proposed to introduce contracts for temporary employment, project employment, workplace sharing, apprenticeship, working for several employers etc.

 

The project proposes to shorten notice periods and reduce severance pay when a worker is laid off on the employers' initiative. It is hoped this will attract foreign investors and encourage employers to create new jobs. Notice period would be reduced to a month if labour relations are continuing for over a year. Meanwhile, notice period would be two weeks if labour relations are continuing for less than a year.

 

Severance pay would be reduced to the amount of two-month average salary if labour relations are continuing for over a year. If they are continuing for less than a year, then severance pay would amount to a half of an average monthly salary.

 

The new social model will be considered by Parliament's committees. Parliament will return to the issue on 24 November.






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