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Lithuania's new Labor Code fails to strike the proper balance between the interests of employers and those of employees, an adviser to Lithuanian President Dalia Grybauskaite said yesterday.

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Dalia Grybauskaitė
Dalia Grybauskaitė
© AFP/Scanpix

"The president will make her decision (on whether or not to sign the bill into law) in the near future, taking into consideration the arguments from all social partners," she said.

"A polarization of the society created by the new Labor Code shows that a balance between the interests of the employer and those of the employee was not struck during the year that was given to draw up and discuss the code," Linas Antanaviciene said.

The adviser said that over 20 organizations, as well as private individuals, had asked the president to veto some of the provisions of the new Labor Code.

The Labor Code simplifies dismissal procedures, reduces severance payments, increases the number of permissible overtime hours, shortens vacation time and introduces a wider range of labor contracts.

The government says that the labor relations reform will help attract new investments and create new jobs, but critics say that the new Labor Code is beneficial only to employers.

Under the law, the president would have to veto the law in its entirety, but she could submit her comments on individual articles.

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