Enforcement of Lithuania's new Labour Code liberalizing the labor relations will not be postponed again, says Prime Minister Saulius Skvernelis, adding that the document will take effect in July.
Builders in Užupis
© DELFI / Domantas Pipas

"An agreement has been reached (at the Trilateral Council). It is not the case when both sides would be happy but it is a compromise. Someone had to step back. It (the Labour Code) must take effect on July 1. We have no alternative," Skvernelis told a news conference on Monday.

In his words, the new Labour Code is crucial for Lithuania's investment environment.

"During meetings with potential investors in Lithuania and abroad, there have always been questions about whether there would be new regulation of labor relations. It is a highly crucial think, when it comes to creation of a fair investment environment," said the prime minister.

The Trilateral Council including representatives of employees, employers and the government last week ended discussions over the most disputed provisions of the new code, although agreement was not reached on all points.

Economists say that the new social model, including the new Labour Code, should be enforced as early as possible, as it will guarantee faster economic development, with competitiveness boosted by more flexible terms and conditions of dismissal of employees envisaged in the code.

Rūta Skyrienė, executive director of the Investors' Forum, an association of foreign investors in Lithuania, has told BNS Lithuania that postponement of the new code had sent a very bad signal to businesses in Lithuania and abroad.

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