EOR in Lithuania
Employer of Record in Lithuania
- Save upto 3% on your payroll cost
- Hire talented professionals across Lithuania without establishing a local entity
- Stay compliant with Lithuanian labor laws, tax regulations, and EU directives
- Onboard employees in days with full payroll, benefits, and HR support
- Access top talent in Vilnius, Kaunas, and Lithuania's growing tech sector
- Focus on growth while we handle employment administration and compliance
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Currency
Euro (EUR)
Capital
Vilnius
Official Language
Lithuanian
Payroll Cycle
Monthly
Recognized Globally: Ranked #1 for ‘Ease of Use’ & ‘Customer Support’
our advantage
Why Choose Asanify's EOR in Lithuania
Asanify is ranked #1 across multiple categories on G2, delivering world-class Employer of Record services in Lithuania. Our platform simplifies compliance with Lithuanian labor laws, manages payroll and benefits, and enables you to hire top talent without the complexity of establishing a subsidiary. Experience seamless, compliant, and fast hiring in one of the Baltic’s most dynamic business environments.
Hire Quickly and Legally
Asanify enables you to onboard employees in Lithuania within days, not months. Our EOR solution handles all legal requirements, employment contracts, and regulatory filings, ensuring full compliance with Lithuanian labor law from day one.
Comprehensive Payroll Management
We manage end-to-end payroll processing in euros, including salary disbursements, tax withholdings, and social security contributions. Our automated system ensures accurate, timely payments while maintaining full compliance with Lithuanian tax regulations.
Full Regulatory Compliance
Navigate Lithuania's employment regulations confidently with Asanify. We handle all compliance matters including employment contracts, working time regulations, leave entitlements, termination procedures, and ongoing regulatory updates to keep your operations compliant.
Cost-Effective Expansion
Eliminate the significant costs and time associated with establishing a Lithuanian entity. Asanify's transparent pricing model provides predictable costs, allowing you to expand into Lithuania efficiently while maintaining budget control and operational flexibility.
How Asanify's Employer of Record Works in Lithuania
Asanify acts as the legal employer for your Lithuanian workforce, taking on all employment responsibilities while you maintain full operational control over day-to-day activities. Our streamlined process ensures fast, compliant hiring:
- Entity-Free Hiring: Recruit and employ Lithuanian talent without establishing a local subsidiary or branch office
- Complete Employment Administration: We handle contracts, onboarding, payroll, benefits, taxes, and all HR compliance matters
- Regulatory Expertise: Stay compliant with Lithuanian labor law, social security requirements, and tax obligations through our local expertise
Trusted by top companies around the Globe
Employer of record
Lithuania Employment Compliance Made Simple
Lithuania’s employment framework is governed by the Labour Code, which establishes clear rules for employment relationships, working conditions, and employee rights. Asanify ensures your operations align with all Lithuanian employment regulations, from contract requirements to termination procedures, protecting your business from compliance risks and penalties.
- Employment contracts prepared in Lithuanian and compliant with Labour Code requirements
- Accurate calculation and remittance of income tax and social security contributions to Lithuanian authorities
- Management of statutory benefits including annual leave, sick leave, maternity/paternity leave, and public holidays
What our happy customers say
Asanify's, should be the number 1 choice for companies looking to pay their overseas employees and contractors. I have a team of 40 people in India and not for a single month have i experienced any delays in the payment process.
In my business, things happen fast, and requirement for new employees is sudden. In such a situation a trusted partner like Asanify comes in handy as I know I can quickly ramp with onboarding and employee formalities diligently taken care of.
As a global company, we go through M&As in countries where we do not have presence. In India, we quickly onboarded ~30 employees as part of a takeover. With Asanify's turnaround time the overall change was managed brilliantly.
Asanify’s expertise when it comes to Local Compliances is something I have benefitted extensively from. Whether its Employee-Contractor classification, or the local laws for employee benefits and working hours - I trust the guidance provided.
Apart from using EOR services, I find a lot of value in the fully automated Asanify HRMS. For me, it makes it absolutely comfortable that I can access all my HR inforation anytime, anywhere and on any platform - Slack, Whatsapp etc.
My employees are in India, while I am based in Dubai and the co. in the US. Managing time zones is a huge challenge for us. Working with global partners like Asanify ensures that all my payments, and query resolutions are done in time.
It is paramount that my employees are well taken care of. Asanify goes above and beyond In terms of employee benefits, salary structuring to make it more tax friendly and constant guidance. For over a year with Asanify’s EOR, I have had no reason to feel disappointed.
Hire Globally Without the Hassle
Book a quick demo to see how Asanify simplifies global hiring, payroll, and compliance.
Table of Contents
What is an Employer of Record in Lithuania?
An Employer of Record (EOR) in Lithuania is a third-party organization that becomes the legal employer of your workforce in Lithuania, handling all employment responsibilities including payroll, tax compliance, statutory benefits, and adherence to Lithuanian labor laws and EU employment directives. Your company retains complete operational control over daily work activities, performance management, and strategic objectives while the EOR manages all legal and administrative employment obligations.
This model is especially useful when:
- Expanding into Lithuania without a legal entity: Test the Baltic market and hire employees without registering a Lithuanian company
- Hiring remote talent across Lithuania: Employ skilled professionals in Vilnius, Kaunas, KlaipÄ—da, and other Lithuanian cities compliantly
- Ensuring compliance with EU and Lithuanian labor laws: Navigate the Labor Code, tax regulations, Sodra (social insurance), and EU employment directives
- Reducing time-to-hire: Onboard employees in days instead of waiting months for company registration and operational setup
- Managing payroll and benefits efficiently: Handle salary disbursement in Euros (EUR), statutory deductions, and comprehensive employee benefits administration
Asanify provides complete employment infrastructure in Lithuania, enabling you to hire, pay, and manage employees while remaining fully compliant with all local and EU regulations—without the complexity and cost of establishing your own legal presence in the Baltic region.
How Asanify's Employer of Record Works in Lithuania
Asanify acts as the legal employer of your Lithuanian workforce, managing all employment contracts, payroll processing, tax withholding, social insurance contributions, and compliance obligations while you retain complete control over daily operations, team management, and business objectives.
Fast Market Entry Without Entity Setup
Launch operations in Lithuania within days without establishing a local subsidiary, navigating company registration with the State Enterprise Centre of Registers, or setting up banking infrastructure. Asanify’s existing legal entity enables immediate, compliant hiring across all Lithuanian regions and access to the broader EU talent market.
Complete Employment Lifecycle Management
From contract creation and employee onboarding through payroll processing, benefits administration, and offboarding, Asanify manages every aspect of the employment journey in compliance with the Lithuanian Labor Code, EU directives, and local regulations, ensuring seamless employee experiences and zero compliance gaps.
Centralized Visibility and Control
Access real-time dashboards showing payroll status, compliance metrics, employee documentation, and statutory reporting. Manage your entire Lithuanian workforce alongside global teams through a single unified platform with full transparency, control, and integration with your existing HR and financial systems.
What Asanify Handles Under Employer of Record (EOR) in Lithuania
Asanify provides fully managed employment infrastructure in Lithuania, handling every operational, legal, and administrative aspect of employing staff while ensuring complete compliance with the Lithuanian Labor Code, State Tax Inspectorate (VMI) requirements, Sodra social insurance regulations, and EU employment directives.
Compliant Employment Contracts
We prepare legally compliant employment contracts in Lithuanian or English (as required) tailored to Lithuanian labor law requirements, including terms on working hours (standard 40-hour week), leave entitlements, probation periods, notice requirements, termination clauses, and employee rights. All contracts comply with the Labor Code and are aligned with your specific role requirements and company policies.
Seamless Employee Onboarding
Our team manages the complete onboarding process including document collection, verification of personal identification codes, registration with the State Tax Inspectorate (VMI), enrollment in Sodra social insurance, and compliance with all statutory registration requirements. Employees receive a professional onboarding experience with all documentation handled efficiently in accordance with Lithuanian and EU data protection standards.
Payroll Processing and Salary Disbursement
We manage end-to-end payroll processing in Euros (EUR) with accurate calculation of gross pay, statutory deductions, allowances, bonuses, and net salary. Employees receive timely salary payments through SEPA bank transfers with detailed payslips showing all earnings and deductions in compliance with Lithuanian tax and labor requirements.
Tax Deduction and Payroll Compliance
Asanify ensures accurate calculation and remittance of personal income tax (PIT) currently at 20% (or progressive rates of 20% and 32% depending on income levels) to the State Tax Inspectorate. We manage all tax filing, annual income declarations, tax certificates, and ensure full compliance with VMI regulations including timely submission of all statutory returns and proper application of tax-free thresholds.
Statutory Contributions and Social Security
We handle mandatory employer and employee contributions to Sodra (State Social Insurance Fund) including pension insurance, health insurance, sickness and maternity insurance, unemployment insurance, and accident insurance. Current employer contribution rates are approximately 1.77% (for small contributions) to 19.5%, with employee contributions around 19.5%. All contributions are calculated accurately, deducted appropriately, and remitted on time with complete documentation.
Benefits and Compensation Support
We administer statutory leave entitlements including annual leave (minimum 20 working days), sick leave with compensation, maternity leave (126 calendar days), paternity leave (30 calendar days), and parental leave in accordance with the Labor Code and EU directives. Additional benefits such as private health insurance, meal vouchers, professional development allowances, and other perks can be structured and managed according to your compensation policies.
Employee Support and HR Documentation
Our local HR team provides ongoing support in Lithuanian and English regarding payroll queries, benefits questions, leave management, and employment documentation. We maintain comprehensive employee records in compliance with GDPR and Lithuanian data protection requirements, manage employment certificates, work books (if applicable), and ensure all documentation meets regulatory standards.
Exit Management and Final Settlement
When employment ends, we manage the complete offboarding process including notice period administration (typically 20 working days minimum), final salary calculation, accrued leave payment, severance computation (where applicable), and issuance of employment certificates. All terminations are handled in strict compliance with the Labor Code to minimize legal risk and ensure fair, documented procedures.
Employer of Record vs Entity Setup in Lithuania
| Criteria | Employer of Record (EOR) | Entity Setup |
|---|---|---|
| Best For | Companies testing the Lithuanian market, hiring small teams, or needing rapid deployment without local infrastructure | Large-scale operations, significant long-term investment, or need for direct legal presence in Lithuania and EU |
| Speed to Hire | 3-5 days to onboard employees and start operations immediately | 4-8 weeks for company registration, tax registration, banking setup, and operational readiness |
| Setup Cost | No upfront entity costs; transparent monthly fee per employee | €3,000-€10,000+ for registration, notary fees, legal services, banking, and initial infrastructure |
| Compliance | Fully managed compliance with Labor Code, VMI tax regulations, Sodra contributions, GDPR, and EU directives | Full responsibility for staying current with Lithuanian labor laws, tax changes, social insurance updates, and EU regulatory compliance |
| Flexibility | Scale up or down quickly; easy market exit with minimal obligations | Complex shutdown requiring formal liquidation, employee settlements, tax clearance, and regulatory filings |
| Legal Presence | No local entity required; EOR serves as legal employer | Full legal entity (UAB – private limited company or branch) registered with Centre of Registers |
Employer of Record (EOR) Cost in Lithuania: Pricing Guide
Understanding Employer of Record pricing in Lithuania is essential for budgeting your Baltic and European market entry strategy. Unlike traditional entity setup which requires substantial upfront investment in company registration, notary services, legal fees, office space, and ongoing administrative overhead, EOR services operate on a transparent, predictable monthly fee structure that scales with your team size.
Asanify’s pricing model eliminates hidden costs and provides complete employment infrastructure—from compliance and payroll to benefits administration and multilingual HR support—enabling you to hire compliantly in Lithuania while maintaining full cost visibility and control.
Transparent Pricing Structure
Asanify charges a competitive monthly fee per employee that covers all employment services including contract management in Lithuanian/English, payroll processing in Euros, tax compliance with VMI, Sodra social insurance contributions, benefits administration, and ongoing HR support. A one-time onboarding fee per employee covers initial setup, documentation, registration with tax and social insurance authorities, and verification. There are no entity setup costs, no ongoing corporate maintenance fees, and no need to engage multiple vendors for payroll, compliance, legal, and HR services—everything is included in one transparent monthly cost.
What Impacts Pricing?
- Number of employees: Volume-based pricing offers better rates as your Lithuanian team grows
- Compensation structure: Complex compensation including variable pay, bonuses, stock options, or multi-currency arrangements may affect pricing
- Benefits package: Enhanced private health insurance, additional pension contributions, professional development budgets, or premium benefits add incremental costs
- Payroll complexity: Frequency of payments, multiple work locations, or specialized payroll requirements
- Industry requirements: Sector-specific compliance obligations or additional regulatory requirements
Why EOR Delivers Strong ROI
- Faster market entry: Start hiring in days instead of waiting weeks for entity registration and setup, accelerating revenue generation and market validation
- Reduced overhead: Eliminate costs for local HR staff, payroll systems, compliance consultants, legal advisors, accounting services, and office infrastructure
- Lower compliance risk: Avoid penalties, fines, and legal issues from non-compliance with Lithuanian Labor Code, EU directives, and GDPR requirements
- Simplified workforce management: Manage global teams through one platform instead of coordinating multiple vendors, systems, and compliance frameworks across countries
Who Should Use Employer of Record in Lithuania
Employer of Record services in Lithuania are ideal for organizations of all sizes seeking to hire talented professionals in the Baltic region and broader European market without establishing a local legal entity. Whether you’re a startup entering the EU market, a growing company scaling internationally, or an enterprise managing distributed teams, EOR solutions provide compliant, efficient employment infrastructure.
Global Startups Expanding Internationally
Early-stage companies and startups looking to hire their first employees in Lithuania or establish an EU presence benefit from EOR services that eliminate the cost and complexity of entity registration. Launch quickly in the Baltic region, validate market fit, and access highly educated Lithuanian talent without diverting resources from core product development and growth initiatives.
Technology and SaaS Companies
Tech companies seeking engineering talent, customer support teams, or sales professionals in Lithuania’s rapidly growing technology sector can hire quickly and compliantly. EOR enables access to Vilnius’s thriving fintech and tech hub, Kaunas’s emerging startup ecosystem, and other technology centers without the overhead of establishing local infrastructure, perfect for remote-first and distributed engineering teams.
HR and People Teams
Human resources leaders managing international hiring need compliant solutions that don’t require deep expertise in Lithuanian labor law, EU employment directives, or GDPR compliance. EOR services provide peace of mind with expert handling of contracts, payroll, benefits, statutory compliance, and employee relations in both Lithuanian and English, allowing HR teams to focus on talent strategy, culture, and employee experience.
Finance and Operations Leaders
CFOs and operations executives appreciate the predictable cost structure in Euros, reduced administrative burden, and elimination of compliance risk that EOR provides. With transparent monthly pricing, consolidated billing across European operations, SEPA payment integration, and comprehensive reporting, financial planning becomes simpler while operational complexity decreases significantly compared to managing a local Baltic entity.
Enterprises Scaling Global Teams
Large organizations expanding into Lithuania, consolidating Baltic operations, or establishing European hubs benefit from EOR’s ability to provide consistent employment experiences, centralized workforce management, and unified compliance standards across EU markets. Enterprises can quickly establish presence in Lithuania while maintaining governance, control, and visibility across all international operations with full GDPR and EU regulatory compliance.
Why Asanify is Different from Generic EOR Providers
While many EOR providers offer basic employment services, Asanify goes beyond transactional payroll and compliance to deliver a comprehensive, technology-enabled employment solution designed specifically for fast-growing companies expanding into Lithuania and the broader European market.
Our platform combines deep local expertise in Lithuanian labor law and EU regulations with modern HR technology, providing not just compliance coverage but a strategic partnership that enables faster hiring, better employee experiences, complete GDPR compliance, and operational visibility across your international workforce.
Country-Specific Compliance Expertise
Our Lithuania team possesses deep knowledge of the Labor Code, VMI tax regulations, Sodra social insurance requirements, EU employment directives, and GDPR data protection standards. We stay current with regulatory changes, court decisions, and compliance updates at both national and EU levels, ensuring your employment practices always meet the latest legal standards. Unlike generic providers using standardized templates, we provide truly localized, current compliance management with bilingual support.
Integrated Payroll and HR Technology
Asanify’s unified platform combines EOR services with advanced HRIS functionality, giving you real-time visibility into payroll status, employee data, compliance metrics, and HR documentation across Lithuania and global operations. Manage Lithuanian employees alongside your worldwide workforce through one intuitive dashboard with automated workflows, digital document management, GDPR-compliant data handling, and comprehensive reporting that generic providers cannot match.
Faster Onboarding and Execution
Our streamlined processes and local presence in Vilnius enable employee onboarding in 3-5 days, significantly faster than traditional EOR providers. We’ve optimized every step from contract creation in Lithuanian/English and background verification through VMI and Sodra registration and first payroll, ensuring new hires can start contributing immediately without administrative delays or documentation bottlenecks.
Real-Time Visibility and Reporting
Access live dashboards showing payroll processing status in Euros, upcoming compliance deadlines, employee documentation, statutory filing confirmations with VMI and Sodra, and cost analytics. Unlike providers offering only monthly reports, Asanify gives you continuous visibility and control with multi-currency support, enabling proactive decision-making and immediate response to any employment matters requiring attention across your European operations.
End-to-End Workforce Management
Beyond basic EOR services, Asanify provides comprehensive workforce solutions including EU-wide payroll consolidation, multi-country benefits administration, GDPR-compliant employee data management, equipment provisioning, and integrated time-off tracking. Manage your entire employee lifecycle through one partner instead of coordinating multiple vendors, reducing complexity and improving employee experience across all touchpoints while ensuring consistent EU regulatory compliance.
Why Use an Employer of Record in Lithuania
Expanding into Lithuania presents significant opportunities to access highly educated talent, establish an EU market presence, and benefit from a business-friendly environment, but navigating Lithuanian employment regulations, EU directives, and establishing legal entities can be complex and time-consuming. An Employer of Record eliminates these barriers, enabling compliant hiring without the overhead of entity setup.
Hire Faster Without Setup Delays
Traditional entity registration in Lithuania requires 4-8 weeks including company incorporation with the Centre of Registers, tax registration with VMI, social insurance enrollment with Sodra, banking setup, and operational infrastructure. EOR services enable you to hire employees in 3-5 days, allowing immediate access to Lithuania’s skilled talent pool and faster EU market entry without waiting for lengthy administrative processes to complete.
Ensure Compliance from Day One
Lithuanian employment law encompasses the Labor Code, tax withholding requirements, mandatory Sodra contributions, EU employment directives including Working Time Directive and GDPR, and specific rules around contracts, terminations, and employee rights. EOR providers maintain current expertise in all these areas at both national and EU levels, ensuring every employment action is compliant and reducing risk of penalties, employee disputes, or legal challenges.
Reduce Costs and Operational Overhead
Establishing a Lithuanian entity requires €3,000-€10,000+ in setup costs including notary fees, legal services, registration fees, plus ongoing expenses for office space, local HR staff, payroll systems, legal advisors, and accounting services. EOR eliminates these fixed costs, converting them to a predictable monthly variable expense in Euros that scales with headcount while providing comprehensive employment services without capital investment in local infrastructure.
Improve Employee Experience
Professional EOR providers ensure employees receive timely, accurate salary payments in Euros via SEPA transfers, clear payslips showing all deductions, proper enrollment in Sodra social insurance, responsive bilingual HR support, and compliant employment documentation. This professional experience helps attract and retain top talent in Lithuania’s competitive tech and professional services market while ensuring employees feel valued and supported throughout their employment journey.
Simplify Workforce Management
Managing international teams across multiple European countries creates administrative complexity with different payroll systems, varying compliance requirements, and diverse HR processes. EOR services consolidate your Lithuanian workforce management into a single platform alongside other international employees, providing unified reporting, consistent processes, centralized control, and GDPR-compliant data management that dramatically simplifies European operations and reduces administrative burden on your internal teams.
Lithuania Employment Compliance: What Global Employers Must Manage
Operating as an employer in Lithuania requires managing multiple compliance areas governed by the Labor Code, State Tax Inspectorate regulations, Sodra requirements, EU employment directives, and GDPR data protection standards. Understanding these requirements is essential for risk mitigation and legal compliance in the Baltic region.
Employment Contracts and Labor Laws
All employees must have written employment contracts specifying job duties, compensation, working hours (standard 40 hours weekly, maximum 48 hours average including overtime), leave entitlements, probation periods (up to 3 months), notice requirements (minimum 20 working days), and termination conditions. The Labor Code mandates minimum annual leave of 20 working days, sick leave compensation, maternity leave (126 calendar days), paternity leave (30 calendar days), and parental leave rights in accordance with EU directives.
Payroll Tax and Withholding
Employers must calculate and withhold personal income tax (PIT) at progressive rates of 20% on income up to 101,094 EUR annually and 32% on income exceeding this threshold. A standard tax-free amount applies (currently 675 EUR monthly for average earners). All PIT deductions must be remitted to the State Tax Inspectorate (VMI) monthly with accurate filing of GPM308 returns and annual reconciliation statements.
Statutory Benefits and Social Contributions
Mandatory contributions to Sodra (State Social Insurance Fund) include pension insurance, health insurance, sickness and maternity insurance, unemployment insurance, and accident insurance. Employer contributions are approximately 1.77% for small businesses or 19.5% for larger employers on gross salary, with employee contributions around 19.5%. Additional contributions apply for certain industries. All contributions must be remitted monthly by the 15th of the following month with proper documentation.
Employee Termination and Severance
Terminations must follow Labor Code procedures including proper notice periods (minimum 20 working days for indefinite contracts, longer for employees with over 5 years’ service), valid termination grounds, documented procedures, and consultation requirements. Severance pay is required for certain terminations including redundancy (2-6 months’ average salary depending on tenure). Unfair dismissal claims can result in reinstatement or compensation, making proper termination procedures critical.
Data Protection and Privacy
The EU General Data Protection Regulation (GDPR) and Lithuanian Law on Legal Protection of Personal Data regulate processing of employee personal data, requiring lawful basis, consent where appropriate, secure storage, access controls, and transparent data handling. Employers must appoint data protection officers where required, implement appropriate technical and organizational security measures, respect employee rights (access, correction, deletion), and ensure cross-border data transfers comply with GDPR standards.
Work Permits and Immigration
EU/EEA/Swiss nationals have the right to work in Lithuania without permits. Non-EU nationals require work permits and temporary residence permits for employment, with applications submitted to the Migration Department. The process requires employment contracts, proof of qualifications, employer justification, and can take several months. Lithuania participates in the EU Blue Card scheme for highly skilled workers. Proper immigration compliance is essential for international hires, requiring coordination with migration authorities and adherence to EU mobility regulations.
Employer of Record FAQs in Lithuania
What is an Employer of Record in Lithuania?
An Employer of Record (EOR) in Lithuania is a third-party organization that serves as the legal employer for your workforce while you maintain control over daily work activities. The EOR handles all employment administration including contracts, payroll, tax compliance, benefits, and adherence to Lithuanian labor laws, enabling you to hire employees without establishing a local entity.
Why should I use an EOR to hire in Lithuania?
Using an EOR in Lithuania eliminates the need to establish a legal entity, which can take months and require significant capital investment. An EOR enables immediate hiring, ensures compliance with complex Lithuanian employment regulations, manages payroll and tax obligations, and reduces permanent establishment risks—all while providing cost-effective and flexible market entry.
How quickly can I hire employees in Lithuania through Asanify?
Asanify can onboard employees in Lithuania within 3-5 business days once candidate details and necessary documentation are provided. Our streamlined process handles contract preparation, compliance verification, and system setup rapidly, allowing you to bring talent on board significantly faster than traditional entity establishment.
What employment benefits are mandatory in Lithuania?
Lithuanian law mandates several employee benefits including a minimum of 20 days paid annual leave, paid public holidays, sick leave compensation, maternity and paternity leave, and social security coverage. Asanify manages all statutory benefits and can also administer supplementary benefits such as private health insurance or additional leave according to your company policies.
How does payroll work with Asanify's EOR in Lithuania?
Asanify processes monthly payroll in euros, calculating gross-to-net salaries, withholding income tax, and deducting employee social security contributions. We remit employer social security contributions and taxes to Lithuanian authorities and provide detailed payslips to employees. Our automated system ensures accuracy, timeliness, and full compliance with Lithuanian tax regulations.
What are the employer costs in Lithuania?
In Lithuania, employers contribute approximately 1.77% of gross salary for social security (Sodra), while employees contribute around 19.5%. Additional costs may include health insurance contributions and unemployment insurance. Asanify calculates all statutory contributions accurately and includes them in transparent cost projections for your hiring plans.
Can I terminate an employee in Lithuania through an EOR?
Yes, Asanify manages compliant termination processes in Lithuania according to Labour Code requirements. This includes providing proper notice periods (typically 1-4 months depending on tenure), calculating severance entitlements where applicable, handling final payroll and benefits, and ensuring all documentation meets legal standards to minimize disputes and legal risks.
What is the probation period in Lithuania?
Lithuanian law allows probation periods of up to 3 months for most positions, or up to 6 months for managerial and specialist roles. During probation, either party can terminate employment with shorter notice periods. Asanify includes compliant probation clauses in employment contracts and manages the process according to Lithuanian regulations.
Does using an EOR create permanent establishment risk in Lithuania?
When properly structured, an EOR arrangement significantly reduces permanent establishment (PE) risk because the EOR is the legal employer and maintains employment responsibilities. However, factors like having fixed office space, executing contracts in-country, or maintaining significant operational presence may create PE exposure. Asanify provides guidance to help structure your operations appropriately.