Violation of work remuneration provisions in Lithuania is a subject to administrative liability
Violation of work remuneration provisions in Lithuania is a subject to administrative liability
The Parliament of Lithuania (Seimas) on June 25, 2015 concluded its work on new Code of Administrative Misdemeanors, providing changes in the framework of administrative justice.
From January 1, 2017 in the Code of Administrative Misdemeanors is in force, as Article 99, which raises penalties for not disclosing to the accounting records of payments of work remuneration in Lithuania.
Punishment for “envelope salary” in Lithuania
According to remuneration provisions in Lithuania, a payment of the work remuneration which was not disclosed to the accounting records and paid by the employer to the employee on purpose, will lead to administrative liability and a pecuniary penalty for the employer.
Therefore administrative liability occurs to the employer, who on purpose pays the salary for performed work in the “envelope”. If court will establish the fact that the payment of the work remuneration was not disclosed the pecuniary penalty issued for the employer for such practice of “envelope salary” in Lithuania will be from EUR 2700 up to EUR 6000.
Registration of employment in Lithuania
It is mandatory for all employers to notify a priori a competent authority of social security about person’s employment in Lithuania. This mean that all employments of all natural persons, irrespective of the form of a contract, must be notified to competent authorities at least one day before the employee starts working.
Failure to comply with the notification obligation is likely to lead to a fine for an administrative misdemeanour.
To find out more about remuneration provisions in Lithuania, please contact our lawyers at info@gencs.eu
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