Ruginiene: Changes that will take effect will no longer encourage the introduction of cheap labor



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At the time, the head of the Lithuanian Business Confederation (LVK) believes that the new procedure does not prevent foreign workers from being brought to Lithuania, but does set clear rules of the game.

“With the changes in the Labor Code, the working conditions and wages of temporary employees from other countries and Lithuania are harmonized so that there are no incentives to bring cheap labor and non-dumped wages,” Inga Ruginienė told BNS.

According to her, this is especially relevant after the quarantine: “Let’s see what unemployment is like, and we are still bringing in labor from other countries, although there is something to choose from.”

According to I. Ruginienė, the amendments to the Labor Code will also have an impact on temporary employment agencies that lend to employees.

“To prevent these agencies from abusing or transporting cheap labor to one country or another,” he explained.

LVK President Andrius Romanovskis told BNS that the new order is an “example of social dialogue.”

“These issues were agreed with employers, the union and the government, compromises were reached, the agreed conditions bring clarity to the regulation and do not prevent the sending of foreigners to Lithuania, but rather establish clear rules of the game,” said the head of the LVK.

The State Labor Inspectorate (VDI) announced that the amendments to the Labor Code, which came into effect on July 30, are relevant to companies that temporarily employ foreigners in Lithuania or Lithuanians in other countries.

Foreigners’ wages and bonuses are now equal to those of local workers. Drivers transporting goods or passengers on international routes must receive at least the minimum wage.

Under the new regime, daily allowances are separated from all actual travel expenses and form a separate part of salary, and travel expenses must be reimbursed, and in the absence of permanent work, employees must be accommodated.

The Labor Inspectorate told BNS in May that there were currently 209 temporary employment agencies, 13 of which only had that status during quarantine.

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