Lithuania: New rules to reduce undeclared work

The government of Lithuania has acted to reduce the volume of undeclared work with amendments to its Labour Code.

The code was amended in December 2014 to establish stricter statutory liability for both undeclared workers and employers of undeclared workers.

Under the new rules, when undeclared work is discovered, the employer will have to pay the undeclared worker no less than the minimum wage for a minimum period of three months (unless another duration of undeclared work is proved), plus taxes. The undeclared worker will be deprived of social benefits and will have to repay the unemployment social insurance benefits received for the period of the undeclared work.

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