Tackling the economic crisis : labour law in Lithuania

• ADAPT International: straipsnio tekstas

LTReikšminiai žodžiai: Darbo kodeksas; Darbo santykiai; Darbo teisė; Ekonomikos krizė; Ekonominė krizė; Įstatymas; Economic crisis; Labour code; Labour law; Labour relations; Law.

ENThe global financial crisis that erupted in 2008 had a profound impact in many industries. Once again, economic difficulties have demonstrated the close interdependence between labour law and the economic system. The scope of the commitments placed by labour law on the workforce can also be expressed in economic terms, because it directly affects the price of the services rendered and goods supplied in the global economy. During economic downturns, the set of labour market policy becomes not only an economic but also a fiscal instrument. If, for any reason currency devaluation is not possible, similar results could be achieved by labour law devaluation. Politicians following this logic undertook Europe-wide measures devised to enhance competitiveness of local employers through a reduction of workforce costs, especially those relating to the requirements set forth by labour law norms. It was also claimed that those measures were aimed at promoting employment and reducing unemployment rates. At the current stage of economic development and when considering national realities, the response of labour law varies, though most legislations show a trend towards “loosening” the legal norms governing labour relations, by watering down mandatory legal norms or easing the standards of conduct required by these norms. On the basis of these considerations, the authors aim at providing a reply to the question of whether changes in labour law prompted by economic difficulties represent a new paradigm shift in Lithuanian labour law. This is because labour law norms arise not as a result of a targeted and politically-driven implementation of social policy - e.g. the measures liberalising labour relations, updating legal regulation and filling legal vacuum - but as a result of an adjustment of completely different interests and negotiations on the basis of mutual trade. [Extract, p. 3]