Lithuania: Unused Vacation Days Face Expiration by End of 2026

Lithuanian employees face a ticking clock to use their annual leave, with unused vacation days potentially expiring by the end of 2026. The State Labour Inspectorate (VDI) has clarified that leave accrued during the 2022-2023 work years must be taken by December 31, 2026, or employees will lose their right to it.

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So, by the end of this calendar year, the employee must use the annual leave accrued for the 2022-2023 work years, otherwise, from January 1, 2027, they will lose the right to this annual leave.

This rule applies even to those who started working before 2022. However, employees can retain their right to this leave beyond the deadline if circumstances prevented them from taking it, such as prolonged illness or if the employer denied their requests. The VDI stated that the right to 2022-2023 leave would be preserved after January 1, 2027, only if such circumstances existed.

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But what I see in practice is that small companies almost never cancel leave. Larger ones, which can certainly ensure uninterrupted business operations during vacations and create conditions for employees to take a month off per year, sometimes apply cancellation.

Daiva Čibirienė, president of the Lithuanian Accountants and Auditors Association (LBAA), notes that there's no specific data on how many employees might lose their leave. She observes that small companies rarely cancel leave, while larger ones sometimes do. "But what I see in practice is that small companies almost never cancel leave. Larger ones, which can certainly ensure uninterrupted business operations during vacations and create conditions for employees to take a month off per year, sometimes apply cancellation," she commented.

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And if due to the specifics of the activity or the small size of the company, this is not possible, the leave is not canceled. The Labour Code requires that the employer organize work in such a way that employees can take a month off per year, but the realities of life and competition make this employer's desire difficult to implement.

Čibirienė explains that businesses hesitate to cancel leave for two main reasons. First, they must ensure employees can take their vacation. If a company's specific operations or small size make this impossible, leave is not canceled. The Labour Code requires employers to organize work so employees can take a month off annually, but business realities and competition make this difficult. Second, even if conditions are ideal, if even one employee's leave is not canceled, it sets a precedent for the company's wage policy, which must be applied equally to all. Employees can challenge leave cancellation and win if they prove they weren't given the opportunity to take leave or if they have information about another employee whose leave wasn't canceled.

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Employees can challenge the cancellation of leave and win a case against the employer if they provide evidence that they were not provided with the opportunity to take leave or provide information about the non-canceled leave of another employee.