VDI urges farmers not to wait for inspections: improper declaration of activities risks fines

Lithuania's State Labour Inspectorate (VDI) is urging individuals working in the agricultural sector to ensure their activities are legally declared to avoid penalties. Cases of people working without employment contracts or providing services without valid agricultural and forestry service receipts are frequently identified, particularly during peak seasonal work periods.

Edgar Lisica, an advisor in the VDI's Illegal Activity Supervision Department, emphasized the importance of legal operations from the outset of intensive agricultural work. He stated that employment contracts are mandatory when labor relations exist, and while agricultural service receipts can be used for short-term or seasonal tasks, all conditions for their use must be strictly followed.

Data from VDI inspections highlights the ongoing issue. In 2025, 122 inspections in the agricultural sector uncovered 58 individuals working illegally, without declaration, or in violation of foreign worker employment procedures. Of these, 46 were found to be working illegally. The trend continues in 2026, with 25 inspections in the first quarter identifying 11 individuals in similar violations.

Common violations include individuals providing agricultural services without a second copy of the service receipt, improperly filled-out receipts, using expired receipts, or employees working without contracts. The VDI reminds employers that if employment relations are evident, a contract must be signed, and employment must be reported to the "Sodra" social insurance system. Failure to comply with regulations regarding service receipts can result in fines from €390 to €1,100. More severe penalties apply to illegal employment, with fines for individuals ranging from €2,000 to €5,000, and for legal entities, between €1,500 and €5,000 per illegally employed person, with increased sanctions for repeat offenses.

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When labor relations arise between parties, employment contracts must be concluded and employment must be properly declared. True, agricultural and forestry service receipts can be used for short-term or seasonal services, but all their usage conditions must be followed.