Setting up a works council in Lithuania: when it is required and how the election runs
Updated 2026-10-22. First published in 2017; the text then described the 2017–2018 transition period and no longer matches the current Labour Code.
A works council must be set up on the employer’s initiative when the average number of employees is 20 or more (Labour Code (DK), Article 169(1)). The employer does not elect the works council itself. It forms an election commission, and the employees elect the council. If the election fails because there are too few candidates, a new election is held after six months (DK Article 171(5)). The works council also matters for the pay system: the employer must consult it before approving or changing the system (DK Articles 140(3) and 206(1)).
When a works council is required
| Your situation | Who represents employees | Basis |
|---|---|---|
| 20 or more employees on average | A works council; the employer starts the election | DK Article 169(1) |
| More than 1/3 of employees belong to a trade union | No works council is set up; the trade union carries out its functions | DK Article 169(4) |
| Fewer than 20 employees on average | An employee trustee may be elected | DK Article 177(1) |
A works council is set up for a three-year term (DK Article 169(3)). When the term ends, a new council must be elected.
The law: employee representatives act freely and independently. The employer may not influence their decisions or otherwise interfere in their activity (DK Article 166(1)). It follows that the employer may not pick the candidates itself and may not urge employees to vote for or against any candidate.
Number of members
The number of members depends on the average number of employees (DK Article 170(1)):
| Employees | Works council members |
|---|---|
| up to 100 | 3 |
| 101–300 | 5 |
| 301–500 | 7 |
| 501–700 | 9 |
| more than 700 | 11 |
An employee may be elected to the works council if aged 18 or over and employed for more than six months. If all employees have worked for a shorter time, they may be elected too (DK Article 170(2)). The employer and persons representing it may not be works council members (DK Article 170(3)).
The election step by step
1. Election commission
The employer forms an election commission of 3–7 members by order. This is done no later than two weeks after the duty to have a works council arises. Managers may make up no more than one third of the commission (DK Article 171(2)).
The employer may not dismiss commission members on its own initiative while the commission’s mandate lasts. They are paid their average pay for the time spent on the election (DK Article 171(4)).
2. First meeting of the commission
The commission meets no later than seven days after it is formed. It elects a chair and sets the election date. The election date may not be later than two months after the commission is formed (DK Article 171(3)).
3. Candidates
Only employees with the right to vote may be candidates. Each of them may propose one candidate. The proposal is given to the commission in writing, together with the candidate’s written consent. Commission members may not be candidates. A trade union may propose at least three candidates. The list of all candidates is drawn up no later than 14 days before the election (DK Article 171(5)).
If there are as many candidates as seats, or fewer, the commission sets extra time. If there are still not enough candidates, the commission draws up and publishes a record that the election has failed. A new election is then held six months after the commission’s decision (DK Article 171(5)). Tip: write this date down at once.
4. Voting
All employees who have worked for the employer for at least three months without a break may vote, except the employer and persons representing it (DK Article 171(1)). The vote is secret and takes place during working hours. The employer makes it possible to vote and pays average pay for that time. Employees who work away from the workplace must also be able to vote (DK Article 171(6)).
The election is valid if more than half of the employees entitled to vote took part. If half or fewer took part, a repeat election must be held within the next seven days. It is valid if at least a quarter of the employees entitled to vote took part (DK Article 171(10)). If that election fails too, no council is elected. In this case the DK sets no deadline for a new election, but the duty to have a works council remains (DK Article 169(1)).
Electronic voting is possible only by joint agreement of the commission and the employer. In addition, it must be ensured that the vote is secret and the votes are counted correctly (DK Article 171(16)).
5. Results and the first meeting of the works council
The commission counts the votes and draws up a record (DK Article 171(8)). The results are published no later than three days after the election day, and a copy of the record is handed to the employer (DK Article 171(3)(6) and (9)). Those who received a majority of votes are elected. Where votes are equal, the candidate with the longer service in the company is elected (DK Article 171(11)).
Within five days of the results being published, employees or the employer may ask the commission in writing to correct breaches in the election. The commission examines the request and publishes its decision within three days. The decision may be appealed to a court within five days. The court may prohibit convening the council until it has examined the complaint (DK Article 171(14)).
The chair of the commission calls the first meeting of the works council no earlier than five and no later than ten days after the results are published. The council takes up its powers from this meeting (DK Article 173(1)). No later than one month after the first meeting, the chair of the council informs the State Labour Inspectorate in writing that the council has been set up (DK Article 173(6)).
The employer provides the material and technical support for the election (DK Article 171(13)).
What the courts say
- The Šiauliai District Court held that the head of an institution had rightly been held administratively liable. After a failed election, no new election was organised for more than a year. The court treated this as a delay in carrying out the duty to start setting up a works council. Written statements by some employees that they do not need a council do not remove this duty of the employer (ruling of 2022-09-15 in case No II-161-1113/2022).
- The Klaipėda Regional Court decided a dispute about daily allowances on other grounds, but noted: an employer that gave no evidence of an election started but failed during the period relevant to the dispute cannot rely on the fact that the company has no employee representative (judgment of 2025-11-13 in case No e2A-1429-513/2025).
- The same court held in another case that if the employer organised the election (in that case, twice) but no council was elected because there were too few candidates, this should not limit the employer’s ability to adopt internal administrative acts (ruling of 2023-12-07 in case No e2A-1112-777/2023).
The first and third rulings were made when DK Article 171(5) said that a new election is held “no earlier than six months” later. Since 2024-10-25 the law says “after six months”. These rulings are not from the Supreme Court of Lithuania: they show a direction, but they are not a binding precedent.
Our view: a failed election justifies having no council only for the period right after it. If there were too few candidates, the election must be held again after six months (DK Article 171(5)).
The works council and the pay system
If the pay system is not set by a collective agreement, information and consultation procedures must be carried out before the system is approved or changed (DK Article 140(3)). An employer with an average of 20 or more employees informs and consults the works council on the pay system (DK Article 206(1)). The works council is informed at least ten working days before the planned approval (DK Article 206(2)). Within three working days the council may ask for consultations. They then last at least five working days, unless the council agrees to a different period (DK Article 206(3) and (5)).
So a company with 20 or more employees but no works council needs to hold the election first. The exception is where more than one third of employees belong to a trade union (DK Article 169(4)). Our recommendation: prepare the pay system while the election runs, and consult once the council is elected. If the election failed, keep the published record: it shows why the company has no works council. Still inform and consult the employees, keeping to the same ten working days. If a trade union operates in the company, give it the information (DK Article 206(4)).
The works council may also ask for information on pay. This duty applies to an employer with more than 20 employees. The employer gives data on average pay. The data is anonymised and broken down by job group and sex. It is updated at least once a year. Only groups with more than 2 employees are included; employees in managerial positions are left out (DK Article 23(2)(1)).
From 1 January 2027, Sodra (the State Social Insurance Fund Board) will calculate gender pay gap indicators. It will give them every three years to employers with 100–249 insured persons, and every year to those with 250 or more. Within one month of receiving them, the employer will have to give employee representatives and employees the gap data by job group. This applies to groups where at least one sex has more than 2 employees (DK Article 23(5), version from 2027-01-01).
Common mistakes
- Waiting for employees to organise themselves. The employer starts the election by forming the commission within two weeks (DK Article 171(2)).
- Doing nothing after a failed election. If the election failed because there were too few candidates, a new election is held after six months (DK Article 171(5)).
- Forgetting the term. The council is elected for three years (DK Article 169(3)).
- A commission member becomes a candidate. This is not allowed (DK Article 171(5)).
- Voting outside working hours, or not paying average pay for the time spent voting. DK Article 171(6) requires both.
Doing it with Linden
In the Atlygis system the works council election follows the same steps as described in this article. The system calculates every deadline and prepares the director’s order, the records, the ballots and the notice to the State Labour Inspectorate. It also reminds you of the new election if the first one failed for lack of candidates. You can check whether you need a works council here: atlygis.linden.lt/en/self-check.
Related articles
- Pay system without a works council: how to consult employees in Lithuania
- Small employers: a minimum pay system by 31 December 2026
- Pay transparency in Lithuania: what employers must do, and by when
- Pay system self-check: 20 questions for a small company
In Atlygis you can now check for free whether men’s and women’s pay in your company differs by 5 % or more – in each job group. You pay only before the documents are prepared. Sign up and check (the app is in Lithuanian). We explain how the gap is calculated in our article “The gender pay gap by job group: how Atlygis calculates it”.
Phone +370 5 212 1506, email info@linden.lt
More about this service: drafting labour law documents.
