CMNT_TITLE

Protection of Workers' Claims (Employer's Insolvency) Convention, 1992 (No. 173) - Lithuania (RATIFICATION: 1994)

Other comments on C173

Direct Request

2012
2007
2003
1998

Replies received to the issues raised in a direct request which do not give rise to further comments

2019

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Articles 5 and 6 of the Convention. Limits applicable to wage claims protected by privilege. Further to its previous comment, the Committee notes the Government’s indications that all relevant legislation, i.e., section 35(2) of the Enterprises Bankruptcy Act, section 13(3) of the Enterprises Restructuring Act, section 29(3) of the Natural Persons Bankruptcy Act, section 2.113 of the Civil Code and section 754 of the Code of Civil Procedure, grant first-rank privilege to employees’ claims arising out of their employment. The Committee also notes the Government’s explanation that privileged protection is granted to all employee claims irrespective of their nature and without any limitation in terms of maximum amount or period of service. The Committee understands that the Government is planning to introduce a major reform of the insolvency regime through the adoption of a new and comprehensive Bankruptcy Act. The Committee requests the Government to keep the Office informed of any further developments which might have an impact on the application of the Convention.

Article 3(2). Acceptance of Part III – protection by a guarantee institution. The Committee notes that, under the Guarantee Fund Act, the scope of employment-related claims protected by the guarantee insurance extends beyond the minimum entitlements specified in Article 12 of the Convention. Noting that the Convention appears to be implemented in its entirety both in law and practice, the Committee once again recalls that the Government, which at the time of ratification accepted only Part II of the Convention dealing with protection of workers’ claims by means of a privilege, may now extend its acceptance to Part III of the Convention dealing with protection through a guarantee institution. The Committee accordingly requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Part IV of the report form. Practical application. The Committee notes the statistical information provided by the Government with relation to the number of claims settled and amounts paid by the Guarantee Fund in the period 2007–11. The Committee notes in particular that, in the last two years, the number of applications examined increased five times (from 342 to 1,825), the number of employees who received payments increased more than four times (from 6,579 to 28,100), and the amounts allotted more than tripled. The Committee would appreciate if the Government would comment on the reasons for such a marked increase in the volume of claims filed with the Fund and any predicted difficulties in this regard. It also requests the Government to continue to supply up-to-date information on the practical application of both Parts II and III of the Convention.