Law on Investments:
Amendments to the Law on Investments establish a right of the private sector to initiate public-private partnership projects.
Amendments to the Law on Investments (the Law on Amendments to the Law on Investments No. XII-1082), which will come into force on 1 February 2015, establish the right to the private entities initiate public-private partnership projects. The current wording of the Law does not impose prohibition to the private entities to initiate public-private partnership projects however, there is no obligation for the public subject to consider such offers. The adopted Law aims to expressly establish a possibility for private sector to initiate cooperation with public sector by imposing an obligation for public sector institutions to consider each proposal and reasonably accept or reject it. Before the Law comes into force, the Government of the Republic of Lithuania will have to adopt the legal acts necessary for implementation of these amendments. It is expected that these amendments will attract investments from private sector and further encourage the partnership between public and private sectors.
The draft amendments to the Labour Code and the Law on Unemployment Social Insurance aim to reduce the number of illegal workers.
The draft amendments to the Labour Code (the Draft Law on Amendments to the Labour Code No. 14-5272(3)) provide that when a case of illegal work is identified, the employer shall be obliged to pay to the illegal employee a salary for the agreed work. It should be noted that the amount of the salary will have to be at least the minimum monthly salary payable for at least three months, unless the employer or the employee is able to prove that the illegal work has lasted for a different period of time. The draft amendment to the law provides that disputes regarding salary payment between a person who has worked illegally and the employer shall be resolved in accordance with the procedure of resolution of individual labour disputes provided for in the Labour Code.
The draft amendment to the Law on Unemployment Social Insurance (the Draft Law on the Amendment to the Law on Unemployment Social Insurance No. 14-5273(3))proposes to terminate the payment of the unemployment insurance benefit to an unemployed, and to establish the obligation to repay the paid-out unemployment insurance benefits in case when it turns out that he or she has worked illegally. In addition, the draft law proposes to release the persons who have reported on their illegal work from the obligation to repay the paid-out unemployment insurance benefits.
The initiators of the law expect that if the proposed amendments are adopted, they will promote fair competition and reduce the number of illegal workers.
Starting from 1 January 2015 particular share sale and purchase agreements, loan agreements and bills of exchange will require notarization.
The amendments (the Law on Amendments to the Civil Code No. XII-1091), which will come into force on 1 January 2015 determine that all sale and purchase contracts of shares of private limited liability companies, where the sale price of shares exceeds EUR 14,500 (50,065.6 LTL), shall be mandatorily concluded in notarial form. This notarial form requirement is also established for the sale and purchase contracts, when the amount of the sold shares makes at least 25% of the share capital of a private limited liability company.
The amendments establish a mandatory notarial form requirement for loan agreements, when the amount of a loan exceeds EUR 3,000 (10,358.4 LTL). It should be noted that the requirement to conclude a loan agreement in the notarial form will be mandatory only for those transactions, where the amount of the loan is transferred to the borrower in cash.
In addition, the mandatory notarial form is fixed for bills of exchanges, when the amount exceeds EUR 3,000 (10,358.4 LTL). This requirement will be applicable for natural persons, as well as for the entities which handle their accounting in accordance with the simplified accounting rules.
It should be noted that a failure to comply with the mandatory notarial form of transactions makes the transaction void.
The drafters of the law expect that after these amendments come into force, they will reduce the number of fictitious transactions and complicate the legalisation of money and property acquired by criminal means.