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  1. Overview: Lithuania
  2. Work Permit for Hiring Expats via EOR
  3. Global HR Compliance
  4. Global PEO and payroll
  5. Contractor vs. Employee: Which Is Better?
  6. Expand without a Company Set Up
  7. Global Payroll Calculator
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Global Employer of Record in Lithuania

A Global Employer of Record may be the answer if you’re looking for a way to protect your business from employment liability and compliance risks in Lithuania. This legal entity can take on the employment risk for you, freeing you up to focus on your business objectives. The EORs offer flexible price models, with terms based on the number of employees. There’s no limit to project duration or employee number.

With a talented workforce, Europe is the best location for global companies to expand their operations and innovate cutting-edge technologies. Lithuania offers unique incentives to businesses in this space, but it’s often hard for international employers to navigate its labour laws and successfully recruit top talent. In response to these challenges, an Employer of Record offers a new way of hiring workers abroad.

Employers often find themselves in a difficult position when expanding globally. To comply with local laws, they often need to establish a legal entity in the country where they are expanding. This process can be costly and time-consuming, making many businesses hesitate before taking on the challenge. Fortunately, there is a Global Employer of Record solution available that can help simplify the process.

What Is a Global Employer of Record?

Global Employer of Record (EOR) offers a streamlined solution for companies expanding internationally, handling complex employment laws and administrative tasks. It operates across multiple countries, providing a unified solution for managing international staff, unlike traditional single-country EORs. Global EORs handle legal employment responsibilities like payroll, tax, and compliance with local labour laws, allowing companies to focus on core objectives. They offer expertise in local employment practices, reduce the need for local entities, and are cost-effective. Global EORs are ideal for companies exploring new markets or needing agile workforce strategies, offering flexibility and minimising risk. They act as strategic partners in international expansion, ensuring efficiency and compliance.

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All-In-One Global Employment Solution in Lithuania

Express Global Employment provides comprehensive services for building a global team, handling all aspects from hiring to compliance. Here’s what we can do:

  • Global Mobility Support: Simplifies onboarding and immigration, enabling quick onboarding and engagement of international talent.
  • Effortless Onboarding: Streamlines global employee onboarding to enhance productivity and speed up results.
  • Global Payroll & Benefits Management: Manages international payroll and benefits, ensuring compliance and competitive compensation.
  • Borderless Expansion Without Local Entities: Facilitates workforce expansion in 190 countries, removing the need for local business entities.
  • Hire Internationally, Operate Everywhere: Offers support for scaling operations and seizing international opportunities swiftly.
  • Risk-Free Market Navigation: Provides expert guidance for secure expansion, managing permanent establishment, employee misclassification risks and compliance challenges in new markets.

1. Recruitment

2. Global Mobility

3. Checks

4. Onboarding

5. Payroll Administration

6. Working Time & PTO Processing

7. Benefits Administration

8. Tax Administration & Reporting

Offboarding

Talent skilled in highly-specialized areas Employee Work Visa and Work Permit sponsorship Health checks Employment Agreement drafting In-country registration with statutory bodies Working hours Mandatory Benefits Tax Reporting frequency and requirements; Employment agreement termination:
Executive search Dependent Visa Criminal record checks Compliant worker onboarding on your behalf Day-to-day payroll management Overtime Health insurance Employer taxes & contributions Dismissal – by the employer
Contingency workforce Visa extension Background checks Account setup in the payroll and HR system​ Monthly pay slips or other pay frequency Public holidays Workers’ compensation Employee taxes & contributions Resignation – by the employee
Application for a sponsor license for a foreign national Education checks Employee data entry and records maintenance Accruals Annual leave Unemployment insurance Withholding tax Termination by mutual agreement
Relocation assistance Managing probation periods Allowances Parental leave Voluntary Benefits Local tax payments and reporting to local authorities Notice period handling
13th and 14th salary Sick leave Share plans for executives End of financial year reporting Final settlement & severance payments
Additional leave Bonuses & Equipment provision De-registration with statutory bodies
Expenses reimbursement & business trip processing
Health insurance, dental treatment

When You Should Use a Global Employer of Record

1. Using Global EORs to Explore and Evaluate International Markets

The process of exploring a new market can be lengthy and expensive, but some options can help you to get a quick read on the potential demand for your products and services.

A Global Employer of Record is a great way to test the readiness of an international market for your products or services. Hiring workers via Global EOR in target countries, including Lithuania, allow you to get a feel for the market without committing time and resources to set up a local entity. This is a great way to gauge interest and potential demand before making a major investment.

Companies often use EORs for temporary workers who may need to work in multiple locations during their contract period. For example, suppose you’re an IT company looking for temporary help in another office. In that case, you might hire an employee through an EOR to fill that spot without worrying about payroll, benefits, or local tax and compliance issues.

2. Leveraging Short-term Employee Engagements

Although Lithuania offers companies several advantages when expanding their business, many business owners find setting up a Lithuanian company time-consuming and difficult. Alternative solutions, such as working with a Global Employer of Record (EOR), offer a more streamlined approach that eliminates some of the hassles involved in establishing a legal entity. The EOR will take on all tax and regulatory obligations on behalf of your company, ensuring that operations run smoothly without any unnecessary delays. By engaging a global EOR, you can also avoid additional expenses associated with running a foreign subsidiary, such as consultancy fees, office space, and equipment rentals.

Partnering with an Employer of Record, you will retain complete control over your employees and business operations while benefitting from substantial cost savings and avoiding non-compliance risk.

3. An EOR (Employer of Record) Allows You to Onboard the Best Talent Faster

As the global economy continues to strengthen, many companies are searching for ways to decrease costs and increase efficiency. One solution is to outsource employment overseas, which can be risky and complex. Employers of Record (EORs), on the other hand, allow you to hire talent from any location without needing an entity. This makes it a clean and compliant option with global regulations.

4. Converting Freelancers into Employees

The workforce has become increasingly mobile and diverse in today’s global workplace.n recent years, many businesses started using a flexible workforce (freelancers for short). While these independent contractors can benefit companies in terms of cost control and flexibility, some drawbacks should not be overlooked. One key concern is the high turnover rate—which plays a big role in the misclassification of employees. This puts organizations at risk of owing back taxes and benefits — which could lead to painful penalties.

For freelancers, the world of employment is changing as governments reclassify independent contractors. Not only may they owe income tax on their earnings, but they could also lose access to worker benefits such as sick leave and holiday pay. The UK made headlines by introducing IR35 legislation, which aims to modernize employment status designations – ensuring that “workers that would be classified as an employee if they were contracted directly” pay the same Income Tax and National Insurance contributions.

As more and more countries enact employment legislation to address the misclassification of workers, it is becoming increasingly crucial for businesses to ensure that they comply with these laws. An Employer of Record company can help you retain the talent you need and support you in your long-term workforce legal employment in Lithuania, including during any transition period and with any necessary HR processes.

What Services Can a Global Employer of Record Provide?

1. Onboarding of Local and Ex-pat Employees in Lithuania

With the growing need to hire talent in a rapidly emerging, competitive, and international market, it is important to partner with a trusted Global Employer of Record that can provide international employment expertise and labor law compliance for your company expanding to Lithuania. The Acumen International Global Employer of Record is an efficient, effective, and reliable EOR service portfolio to manage the employment process.

A Global Employer of Record with a wealth of international and local expertise and necessary processes can be a great resource to help orchestrate the employment process while complying with all applicable regulations in Lithuania.

Global Employer of Record companies can help businesses bridge the gap when establishing a legal foreign entity.

Acumen International can help your business get a foothold in Lithuania by offering world-class immigration and compliance services. A smart approach to hiring, coupled with a vast array of global EOR services that minimize up-front costs, can provide your organization with a robust workforce pipeline in one fell swoop.

2. Compliant Employment Contracts in Lithuania

The global EOR in Lithuania provider can draft employment contracts in compliance with the applicable local employment regulations. The contracts are tailored to meet the needs of both employees and your organization as the factual employer. Employment Contracts are designed to reflect the specific local employment regulations at the time of contract execution in Lithuania.

Employment Contracts can be drafted for temporary or permanent assignments or full-time or part-time work. Global EORs help ensure that all Lithuanian employees have access to standardized terms and conditions appropriate for their employment status and location.

The Global Employer of Record solutions provider will provide administrative support for any legal matters that arise from your collaboration.

3. A Global EOR Provides Payroll Administration Services in Lithuania

An EOR is a company that helps companies to manage the administration of employee pay in other countries. When you employ someone in another country through an EOR, you provide the funds, and the EOR handles the distribution of salary, social security contributions, and retirement accounts.

An EOR, or Employer of Record, can help you avoid costly fines and headaches regarding international payroll. By working with an EOR, you can safely and securely hire workers from foreign countries without worrying about each country’s complex tax laws and employment regulations. Find the best candidate for the job, and let your Global EOR take care of the rest!

4. Work Permits for EOR Employment of  Your Selected Candidates in Lithuania

We provide work permits and immigration support for our ex-pat clients. Our team of specialists will help you navigate the complicated process of obtaining a work visa or residency permit to facilitate your early arrival in the country. By working with one provider, you’ll avoid the hassle and rejection of dealing with multiple agencies.

Global EOR Efficiency: Reducing Vendor Complexity in Lithuania

Utilising a single Global Employer of Record partner empowers businesses to manage employees across multiple countries efficiently. This unified approach simplifies complex international HR processes, providing consistency in employment practices and compliance standards across different jurisdictions. It eliminates the need for multiple local HR teams or legal advisors, ensuring a cohesive and streamlined strategy for global employment.

A Global Employer of Record can effectively consolidate multiple services, replacing the need for various vendors across jurisdictions:

  1. Payroll and Tax Compliance: Manages payroll processing, tax withholding, and reporting, aligning with local regulations.
  2. Benefits Management: Constructs and administers comprehensive and competitive employee benefits packages, adhering to local laws.
  3. HR Expertise: Offers a full range of HR services, including streamlined and compliant employee onboarding, talent management., and offboarding.
  4. Background Verification: Conducts employee background checks, ensuring compliance with regional standards.
  5. Intellectual Property Assistance: Aids in protecting intellectual property rights across different jurisdictions.
  6. Tax Consultation: Provides expert advice on local tax laws and compliance.
  7. Translation Services: Offers language support to bridge communication gaps in multinational operations.
  8. Legal Advisory: Delivers legal expertise, including contract review and regulatory compliance.
  9. Immigration Guidance: Assists with work permit sponsorship and visas for international employees, simplifying the immigration process.

Benefits and Infrastructure of Acumen International Employer of Record

Our Employer of Record (EOR) Solution is the most efficient and cost-effective way to manage global talent. We offer a full suite of services, including payroll, compliance, employee administration, and other HR functions.

We know what it takes to hire and manage employees worldwide. Our experience helps us save you time and money by eliminating the need for you to research and implement local laws and regulations for each country in which you operate.

Using our global Employer of Record Solution, you can convert your existing freelancers/contractors into employees, engage global talent for short-term projects, and employ your global workforce anywhere in the world. Attracting, motivating, and retaining the best global talent is a competitive advantage.

Express Global Employment provides a full range of global employment services

  • Car leasing
  • Office and showroom rental
  • Equipment provision (notebook, mobile, etc.)
  • Arrangement of business trips
  • Business expense management
  • Medical insurance
  • Accommodation (housing) on demand

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Spotlight on Lithuania

Lithuania has an open and mixed economy that is classified as high-income by the World Bank.

  • Location: Lithuania is a country in the Baltic region of northern-eastern Europe, between Latvia and Kaliningrad Oblast of Russia, west of Belarus, south of Poland, and bordering the Baltic Sea.
  • Capital: Vilnius.
  • Currency: Lithuania’s national currency is the Euro.
  • Official language: Lithuanian.
  • Population: 2,795,680.
  • Labor force: 1.333 million.
  • Most developing industries: The largest sectors in the Lithuanian economy are services, industry, and agriculture.
  • The main trading partners are Latvia, Poland, and Germany. Export commodities are
    refined petroleum, furniture, cigarettes, wheat, and polyethene. Import commodities are crude petroleum, cars, packaged medicines, refined petroleum, and electricity.
  • Minimum statutory salary: Lithuania has a government-mandated minimum wage. The National Minimum Wage is €4.47 per hour. The monthly wage calculated based on a week of 40 working hours consists of a minimum of €730.00.
  • Thirteen salary: 13th-month payments are not required by law in Lithuania. However, it is common for employers to pay a performance-based bonus.
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