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

What Is a 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 labor 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.

To help your organization legally onboard and payroll a workforce in Lithuania, Acumen International offers a global employment solution that circumvents the legalities of direct hiring. Our global employer of record services provides a range of additional services like medical insurance, cars, laptops, and technology, so you can easily manage your personnel across multiple countries.

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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 best 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.

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.

Acument’s Global Employer of Record 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

Is Global Employer of Record Legal in Lithuania?

It is legal to hire employees in other countries through an EOR. However, not all global EORs are created equal. Some may be more compliant than others when it comes to local regulations. Before working with an EOR, do your research to find one that is reliable and has a high compliance rate.

Difference between an EOR and a PEO. Global Employment Risk Mitigation

Both PEOs and EORs work differently. However, an EOR is a company that takes on the legal risks of employing your workers, including finance, legal & compliance, and safety risks, saving you from any potential problems down the line. This means that all of the responsibilities that come with being an employer are shifted to them — from tax reporting to handling any injuries or issues on the job. You’ll have none of these hassles but will take responsibility for managing your employees’ tasks and performance.

Employment Model Co-employer Sole Employer
Key Services Global employment, payroll, benefits, immigration (visa, work permits), mobility Global employment, payroll, benefits, immigration (visa, work permits), mobility
Local Entity Establishment Required Optional
Liability Shares responsibilities and liabilities Assumes all responsibilities and liabilities
Legal Advice Optional Required
Global Labour & HR Compliance Optional Required

Global Employment: Legally Employ Your Selected Workforce via Acumen Employer of Record (EOR) in Lithuania

As a Global Employer of Record services provider, Acumen International helps businesses legally engage and pay selected highly skilled professionals in Lithuania.

Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves end employers and service companies representing international clients as a global employment organization.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record (EOR) solution in Lithuania offers an efficient and inexpensive alternative to direct hire. Our employer of record solution allows companies to operate in Lithuania and 190 international markets where we serve our clients without registering as a local business entity.

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Spotlight on Lithuania

Lithuania has an open and mixed economy 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: The national currency of Lithuania is 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.
  • Main trading partners: Latvia, Poland, and Germany. Export commodities are
    refined petroleum, furniture, cigarettes, wheat, and polyethylene. 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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