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LTMedicine10 days ago

Lithuania mulls new levy on employers to fund migrant worker protection

Lithuania is considering establishing a new fund to protect migrant workers from exploitation, funded by a levy on employers who hire foreign labor. This follows an investigation into alleged abuses against Filipino workers at two poultry farms. The idea is modeled after Lithuania's existing Guarantee Fund, which protects employees in case of employer insolvency. Business groups oppose the measure, and the government has not yet announced any plans to implement it.

Lithuania is debating whether to create a dedicated fund to support exploited migrant workers, financed by a new charge on employers who recruit staff from abroad — though the government says it has no current plans to introduce new taxes, and business groups are opposed.

The proposal comes after a preliminary investigation was opened into the alleged exploitation of around 140 Filipino workers at two poultry farms in the Rudamina and Kaišiadorys areas.

The head of the Lithuanian Trade Union Alliance, Audrius Cuzanauskas, says similar cases of abuse are widespread across the construction, transport and services sectors, and that organisations defending affected migrants are chronically short of funds.

A model borrowed from existing law

Cuzanauskas is proposing a new Integration Fund modelled on Lithuania's existing Guarantee Fund – a scheme under which employers pay a small monthly levy, currently 0.16 per cent of an employee's declared salary, which is used to pay workers if their employer becomes insolvent. The Guarantee Fund held assets of 206 million euros at the end of 2025.

"It's the same principle," he said. "The Guarantee Fund was created because when companies went bankrupt, everything fell on the state – or worse, workers lost everything. That system has proved itself and works very well."

Under his proposal, employers recruiting workers from outside the EU would pay an upfront deposit before bringing a worker to Lithuania, as well as ongoing contributions once employment begins.

The money would cover legal advice, interpreting, and psychological support for workers in dispute with their employers, as well as funding a safe return home if employment falls through – a particular concern for workers from the Philippines or Brazil, where a one-way flight takes around 14 hours.

"This would apply the same good practice to situations where an employer, responsibly or irresponsibly, brings a worker to Lithuania and carries out recruitment here. The employer should have to guarantee to the state that the worker will not end up undocumented in Lithuania through lack of money or anything else of that sort.

If someone fails their probationary period, there should be conditions in place to ensure they can return home safely – that they are not left destitute here. I think this would be one of the factors that would curb employers' appetite for bringing workers in – there would be greater accountability for the legal entity," Cuzanauskas said.

The idea has been backed by Kristina Mišinienė, director of the Centre Against Human Trafficking and Exploitation, who described it as "the only serious way out of the current situation," given that non-governmental organisations are currently scrambling for funds and communities are dipping into their own pockets to help victims.

She acknowledged, however, that persuading the government to act would be a struggle. "We can see they tread very carefully around employers. It would be a fight – but if we all raised this together and kept the problems in the public eye, we might get somewhere," she said.

The proposal has also received backing from the May Day (Gegužės 1-osios) trade union, grassroots initiative Sienos Grupė , and the Filipino Community in Lithuania.

Government open to debate

The Ministry of Social Affairs and Labour said it had no plans to increase employer levies, but welcomed a broader conversation.

Justinas Argustas, a spokesman for the ministry noted that nearly a quarter of all employment disputes in Lithuania now involve workers from outside the EU.

"Legal assistance, interpreting, and related issues are all worth discussing as we look for the best solution," he said.

Business groups push back

The Investors' Forum, which represents employers on Lithuania's tripartite labour council, rejected a blanket new charge. Its director, Vytautas Šilinskas, argued that a universal levy would punish law-abiding employers for the conduct of bad actors.

"We need to distinguish between migrants: high-skilled, medium-skilled and low-skilled workers. Every country competes to attract highly skilled workers with incentives – nobody talks about taxing them. They contribute far more in tax than they receive back, and employer abuse is virtually unimaginable in their case – these people have real bargaining power.

The situation is somewhat different with low- and medium-skilled workers, but even there a new levy would make things worse, not better – it would simply transfer the costs of the wrongdoers onto those who follow the rules. Everyone would pay the levy, but its size would be determined by how many violations the bad actors commit. Once again, the honest would end up subsidising the dishonest. That is not how it should work. Those who break the rules should foot the bill," he said.

On enforcement of existing law, Šilinskas pointed out that properly enforcing the existing requirement under the Employment Act. that recruitment services for fore…

Read the full article at LRT (English)
Source document: Lithuanian Trade Union Alliance

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LRT (English)State / PublicCenter10 days ago
Lithuania mulls new levy on employers to fund migrant worker protection

Lithuania is considering establishing a new fund to protect migrant workers from exploitation, funded by a levy on employers who hire foreign labor. This follows an investigation into alleged abuses against Filipino workers at two poultry farms. The idea is modeled after Lithuania's existing Guarantee Fund, which protects employees in case of employer insolvency. Business groups oppose the measure, and the government has not yet announced any plans to implement it.

Bias read (Center): The article presents facts without overtly favoring one side. It includes perspectives from trade unions, business groups, and mentions the government's position without taking a stance. The language remains neutral, focusing on the debate rather than promoting a particular viewpoint.

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  • organisationLithuanian Trade Union Alliance