The Seimas endorsed the amendments, most of which had been approved by the Tripartite Council, in a vote of 84 to ten with 29 abstentions.

"By voting in favor of this code, we are giving a huge credit of trust to employers. It is now time for businesses to show that they can contribute to solving Lithuania's problems," Tomas Tomilinas of the ruling Lithuanian Farmers and Greens Union said.

The more liberal Labour Code was passed in 2016, but its entry into force was postponed for half a year after the Lithuanian Farmers and Greens Union (LFGU) won last October's general elections.

Amendments to the Labor Code were tabled by taking into consideration President Dalia Grybauskaitė's comments, but only a small part of her proposals were approved at the Tripartite Council, which brings together the government, employers and trade unions.

This is Lithuania's second Labour Code since independence. The existing code has been in place since 2003.

Before that, labor relations in Lithuania were regulated by separate laws.