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DNLC turning away from policy of employee uniformity and provide slightly (unlike
Denmark, which provides radically different regulation for blue-collar and white-collar
workers) customized regulation for management personnel, small (less than 10 workers)
business and other categories of employees.
Even current regulation allows by collective agreements reach considerable level of
flexibility, but they remain extremely uncommon in Lithuanian private sector. State Labour
Inspectorate counted that collective contracts are concluded in around ten percent of
companies and that is lowest figure in the EU (Sukurto tesinio-administracinio modelio
ataskaita. 2015). DNLC suggests transfer to collective contract regulation part of important
issues (like remuneration payment system) and thus increase quantity of collective
agreements. Collective agreement concluded a trade union will be applied only to members
of trade union (DNLC art. 218) and, it would seem, to allow for the employer to have several
collective agreements with the different groups of employees.
Proposed regulation provides strengthening of workers' representation by establishment of
works councils and election of employees trustees (when average employee number is less
than 20). This measure will enhance workers access to information and will give opportunity
thru representatives to participate in company’s board decision making processes (DNLC art.
233th). Combination of models of co-management, most known in Germany, with
centralized collective bargaining is bold and uncommon in Europe (De Vos, 2015).
This short overview of shows that authors of DNLC by adaptation of advanced foreign
regulation (already in use in United Kingdom, Denmark, Netherlands and other countries)(
Report, 2015), EU guidelines and adjustment of existing regulation manage to propose draft
of modern legal document. Provisions DNLC aim to considerably increase flexibility, both
contractual and functional, and bring labour regulation closer to civil law.
Impact of flexible legal framework on innovative human resource practices
Success of labour law will depend, among other factors, on willingness the employers to act
upon ne regulation in prescribed why and reediness of employees accept the changes.
There are some examples of foreign “legal transplants” which didn’t find their proper place
in Lithuanian legal system (collective agreements in CLC regulation).
Increase of flexibility in legal framework does not necessarily mean automatic “all direction”
growth of innovative human resource management practices. Unemployment is the main
target of the reform and increase of contractual flexibility is the proposed approach to this
problem. After implementation of proposed regulation it is expected to create 85 thousand
new workplaces, but it is likely that most of newly created places would be in fixed-term,
undetermined work extent and other non-standard employment. In other words it will be
result of “managerial” innovative business practices.
Studies of innovative company practices and employee behavior in Western Europe found
negative relations between job insecurity and creativity, but job insecurity is and strongly
negatively related to organizational trust. Moreover innovative “learning organization” type
companies used fewer temporary contracts than the other, less innovation prone,
organization types. Positive relation between temporary work and innovation was found
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