Resignation at the employee’s initiative”: when does it become unlawful termination?

The State Labour Inspectorate has observed a consistent trend: disputes over termination of employment relationships increasingly involve claims that a resignation submitted “at the employee’s initiative” was, in fact, unlawful.

This trend is not coincidental. It reflects a developing body of case law in which courts place less emphasis on the formal resignation letter and greater weight on the circumstances under which it was submitted.

Under Article 55 of the Lithuanian Labour Code, an employment contract may be terminated at the employee’s initiative without cause by way of a written notice, subject to a 20-day notice period. The employee also retains the right to withdraw such notice within three working days.

At its core, this legal framework is built on the principle of free will. In other words, Article 55 applies only where the decision to resign is genuinely autonomous and not influenced or initiated by the employer.

This is precisely where most disputes arise.

Courts do not limit their assessment to the existence of a resignation letter. They examine the context in which it was signed.

In a case decided by the Kaunas Regional Court on 23 December 2025, an employee signed a pre-prepared resignation following a discussion about a potential suspension of the employer’s activities. The court found that giving only a few hours to make such a decision may amount to psychological pressure, as the employee does not have a real opportunity to assess the situation or its legal consequences.

It was also established that the employee had not formed a prior intention to resign and was not given sufficient time to consider the decision or seek advice. Both the Labour Disputes Commission and the appellate court concluded that the dismissal was unlawful.

The emerging standard is clear: the key question is not whether the employee signed a resignation, but whether they had a genuine opportunity not to sign it.

For employers, the primary risk lies not in documentation, but in how the decision-making process is managed.

Situations that typically raise concern include:
– pre-prepared resignation templates;
– very short deadlines for decision-making;
– circumstances suggesting that no real alternative is available;
– decisions taken under pressure, urgency, or emotional stress.

A signed resignation does not, in itself, secure the employer’s legal position. Courts will assess whether the employee’s will was genuine or shaped by the employer’s conduct.

When relying on Article 55, employers should therefore ensure that:
(i) this ground is not presented as an alternative to other forms of termination;
(ii) the employee is given sufficient time to consider the decision and seek advice;
(iii) the circumstances demonstrate a genuinely independent decision.

Termination “at the employee’s initiative” is no longer a purely procedural step. It is a fact-sensitive assessment where the process matters as much as the document itself.

If you are dealing with a termination situation or anticipating a potential employment dispute, we advise employers on dismissal strategy and risk assessment – where timely, clear and legally sound decisions are critical.