Consequences of Unlawful Dismissal: The Role of the Court. Lithuanian Model

This paper examines the consequences of unlawful dismissal in Lithuanian labour law with particular focus on the role of courts in determining the remedies applied in such cases. The main goal of the research is to assess the limits of judicial competence when deciding on the non–application of reinstatement, the reduction of statutory compensatory payments, and the determination of damages once the dismissal has been declared unlawful. The analysis is based on the hypothesis that the strict and detailed statutory regulation governing the consequences of unlawful dismissal does not necessarily ensure an appropriate balance between the rights and interests of employees and employers. It is presumed that such regulation, despite its formal precision, may create uncertainty in practice regarding the scope of employee protection and the extent of judicial discretion.

The study analyzes international standards on protection against unlawful dismissal, the historical development of Lithuanian labour law, and the interpretation of relevant norms in the case law of the Supreme Court of Lithuania. The research shows that although the legal framework establishes strict statutory consequences, the courts play a decisive role in shaping their practical application through interpretation guided by the principle of proportionality.