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Compensation for illegal employment termination

Although corporate culture in Estonia has changed, cases on illegal employment termination still happen. Some intentionally and some due to insufficient knowledge about the Estonian employment laws and specifically about when it is possible to unilaterally terminate the contract by the employer. There is also insufficient knowledge on the side of the employee - namely that the employee can demand compensation for up to 3 months' salary in case of wrongful and illegal job contract termination. The compensation demands can be settled by way of negotiations or by turning either to court of the Labour Dispute Committee ( . The latter is faster and does not require the payment of state fee. In case of a dispute or in a situation where it is clear that the relations with the employer are turning bad, it is important to make very clear decisions. Care should be practised for example about what the employer is telling you. If it is the wish of the employer to fire the employee then in some cases they want the employee to sign a resignation letter by saying it is somehow more beneficial to the employee. That is hardly ever the case so do not be intimidated and consult a specialist if needed.


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