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Employment termination in Estonia

The amount of people fired or let go recently has increased. The reasons are clear - the economic situation has changed a lot.

Although corporate culture in Estonia has changed, cases of 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 or a letter of mutual termination by saying it is somehow more beneficial to the employee. In cases of collective lay-offs ("koondamine") concrete rules also have to be followed.

If you have any doubts about the termination then it is a good idea to consult a lawyer.


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