Employment

Dismissal and Severance in Estonia

Notice periods, severance pay, unfair dismissal claims

Types of Termination

Ordinary Termination

By employer due to economic reasons or performance [TLS]

Common Reasons

  • Redundancy (koondamine) - position eliminated
  • Long-term incapacity - employee unable to work
  • Unsatisfactory performance during probation
  • Notice period required based on employment length
Extraordinary Termination

Immediate termination for serious breach [TLS]

Valid Grounds

  • Serious breach of duties
  • Dishonesty, theft, or violence
  • Breach of confidentiality
  • No notice period required
Mutual Agreement

Both parties agree to end employment

Notice Periods

From Employer (Ordinary Termination) [TLS]
Employment DurationNotice Period
During probation15 days
Less than 1 year15 calendar days
1-5 years30 calendar days
5-10 years60 calendar days
Over 10 years90 calendar days
From Employee
30 days
Standard notice for employees
15 days
During probation period

Always 30 calendar days (15 during probation)

Severance Pay

For Redundancy (Koondamine)
1 month average salary
Minimum Severance

1 month average salary for redundancy [TLS]

Unemployment Fund Compensation

Additional payment from fund for long-term employees

Employment DurationCompensation
5-10 years1 month salary
Over 10 years2 months salary

Challenging Unfair Dismissal

Protected Categories

Certain employees have additional protection against dismissal [TLS]

  • Pregnant employees
  • Employees on parental leave
  • Employee representatives
  • Employees performing military service
  • Employees with reduced work capacity
How to Challenge
!

30-Day Deadline

You must file a claim within 30 days of receiving the termination notice. This deadline cannot be extended. [TI]

Possible Outcomes

  • • Reinstatement with back pay
  • • Compensation (typically 3 months salary, max 12)
  • • Dismissal declared void

Final Settlement

Employer must pay on last day

  • Outstanding wages
    Required
  • Unused vacation payout
    Required
  • Severance pay (if applicable)
    Situational
  • Any bonuses or commissions owed
    Situational
  • Compensation in lieu of notice
    Per Agreement

Related Resources

Severance Calculator
Calculate your severance pay entitlement
Labor Disputes Guide
How to file a claim with the Labour Dispute Committee
Official Sources

Sources