center 58189 0 0 QUESTIONNAIRE ON EMPLOYMENT PROTECTION LEGISLATION FOR THE 2026 EDI TION OF THE OECD EMPLOYMENT OUTLOOK This questionnaire aims t o collect information for the update of the OECD EPL indicators . The table s below report the information collected thanks to the previous questionnaire , corresponding to regulations that were in force on 1 January 2019 . Q uestions on non-standard forms of work and procedures of resolution of disputes have been removed, so that the questionnaire has been considerably shortened. The table asks for a description of regulations, case law and collective agreements as of 1 January 2025 for all items/questions in case of a change since 2019 . The last column requests references to articles in specific acts, collective agreements or court rulings. Also, t he numbering of q uestion s is preserved for continuity wit h previous questionnaires; with more recent questions number ed higher , so that some questions in the tables are not numbered consecutive ly . While filling in the table s , please keep in mind: Providing , if possible, a n online link to or copy o f the corresponding relevant laws in the labour code, if possible in English. Report ing changes coming into force after January 2025 , with the corresponding date (however please exclude reforms that are planned but not yet approved) . Reporting the information corresponding to 2019 when it is missing . Correcting information available for 2019 , if necessary . Providing detailed explanations in the case of different provisions for different types of firms/employees (e.g. firms above/below a certain size ; blue - collar/white - collar workers ; younger/older workers ) or different circumstances (e.g. dismissal for economic/ personal reasons ) . Providing details if different provisions apply depending on the duration of the contract (e.g. contracts longer/ shorter than a certain number of days), the number of working hours , or if the scope of application is limited (e.g. exempted industries/occupations). Specific instructions are reported in endnotes for some questions . PART 1: OECD EPL INDICATOR S FOR REGULAR WORKERS Table 1a refer s to the rules a pplying to individual dismissals of regular workers (with open-ended contracts) for economic or personal reasons without fault , Table 1b to the rules applying to collective dismissals . Table 1a: EPL for regular workers against individual dismissals without fault Regulations in force on 1 January 2019 (all empty cells to be filled in please) Regulations in force on 1 January 2025 (only to be filled in in case of a change since 2019 ) Date of enforcement of changes since 2019 References to main articles of law (and/or relevant collective agreements) for this question in 2025 Question 1: Notification procedures in the case of individual dismissal of a worker with a regular contract. In particular, please specify whether a consultation/discussion, an authorisation or a warning procedure is required. A consultation refers to a formal discussion, as opposed to a simple notification. Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). An employment contract may be terminated by a declaration of termination made in a format which must be reproduced in writing. A declaration of termination made in breach of the formal requirement or a contingent declaration of termination is void. An employer shall justify termination. Before termination of the employment contract with the employees’ representative the employer shall seek the opinion of the employees who elected the person to represent them or the trade union about the termination of the employment contract. The employer shall take the opinion of the employees into account to a reasonable extent. The employer shall justify disregard for the opinion of the employees. The employer must also give communication to the Unemployment Insurance Fund within 5 days of termination if the employee job tenure is at least 5 years (art. 100 Employment Contracts Act, ECA hereafter, and Art. 14.1 and 14.3 of the Unemployment Insurance Act). Calculation (for EPL indicators): average of more and less than 5-year tenure: (1+2)/2=1.5 Question 1a: If a written statement of the reasons for dismissal is required, please specify whether these expressed reasons can be changed thereafter, for example in the event of a dispute on the grounds for the dismissal. Please explain under what conditions the reason can be specified/changed/made more precise after the notification of dismissal to the worker. In your response, please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). According to the ECA § 95 a n employment contract may be cancelled by a declaration of cancellation made in a format which can be reproduced in writing . An employer should justify cancellation and in a format which can be reproduced in writing. An empl oyer should justify cancellation and an employee should justify extraordinary cancellation. Cancellation shall be justified in a format which can be reproduced in writing. Breach of the obligation does not affect the validity of the cancellation, but the party in breach of the obligation shall compensate the other party for the damage caused thereby. Question 2: Delay before the notice period can start or at the end of the notice period before the termination becomes effective . Please also specify any scheduling constraints (such as specific calendar dates – e.g. end of the month – for termination). Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). The term of advance notice begins to run on the day following the calendar day when the declaration of termination was delivered. Advance warning is required in the case of unsuitability. An employer may not terminate an employment contract with a pregnant woman or a woman who has the right to pregnancy and maternity leave due to lay-off, except upon cessation of the activities of the employer or declaration of the employer’s bankruptcy if the activities of the employer cease or upon termination of bankruptcy proceedings, without declaring bankruptcy, by abatement. An employer may not terminate an employment contract with a pregnant woman or a woman who has the right to pregnancy and maternity leave arguing a decrease in the employee’s capacity for work. The previous two sections shall be applied only if the employee has notified the employer of her pregnancy or of the right to pregnancy and maternity leave before receipt of a declaration of termination or within 14 calendar days thereafter. Calculation (for EPL indicators): 1 day for notice + 6/2 days for warning = 4 days Question 3: Length of notice period at different tenure durations. 1 Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). An employer shall give an employee advance notice of termination if the employee’s employment relationship with the employer has lasted: 1) less than one year of employment – no less than 15 calendar days; 2) one to five years of employment – no less than 30 calendar days; 3) five to ten years of employment – no less than 60 calendar days; 4) ten and more years of employment – no less than 90 calendar days. Calculation (for EPL indicators): 9 months tenure -15 calendar days, 4 years tenure 30 calendar days, 20 years tenure 90 calendar days. Question 4: Severance pay at different tenure durations. 1 Please detail any tax (income tax paid by the employee and other taxes) imposed by the government on this severance pay, or any subsidies granted to firms paying this severance pay. Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). Upon termination of an employment contract due to lay-off, an employer shall pay an employee compensation in the amount of one month’s average wage of the employee. Also an insurance benefit shall be paid by the Estonian Unemployment Insurance Fund to an employee whose employment relationship with an employer or to an official whose employment in the service has lasted for: 1) five to ten years - in the amount of one month’s average salary or wage; 2) over ten years - in the amount of two months’ average salary or wage. Calculation (for EPL indicators): average of layoff and personal reasons: 9 months – 0.5 months; 4 years – 0.5 months;20 years – 0.5 month Question 5: Definition of unfair dismissal. 2 Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). Fair: An employer may extraordinarily terminate an employment contract with good reason arising from the employee as a result of which, upon respecting mutual interests, the continuation of the employment relationship cannot be expected, especially if the employee has: 1) for a long time been unable to perform his or her duties due to his or her state of health which does not allow for the continuation of the employment relationship (decrease in capacity for work due to state of health). A decrease in capacity for work due to state of health is presumed if the employee's state of health does not allow for the performance of duties over four months; 2) for a long time been unable to perform his or her duties due to his or her insufficient work skills, non-suitability for the position or inadaptability, which does not allow for the continuation of the employment relationship (decrease in capacity for work); 3) in spite of a warning, disregarded the employer’s reasonable instructions or breached his or her duties; 4) in spite of the employer’s warning been at work in a state of intoxication; 5) committed a theft, fraud or another act bringing about the loss of the employer’s trust in the employee; 6) brought about a third party’s distrust in the employer; 7) wrongfully and to a significant extent damaged the employer’s property or caused a threat of such damage; 8) violated the obligation of maintaining confidentiality or restriction of trade. Before termination of an employment contract, in particular on the basis specified in cases 1) and 2), the employer shall offer other work to the employee, where possible. The employer shall offer other work to the employee, including organise , if necessary, the employee's in-service training, adapt the workplace or change the employee’s working conditions if the changes do not cause disproportionately high costs for the employer and the offering of other work may, considering the circumstances, be reasonably expected. An employer may cancel an employment contract due to a breach of an employee’s obligation or decrease in his or her capacity for work. An employer may also extraordinarily cancel an employment contract if the continuation of the employment relationship on the agreed conditions becomes impossible due to a decrease in the work volume or re- organisation of work or other cessation of work (lay-off). Question 5a: In the event of a dismissal for economic reasons, please detail the degrees of freedom of judges. Can they only question patently irrational/arbitrary/frivolous dismissal decisions or false reasons? Can they question the operational need of the dismissal decision (i.e. the soundness of the management practices)? Does the employer have to provide proof that the dismissal is essential for the future profitability of the firm? The resolution of labour disputes in court is governed by the Code of Civil Procedure. However the Code of Civil Procedure does not specify the procedures based on the type of dismissal (i.e. economic reasons or any other) and obeys the rules of the general procedure of Civil Procedure. According to the Code of Civil Procedure a fact which the court deems to be a matter of common knowledge need not be proved. The degree of freedom of judges is not regulated by the law. Every case is handled individually. However there have been judgements where court has found that court does not have the right to assess the economic state of an employer and if the dismissal was therefore eligible. Question 5b: In the event of a dismissal for economic reasons, please detail alternatives that need to be considered (e.g. transfer at the plant/firm/group level; retraining) , the selection criteria, outplacement obligations (e.g. duty for the employer to organise/pay for job search assistance/re-training) and priority for re-hiring, if any. 2 According to the ECA § 89 in the event of a dismissal for economic reasons an employer should , where possible, offer other work to the employee, except in the cases of cancell ation of an employment contract upon cessatio n of the activities of employer or upon declar ation of bankruptcy of employer. The employer shall, where necessary, organise the employee's in-service training or change the employee’s working conditions, unless the changes cause disproportionately high costs for the employer. The employer shou l d take into account the principle of equal treatment. However the employees’ representative and an employee who is raising a child under three years of age have the preferential right of keeping their job. Question 5c: In the event of a dismissal for personal reasons, please detail alternatives that need to be considered (e.g. transfer at the plant/firm/group level; retraining). 2 Please distinguish between different types of personal dismissal (insufficient performance, unsuitability for medical reasons, unsuitability for other reasons). I f the employee has for a long time been unable to perform his or her duties due to state of health or he/she has been for a long time unable to perform duties due to his or her insufficient work skills, non-suitability for the position or inadaptability, which does not allow for the continuance of the employment relationship; the employer should offer other work to the employee, where possible. The employer shall offer other work to the employee, including organise, if necessary, the employee's in-service training, adapt the workplace or change the employee’s working conditions if the changes do not cause disproportionately high costs for the employer and the offering of other work may, considering the circumstances, be reasonably expected. Question 6: Length of trial period, i.e. the initial period within which regular contracts are not fully covered by employment protection provisions and unfair dismissal claims cannot usually be made. A probationary period shall not exceed 4 months. In the case of the employment contract entered into for a specified term of up to eight months the probationary period may not be longer than half of the contract term. A probationary period of four months is applied to an employee as of the day of commencement of work to assess whether the employee’s health, knowledge, skills, abilities and personal characteristics correspond to the level required for the performance of work. In the employment contract it may be agreed that the probationary period is not applied or is shortened. The probationary period does not include a time when the performance of the employee’s duties was hindered, above all when the employee was temporarily incapacitated for work, performed duties other than usual while working on the basis of a certificate for sick leave, or was on holiday. When an employment contract entered into for a specified term is extended or concluded consecutively for the performance of similar work, a new probationary period is not applied. entry into force 15.05.2024 Employment Contracts Act– Riigi Teataja Question 6a: Rules of termination of the trial period. Are there regulations restricting (or imposing conditions to) termination before the end date of the trial period? (e.g. protection against unfair termination, notice periods, severance pay.) If yes, please specify: 1) fair reasons of termination (e.g. worker’s fault, company bankruptcy, plant closure, worker capability, redundancy, any reason ); 2) the length of the notice period; 3) severance pay . The only special rule to terminate before the end date of probationary period, is the a dvance notice of cancellation due to failure to achieve goal of probationary period . According to the paragraph, a n employment contract may be cancelled during a probationary period by giving no less than 15 calendar days’ advance notice. An employer may not cancel the employment contract on a ground that is in conflict with the goal of the probationary period. An employer thus must justify and explain the circumstances based on which it can be concluded that the employee did not reach the goals of the probationary period. Question 7: Compensation following unfair dismissal. 3 Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). Employer shall pay employee compensation in the amount of three months’ average wages of the employee. In the case of an employee who is pregnant, who has the right to pregnancy and maternity leave or who has been elected employees' representative, the employer shall pay the employee compensation in the amount of six months’ average wages of the employee. The court or labour dispute committee may change the amount of the compensation, considering the circumstances of the termination of the employment contract and the interests of both parties. If an employee cancels their employment contract extraordinarily for the reason that the employer is in fundamental breach of the contract, the employer must pay the employee compensation to the extent of three months’ average wages of the employee. This compensation is not subject to the provisions of Chapter 7 of the Law of Obligations Act. The court or labour dispute committee may change the amount of compensation considering the circumstances of the cancellation of the employment contract. The amount of compensation may not be reduced by benefits and allowances paid to the person by the state. In case of unfair dismissal of an employee who is pregnant, who has the right to maternity leave or who has been elected as the employees' representative, the employer must pay the employee compensation to the extent of 12 months’ average wages of the employee. This compensation is not subject to the provisions of Chapter 7 of the Law of Obligations Act. The court or labour dispute committee may change the amount of compensation considering the circumstances of the cancellation of the employment contract. The amount of compensation may not be reduced by benefits and allowances paid to the person by the state. entry into force 17.03.2023 Question 7a: Compensation following procedural breach. 3 An employment contract may be cancelled by a declaration of cancellation made in a format which can be reproduced in writing. Declaration of cancellation made in breach of the formal requirement or a contingent declaration of cancellation is void. An employer shall justify cancellation. An employee shall justify extraordinary cancellation. Cancellation shall be justified in a format which can be reproduced in writing. Also i f an employer or employee gives advance notice of cancellation later than provided by law, the employee or the employer has the right to receive compensation to the extent to which he or she would have been entitled to upon adhering to the term for advance notice. Question 8: Reinstatement option for the employee following unfair dismissal. 2 Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). Reinstatement is possible if both parties agree to that. If the employer is not agreeing to this, the reinstatement is possible if, at the time of the termination, the employee is pregnant or has the right to pregnancy or maternity leave or has been elected employees' representative, unless it is reasonably not possible considering mutual interests (Art. 107 ECA ). Question 8a: Reinstatement option for the employee following procedural breach. 2 If a court or labour dispute committee establishes that cancellation of an employment contract is void due to the absence of a legal basis or the non-conformity with the law or nullified due to a conflict with the principle of good faith, it should be deemed that the contract has not expired by cancellation. The court or labour dispute committee sh ould not satisfy the employer’s request of terminating the employment contract, if at the time of the cancellation, the employee is pregnant or has the right to pregnancy or maternity leave or has been elected as the employees' representative, unless it is reasonably not possible considering mutual interests. Question 9: Maximum time period after the contract termination date up to which an unfair dismissal claim can be made . Please distinguish between dismissals for economic reasons (i.e. redundancy) and dismissals for personal reasons without fault (i.e. insufficient performance/unsuitability). An action with the court or an application filed with a labour dispute committee for establishment of nullity of termination shall be filed within 30 calendar days as of the receipt of the declaration of termination. Question 30: Resignation . Does resignation grant access to unemployment benefits? If yes, is there any sanction/waiting period as compared to the event of dismissal (i.e. extended waiting period or temporary disqualification)? Does resignation grant other types of benefits, e.g. preferential tax treatment of compensation received at the time of resignation (such as in a resignation agreement)? In case of resignation, the person has no eligibility for unemployment benefits. Only i f an employee cancels the employment contract extraordinarily on the ground that the employer is in fundamental breach of the contract, the employer shall pay the employee compensation to the extent of 3 months' average wages of the employee. A court or a labour dispute committee may change the amount of the compensation, considering the circumstances of the cancellation of the employment contract and the interests of both parties. There is currently a change of Unemployment Insurance Act being discussed in the parliament , according to which t he basic unemployment insurance benefit will be granted to a person who has worked for at least 8 months in the 36 months preceding the date of registration as unemployed. The benefit is paid for up to 180 days and the amount of the benefit is the same for everyone, 50% of the minimum wage for the previous calendar year. The change is planned to come into force from 1. January 2026 but is not approved in the parliament yet. Question 31: Termination by mutual consent . Is termination by mutual consent allowed? Please specify valid/forbidden cases, if there are restrictions. Among the possible agreements of termination by mutual consent, would any of them make the employee eligible for: - Unemployment benefits? If yes, is there any sanction/waiting period as compared to the event of dismissal? - Compensation with tax break? - Other types of benefits? Challenging termination by mutual consent in courts: Can the agreement of termination by mutual consent explicitly contain a clause forbidding the employee from challenging the content of the agreement in courts? On which grounds could a worker challenge termination by mutual consent? For example, can the employee argue he/she did not fully understand the consequences of the agreement? Parties may terminate both an employment contract entered into for a specified term and an employment contract entered into for an unspecified term at any time by agreement. In the case of termination by mutual consent the employee is not eligible for unemployment insurance benefits. Although in such case the person is not eligible for unemployment insurance benefit, the person may qualify for the unemployment allowance. The agreement of termination by mutual consent cannot explicitly contain a clause forbidding the employees from challenging the content of the agreement in courts. Such agreements are void. An employee could challenge a termination by mutual consent only in case he/she can approve, that he/she was induced or he/she did not fully understand the consequences of the agreement. Question 32: Resolution mechanisms prior to a dismissal . In the event of a dismissal , please describe available pre-dismissal resolution mechanisms limiting the scope of possible complaints of unfair dismissal (or preventing them entirely) while granting eligibility to unemployment insurance, compensation with tax break, or other types of benefits. Please note that this question refers to dismissals, as opposed to Questions 30 and 31, which refer to resignation and termination via mutual consent. No regulation regarding r esolution mechanisms prior to a dismissal. If possible, a labour dispute matter shall be resolved by agreement of the parties to the dispute : 1) before referring the matter to a labour dispute committee on the basis of the principle of good faith and reasonableness and, if necessary, through the representative of employees; 2) by way of conciliation or compromise in a labour dispute committee on the basis of the provisions of Labour Dispute Resolution Act However, it is voluntary and in case of not going through the process, it has no consequences. Question 33: Is there a legislative framework promoting a post-dismissal agreement limiting the scope of possible complaints of unfair dismissal (or preventing them entirely)? There is no legislative framework promoting a post-dismissal agreement. Question 34: Pre-dismissal validation of dismissals In the event of dismissal, please describe any pre-dismissal validation of the dismissal by a third party, which would limit the scope of possible complaints of unfair dismissal (or preventing them entirely). In the case of collective dismissal The Estonian Unemployment Insurance Fund has to be pre-informed about the dismissal. However as a result The Estonian Unemployment Insurance Fund may extend the term of the expiry up to 60 calendar days if it finds that it cannot resolve the employment problems relating to the collective cancellation within 30 calendar days . Question 35 : In the event of a procedure of resolution of dispute concerning unfair dismissal - excluding cases of discrimination - , i s the burden of proof on the employee/claimant or on the employer? In an action, each party shall prove the facts on which the claims and objections of the party are based, unless otherwise provided by law. For example if an employer terminates an employment contract with an employee who is pregnant or raising a child under three years of age, it shall be deemed that the employment contract has been cancelled because the employee is pregnant or has the right to pregnancy and maternity leave or the employee performs important family obligations, unless the employer proves that it cancelled the employment contract on a basis permitted in Employment Contract Act. Legend: d: days; w: weeks; m: months; y: years. For example “1m < 3y” means “1 month of notice (or severance) pay is required when length of service is below 3 years”. Notes: 1 Three tenure durations (9 months, 4 years, 20 years). Case of a regular employee with tenure beyond any trial period, dismissed on personal grounds or economic redundancy, but without fault (where relevant, calculations assume that the worker was 35 years old at the start of employment). Averages are taken where different situations apply – e.g. blue - collar and white - collar; dismissals for personal reasons and for redundancy. 2 Please, base your response also on case law, if court practice tends to be more (or less) restrictive than what is specified in legislat ion. 3 Typical compensation at 20 years of tenure, including back pay and other compensation (e.g. for future lost earnings in lieu of reinstatement or psychological injury), but excluding ordinary severance pay. Where relevant, assume that the worker was 35 years old at the start of employment and that a court case takes 6 months on average. Base your response also on case law. For each of the following questions on collective dismissals (Table 1b), please provide a detailed answer only if the regulation differs from that for individual dismissals for economic reasons. If this is not the case, please write down: s ame as for individual dismissals. Table 1b: EPL for regular workers against collective dismissals Regulations in force on 1 January 2019 (all empty cells to be filled in please) Regulations in force on 1 January 2025 (only to be filled in in case of a change since 2019 ) Date of enforcement of changes since 2019 References to main articles of law (and/or relevant collective agreements) for this question in 2025 Question 18: Definition of collective dismissal. 2 Please detail if this definition depends on the aspect of EPL considered (e.g. notification procedure, notice period, severance pay). Redundancy within 30 days if: (1) an employer who employed up to 19 employees terminates the employment contracts of at least 5 employees; (2) an employer who employs 20-99 employees terminates the employment contracts of at least 10 employees; (3) an employer who employs 100-299 employees terminates the employment contracts of at least 10% of employees; (4) an employer who employs at least 300 employees terminates the employment contracts of at least 30 employees. Question 18a: Are terminations via mutual consent and/or dismissals for personal reasons recorded in the number of dismissals used to determine whether a dismissal is collective or not? According to ECA § 90 c ollective cancellation of employment contracts is only counted in the case of dismissal due to lay-off . Question 19: Notification procedures in the case of collective dismissal. In particular, please specify whether a consultation/discussion, an authorisation or a warning procedure is required. A consultation refers to a formal discussion, as opposed to a simple notification. Before an employer decides on collective termination he or she shall consult in good time the trustee / shop steward or, in his or her absence, employees with the goal of reaching an agreement on prevention of the planned terminations or reduction of the number thereof and mitigation of the consequences of the terminations, including re-employment assistance or re-training of the employees to be laid off. After consultations an employer shall submit in writing the information about collective terminations and consultations to the Estonian Unemployment Insurance Fund. Calculation (for EPL indicators): 2 minus the notification requirements required for individual dismissals (counted for 0.5 in Item 1) For the trustee / shop steward to be able to make proposals in consultations, the employer must in good time provide the trustee / shop steward or, in their absence, employees with all necessary information about the planned collective cancellation. The employer must submit, in a form reproducible in writing, at least the following information: 1) the reasons for the collective cancellation; 2) the number and official titles of the employees of the employer; 3) the number and official titles of those employees and the selection criteria determining the persons whose employment contracts are to be cancelled; 4) the period of time during which the employment contracts are to be cancelled; 5) the method of calculation of the compensation to be paid to the employees in addition to the benefits prescribed by law or the collective agreement . Upon consultation, the trustee / shop steward or, in their absence, the employees have the right to meet with the representatives of the employer and make proposals . Question 19a: If a written statement of the reasons for dismissal is required, please specify whether these expressed reasons can be changed thereafter, for example in the event of a dispute on the grounds for the dismissal. Please explain under what conditions the reason can be specified/changed/made more precise after the notification of dismissal to the worker. No specific regulations. Question 20: Differences in delays and notice period involved (compared to Questions 2 and 3) in cases of collective dismissal. Please specify whether these delays are in addition to or in place of those mentioned in Questions 2 and 3. Collective termination of employment contracts enters into force upon the expiry of the term for advance notice of termination, but no sooner than 30 calendar days after the time when the Estonian Unemployment Insurance Fund received the information. Given average notice period this does not imply additional constraints. However, consultation with unions, for up to 15 days, must be undertaken before notifying the Estonian Unemployment Insurance Fund. The Estonian Unemployment Insurance Fund may extend the term up to 60 calendar days if it finds that it cannot resolve the employment problems relating to the collective termination within 30 calendar days. Calculation: 15 days for consultation + 30 for Fund notification minus average values reported in Items 2 (4 days) and 3 (1 month) = 11 days Question 21: Other special costs to employers in case of collective dismissals. No additional requirements. Please do not fill in these cells. The corresponding information should now be provided in the cells corresponding to the Questions 22 and 25. Question 22: Severance pay at different tenure durations in the event of collective dismissals. 1 Please detail any tax (income tax paid by the employee and other taxes) imposed by the government on this severance pay, or any subsidies granted to firms paying this severance pay. There is no difference in the severance pay in the event of collective dismissal or single dismissal. In any case u pon cancellation of an employment contract due to lay-off, an employer should pay an employee compensation to the extent of one month’s average wages of the employee. Upon cancellation of an employment contract due to lay-off, an employee has the right to receive a benefit upon lay-offs under the conditions and pursuant to the procedure prescribed in the Unemployment Insurance Act. Question 23: Definition of unfair dismissal in the event of collective dismissals. 2 There is no specific definition of dismissal in the event of collective dismissals – the definition is general: Cancellation of an employment contract without a legal basis or in conflict with the law is void. Question 24: In the event of a collective dismissal, please detail the degrees of freedom of judges. Can they only question patently irrational/arbitrary/frivolous dismissal decisions or false reasons? Can they question the operational need of the dismissal decision (i.e. the soundness of the management practices)? Does the employer have to provide proof that the dismissal is essential for the future profitability of the firm? The degree of freedom of judges is not regulated by the law. Every case is handled individually. However th ere have been judgements where court has found that court do es not have the right to assess the economic state of an employer and if the dismissal was therefore eligible. Question 25: In the event of a collective dismissal, please detail alternatives that need to be considered (e.g. transfer at the plant/firm/group level; retraining ), the selection criteria, outplacement obligations (e.g. duty for the employer to organise/pay for job search assistance/re-training) and priority for re-hiring, if any. 2 Before an employer decides on collective dismissal he or she should consult in good time the trustee / shop steward or, in his or her absence, employees with the goal of reaching an agreement on prevention of the planned cancellations or reduction of the number thereof and mitigation of the consequences of the cancellations, including contribution to the seeking of employment by or re-training of the employees to be laid off. There is no priority for re-hiring. Question 26: Compensation following an unfair collective dismissal. 3 There is no specific regulation for an unfair collective dismissal. As in general, u pon unlawful cancellation of an employment contract, if the employment relationship continues, an employee has the right to demand compensation for damage, in particular wages not received. If an employee cancels the employment contract extraordinarily on the ground that the employer is in fundamental breach of the contract, the employer should pay the employee compensation to the extent of three months' average wages of the employee. A court or a labour dispute committee may change the amount of the compensation, considering the circumstances of the cancellation of the employment contract and the interests of both parties. If an employee cancels the employment contract extraordinarily on the ground that the employer is in fundamental breach of the contract, the employer should pay the employee compensation to the extent of three months' average wages of the employee. This compensation is not subject to the provisions of Chapter 7 of the Law of Obligations Act. The court or labour dispute committee may change the amount of compensation considering the circumstances of the cancellation of the employment contract. The amount of compensation may not be reduced by benefits and allowances paid to the person by the state. entry into force 17.03.2023 Question 26a: Compensation following procedural breach in the event of a collective dismissal. 3 There is no specific regulation for procedural breach in the event of a collective dismissal. As in general an employment contract may be cancelled by a declaration of cancellation made in a format which can be reproduced in writing. Declaration of cancellation made in breach of the formal requirement or a contingent declaration of cancellation is void. An employer shall justify cancellation. An employee shall justify extraordinary cancellation. Cancellation shall be justified in a format which can be reproduced in writing. Also if an employer or employee gives advance notice of cancellation later than provided by law, the employee or the employer has the right to receive compensation to the extent to which he or she would have been entitled to upon adhering to the term for advance notice. Question 27: Reinstatement option for the employees following an unfair collective dismissal. 2 There is no specific regulation for reinstatement option for the employees following an unfair collective dismissal. Reinstatement is possible if both parties agree to that. If the employer is not agreeing to this, the reinstatement is possible if, at the time of the termination, the employee is pregnant or has the right to pregnancy or maternity leave or has been elected employees' representative, unless it is reasonably not possible considering mutual interests (Art. 107 ECA ). Question 27a: Reinstatement option for the employees following procedural breach in the event of a collective dismissal. 2 There is no specific regulation for reinstatement option for the employees following an unfair collective dismissal option for the employees following procedural breach in the event of a collective dismissal If a court or labour dispute committee establishes that cancellation of an employment contract is void due to the absence of a legal basis or the non-conformity with the law or nullified due to a conflict with the principle of good faith, it should be deemed that the contract has not expired by cancellation. Question 28: Maximum time period after the contract termination date up to which an unfair dismissal claim can be made in the event of a collective dismissal. An action with the court or an application filed with a labour dispute committee for establishment of nullity of termination shall be filed within 30 calendar days as of the receipt of the declaration of termination. Question 29: In the event of a collective dismissal, what is the extent to which benefits, procedures and compensation can be negotiated as part of a collective agreement signed at the firm level at the time of dismissal? It is always allowed to agree on more favourable conditions for the employee. In case of collective dismissal the conditions depend on the employers’ economic options. Question 35: Resignation. In the event of a downsizing of a firm, if the employer provides incentives for voluntary quits, do resignations grant access to unemployment benefits? If yes, is there any sanction/waiting period as compared to the event of dismissal (i.e. extended waiting period or temporary disqualification)? Do resignations grant other types of benefits, e.g. preferential tax treatment of compensation received at the time of resignation (such as in a resignation agreement)? This is not regulated by the law. Question 36: Collective termination by mutual consent. Is collective termination by mutual consent allowed? Please specify valid/forbidden cases, if there are restrictions. Among the possible agreements of collective termination by mutual consent, would any of them make the employees eligible for: - Unemployment benefits? If yes, is there any sanction/waiting period as compared to the event of dismissal? - Compensation with tax break? - Other types of benefits? Challenging termination by mutual consent in courts: Can the agreement of collective termination by mutual consent explicitly contain a clause forbidding the employees from challenging the content of the agreement in courts? On which grounds could a worker challenge collective termination by mutual consent? For example, can an employee argue that he/she did not fully understand the consequences of the agreement? It does not matter how many termination on mutual consent there are, they are handled individually. There is no regulation about collective termination by mutual consent. There is no difference, if the agreement termination was either collective or single. In order to receive unemployment insurance benefit the pers o n needs to be registered as unemployed; the unemployment insurance period needs to be at least 12 months during the 36 months before registration as unemployed; the person needs to be involuntarily unemployed. The agreement of collective termination by mutual consent cannot explicitly contain a clause forbidding the employees from challenging the content of the agreement in courts. Such agreements are void. An employee could challenge a termination by mutual consent only in case he/she can prove, that he/she was induced or he/she did not fully understand the consequences of the agreement. A n employee can also challenge termination by mutual consent, if they can prove that consent was given in context of a considerable mistake, fraud, threat or violence . Please also refer to the planned change described under question No 30. Question 37: Resolution mechanisms prior to a collective dismissal . In the event of a collective dismissal, please describe available pre-dismissal resolution mechanisms limiting the scope of possible complaints of unfair dismissal (or preventing them entirely) while granting eligibility to unemployment insurance, compensation with tax break, or other types of benefits. Please note that this question refers to dismissals, as opposed to Questions 35 and 36, which refer to resignation and termination via mutual consent. Before an employer decides on collective dismissal the matter should be consult ed in good time with the trustee / shop steward or, in his or her absence, employees with the goal of reaching an agreement on prevention of the planned cancellations or reduction of the number thereof and mitigation of the consequences of the cancellations, including contribution to the seeking of employment by or re-training of the employees to be laid off. There are however no mechanisms that would limit the scope of possible complaints of unfair dismissal. Question 38: In the event of a collective dismissal, is there a legislative framework promoting a post-dismissal agreement limiting the scope of possible complaints of unfair dismissal (or preventing them entirely)? There is no legislative framework promoting a post-dismissal agreement in the event of a collective dismissal. Question 39: Pre-dismissal validation of the dismissal. In the event of a collective dismissal, please describe any pre-dismissal validation of the dismissal by a third party, which would limit the scope of possible complaints of unfair dismissal (or preventing them entirely) Before an employer decides on collective termination he or she shall consult in good time the trustee / shop steward or, in his or her absence, employees with the goal of reaching an agreement on prevention of the planned terminations or reduction of the number thereof and mitigation of the consequences of the terminations, including re-employment assistance or re-training of the employees to be laid off. After consultations an employer shall submit in writing the information about collective terminations and consultations to the Estonian Unemployment Insurance Fund. Calculation (for EPL indicators): 2 minus the notification requirements required for individual dismissals (counted for 0.5 in Item 1) There are no pre-dismissal validation mechanisms that would limit the scope of possible complaints of unfair dismissal. Legend: d: days; w: weeks; m: months; y: years. For example “1m < 3y” means “1 month of notice (or severance) pay is required when length of service is below 3 years”. Notes: 1 Three tenure durations (9 months, 4 years, 20 years). Case of a regular employee with tenure beyond any trial period, dismissed in the event of a collective dismissal 2 Please, base your response also on case law, if court practice tends to be more (or less) restrictive than what specified in legislation. 3 Typical compensation at 20 years of tenure, including back pay and other compensation (e.g. for future lost earnings in lieu of reinstatement or psychological injury), but excluding ordinary severance pay. Where relevant, assume that the worker was 35 years old at the start of employment and that a court case takes 6 months on average. Base your response also on case law. General questions on Part 1 (EPL for regular workers) Which other reforms in the context of EPL for regular workers are currently being planned or in discussion in your country (but are not yet approved and hence do not enter the information in the table) : Please refer to the reform described under question No 30. More info can be found here (in Estonian): Eelnõu - Riigikogu For the following question s , please provide statistics at the country level (with the corresponding year) , if available. If not available , please provide statistics at the regional level if possible . P roportion of workers dismissed for economic reasons (i.e. redundancy) : According to Statistics Estonia data, a total of 227,667 employment contracts and 2 439 civil service contracts were terminated in 2024 . A total of 1 8,798 terminations were due to redundancy . Thus, redundancies accounted for 8% of all employment and civil service contract terminations ( the available data does not allow for distinguishing redundancies by contract type ). Proportion of workers dismissed for personal reasons without fault (i.e. insuffic ient performance/unsuitability) : Th e data is not available. P roportion of collective d ismissals among all dismissals : The only available data source is the Unemployment Insurance Fund. In the case of collective redundancies, the employer is required to notify the Unemployment Insurance Fund twice. The first notification provides a provisional number of employees affected, while the second notification reflects an updated number following consultations and a clearer assessment of the need and scope of redundancies. However, the final number of redundancies may still change after the second notification, but the available data on collective redundancies includes only the figures from the first and second notifications. In 2024, 131 employers in total submitted the first notification and 114 employers submitted the second notification. We do not have the data available to calculate the proportion of collective dismissals among all dismissals. P roportion of collectively dismissed work ers among all dismissed workers : See also the explanation under the previous poi nt. In 2024, a total of 3,075 employees were covered by the first collective redundancy notification (accounting roughly for 16% of all employees made redundant in 2024) , and 2,565 employees were covered by the second collective redundancy notification (14%) . Note that t he redundancy notifications from the Unemployment Insurance Fund and the total number of redundancies reported by Statistics Estonia are not directly comparable , especially as the redundancy notifications might not reflect the final or actual number of redundancies, thus the proportion s provided above should be considered a rough estimate . PART 2: OECD EPL INDICATOR S FOR TEMPORARY WORKERS Table 2a refer s to restrictions on hir ing workers on fixed-term (FTC) and temporary work agency (TWA) contracts , and Table 2b to the rules governing termination of these contracts . Throughout this questionnaire, a standard FTC is defined as a generic employment contract with a specified end date ( day, month and year of the e nd of the employment relationship if the contract is not renewed). By contrast, a TWA contract is defined as an employment contract under which the employer (hereafter the agency), within the framework of its business or professional practice, places the employee at the disposal of a third party (hereafter the user firm) in order to perform work (hereafter the assignment) under the supervision and direction of that user firm , by virtue of an agreement for the provision of services between the user firm and the agency. Table 2a: Restrictions on the use of temporary contracts Regulations in force on 1 January 2019 (all empty cells to be filled in please) Regulations in force on 1 January 2025 (only to be filled in in case of a change since 2019 ) Date of enforcement of changes since 2019 References to main articles of law (and/or relevant collective agreements) for this question in 2025 Question 10 (FTC 1): Valid cases for use of standard fixed term contracts. An employment contract may be entered into for a specified term of up to five years if it is justified by good reasons arising from the temporary fixed-term characteristics of the work, especially a temporary increase in work volume or performance of seasonal work. There are some additional valid cases for use of fixed-term contracts for example the director of a state museum, members of the teaching staff or research staff of a university, etc. Question 11 (FTC 2): Maximum number of successive standard FTCs (initial contract plus renewals and/or prolongations). If an employee and employer have on more than two consecutive occasions entered into an employment contract for a specified term for the performance of similar work or extended the contract entered into for a specified term more than once in five years, the employment relationship shall be deemed to have been entered into for an unspecified term from the start. Entry into employment contracts for a specified term shall be deemed consecutive if the time between the expiry of one employment contract and entry into the next employment contract does not exceed two months. I n the event of temporary work during the time a person is registered as unemployed under § 11 of the Labour Market Measures Act, employment contracts for a specified term of up to eight calendar days may be entered into for the performance of similar work an unlimited number of times within the period of six months. If after the end of the six-month period the same employee and employer enter into a new employment contract for a specified term within subsequent six months, this employment contract will be deemed to have been entered into for an unspecified term. The employee must disclose and confirm to the employer that the employee is registered as unemployed. entry into force 01.01.2024 Question 12 (FTC 3): Maximum cumulated duration of successive standard FTCs. 120 months FTC 4: Please specify the required duration of the interval between two standard FTCs for those contracts not to be considered successive and thus not covered by the statutory limitations on the number or duration of successive FTCs, if any. Please specify if there are practical limitations to the enforcement of such provisions. The duration of the interval between two standard FTCs for those contracts not to be considered successive and thus not covered by the statutory limitations on the number or duration of successive FTC must exceed two months. FTC 4a: Can two successive standard FTCs for different positions within the same plant/firm/group be subject to the statutory limitations on the number or duration of successive FTCs, if any? Please provide details. If an employee and employer have more than two consecutive occasions entered into an employment contract for a specified term for the performance of similar work or extended the contract entered into for a specified term more than once in five years, the employment relationship shall be deemed to have been entered into for an unspecified term from the start. This regulation applies only in case for the performance of similar work. FTC 5: Do regulations ensure equal treatment of regular workers and workers with a standard FTC? Please specify if requirements apply to wages, working conditions or both. Please specify also if regulations require that workers on a standard FTC receive higher wages compared to regular workers doing the same job. By Equal Treatment Act employees who have concluded employment contracts for a specified term shall not be treated in a less favourable manner in an employment relationship than comparable employees who have concluded employment contracts for an unspecified term unless different treatment is justified on objective grounds arising from law or a collective agreement. FTC 6: Are there fiscal incentives to convert the contract at the end date into a regular (open-ended) contract (e.g. tax to be paid if not converted; tax rebate if converted). No FTC7: Which violation of the rules governing standard FTCs would entail conversion of an FTC into a regular (open-ended) contract? (e.g. rules on valid cases for the use of FTCs; rules on maximum duration and number of FTCs; other – please specify.) If entry into a FTC was in conflict with the law or a collective agreement, the contract shall be deemed to be entered into for an unspecified term from the start. Question 13 (TWA 1): Types of work for which temporary work agency (TWA) employment is legal. If fixed-term duties are performed by way of temporary agency work, an employment contract may be entered into for a specified term also if it is justified by the temporary characteristics of the work in a user undertaking. Question 14 (TWA 2): Are there restrictions on the number of renewals and/or prolongations of TWA assignments with the same user firm? If duties are performed by way of temporary agency work, the restriction on consecutive entry into or extension of an employment contract for a specified term mentioned in item 11 shall be applied to every user undertaking separately. Question 14a: Are there restrictions on the number of renewals and/or prolongations of fixed-term TWA contract(s) between the temporary work agency and the employee? If an employee and employer have more than two consecutive occasions entered into an employment contract for a specified term for the performance of similar work or extended the contract entered into for a specified term more than once in five years, the employment relationship shall be deemed to have been entered into for an unspecified term from the start. Entry into employment contracts for a specified term shall be deemed consecutive if the time between the expiry of one employment contract and entry into the next employment contract does not exceed two months. If duties are performed by way of temporary agency work, the restriction on consecutive entry into or extension of an employment contract for a specified term shall be applied to every user undertaking separately. Question 15 (TWA 3): Maximum cumulated duration of TWA assignments with the same user firm. The restriction on consecutive entry into or extension of an employment contract for a specified term mentioned in items 11 and 12 shall be applied to every user undertaking separately. 120 months By contrast, there is no limit on regulations on number and duration of the contracts between the TWA and the employee. Question 15a: Maximum cumulated duration of fixed-term TWA contract(s) between the temporary work agency and the employee. If duties are performed by way of temporary agency work, an employment contract may be entered into for a specified term also if it is justified by the temporary characteristics of the work in a user undertaking. 120 months Question 15b: Are open-ended TWA contracts (between the agency and the worker) lawful? It is presumed that an employment contract is entered into for an unspecified term but a n employment contract may be entered into for a specified term . Question 16 (TWA 4): Does the set-up of a TWA require authorisation or reporting obligations? Temporary agency work services may be provided by a legal person in private law who has been registered as an intermediary of temporary agency work in the register of economic activities. Question 17 (TWA 5): Do regulations ensure equal treatment of regular workers and agency workers at the user firm? Please specify if requirements apply to wages, working conditions or both. Please specify also if regulations require that agency workers receive higher wages compared to regular workers doing the same job. The Equal Treatment Act (§ 11 1 ) establishes e qual treatment of regular workers as well as employees who perform duties by way of temporary agency work . Employees who perform duties by way of temporary agency work should not be subjected to less favourable conditions of occupational health and safety, working and rest time and remuneration for work than those applied to comparable employees of the user undertaking. Employees who perform duties by way of temporary agency work are entitled to use, during the period of performing duties, the benefits of the user undertaking, first of all meal, transportation and childcare services, on the same conditions as comparable employees of the user undertaking. Also the Employment Contracts Act prohibits applying to employees who have fixed-term contracts less favourable conditions than those applied to regular workers, except when justified by objective reasons deriving from legislation or collective agreements. TWA 6: Please specify the required duration of the interval between two assignments performed by the same TWA worker for the same user firm for those assignments not to be considered successive and thus not covered by the statutory limitations on the number or duration of successive assignments, if any. Please specify if there are practical limitations to the enforcement of such provisions. No regulation about duration between assignments. The duration of the interval between two assignments for those assignments not to be considered successive and thus not covered by the statutory limitations on the number or duration of successive assignments must exceed two months. TWA 6a: Can two successive TWA assignments for different positions within the same user firm be subject to the statutory limitations on the number or duration of successive TWA assignments , if any? Please detail. According to the ECA § 10 for the performance of similar work or extended the contract entered into for a specified term more than once in five years, the employment relationship shall be deemed to have been entered into for an unspecified term from the start. If there are two successive TWA assignments for different positions within the same user firm, it is not a subject to the statutory limitations on the number or duration of successive TWA assignments. If the positions have different titles, but the work is similar, then they are subject to statutory limitations on the number or duration of successive TWA assignments. TWA 7: In the case of fixed-term TWA contracts between the agency and the worker , please specify the required duration of the interval between two TWA contracts for those contracts not to be considered successive and thus not covered by the statutory limitations on the number or duration of successive contracts, if any. Please specify if there are practical limitations to the enforcement of such provisions. No specific regulation. If TWA workers are covered by FTC then the regulation for FTC applies. It means that the duration of the interval between two standard FTCs for those contracts not to be considered successive and thus not covered by the statutory limitations on the number or duration of successive FTC must exceed two months. Exception from previous regulation: If duties are performed by way of temporary agency work, the restriction on consecutive entry into or extension of an employment contract for a specified term shall be applied to every user undertaking separately. (20.02.2012) TWA 7a: Can two successive fixed-term TWA contracts (between the agency and the worker) for different assignments be subject to the statutory limitations on the number or duration of successive fixed-term TWA contracts , if any? Please detail. If duties are performed by way of TWA , the restriction on consecutive entry into or extension of an employment contract for a specified term shall be applied to every user undertaking separately. Fixed-term TWA contracts for different assignments are not a subject to the statutory limitations on the number or duration of successive fixed-term TWA contracts. TWA 8: In the case of a TWA contract, is the worker paid between two assignments? Please provide details on the minimum rate of pay. If the TWA is using a FTC the worker is not entitled to get a salary between assignments (contracts). If the TWA is using a contract for unspecified term, the worker has the right to get a salary between assignments. TWA 11: Which violation of the rules governing TWA assignments would entail conversion of a TWA assignment into a regular (open-ended) contract with the user firm ? (e.g. rules on valid cases for the use of TWA assignments; rules on maximum duration and number of TWA assignments; other – please specify.) Not regulated by law. TWA 12: In the case of fixed-term TWA contracts between the agency and the worker, which violation of the rules governing fixed-term TWA contracts would entail conversion of a fixed-term TWA contract into a regular (open-ended) TWA contract? (e.g. rules on valid cases for the use of fixed-term TWA contracts; rules on maximum duration and number of fixed-term TWA contracts; other – please specify.) If an employ ee and employer have more than two consecutive occasions entered into an employment contract for a specified term for the performance of similar work or extended the contract entered into for a specified term more than once in five years for performing similar work for the same user undertaking , the employment relationship shall be deemed to have been entered into for an unspecified term from the start. Entry into employment contracts for a specified term shall be deemed consecutive if the time between the expiry of one employment contract and entry into the next employment contract does not exceed two months. TWA 13: Does setting up a new TWA assignment within a user firm require notification to a third party? As TWA is responsible for the working conditions with the employee, the user firm should be notified. TWA 14: Does setting up a new TWA contract between the agency and the worker require notification to a third party? S etting up a new TWA contract between the agency and the worker does not require a notification to a third party . In the following Table 2b, “Termination” should be read as “termination of the employment relationship at the initiative of the employer” and “termination at the end date” includes also the case of non-renewal at the end date. Table 2b: Termination of temporary contracts Regulations in force on 1 January 2019 (all empty cells to be filled in please) Regulations in force on 1 January 2025 (only to be filled in in case of a change since 2019 ) Date of enforcement of changes since 2019 References to main articles of law (and/or relevant collective agreements) for this question in 2025 FTC8: Is it lawful to dismiss a worker with a standard FTC before the end date? If yes, please specify the admitted/fair reasons of dismissal in this case (e.g. worker’s fault, company bankruptcy, plant closure, worker capability, redundancy). An employer may before the end date terminate a FTC contract with good reason arising from the employee as a result of which, upon respecting mutual interests, the continuance of the employment relationship cannot be expected. For example in spite of a warning, employee disregarded the employer’s reasonable instructions or breached his or her duties. An employer may before the date terminate a FTC if the continuance of the employment relationship on the agreed conditions becomes impossible due to a decrease in the work volume or reorganisation of work or other cessation of work (lay-off). Upon cancellation of FTC for economic reasons (except for upon cessation of the activities of employer; upon declaration of bankruptcy of employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement) an employer shall pay an employee compensation to the extent that corresponds to the wages that the employee would have been entitled to until the expiry of the contract term. No compensation shall be paid in case of lay-off if the employment contract is cancelled due to force majeure . FTC9: Are there regulations restricting (or imposing conditions to) termination at the end date in the case of a standard FTC? (e.g. protection against unfair termination, notice periods, severance pay.) If yes, please specify fair/unfair reasons of termination at the end date in the case of a standard FTC contract (e.g. worker’s fault, company bankruptcy, plant closure, worker capability, redundancy, any reason). If entry into a FTC was in conflict with the law or a collective agreement, the contract shall be deemed to be entered into for an unspecified term from the start. If an employee continues to perform work after the expiry of the term of contract, the contract shall be deemed a contract entered into for an unspecified term, unless the employer expressed a different will within five working days as of learning or when he or she should have learnt that the employee was continuing to perform the employment contract. If the entry into FTC was lawful , the termination at the end date is lawful. So a n employment contract comes to an end upon the expiry of its term. In this case there is no advance notice, compensation etc. FTC9a: In the event of termination of a FTC i ) at or ii) before the end date, please detail alternatives that need to be considered (e.g. transfer at the plant/firm/group level; retraining ), the selection criteria, outplacement obligations (e.g. duty for the employer to organise/pay for job search assistance/re-training) and priority for re-hiring, if any. 2 In general a n employer is obligated to notify employees working under an employment contract entered into for a specified term of vacant positions corresponding to their knowledge and skills with regard to which an employment contract can be entered into for an unspecified term . If you have answered “yes” to either FTC8 or FTC9 or both , please complete the remainder of this table. Moreover, if you have answered “yes” to only one of these two questions, please refer to that case in your answers. If you have answered “yes” to both FTC8 and FTC9 please distinguish regulations applying in the case of terminations before the end date from those applying to terminations at the end date. If the general rules for termination of regular (open-ended) contracts apply, plea se write down: same as for regular contracts . Regulations in force on 1 January 2019 (all empty cells to be filled in please) Regulations in force on 1 January 2025 (only to be filled in in case of a change since 2019 ) Date of enforcement of changes since 2019 References to main articles of law (and/or relevant collective agreements) for this question in 2025 FTC10: Are the general rules on termination of regular (open-ended) contracts applicable to termination of a standard FTC i ) at or ii) before the end date? (See Questions 1-9 of Part 1.) Yes, general rules apply in the case of termination of a standard FTC before the end date. FTC11: Please specify the notification procedures applicable to termination of a standard FTC i ) at or ii) before the end date. In particular, please specify whether a consultation/discussion, an authorisation or a warning procedure is required. A consultation refers to a formal discussion, as opposed to a simple notification. In the case of termination of a standard FTC before the end date the general rules on termination of regular (open-ended) contracts are applicable. An employer shall give an employee advance notice of termination if the employee’s employment relationship with the employer has lasted: 1) less than one year of employment – no less than 15 calendar days; 2) one to five years of employment – no less than 30 calendar days; 3) five to ten years of employment – no less than 60 calendar days; 4) ten and more years of employment – no less than 90 calendar days. An employment contract may be terminated in a format which can be reproduced in writing. So an oral statement is not sufficient. An employer must justify the termination. No third parties must be notified. In the case of termination of a FTC at the end date notification is not needed FTC11a: If a written statement of the reasons for termination is required, please specify whether these expressed reasons can be changed thereafter, for example in the event of a dispute on the grounds for termination. Please explain under what conditions the reason can be specified/changed/made more precise after the notification of dismissal to the worker. According to the ECA § 95 an employment contract may be cancelled by a declaration of cancellation made in a format which can be reproduced in writing. An employer should justify cancellation and in a format which can be reproduced in writing. An employer should justify cancellation and an employee should justify extraordinary cancellation. Cancellation shall be justified in a format which can be reproduced in writing. Breach of the obligation does not affect the validity of the cancellation, but the party in breach of the obligation shall compensate the other party for the damage caused thereby. FTC12: Delay before the notice period can start or at the end of the notice period before the termination becomes effective, in the case of termination of a standard FTC i ) at or ii) before the end date. Please also specify any scheduling constraints (such as specific calendar dates – e.g. end of the month – for termination). In the case of termination of a standard FTC before the end date the general rules on termination of regular (open-ended) contracts are applicable. It means that the term of advance notice begins to run on the day following the calendar day on what the declaration of cancellation was delivered. In the case of termination of a FTC at the end date notification is not needed. FTC13: Length of notice period at different tenure durations (specify details at least for tenure equal to 9 months and 4 years, if applicable) in the case of termination of a standard FTC i ) at or ii) before the end date. In the case of termination of a standard FTC before the end date the general rules on termination of regular (open-ended) contracts are applicable. An employer shall give an employee advance notice of termination if the employee’s employment relationship with the employer has lasted: 1) less than one year of employment – no less than 15 calendar days; 2) one to five years of employment – no less than 30 calendar days; 3) five to ten years of employment – no less than 60 calendar days; 4) ten and more years of employment – no less than 90 calendar days. In the case of termination of a FTC at the end date notification is not needed. FTC14: Severance pay / end-of-contract payment at different tenure durations in the case of termination of a standard FTC i ) at or ii) before the end date (specify details at least for tenure equal to 9 months and 4 years). Please detail any tax (income tax paid by the employee and other taxes) imposed by the government on this payment, or any subsidies granted to firms paying this payment. In the case of termination of a FTC at the end date no severance pay is stipulated. Upon cancellation of a FTC before the end date due to lay-off in the case of cessation of the activities of employer or upon declaration of bankruptcy of employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement an employer shall pay an employee compensation to the extent of one month’s average wages of the employee. An employer may before the end date terminate a FTC if the continuance of the employment relationship on the agreed conditions becomes impossible due to a decrease in the work volume or reorganization of work or other cessation of work (also lay-off). An employer shall pay an employee compensation to the extent that corresponds to the wages that the employee would have been entitled to until the expiry of the contract term. No compensation shall be paid in case of lay-off if the employment contract is cancelled due to force majeure. FTC15: Length of trial period (for a standard FTC), i.e. the initial period within which FTCs are not fully covered by employment protection provisions and unfair dismissal claims cannot usually be made. Standard trial period for all employment contracts is four months. Law does not allow longer trial periods. In the case of FTC entered into up to eight months the trial period may not be longer than half of the contract term. FTC16: Compensation following unfair/unlawful termination of a standard FTC i ) at or ii) before the end date. Please specify if reinstatement is possible or, in the case of termination before the end date, if compensation must be equal to the amount that would have been paid to the employee had the contract not been terminated. Employer shall pay an employee compensation in the amount of three months’ average wages of the employee. In the case of an employee who is pregnant, who has the right to pregnancy and maternity leave or who has been elected as the employees' representative, the employer shall pay the employee compensation in the amount of six months’ average wages of the employee. The court or labour dispute committee may change the amount of the compensation, considering the circumstances of the cancellation of the employment contract and the interests of both parties. Reinstatement is possible if both parties agree to that. If the employer is not agreeing to this, the reinstatement is possible if, at the time of the cancellation, the employee is pregnant or has the right to pregnancy or maternity leave or has been elected as the employees' representative, unless it is reasonably not possible considering mutual interests. An employer may before the end date terminate a FTC if the continuance of the employment relationship on the agreed conditions becomes impossible due to a decrease in the work volume or reorganisation of work or other cessation of work (lay-off). Upon cancellation of FTC for economic reasons (except for upon cessation of the activities of employer; upon declaration of bankruptcy of employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement) an employer shall pay an employee compensation to the extent that corresponds to the wages that the employee would have been entitled to until the expiry of the contract term. No compensation shall be paid in case of lay- off if the employment contract is cancelled due to force majeure . The court or labour dispute committee may change the amount of the compensation, considering the circumstances of the cancellation of the employment contract and the interests of both parties. The amount of compensation may not be reduced by benefits and allowances paid to the person by the state. entry into force 17.03.2023 FTC16 a : Compensation following procedural breach in the event of termination of a standard FTC. Please specify if reinstatement is possible or, in the case of termination before the end date, if compensation must be equal to the amount that would have been paid to the employee had the contract not been terminated. The same response applies as in the previous question (FTC 16). FTC17: Maximum time period after termination is notified or effective up to which an unfair/unlawful termination claim can be made, in the case of a standard FTC. Please specify whether this period starts from the date of notification or from the date of effective termination. General rules apply to termination of a standard FTC at or before the end date . Unfair/unlawful termination claim can be made within 30 calendar days after receiving the notification. TWA 9: Admitted/fair reasons of termination by the user firm of an assignment of a TWA worker before the specified end date of assignment, if any (e.g. worker’s fault, user firm bankruptcy, user firm’s plant closure, worker capability, any reason provided that it is specified in the commercial agreement between the agency and the user firm). No regulation about termination of an assignment. TWA 10: Admitted/fair reasons of termination of a TWA contract (e.g. worker’s fault, worker capability, lack of assignments, end of assignment with the user firm). Specify also if, in the case of a fixed-term TWA contract, it is lawful to terminate the contract before the end date and if restrictions apply to termination at the end date. If the TWA is using a FTC the same rules apply as for FTC. If the TWA is using contracts for unspecified term the same rules apply as for regular contract for unspecified term. An employer may terminate a TWA contract with good reason arising from the employee as a result of which, upon respecting mutual interests, the continuance of the employment relationship cannot be expected. For example in spite of a warning, disregarded the employer’s reasonable instructions or breached his or her duties. An employer may terminate a TWA contract if the continuance of the employment relationship on the agreed conditions becomes impossible due to a decrease in the work volume or reorganisation of work or other cessation of work (lay-off). Legend: d: days; w: weeks; m: months; y: years. General questions on Part 2 (EPL for temporary contracts) Which other reforms in the context of EPL for temporary workers are currently being planned or in discussion in your country (but are not yet approved and hence do not enter the information in the table): N ame of FTCs in local language(s): Tähtajaline tööleping P roportion of employment covered by FTCs (and corresponding year), if available: This data is published by Eurostat ( table lfsi_pt_a ) based on the results of the European Labour Force Survey . In 2024, 3% of employed persons in age group 20-64 were employed with temporary contract. According to Eurostat data, the share has been increasing over the years. N ame of TWA contract(s) in local language (s): Renditöö . The contract is still called employment contract ( tööleping ), but the work form is called renditöö . In the case of a temporary agency work relationship, the employer, i.e. the temporary-work agency ( rendiagentuur ) , enters into an employment contract with a temporary agency worker ( renditöötaja ) , pursuant to which he or she temporarily sends the temporary agency worker to work in subordination to and under the supervision of a third party, i.e. the user undertaking ( kasutajaettevõte ). P roportion of employment covered by TWA contracts ( and corresponding year ), if available: The data is published by Eurostat ( table lfsa_qoe_4a6r2 ) based on the results of the European Labour Force Survey. However, in the case of Estonia, the number of observations is insufficient to publish the data. Unfortunately, we do not have any other data nor estimations to provide.
Saatja: Johann Vootele Mäevere - MKM </o=ExchangeLabs/ou=Exchange Administrative Group (FYDIBOHF23SPDLT)/cn=Recipients/cn=e662c8b7f4f847cb89f70ea3ca03e3ea-62079cc1-9e>
Saaja:
[email protected], Maria-Helena Rahumets - MKM,
[email protected], Kristi Suur - MKM
Teema: RE: OECD Employment Protection Legislation Indicators Questionnaire
Dear Alexandre,
Please find the filled questionnaire attached.
Thank you very much for your patience and understanding throughout the long waiting period – it is truly appreciated.
Should you require anything further, please don’t hesitate to let me know. I’ll be sure to respond with greater punctuality moving forward!
Best regards,
Johann Vootele Mäevere
Advisor
Department of Employment Relationships and Work Environment
Ministry of Economic Affairs and Communications
+372 5378 5158
[email protected] <mailto:
[email protected]>
www.mkm.ee/en <https://www.mkm.ee/en> | Suur-Ameerika 1, Tallinn, Estonia
From:
[email protected] <
[email protected]>
Sent: Tuesday, April 29, 2025 3:22 PM
To: Johann Vootele Mäevere - MKM <
[email protected]>
Cc: Maria-Helena Rahumets - MKM <
[email protected]>;
[email protected]; Kristi Suur - MKM <
[email protected]>
Subject: RE: OECD Employment Protection Legislation Indicators Questionnaire
Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga.
Tundmatu saatja korral palume linke ja faile mitte avada.
Dear Johann,
I just wanted to let you know that it would be great if you could share the completed questionnaire even without the statistical data, that would already be very useful!
Thank you very much again,
Best wishes,
Alexandre
Restricted Use - À usage restreint
From: GEORGIEFF Alexandre, ELS/JAI
Sent: 27 March, 2025 2:03 PM
To: Johann Vootele Mäevere - MKM <
[email protected] <mailto:
[email protected]> >
Cc: Maria-Helena Rahumets - MKM <
[email protected] <mailto:
[email protected]> >
Subject: RE: OECD Employment Protection Legislation Indicators Questionnaire
Dear Johann,
No problem at all, thank you very much for letting me know.
Best wishes,
Alexandre
From: Johann Vootele Mäevere - MKM <
[email protected] <mailto:
[email protected]> >
Sent: 27 March, 2025 1:40 PM
To: GEORGIEFF Alexandre, ELS/JAI <
[email protected] <mailto:
[email protected]> >
Cc: Maria-Helena Rahumets - MKM <
[email protected] <mailto:
[email protected]> >
Subject: RE: OECD Employment Protection Legislation Indicators Questionnaire
Dear Alexandre,
I hope you are well.
I would like to inform you that we are currently working on answering the questionnaire in Estonia. However, due to complications on drawing the statistics, there will alas be a delay in its submission. Despite this, I want to assure you that we are actively working on submitting the questionnaire as soon as possible.
Thank you for your understanding and patience. Please do not hesitate to reach out should you require any further information in the meantime.
Have a nice day ahead,
Johann Vootele Mäevere
nõunik
Töösuhete ja töökeskkonna osakond
Majandus- ja Kommunikatsiooniministeerium
+372 5378 5158
Restricted Use - À usage restreint
From:
[email protected] <mailto:
[email protected]> <
[email protected] <mailto:
[email protected]> >
Sent: Wednesday, February 5, 2025 12:00 PM
To: Johann Vootele Mäevere - MKM <
[email protected] <mailto:
[email protected]> >
Cc: Maria-Helena Rahumets - MKM <
[email protected] <mailto:
[email protected]> >
Subject: RE: OECD Employment Protection Legislation Indicators Questionnaire
Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga.
Tundmatu saatja korral palume linke ja faile mitte avada.
Dear Johann,
Thank you very much for letting me know.
Best wishes,
Alexandre
Restricted Use - À usage restreint
From: Johann Vootele Mäevere - MKM <
[email protected] <mailto:
[email protected]> >
Sent: Friday, January 31, 2025 9:04 AM
To: GEORGIEFF Alexandre, ELS/JAI <
[email protected] <mailto:
[email protected]> >
Cc: Maria-Helena Rahumets - MKM <
[email protected] <mailto:
[email protected]> >
Subject: OECD Employment Protection Legislation Indicators Questionnaire
Hi Alexandre,
I hope you are doing well!
This is to let you know that we have received your request and we are working on it.
I will be the person responsible for submitting the questionnaire in Estonia.
In case you have any additional questions, I am happy to help.
Best wishes and have a nice weekend ahead,
Johann Vootele Mäevere
nõunik
Töösuhete ja töökeskkonna osakond
Majandus- ja Kommunikatsiooniministeerium
+372 5378 5158
[email protected] <mailto:
[email protected]>
www.mkm.ee <https://www.mkm.ee/> | Suur-Ameerika 1, Tallinn
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