• Fillable form for the reports on Convention No. 158 and Recommendation No. 166 to be submitted under article 19 of the ILO Constitution
COUNTRY: Estonia
I. Methods of implementation and definitions
1. Please indicate whether provisions concerning termination of employment are established by one or more of the following methods:
(a) legislation (laws or regulations)
Yes
(b) collective agreements
Yes
(c) work rules
Yes
(d) arbitral awards
No
(e) court decisions
Yes
(f) other methods of implementation.
No
If so, please provide copies of the said legislation and the texts of relevant sample agreements or awards and of leading court decisions.
The main legislative act that regulates termination of employement relationship is Employment Contracts Act (hereinafter ECA), look at chapter 5, available in English: https://www.riigiteataja.ee/en/eli/501092025001/consolide.
According to Collective Agreements Act § 6(1)(4) parties may determine the conditions for the termination of an employment contract in a collective agreement. Act available in English: https://www.riigiteataja.ee/en/eli/501072023005/consolide.
Some aspects regarding the termination of employment relationship may also be established in the rules of work organization. For further info look at: https://www.tooelu.ee/en/8/organisation-work.
Payment of benefits are regulated by:
Unemployment Insurance Act https://www.riigiteataja.ee/en/eli/502012026002/consolide and
Work Ability Allowance Act https://www.riigiteataja.ee/en/eli/502012026001/consolide
Court rulings may also give additional interpretations regarding the application of law.
2. Please provide information on whether and how “termination of employment” is defined at the national level. Please indicate whether this definition covers the termination of the employment relationship at the initiative of the employer.
The term "termination of employment" is not explicitly defined in law.
II. Scope and exclusions
Scope
3. Please provide information on whether and how it is ensured, under national legislation or practice, that provisions concerning termination of employment extend to:
(a) all areas of economic activity and
The scope of ECA does not make any exclusions regarding areas of economic activity.
(b) all employed persons.
The scope of ECA does not make any exclusions regarding different types of employees.
Exclusions based on the nature of the contract of employment and on the categories of workers
4. Please specify whether the following categories of employed persons are excluded fully or partially from all or some of the provisions established in national legislation or practice as regards termination of employment:
(a) workers engaged under a contract of employment for a specified period of time or a specified task. Please clarify, where applicable, how “contracts of employment for a specific period of time” and “contracts of employment for a specified task” are defined.
There are specific principles regarding employment contracts entered into for a specified term.
ECA § 80. Expiry of employment contract upon expiry of term
(1) An employment contract entered into for a specified term expires upon the expiry of the term.
(2) If entry into an employment contract for a specified term was in conflict with the law or a collective agreement, the contract is deemed to be entered into for an unspecified term from the start.
(3) If an employee continues to perform work after the expiry of the term of contract, the contract is 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 the employer should have learnt that the employee was continuing to perform the employment contract.
ECA § 9. Entry into employment contract for specified term
(1) It is presumed that an employment contract is entered into for an unspecified term. 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. 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.
(2) For the period of substitution of an employee who is temporarily absent, an employment contract may be entered into for a specified term of the period of the substitution.
(b) workers serving a period of probation or a qualifying period of employment, determined in advance and of reasonable duration. If applicable, please indicate the duration of such periods and whether they are determined in advance.
Probationary period is usually 4 months. According to ECA § 5 (1) (14) the duration of probationary period must contain in a written document of an employment contract (provided before the commencement of work).
ECA § 86. Cancellation of employment contract during probationary period
(1) An employer and employee may cancel an employment contract entered into for a specified term and an employment contract entered into for an unspecified term during a probationary period.
(4) An employer may not cancel the employment contract on a ground that is in conflict with the goal of the probationary period.
ECA § 10-1. Probationary period
(1) 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.
(2) In the employment contract it may be agreed that the probationary period is not applied or is shortened.
(3) In the event of an employment contract entered into for a specified term of up to eight months the probationary period may not be longer than one-half of the duration of the contract.
(4) 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.
(5) 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.
(c) workers engaged on a casual basis for a short period. Where relevant, please provide the definition of “workers engaged on a casual basis”, as per national legislation or practice.
ECA does not regulate casual work.
5. Please indicate whether other categories of employed persons are excluded fully or partially from the provisions concerning termination of employment.
There are specifications regarding employees' representatives.
ECA § 94. Specifications for cancellation of employment contract with employees’ representative
(1) Before cancellation of the employment contract with the employees’ representative the employer must seek the opinion of the employees who elected the person to represent them or the trade union about the cancellation of the employment contract.
(2) The employees who elected the person to represent them or the trade union must give their opinion within ten working days as of being asked for it. The employer must take the opinion of the employees into account to a reasonable extent. The employer must justify disregard for the opinion of the employees.
If so, please specify:
(a) whether categories of employed persons whose terms and conditions of employment are governed by special arrangements are excluded from these provisions. If so, please indicate the nature of the exclusion, and whether these special arrangements provide protection at least equivalent to that afforded by national legislation or practice.
-
(b) whether any other limited categories of employed persons have been excluded due to special problems of a substantial nature arising in the light of their specific employment conditions or the size or nature of the undertaking.
-
(c) whether organizations of employers or workers concerned - where such exist- were consulted.
-
Safeguards against the use of fixed-term contracts the aim of which is to avoid protection
6. Please indicate whether adequate safeguards exist against the use of contracts of employment for a specified period of time (fixed-term contracts) as a means to avoid protections concerning termination of employment provided under the national legislation or practice.
Yes. Look at ECA § 9 and § 80 (provided as answers to question 4 (a)).
If such safeguards are in place, please provide details on:
(a) the maximum allowed duration of fixed-term contracts;
An employment contract may be entered into for a specified term of up to five years.
(b) restrictions on the use of fixed-term contracts, including whether these restrictions limit their use to situations where the employment relationship cannot be of indeterminate duration due to:
(i) the nature of the work to be performed,
A fixed-term contract may be entered into 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.
It's also possible to substitute an employee who is temporarily absent.
(ii) the circumstances under which the work is carried out, or
Look at previous answer.
(iii) the interests of the worker;
Look at previous answer.
(c) the conditions under which fixed-term contracts may be considered as contracts of employment of indeterminate duration;
Look at next answer.
(d) the maximum number of renewals allowed before fixed-term contracts are deemed contracts of employment of indeterminate duration;
Two consecutive contracts or a one-time extension in a 5-year period is allowed.
ECA § 10. Restriction on consecutive entry into and extension of employment contract for specified term
(1) If an employee and employer have, on the basis of subsection 1 of § 9 of this Act, 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 is deemed to have been entered into for an unspecified term from the start. Entry into employment contracts for a specified term is deemed consecutive if the time between the expiry of one employment contract and entry into the next employment contract does not exceed two months.
(e) any additional guarantees or measures in place to limit the use of fixed-term contracts.
ECA § 28. Obligations of employer
(2) An employer is, above all, required:
9) 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;
ECA § 80. Expiry of employment contract upon expiry of term
(2) If entry into an employment contract for a specified term was in conflict with the law or a collective agreement, the contract is deemed to be entered into for an unspecified term from the start.
(3) If an employee continues to perform work after the expiry of the term of contract, the contract is 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 the employer should have learnt that the employee was continuing to perform the employment contract.
III. Obligation for termination of employment to be justified by a valid reason
The need for a valid reason
7. Please indicate whether there is a principle of general application regarding the need to base termination of employment on a valid reason in the national methods of application.
Yes.
If applicable, please provide details on:
(a) whether the national legislation explicitly prohibits termination of employment without a valid reason,
ECA § 85. Ordinary cancellation of employment contract
(1) An employee may ordinarily cancel an employment contract entered into for an unspecified term at any time.
(2) An employee may not ordinarily cancel an employment contract entered into for a specified term, except for an employment contract entered into for the period of substitution of employee.
(3) It is presumed that cancellation is ordinary, unless the employee proves that cancellation is extraordinary.
(4) If an employee does not have a basis for extraordinary cancellation of an employment contract entered into for an unspecified term, the cancellation is deemed ordinary with the term for advance notice provided by law.
(5) An employer may not cancel an employment contract ordinarily.
ECA § 87. Extraordinary cancellation of employment contract
An employment contract may be cancelled extraordinarily only with good reason as prescribed in this Act, by adhering to the terms for advance notice prescribed in this Act.
(b) which are the valid reasons for termination and how they are defined, indicating whether these definitions relate to:
(i) the capacity of the worker (e.g., lack of necessary skills or qualities or poor performance not caused by intentional misconduct or incapacity to perform work as a result of illness or injury);
ECA § 88. Extraordinary cancellation of employment contract by employer for reason arising from employee
(1) An employer may extraordinarily cancel an employment 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, especially if the employee has:
1) for a long time been unable to perform their duties due to their state of health which does not allow for the continuance of the employment relationship (hereinafter decrease in capacity for work due to state of health), except in the event of working on the basis of a certificate for sick leave. 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 their duties due to their insufficient work skills, non-suitability for the position or inadaptability, which does not allow for the continuance of the employment relationship (decrease in capacity for work);
3) in spite of a warning, disregarded the employer’s reasonable instructions or breached their 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.
(ii) the conduct of the worker (e.g., inadequate performance of duties or improper behaviour);
Look at previous answer (regarding ECA § 88).
(iii) the operational requirements of the undertaking, establishment or service (e.g., economic, technological, structural or similar reasons).
ECA § 89. Extraordinary cancellation of employment contract by employer for economic reasons
(1) An employer may extraordinarily cancel an employment 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).
(2) Lay-off is also extraordinary cancellation of an employment contract:
1) upon cessation of the activities of employer;
2) upon declaration of bankruptcy of employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement.
Invalid reasons for termination of employment
8. Please indicate whether the national legislation or other methods of implementation consider the following criteria as not constituting valid reason for termination of employment:
(a) union membership or participation in union activities outside working hours or, with the employer’s consent, within working hours;
ECA § 92. Restriction on cancellation
(1) An employer may not cancel an employment contract on the ground that:
4) the employee represents other employees on the basis provided by law;
Trade Unions Act also provides additional protection to employees. Act available in English: https://www.riigiteataja.ee/en/eli/511022026003/consolide.
Trade Unions Act § 19. Rights of employee
(2) The rights of an employee and a person seeking employment may not be restricted on the ground of their membership in a trade union or absence thereof, of being elected a representative of a trade union, or of other legal activities related to trade unions.
(3) The restriction of rights provided in subsection 2 of this section means that due to activities related to trade unions:
1) an employee is not allowed to work;
2) an employment contract of an employee is cancelled or they are released from service;
3) the working conditions of an employee are impaired;
4) remuneration, wages or additional remuneration is reduced or not paid;
5) a disciplinary penalty is imposed;
6) an employee is threatened with cancellation of the employment contract, release from service, impairment of working conditions, imposition of punishment;
7) an employee is otherwise treated unequally.
(4) An employee whose rights are restricted in a way provided in subsection 3 of this section has the right to demand termination of the restriction, compensation for the proprietary or non-proprietary damage caused to them and restoration of the former situation.
(b) seeking office as, or acting or having acted in the capacity of, a workers’ representative;
Look at answer to point (a).
(c) filing a complaint or participating in proceedings against an employer involving alleged violations of laws or regulations, or recourse to competent administrative authorities;
ECA § 2'1. Protection against unfavourable treatment
An employer may not treat an employee unfavourably for the reason that the employee relies on their rights, draws attention to violation thereof or supports another employee in the protection of that employee’s rights.
(d) race,
ECA § 3. Principle of equal treatment
An employer must ensure the protection of employees against discrimination, follow the principle of equal treatment and promote equality in accordance with the Equal Treatment Act and Gender Equality Act.
Equal Tratment Act (available in English: https://www.riigiteataja.ee/en/eli/513062025002/consolide) specifies it furthermore.
Equal Treatment Act § 2. Scope of application of Act
(1) Discrimination of persons on grounds of nationality (ethnic origin), race or colour is prohibited upon:
2) entry into employment contracts or contracts for the provision of services, appointment or election to office, establishment of working conditions, giving instructions, remuneration, termination or cancellation of employment contracts or contracts for the provision of services, release from office;
(2) Discrimination of persons on grounds of religion or other beliefs, age, disability or sexual orientation is prohibited upon:
2) entry into employment contracts or contracts for the provision of services, appointment or election to office, establishment of working conditions, giving instructions, remuneration, termination or cancellation of employment contracts or contracts for the provision of services, release from office;
(e) colour
Look at answer to point (d).
(f) sex,
Gender Equality Act (available in English: https://www.riigiteataja.ee/en/eli/505012024003/consolide) § 6. Discrimination in professional life
(2) The activities of an employer shall also be deemed to be discriminatory if the employer:
7) punishes an employee under disciplinary procedure, transfers an employee to another position, terminates an employment relationship or promotes the termination thereof due to reasons connected with gender.
(g) marital status,
The law doesn't explicitly state marital status as unvalid ground for termination of employment contract. However, such prohibition clearly results from ECA general principles. According to ECA, there are specific ground that justify the termination of employment contract (look at ECA § 87-89). When none of those grounds for termination exist, then the termination is void.
(h) family responsibilities,
(1) An employer may not cancel an employment contract on the ground that:
1) the employee is pregnant or has the right to maternity leave;
2) the employee performs important family obligations, including uses the leave provided in §§ 60–65'1 of this Act or is on care leave provided in the Health Insurance Act;
(i) pregnancy,
ECA § 92. Restrictions on cancellation
(1) An employer may not cancel an employment contract on the ground that:
1) the employee is pregnant or has the right to maternity leave;
ECA § 93. Specifications for cancellation of employment contract with a pregnant woman or person raising a child being below the age of three years
(1) An employer may not cancel an employment contract with a pregnant woman or a woman who has the right to maternity leave, or a person who is on paternity leave, adoptive parent leave or parental 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.
(2) An employer may not cancel an employment contract with a pregnant woman or a woman who has the right to maternity leave due to a decrease in the employee’s capacity for work.
(j) religion,
Look at answer to point (d).
(k) political opinion,
Look at answer to point (d).
(l) national extraction,
Look at answer to point (d).
(m) social origin,
The law doesn't explicitly state social origin as unvalid ground for termination of employment contract. However, such prohibition clearly results from ECA general principles. According to ECA, there are specific ground that justify the termination of employment contract (look at ECA § 87-89). When none of those grounds for termination exist, then the termination is void.
(n) absence from work during maternity leave;
Look at answer to point (i).
(o) age, subject to national law and practice regarding retirement;
Look at answer to point (d).
(p) absence from work due to compulsory military service or other civic obligations, in accordance with national law and practice.
ECA § 92. Restrictions on cancellation
(1) An employer may not cancel an employment contract on the ground that:
6) the employee is in military service, alternative service or reserve service;
9. Please indicate whether national methods of implementation specify that temporary absence from work due to illness or accident is not a valid reason for termination.
Yes.
If so, please provide details on:
(a) how “temporary absence from work” is defined.
ECA § 92. Restrictions on cancellation
(1) An employer may not cancel an employment contract on the ground that:
6) the employee is in military service, alternative service or reserve service;
ECA § 88. Extraordinary cancellation of employment contract by employer for reason arising from employee
(1) An employer may extraordinarily cancel an employment 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, especially if the employee has:
1) for a long time been unable to perform their duties due to their state of health which does not allow for the continuance of the employment relationship (hereinafter decrease in capacity for work due to state of health), except in the event of working on the basis of a certificate for sick leave. 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;
Therefore, employers do not have grounds to terminate employment contracts if employees are temporarily absent from work due to health reasons. Only if the performance of work is not possiblew for at least 4 months, it can be a valid ground for termination of contract.
(b) the extent to which medical certification is required.
The employee's health condition is assessed by a doctor. The employee's reduced ability to work due to a health condition is proven, for example, by a long-term sick leave or a decision by an occupational health doctor.
(c) any limitations placed on the application of the above.
ECA § 88. Extraordinary cancellation of employment contract by employer for reason arising from employee
(2) Before cancellation of an employment contract, in particular on the basis specified in subsections 1 and 2 of this section, the employer must offer other work to the employee, where possible. The employer must offer other work to the employee, including organise, where 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.
(4) The employer may cancel an employment contract only within a reasonable time after they learnt or should have learnt of the circumstance serving as the basis for the cancellation.
IV. Procedures relating to termination of employment
Procedure prior or at the time of termination
10. Please indicate whether national legislation or practice provide workers the opportunity to defend themselves when their employment is terminated for reasons related to
(i) their conduct or
In all cases, employees may argue that the cancellation of employment contract is void (e.g. without legal basis or in conflict with the law). If they wish to do so, n action with the court or an application with a labour dispute committee for establishment of voidness of cancellation must be filed within 30 calendar days as of the receipt of the declaration of cancellation (ECA § 105).
(ii) their performance, unless the employer cannot reasonably be expected to provide this opportunity. If such a opportunity exists, please provide details on situations in which the employer cannot be reasonably expected to provide it.
Look at previous answer.
11. Please provide information on how termination of employment for misconduct of a worker is regulated under national law or practice.
ECA § 88. Extraordinary cancellation of employment contract by employer for reason arising from employee
(1) An employer may extraordinarily cancel an employment 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, especially if the employee has:
3) in spite of a warning, disregarded the employer’s reasonable instructions or breached their 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.
(2) Before cancellation of an employment contract, in particular on the basis specified in subsections 1 and 2 of this section, the employer must offer other work to the employee, where possible. The employer must offer other work to the employee, including organise, where 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.
(3) An employer may cancel an employment contract due to a breach of an employee’s obligation or decrease in their capacity for work, if the cancellation is preceded by a warning given by the employer. Prior warning is not a prerequisite for cancellation if the employee cannot expect it from the employer due to particular severity of the breach of the obligation or for another reason pursuant to the principle of good faith.
If applicable, please specify whether:
(a) misconduct must be repeated on one or more occasions to justify dismissal, unless the employer provides the worker appropriate written warning;
Yes. Look at previous answer.
(b) employers are considered to have waived their right to terminate the employment of a worker for misconduct if they fail to act within a reasonable period after becoming aware of the misconduct.
Yes. ECA § 88 (4): The employer may cancel an employment contract only within a reasonable time after they learnt or should have learnt of the circumstance serving as the basis for the cancellation.
12. Please provide information on how termination of employment for unsatisfactory performance of the worker is regulated under national law or practice.
Such basis for termination is possible primarily during probationary period. The employer may terminate the employment contract due to unsatisfactory results of the probationary period. In such a case, he must justify why the employee is not suitable to perform the agreed work based on the results of the work performed during the probationary period. The employer can justify termination of the employment contract due to unsatisfactory results of the probationary period only with circumstances that demonstrate the employee's ability to perform the work.
ECA § 10'1. Probationary period
(1) 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.
ECA § 86. Cancellation of employment contract during probationary period
(1) An employer and employee may cancel an employment contract entered into for a specified term and an employment contract entered into for an unspecified term during a probationary period.
Please specify whether employers are obligated to:
(a) provide appropriate instructions to the worker.
Yes, because the results of the probationary period must be discussed and talked over.
(b) issue a written warning outlining the unsatisfactory performance and set a deadline for improvement
No.
13. Please indicate whether, under national legislation or practice, workers are entitled to be assisted by another person when defending themselves against allegations regarding their own conduct or performance that may lead to termination of employment.
-
If so, please provide information on how this right is regulated.
-
14. Please indicate whether, under national legislation or practice, employers are required to:
(a) consult workers’ representatives before a final decision is taken on individual cases of termination of employment,
The requirement of consultation applies in case of collective cancellation of employment contracts (ECA § 113) and cancellation of employment contract with employees’ representative (ECA § 93).
(b) notify workers in writing of a decision to terminate their employment.
ECA § 96-98 speficically regulate advance notice of cancellation.
Procedure of appeal against termination
15. Please indicate whether, under national legislation or practice, workers who consider that their employment has been unjustifiably terminated have the right to appeal against that termination to a court, labour tribunal, arbitration committee, arbitrator or other impartial body.
Yes. Look at ECA § 104-110.
If so, please provide information on:
(a) whether the right to appeal is limited when termination has been authorized by a competent authority,
There is no exceptions regarding the right to appeal - employees always have such right.
(b) any applicable time limits within which workers must exercise their right to appeal after termination,
The general rule is 30 days.
ECA § 105. Relying on voidness of cancellation
(1) An action with the court or an application with a labour dispute committee for establishment of voidness of cancellation must be filed within 30 calendar days as of the receipt of the declaration of cancellation.
(2) If an action or application is not filed within the term or if the term for filing the action or application is not restored, the cancellation is valid from the start and the contract has expired on the date specified in the declaration of cancellation.
(c) efforts by public authorities, workers' representatives and organisations of workers to ensure that workers are fully informed of the possibilities of appeal at their disposal. If so, please provide information on the nature and the impact of such measures
The main guidance is provided by the Labour Inspecorate. Various information about work life can be found at Labour Inspectorate website (in Estonian, Russian and English): https://www.tooelu.ee/en. In addition, the inspectorate provides advisory service from Monday to Friday 9:00 to 15:00 by phone. The advisory service is free of charge for everyone who has questions regarding work life.
16. Please indicate whether the body or bodies mentioned in Question 15 are empowered to:
(a) examine the reasons provided for the termination,
Yes. Courts and labour dispuite committees can examine the reasons provided for termination and make a final decision about whether there were lawful grounds for termination.
(b) examine other circumstances related to the case,
Yes.
(c) render a decision on whether the termination was justified,
Yes.
(d) determine, in cases where termination is stated as due to operational requirements, whether the termination was indeed for these reasons. If so, please specify whether the body or bodies can also assess whether these reasons are sufficient to justify the termination.
Courts and labour dispuite committees can examine any reasons that have been stated as grounds for termination.
17. Please indicate whether the body or bodies referred to in Question 15, are empowered to order the payment of adequate compensation or other appropriate relief when they find termination unjustified and are not empowered or do not find it practicable per national law and practice to declare it invalid and/or order or propose reinstatement.
ECA § 109. Compensation in case of termination of employment relationship in court or labour dispute committee
(1) If the court or labour dispute committee terminates an employment contract in the case specified in subsection 2 of § 107 of this Act, 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.
If so, please specify how such compensation is determined or what such relief consists of.
Look at previous answer. The compensation for unlawful termination is usually 3 months. The compensation can be changed considering the circumstances. In case of employees who are pregnant, who have the right to maternity leave or who have been elected as the employees' representative, the standard compensation is 12 months (also can be changed, look at ECA § 109 (2)).
18. Please indicate whether, under the national legislation or practice, it is ensured that the worker does not bear alone the burden of proving that the termination was unjustified by one or the other or both of the following possibilities:
(a) the burden of proving the existence of a valid reason for the termination rests on the employer
The employer must always justify cancellation in a form reproducible in writing (ECA § 95 (2)). In case of a dispute, the employer must prove that they had a valid reason for the termination.
(b) the conclusion by the body or bodies referred to in Question 15 regarding the reason for termination is reached based on evidence provided by the parties and according to procedures outlined in national law and practice.
Yes. In case of a dispute, the court or labour dispute committee conclude whether the termination was lawful or not (including whether the provided reasoning was justified).
19. Please indicate whether there is a conciliation procedure under national legislation or practice before or during appeal proceedings against termination of employment.
Yes.
If so, please provide information on how this procedure functions.
It is possible to apply conciliation proceedings in labour dispute committee. During adjudication of a labour dispute, one can have recourse to the labour dispute committee as conciliation body until a decision is made in the labour dispute matter. For further details, please look at Labour Dispute Resolution Act § 33-36, available in English: https://www.riigiteataja.ee/en/eli/502122020006/consolide.
It is also possible to apply conciliation proceedings in regular court proceedings. The conciliation procedures are regulated with Conciliation Act, available in English: https://www.riigiteataja.ee/en/eli/518032025002/consolide.
V. Period of notice and certificate of employment
20. Please indicate whether, under national legislation or practice a worker whose employment is to be terminated is entitled to a reasonable period of notice or compensation in lieu thereof, unless guilty of serious misconduct.
Yes.
It is also mandatory to provide information regarding the termination of contracts in a written document of an employment contract.
EC § 5. Notification of employee of working conditions
(1) A written document of an employment contract must contain at least the following data:
10) a reference to the form reproducible in writing, the obligation to give reasons and the notice periods pertaining to the cancellation of the employment contract;
If so, please provide details on:
(a) how “period of notice” is defined, its duration, and the content of the compensation in lieu of notice.
Terms for advance notice differ depending on whether it's the employer or the employee terminating the contract and whether they do that under ordinary or extraordinary circumstances.
As a general rule, if the employer is the one terminating the contract, the period of notice differs depending on how long has the employee worked for the employer. In extraordinary circumstances it is possible to cancel the contract without adhering to the term for advance notice. If it's the employee terminating the contract the advance notice is usually 30 days.
A special regulation also applies in case of probationary period still lasting.
ECA § 97. Terms for advance notice of cancellation by employer
(1) An employer may extraordinarily cancel an employment contract by adhering to the terms for advance notice provided in subsection 2 of this section.
(2) An employer must give an employee advance notice of extraordinary cancellation 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.
(3) On a basis specified in subsection 1 of § 88 of this Act, except for the basis specified in clause 1 thereof, an employer may cancel an employment contract without adhering to the term for advance notice if, considering all circumstances and mutual interests, it cannot be reasonably demanded that the performance of the contract be continued until the expiry of the agreed term or term for advance notice.
(4) Terms for advance notice different from those provided in subsection 2 of this section may be prescribed by a collective agreement.
ECA § 98. Terms for advance notice of cancellation by employee
(1) An employee must notify the employer of ordinary cancellation no less than 30 calendar days in advance.
(3) An employee is not required to give to the employer advance notice of extraordinary cancellation if, considering all circumstances and mutual interests, it cannot be reasonably demanded that the performance of the contract be continued until the expiry of the agreed term or term for advance notice.
ECA § 96. Advance notice of cancellation due to failure to achieve goal of probationary period
An employment contract may be cancelled during a probationary period by giving no less than 15 calendar days’ advance notice thereof.
Regarding compensation, ECA § 100 (5) applies: If an employer or employee gives advance notice of cancellation less than provided by law or a collective agreement, the employee or the employer has the right to receive average working day wage for every working day that advance notice of cancellation of the employment contract was given less.
(b) how “serious misconduct” is defined for this purpose.
Look at previous answer.
(c) whether, during the period of notice, workers are entitled to a reasonable time off without loss of pay for the purpose of seeking other employment, taken at times convenient to both parties.
ECA § 99. Obligation to grant time off
If an employer cancels an employment contract extraordinarily, the employer must grant the employee within the period of advance notice time off to a reasonable extent to find new employment.
21. Please indicate whether workers whose employment has been terminated are entitled to:
(a) receive, upon request, a certificate from the employer specifying only the dates of their own engagement and termination, as well as the type or types of work performed;
ECA does not specifically regulate this question.
(b) receive, at their request, an evaluation of their own conduct and performance included in the certificate of employment or provided in a separate certificate.
ECA does not specifically regulate this question.
VI. Severance allowance and other income protection
22. Please provide information on the content of the benefits a worker whose employment has been terminated is entitled to.
Regarding lay-off, look at: ECA § 100. Compensation for cancellation
(1) Upon cancellation of an employment contract due to lay-off, the employer must pay the employee compensation to the extent of one month’s average wages of the employee.
(2) Upon cancellation of an employment contract due to lay-off, the employee has the right to receive a benefit upon lay-offs on the conditions and in accordance with the rules prescribed in the Unemployment Insurance Act.
The right to a redundancy benefit paid by the Estonian Unemployment Insurance Fund arises when the employment relationship has lasted at least five years. The amount of the redundancy benefit depends on the duration of the employee’s last employment relationship. If the employee’s employment relationship with the last employer has lasted: five to ten years, compensation is paid in the amount of one month’s average salary or wage; more than ten years, compensation is paid in the amount of two months’ average salary or wage (Unemployment Insurance Act § 14-2(1)).
Regarding the use of fixed-term contracts, look at: ECA § 100 (3): Upon cancellation of an employment contract entered into for a specified term for economic reasons, except for reasons specified in clause 2 of subsection 2 of § 89 of this Act, the employer must pay the 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 is paid if the employment contract is cancelled due to force majeure.
In addition, ECA § 100 (4) provides compensation in case the contract ended for the reason that the employer fundamentally breached it: (4) 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. /…/ 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.
Please indicate whether such benefits include:
(a) a severance allowance or other separation benefits.
Please indicate also if :
(i) the amount is based on the length of service, wage level, or other criteria, and whether
Look at previous answer.
(ii) they are paid directly by the employer or through a fund constituted by employers’ contributions.
Compensation under the ECA is paid directly by the employer, while the redundancy benefit under the unemployment insurance scheme is paid by the Estonian Unemployment Insurance Fund.
(b) benefits from unemployment insurance or assistance or other forms of social security (such as old age or invalidity benefits).
The income-based unemployment insurance benefit will be granted to those who have at least 12 months of unemployment insurance cover in the last three years and who did not leave their job on their own initiative, on agreement with their employer or on the grounds of their own misconduct. For the first 100 days, the income-based unemployment benefit is 60% of the average earnings per calendar day, and 40% thereafter.
The basic unemployment insurance benefit will be paid to those who have at least eight months of unemployment insurance cover in the last three years. The rate of the basic unemployment insurance benefit is 50% of the minimum wage in Estonia in the previous year.
In the case of redundancy, unemployment insurance benefit is calculated and paid after the waiting period has passed. In the case of waiting time, the benefit will be calculated: 1) after 30 calendar days have passed from the termination of the employment, if the employment with that employer has lasted 5–10 years; 2) after 60 calendar days have passed from the termination of the employment, if the employment with that employer has lasted more than 10 years.
Persons who have partial or no work ability are subject to work ability allowance.
Unemployment insurance benefits and the work ability allowance are administered and paid by the Estonian Unemployment Insurance Fund.
(c) a combination of such allowance and benefits.
Look at previous answer. The basic unemployment insurance benefit can be claimed by a person who does not have the right to receive the income-based unemployment insurance benefit. However, the work ability allowance may be paid concurrently with unemployment insurance benefits.
23. Please indicate whether national legislation and practice provide for the loss of entitlement to the allowances or benefits referred to in Question 22 in the event of termination for serious misconduct.
In such cases, the person is not entitled to the income-related unemployment insurance benefit. Look at previous answer (22 (b)).
VII. Termination of employment for economic, technological, structural or similar reasons
24. Please provide information on the legislation, collective agreements, arbitral awards, court decisions or other methods of implementation relevant to termination of employment for economic, technological, structural or similar reasons. If available, please provide relevant legislation, agreements, or court decisions illustrating how these provisions are applied in practice.
ECA § 89. Extraordinary cancellation of employment contract by employer for economic reasons
(1) An employer may extraordinarily cancel an employment 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).
(2) Lay-off is also extraordinary cancellation of an employment contract:
1) upon cessation of the activities of employer;
2) upon declaration of bankruptcy of employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement.
(3) Before cancellation of an employment contract due to lay-off, an employer must, where possible, offer other work to the employee, except in the cases specified in subsection 2 of this section. The employer must, 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.
(4) Upon cancellation of an employment contract, the employer must take into account the principle of equal treatment.
(5) Upon cancellation of an employment contract due to lay-off, except in the cases specified in subsection 2 of this section, the employees’ representative and an employee who is raising a child under three years of age have the preferential right of keeping their job.
§ 112. Validity of employment contract in case of transfer of enterprise
(1) Employment contracts transfer to the transferee of an enterprise unamended pursuant to the Law of Obligations Act if the enterprise continues the same or similar economic activities.
(3) A transferor and transferee of an enterprise are prohibited from cancelling an employment contract due to the transfer of the enterprise.
(4) Subsections 1 and 3 of this section are not applied to the declaration of bankruptcy of an employer.
25. Please provide information on how termination of employment for reasons of an economic, technological, structural or similar nature is defined in national methods of implementation, where applicable.
Look at ECA § 89 (1) and (2) provided in previous answer.
Information and consultation of workers’ representatives
26. Please indicate whether, in cases of termination of employment for economic, technological, structural or similar reasons, the employer has the obligation to provide the workers' representatives recognised as such by national law or practice, in good time with relevant information. In particular, please indicate:
(a) whether such information must include:
(i) the reasons for the contemplated terminations,
Please also look at answers to questions no 30. According to ECA, the employer is obligated to inform and consult employees in case of collective cancellation of contracts (but not individual cancellation).
ECA § 101. Information and consultation of employees upon collective cancellation of employment contracts
(1) Before an employer decides on collective cancellation they must consult in good time the trustee / shop steward or, in their 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.
(2) 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.
(3) The employer must send a transcript of the information specified in subsection 2 of this section to the Estonian Unemployment Insurance Fund concurrently with the submission of the information to the trustee / shop steward or, in their absence, the employees.
(4) 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 pursuant to the procedure and within the term prescribed in subsection 3 of § 113 of this Act.
In addition, employees must be informed and consulted in case of trasfer of enterprise.
ECA § 113. Information and consultation upon transfer of enterprise
(1) The transferor and transferee of an enterprise must submit, in good time but not later than one month before the transfer of the enterprise, to the trustee / shop steward or, in their absence, the employees a notice in a form reproducible in writing, containing at least the following information:
1) the planned date of transfer of the enterprise;
2) the reasons for the transfer of the enterprise;
3) the legal, economic and social consequences of the transfer of the enterprise for the employees;
4) the measures planned with regard to the employees.
(2) If the transferor or the transferee of an enterprise intends, due to the transfer of the enterprise, to make changes affecting the situation of the employees, they must consult the trustee / shop steward or, in their absence, the employees with the goal of reaching an agreement on the measures planned.
(3) Upon consultation, the trustee / shop steward has or, in their absence, the employees have the right to meet with the representatives of the transferor and transferee of the enterprise, including members of the directing body, and make proposals, in a form reproducible in writing, relating to the measures planned with regard to the employees no later than within 15 days as of the submission of the notice specified in subsection 1 of this section, unless a longer term is agreed upon. The transferor and the transferee of the enterprise are required to justify disregard for the proposals.
(ii) the number and categories of workers likely to be affected, and
Yes. Look at ECA § 101 (2) (3).
(iii) the period over which the terminations are intended to be carried out.
Yes. Look at ECA § 101 (2) (4)
(b) whether the obligation is limited to a specific number or percentage of the workforce and, if so, please indicate the specific number or percentage.
Yes.
ECA § 90. Collective cancellation of employment contracts
(1) Collective cancellation of employment contracts means cancellation, within 30 calendar days due to lay-off, of the employment contract of no less than:
1) 5 employees in an enterprise where the average number of employees is up to 19;
2) 10 employees in an enterprise where the average number of employees is 20–99;
3) 10 per cent of the employees in an enterprise where the average number of employees is 100 to 299;
4) 30 employees in an enterprise where the average number of employees is at least 300.
27. Please indicate whether in accordance with national law and practice, in cases of terminations of employment for reasons of an economic, technological, structural or similar nature, the employer has the obligation to provide the workers' representatives concerned, as early as possible, with an opportunity for consultation, on:
(a) measures to be taken to avert or to minimise the terminations and
Look at answer to question no 26 and ECA § 101 (1).
(b) measures to mitigate the adverse effects of any terminations on the workers concerned such as finding alternative employment.
Look at answer to question no 26 and ECA § 101 (1).
If so, please indicate:
(i) how the opportunity for consultation is provided, how far in advance of the contemplated terminations it must be given, and the objects of such consultation.
Look at answer to question no 26 and ECA § 101 (2) and (4).
(ii) whether the obligation is limited to a specific number or percentage of the workforce and, if so, please specify the number or percentage.
Look at answer to question no 26 and ECA § 90.
28. Please indicate whether, in cases where the employer contemplates the introduction of major changes in production, programme, organisation, structure or technology likely to result in terminations, if employer has to consult, as early as possible, the workers' representatives recognised as such by national law or practice, on:
(i) the introduction of such changes,
Yes. Employees’ Trustee Act applies, available in English: https://www.riigiteataja.ee/en/eli/522012025005/consolide.
In case an employer employs at least 30 employees they are required to apply the informing and consulting provided in Employees' Trustee Act chapter 5.
Employees' Trustee Act § 20. Contents of informing and consulting
(1) An employer informs and consults at least of the following circumstances pertaining to employees:
1) the structure of the employer, the staff, including the employees performing duties by way of temporary agency work, changes therein and planned decisions which significantly affect the structure of the employer and the staff;
2) planned decisions which are likely to bring about substantial changes in the work organisation;
3) planned decisions which are likely to bring about substantial changes in the employment contract relationships of employees, including termination of employment relationships.
(2) The employer must inform of an annual report prepared pursuant to the Accounting Act no later than within 14 days after the approval of the annual report.
(ii) their likely effects and
Yes. This appeaks from the definition of information, look at Employees' Trustee Act § 19 (1): Informing means provision of information to a trustee or, in their absence, to the employees on an appropriate level which allows the employees to receive in due course a clear and sufficiently detailed overview of the structure and economic and employment situation of the employer and the possible development thereof and of other circumstances affecting the interests of employees, and also to understand the effects of the situation and other circumstances on the employees.
(iii) the measures to avert or mitigate the adverse effects of such changes. If so, please specify when employers need to provide the relevant Information.
Employees' Trustee Act § 21. Manner of informing and consulting
(1) An employer must provide information in a manner which enables to thoroughly examine the information and, where necessary, prepare for consultations with the employer. The employer must provide information in writing or in a form reproducible in writing, unless the parties have agreed otherwise.
(2) A trustee or, in their absence, the employees have the right to present a written opinion or make a proposal concerning the information received from the employer or notify of the intention to commence consulting within 15 working days as of the receipt of the information. If the employer does not take the proposals into consideration, the reasons therefor must be given at the earliest opportunity in writing or in a form reproducible in writing.
(3) The employer must commence consulting within seven working days as of the receipt of the request for consulting.
(4) The employer must explain in consulting the activities planned and the consequences thereof for the employees. The parties must seek to reach an agreement on the planned activity.
(5) The trustee or, in their absence, the employees may involve experts in the consulting.
Measures to avert or minimise termination and mitigate its impact
29. Please provide information, where applicable, on the nature and impact of measures taken in the context of such terminations:
(a) To avert or minimise terminations. Please indicate whether such measures include any of the following: restriction of hiring, spreading workforce reduction over time to allow natural attrition, internal transfers, training and retraining, voluntary early retirement with appropriate income protection, restriction of overtime and reduction of normal hours of work.
In case employer has started information and consultation prosess of employees upon collective cancellation of employment contracts based on ECA § 101 and has sent information to Estonian Unemployment Insurance Fund (EUIF), EUIF starts providing different measures to the employees. Employees who receive a redundancy notice are entitled to:
• All general labour market services available to any person (information on labour market measures, job mediation, career information, career counselling).
• All services available to employed persons, including work focused counselling, job clubs, labour market training, support for participation in formal education, and qualification support.
• Additionally, employees with a redundancy notice are specifically entitled to counselling services to support their transition.
Income protection was provided at the time of Covid19 crises as temporary measure.
As permanent shorterm work scheme for minimise loss of jobs ECA § 37 allows reduction of wages upon failure to provide work. If due to unforeseen economic circumstances beyond its control employer fails to provide an employee with work to the agreed extent, the employer may, for up to three months over a period of 12 months, reduce the wages to a reasonable extent, but not below the minimum wage established by the Government of the Republic, if payment of the agreed wages would be unreasonably burdensome for the employer.
(b) To mitigate the impact of the terminations. Please indicate whether such measures include:
(i) measures by the competent authority, in collaboration with the employer and the workers' representatives concerned, to place the workers affected in suitable alternative employment as soon as possible, with training or retraining; and
EUIF as PES (Public Employment Service Provider) provides employee with the redundancy notice skills‑development labour market measures such as labour market training, support for participation in formal education, support for obtaining a qualification, employers training allowance, work practice placements. This is a coherent package that helps individuals upgrade their competencies and improve their employability.
(ii) income protection during training or retraining and reimbursement (partial or total) of expenses related to - training or retraining and finding and taking up employment requiring a change of residence.
The support for participation in formal education provides a monthly allowance to unemployed people as well as employed persons who start studying in vocational, professional higher or bachelor programmes that meet labour‑market needs. The support is intended for individuals who lack vocational qualifications, whose previous studies were completed long ago, or who can no longer continue in their current job for health reasons. It is granted when the person begins studies in a field with proven labour‑market demand and applies within the required timeframe. The monthly amount equals 50% of the statutory minimum monthly wage, and it is paid for the nominal duration of studies (excluding academic leave), generally for one qualification.
When applicable, please indicate whether the competent authority provides financial resources to support in full or part the measures referred in (ii).
If the person meets the criteria the support are paid in full.
Notification to the competent authority
30. Please indicate whether, in cases of terminations for reasons of an economic, technological, structural or similar nature, the employer has the obligation, under national legislation or practice, to notify the competent authority as early as possible, providing relevant information.
The notification obligation applies in case of collective cancellation of contracts (look at ECA § 102).
If so, please indicate:
(a) the competent authority or authorities for the purpose of notification.
Estonian Unemployment Insurance Fund
(b) the information required, including whether it must cover:
(i) the reasons for the terminations,
Yes. Look at ECA § 101 (2) (1) and § 102 (1).
ECA § 102. Notification of Estonian Unemployment Insurance Fund of collective cancellation
(1) After consultations an employer must submit the information specified in subsection 2 of § 101 of this Act and the information about the consultations to the Estonian Unemployment Insurance Fund in a form reproducible in writing.
ECA § 101. Information and consultation of employees upon collective cancellation of employment contracts
(2) 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.
(ii) the number and categories of workers likely to be affected and
Yes. Look at ECA § 101 (2) (3) and § 102 (1).
(iii) the period over which the terminations are intended to be carried out.
Yes. Look at ECA § 101 (2) (4) and § 102 (1).
(c) whether the obligation applies only to terminations of a specified number or percentage of the workforce and, if so, please specify.
Yes.
ECA § 90. Collective cancellation of employment contracts
(1) Collective cancellation of employment contracts means cancellation, within 30 calendar days due to lay-off, of the employment contract of no less than:
1) 5 employees in an enterprise where the average number of employees is up to 19;
2) 10 employees in an enterprise where the average number of employees is 20–99;
3) 10 per cent of the employees in an enterprise where the average number of employees is 100 to 299;
4) 30 employees in an enterprise where the average number of employees is at least 300.
(d) the minimum period of advance notification required under national laws or regulations.
ECA § 103. Term for collective cancellation
(1) An employer may cancel employment contracts after consultation and notification of the Estonian Unemployment Insurance Fund pursuant to the provisions of subsection 1 of § 102 of this Act.
(2) Collective cancellation of employment contracts enters into force upon the expiry of the term for advance notice of cancellation, but not sooner than 30 calendar days after the time when the Estonian Unemployment Insurance Fund received the information specified in subsection 1 of § 102 of this Act. During the term specified in this section the Estonian Unemployment Insurance Fund seeks solutions to the employment problems relating to the collective cancellation.
Criteria for selection for termination and priority of rehiring
31. Please indicate whether, under national legislation or practice, the selection of workers whose employment is to be terminated for economic, technological, structural or similar reasons is based on established criteria.
According to ECA § 89 (5) upon cancellation of an employment contract due to lay-off the employees’ representative and an employee who is raising a child under three years of age have the preferential right of keeping their job.
In addition, according to ECA 101 (2) (3) 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. This includes information about the selection criteria determining the persons whose employment contracts are to be cancelled.
If so, please provide information on how these criteria give due weight to:
(i) the interests of the undertaking, establishment or service and
-
(ii) to the interests of the workers.
-
32. Please indicate whether measures exist under national legislation and practice to ensure that workers terminated for economic, technological, structural or similar reasons are given a certain priority for rehiring if the employer hires workers with comparable qualifications.
-
If so, please indicate:
(a) whether such priority is subject to the workers expressing a desire to be rehired within a given period after termination.
-
(b) whether the priority in rehiring is limited in time.
-
(c) whether national methods of implementation provide for:
(i) the criteria for the priority in rehiring;
-
(ii) the retention of rights (particularly seniority rights) in the event of rehiring; and
-
(iii) the terms governing the wages of rehired workers.
-
Statistical information
33. Please provide information on the manner in which the Convention is applied in practice, including, for example, available statistics on the activities of the bodies of appeal (such as the number of appeals against termination of employment, the outcome of such appeals, the nature of the remedy awarded and the average time taken for an appeal to be decided) and on the number of terminations for economic or similar reasons.
The statistics on redundancies are available from the Unemployment Insurance Fund and cover persons made redundant and registered as unemployed. The data shows a broadly similar pattern for both overall redundancies and collective redundancy notifications. Redundancies returned close to (and were lower in case of collective redundancies) pre-pandemic levels in 2021–2022. Redundancies increased again in 2023, likely reflecting the economic slowdown, and have declined slightly since then.
Table 1. New registrations of unemployed due to redundancy, 2021-2025
New registrations of unemployment due to redundancy / Redundancy share of all new registrations (%)
2025 12 274 / 14
2024 13 471 / 14.9
2023 13 976 / 15.1
2022 10 549 / 11.3
2021 9 521 / 12.6
Source: Estonian Unemployment Insurance Fund
Table 2. Collective redundancies noticies, 2021-2025
Number of persons affected, 1st and 2nd notification / Number of companies affected, 1st and 2nd notification
2025 2 322 2 071 / 99 89
2024 3 075 2 565 / 131 114
2023 3 860 3 538 / 136 124
2022 3 418 2 871 / 112 84
2021 1 244 994 / 60 49
Employers must notify the Unemployment Insurance Fund twice prior to a collective redundancy: when planning the redundancies (1st notification) and after consultations with employees or their representatives (2nd notification).
Source: Estonian Unemployment Insurance Fund
The total number of labour disputes varies from year to year; in recent years, it has remained at around 2 300 - 2 400 applications, most of which (around 90%) are submitted by employees. Applications concerning termination of employment increased until 2024, followed by a slight decline in 2025. Such applications are typically resolved either through compromise, the number of which has increased over time, or are at least partially granted when a decision is made by the Labour Dispute Committee. The average duration of proceedings has varied across years but has remained at around 45 days in recent years.
Table 3. Statistics on labour disputes initiated by employees concerning termination of employment, 2021–2025
2021 / 2022 / 2023 / 2024 / 2025
Number of applications submitted 244 / 228 / 313/ 337 / 304
Decision made: Fully or partially granted 104 / 74 / 101 / 94 / 85
Decision made: Not granted 48 / 44 / 34 / 50 / 46
Compromise reached 67 / 89/ 149 / 160 / 135
Not proceeded with (e.g. withdrawal, lack of jurisdiction, etc) 25 / 21/ 29 / 33 / 33
Average duration of proceedings (in days) 51.4 / 36.3 / 42.1 / 45.4 / 45.8
Source: Labour Inspectorate
Impact of the instruments and prospects for ratification of Convention No. 158
34. Please indicate whether any modifications have been made or are envisaged to national laws, regulations or practice, with a view to giving effect to all or some of the provisions of the Convention No. 158 and Recommendation No. 166. If so, please provide copies of the relevant texts.
Currently Estonia has not made or does not have plans to make amendments in national law due to Convention No. 158 or Recommendation No. 166.
35. Please provide information regarding any prospects of ratification and identify any challenges or obstacles with regard to the possible ratification of Convention No. 158, where these exist.
Currently Estonia does has no plans to ratify Convention No. 158.
Article 23(2) of the Constitution
36. Please indicate the representative employers’ and workers’ organizations to which copies of the present questionnaire have been communicated in accordance with article 23(2) of the ILO Constitution and indicate whether you have received observations from such organizations concerning the effect given, or to be given, to Convention No. 158 and Recommendation No. 166. If so, please communicate a copy of the observations received together with any comments that you may consider useful.
Copies of the present report will be communicated to the Estonian Trade Unions Confederation and the Estonian Employers’ Confederation.