An employer may terminate an employment contract for economic reasons if the continuation of the employment relationship on the agreed terms is made impossible by a reduction in the volume of work, a reorganization of work or another recruitment (dismissal). Employers are responsible for the actions of their employees, unless the worker has behaved outside of his or her employment. In the event of termination of an employment contract following a dismissal, the employer pays an employee a salary allowance of one month. A worker is also entitled to an insurance benefit under the Unemployment Insurance Act. There is no legal obligation of the written form of a contract. When a person works for another person for remuneration, it is considered that it is a contract of employment and that the conditions laid down in the Employment Contracts Act apply. Employment contracts can therefore be oral. Contracts that do not exceed two weeks are not subject to the written form requirement. The worker may terminate the contract with a period of thirty days without justification. In certain circumstances, the worker may terminate the contract without complying with the notice period. Dismissal is also an exceptional termination of an employment contract and applies: if the parties agree to terminate the employment relationship, they are not required to obtain the agreement of the court or supervisory authority before the effectiveness of the dismissal. However, a cancellation agreement between the parties, in which the worker claims to waive certain legal rights, is only mandatory if he meets certain requirements. This is not the exact dismissal, but a usual way to end an employment relationship is mutual agreement.
Since it is quite unusual for both parties to simultaneously reach a common understanding that they want to terminate the employment contract, in reality, “mutually” is often a unilateral wish of one party, mainly the employer. While it`s always good to end a relationship in a friendly way, it`s important not to be pressured to sign a termination based on mutual agreement, if it`s not actually the case. It is often fair to demand compensation and employers often offer compensation. The labour inspectorate has exclusive jurisdiction over most labour rights, but in some cases, and if the parties fail to reach an agreement within the labour inspectorate, the case may be brought before the civil court. The competent court depends on the address of the defendant. The civil courts are Harju, Viru, Pärnu and Tartu County Court. Appeals against the judgments of the district courts are tried by the district courts of Tartu and Tallinn. Appeals against the decisions of the District Court will be tried before the Supreme Court of Estonia in Tartu. The deadline for submitting an application to a labour inspectorate is usually four months. Requests for termination are subject to a period of 30 calendar days.
Employees have three years to file a wage dispute. Workers who wish to terminate the employment contract must grant the employer a period of at least 30 calendar days. During the period of parental leave, the employment contract is terminated, which means that the employment is maintained. Leave may not be taken if the child is partially or totally dependent on the State. . . .