Under Estonian law, an employment contract can be terminated without the employee’s agreement. Refusing to accept a termination notice does not prevent the employment relationship from ending.

Employees should understand three important rules: when termination takes effect, how long they have to challenge it, and which financial claims remain available.

1. When does termination take effect?

Under Section 95 of the Estonian Employment Contracts Act (TLS), a termination notice must be made in a form reproducible in writing.

A handwritten or digital signature is not always necessary. An email or even an SMS may constitute a valid termination notice if its meaning is clear and it reaches the employee.

The notice becomes effective upon receipt. The employment contract ends on the date specified in the notice, subject to the applicable legal rules.

If the employer fails to observe the statutory notice period, the employee may be entitled to compensation under TLS Section 100(5). This does not automatically extend the employment contract.

2. The 30-day deadline to challenge termination

An employee must challenge an allegedly invalid termination before the Labour Dispute Committee or a court within 30 calendar days of receiving the notice.

Simply replying that the dismissal is unfair or unacceptable is not enough.

If the termination is not challenged within the deadline, it is generally deemed valid, and the employment contract ends on the date stated in the notice.

An employee cannot keep the contract alive simply by continuing to offer their services.

3. Does salary continue after termination?

Employees are entitled to remuneration earned before the employment relationship ends.

If the employer prevents an employee from working while the contract remains in force, average remuneration may still be payable.

However, ordinary salary does not continue accumulating after the employment contract has ended.

An employee’s willingness to work does not create a new salary entitlement after termination.

If a termination is successfully challenged, the Labour Dispute Committee or court may determine the consequences, including continuation or termination of the employment relationship and applicable compensation.

4. What financial claims remain possible?

Depending on the circumstances, an employee may claim:

• Unpaid wages earned before termination.
• Compensation for insufficient notice.
• Compensation for invalid termination, where the termination was challenged in time and the statutory conditions are met.
• Default interest on overdue monetary claims.

Importantly, the 30-day termination challenge deadline does not eliminate separate wage claims.

Wage claims generally have a three-year limitation period from the date payment became due.

5. What if the employee works abroad?

An employment contract with an Estonian company may involve Estonian law even if the employee works remotely from another country.

However, mandatory rules of the country where the employee habitually works and questions of jurisdiction may also be relevant. Cross-border cases require individual assessment.

Legal assistance in Estonia

EROVIK Õigusbüroo assists employers and employees with termination disputes, unpaid wages and proceedings before the Estonian Labour Dispute Committee.

We provide written legal assessments for clients in Estonia and abroad.

Contact: info@erovik.ee
Website: https://erovik.ee/

This article provides general legal information and does not constitute individual legal advice.