Phase
Employment Contracts Act
Native name
Töölepingu seadus
Type
Definition of collective dismissal
Added to database
08 May 2015

Article

Employment Contracts Act 90


Description

An employer may extraordinarily terminate 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 reorganisation of work or other cessation of work (lay-off). Lay-off is also an extraordinary termination of an employment contract upon cessation of the activities of the employer or upon declaration of bankruptcy of the employer or termination of bankruptcy proceedings, without declaring bankruptcy, by abatement.

Collective termination of employment contracts (collective dismissal) means cancellation, within 30 calendar days due to lay-off, of the employment contract of no less than:

  • 5 employees in an enterprise where the average number of employees is up to 19;
  • 10 employees in an enterprise where the average number of employees is 20–99;
  • 10 % of the employees in an enterprise where the average number of employees is 100 to 299;
  • 30 employees in an enterprise where the average number of employees is at least 300.

Civil servants are excluded from the legislation.


Commentary

No information available.


Additional metadata

Cost covered by
None
Involved actors other than national government
National government
Involvement (others)
None
Thresholds
Affected employees: 5
Company size: 19
Additional information: No, applicable in all circumstances

Sources

Citation

Eurofound (2015), Estonia: Definition of collective dismissal, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/definition-of-collective-dismissal/estonia

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