European Restructuring Monitor (ERM)
Eurofound's ERM database on restructuring-related legal regulations provides information on regulations in the Member States of the European Union and Norway which are explicitly or implicitly linked to anticipating and managing change.
Employment Contracts Act 97, 100, 103
An employer must give an employee advance notice of extraordinary cancellation which depends on the time the employee’s employment relationship with the employer has lasted:
These requirements also cover collective redundancies (within 30 days, dismissals of at least 5 employees in companies with up to 19 staff, of at least 10 in firms with 20-99 staff, of at least 10% in companies with 100-299 staff or of at least 30 in larger companies), but the period shall not be shorter than 30 calendar days from the point in time when the employer has informed the Estonian Unemployment Insurance Fund about the collective redundancy.
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 (including bankruptcy).
If an employer wishes to terminate the employment contract with immediate effect, he/she may choose to remunerate the advance notice period in money. The amount that the employer or employee has the right to receive is based on the average working day wage of the employee and the number of days that advance notice of cancellation of the employment contract was given less.
According to the Employment Contract Survey, 62-75% of employees made redundant estimated that they were noticed according to their rights (Masso et al, 2013).
Eurofound (2015), Estonia: Notice period to employees, Restructuring legislation database, Dublin, https://apps.eurofound.europa.eu/legislationdb/notice-period-to-employees/estonia
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