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.
Estonia: Obligation to consider alternatives to collective dismissals
Phase
Employment Contracts Act
Native name
Töölepingu seadus
Type
Obligation to consider alternatives to collective dismissals
Added to database
08 May 2015
Article
Employment Contracts Act § 89, § 101
Description
Before termination of an employment contract due to lay-off (in case of individual as well as collective dismissal), an employer shall, where possible, offer other work to the employee. Also, where necessary, the employer shall organise the employee's on the job training or change the employee’s working conditions, unless the changes cause disproportionately high costs for the employer.
Prevention of the planned termination or reduction of the number thereof and mitigation of the consequences of the terminations, including contribution to the seeking of employment by or retraining of the employees to be laid off, have to be included in consultation upon 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).
Commentary
According to the Employment Contract Act Survey, 14-16% of employees were offered other work before termination of an employment contract due to lay-off (Masso et al, 2013).
Additional metadata
Cost covered by
Employer
National government
Involved actors other than national government
Public employment service
Works council
Involvement (others)
None
Thresholds
Affected employees: 5 Company size: 19 Additional information: No, applicable in all circumstances
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