Employment Law and Workplace Disputes
An employment relationship affects both a person’s income and the day to day operation of a business, which means that disagreements between an employee and an employer can be both stressful and costly. Whether the matter concerns termination of an employment contract, redundancy, remuneration, workplace bullying or another dispute, it is useful to understand your rights and options. Law Firm Namm advises and represents both employees and employers across Estonia in all employment law matters.
A clear employment contract and correct documents reduce the risk of disputes from the beginning of the employment relationship. Remuneration, duties, working time, confidentiality, non-compete restrictions and agreements on financial liability are important. Unclear terms become a problem especially when the employment relationship ends or the expectations of the parties no longer align.
Employment disputes most often concern redundancy, extraordinary termination, final settlement, unpaid remuneration, benefits, workplace bullying, discrimination and the validity of a non-compete clause. In employment law, deadlines are short and formal requirements are important. The wording of a termination notice, warning, redundancy notice or petition to a labour dispute committee can affect the outcome of the entire dispute.
An employment dispute can be resolved by a labour dispute committee or in court. For an employer, it is important to end the employment relationship on the correct basis and with proper documentation. For an employee, it is important to assess whether termination, redundancy or calculation of remuneration was lawful. Law Firm Namm works in Estonian, Russian and English.
How we help with employment law and employment disputes
- Drafting, reviewing and amending employment contracts
- Advice on ending an employment contract and termination
- Redundancy and redundancy payments
- Extraordinary termination and contesting it
- Claims for remuneration, final settlement and benefits
- Representation before a labour dispute committee
- Representation in employment disputes in court
- Workplace bullying and discrimination cases
- Non-compete restrictions, confidentiality and protection of trade secrets in employment relationships
- Differences between the status of a member of the management board and an employee
- Temporary agency work, contracts for services and authorisation agreements
- International recruitment, foreign nationals working in Estonia and work permits
- Advice for employers on employment relationships and collective agreements
- Drafting employer documents, warnings and termination notices
Frequently Asked Questions
I was made redundant. Am I entitled to a payment?
In the event of redundancy, an employee is generally entitled to a redundancy payment and the employer must comply with the advance notice period provided by law. If the advance notice period is not observed, the employee may be entitled to an additional payment. In the case of longer length of service, the employee may also be entitled to an insurance benefit paid by the Unemployment Insurance Fund.
It is also important whether the redundancy was genuine. If the job did not in substance disappear or redundancy was used to resolve another conflict, the termination may be contested.
The employer terminated my employment contract extraordinarily. Can I contest it?
Yes. Extraordinary termination must be based on a ground permitted by law, be justified and be made in a format which can be reproduced in writing. In a dispute, it is assessed among other things whether the breach was sufficiently serious, whether the employer reacted within a reasonable time and whether the employee was given an opportunity to explain their position.
If the termination was unjustified or incorrectly formalised, compensation may be claimed and, in certain cases, reinstatement may be requested.
Can an employer terminate an employment contract with immediate effect?
Only in exceptional cases. An employer may terminate an employment contract extraordinarily when there is a compelling reason and continuation of the employment relationship cannot reasonably be expected. If the breach can be remedied, a prior warning is generally required.
In the case of termination with immediate effect, it is especially important whether the employer can prove the ground for termination. Insufficient reasoning, an overly general termination notice or an incorrect procedure may make the termination unlawful.
How quickly must I file an employment dispute?
To contest termination of an employment contract, the general deadline is 30 calendar days from receipt of the termination notice. The deadline for a remuneration claim is generally 3 years from the time the remuneration became due. For other employment dispute claims, the deadline may be shorter, often 4 months. The deadline depends on the type of claim. Missing it may remove the possibility to file the claim, so the deadline issue should be checked immediately.
What is the difference between a labour dispute committee and a court?
A labour dispute committee is an extrajudicial authority that resolves disputes between employees and employers, usually faster and through a simpler procedure. No state fee is payable for recourse to the committee and a petition is generally reviewed within 45 calendar days.
Court proceedings may be more thorough, but they may also be longer and more costly. The suitable route depends on the type of claim, the evidence, the complexity of the dispute and whether the labour dispute committee has competence to resolve the particular dispute.
The employer does not pay remuneration or the final settlement. What should I do?
On the day the employment contract ends, the employer must pay all remuneration and benefits earned by the employee, including remuneration, compensation for unused holiday and other amounts that have become due. If payment is not made, default interest may also be claimed.
In practice, the employment contract, payslips, working time records, correspondence and other evidence should be collected. A monetary claim can then be filed with a labour dispute committee or a court.
Can an employment contract simply be terminated during a probationary period?
During a probationary period, termination of an employment contract is easier, but it is not completely unrestricted. The employer must explain why the employee is not suitable for the agreed work due to their knowledge, skills, abilities, health or personal characteristics. The employee does not have to justify termination during the probationary period.
During a probationary period, termination of an employment contract must generally be notified 15 calendar days in advance. If the advance notice period is not observed, a claim for compensation may arise.
Can an employer unilaterally change remuneration, working time or duties?
Remuneration, working time and agreed duties are essential terms of an employment contract and can generally be changed by agreement of the parties. The employer may organise daily work within the limits of the employment contract, but cannot unilaterally change the core content of the agreement.
If an employee is asked to sign an amendment that they do not understand or do not agree with, it should not be signed in haste. Later it may be difficult to prove that the agreement was not voluntary or that the content of the terms was unclear.
I am experiencing bullying or unequal treatment at work. What can I do?
In the case of workplace bullying or discrimination, it is important to document the incidents. Correspondence, messages, work instructions, medical documents and details of possible witnesses should be preserved. It is also necessary to assess whether the employer has been informed of the problem and whether the employer has reacted to the situation.
Possible claims depend on the circumstances. These may include a claim to stop the breach, compensation for damage, extraordinary termination of the employment contract by the employee or the question of the employer’s liability.
As an employee, do I have to agree to a non-compete clause?
A non-compete clause is an agreement between the employee and the employer. It must be substantively justified, protect a special economic interest of the employer and be reasonably and clearly limited for the employee in terms of activity, time and territory.
If a non-compete clause applies after the end of the employment relationship, the agreement must be in writing, apply for a maximum of one year and the employer must pay the employee reasonable compensation for complying with the restriction. A restriction that is too broad, unclear or does not comply with the conditions provided by law may be null and void.
Before signing a non-compete clause, it is necessary to assess which activities it prohibits, how long the restriction lasts, in which territory it applies and whether the compensation corresponds to the actual scope of the restriction.
How can an employer prevent employment disputes and risks?
The main risks for an employer arise from unclear contracts, insufficient documentation and incorrectly formalised termination. Clear employment contracts, job descriptions, work organisation rules, warnings, working time records and reasoned management decisions are important.
In the case of redundancy, extraordinary termination, a workplace bullying complaint or a remuneration dispute, the evidence, formal requirements and possible compensation risks should be assessed before making a decision.