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11

05
2012

Challenging the termination of the employment agreement – take notice!

On 11, 05 2012 | No Comments | In Uncategorized | By Kadri Lensment

Jurisdiction – ESTONIA

Parties to the employment agreement have to keep in mind that when receiving an unfounded termination notice, the party receiving the notice has to take actions in order to challenge the termination of the employment agreement. Namely, Estonian Employment Contracts Act states that the party who receives the termination notice and wants to challenge its validity, has to submit an application to the Labour Dispute Committee or bring an action to the court within 30 days as of receiving the termination notice. In case the application is not submitted or the action brought within 30 days, the termination of the employment agreement will be considered as lawful.

A following example can be outlined in order to illustrate the above. Let’s assume that the employee presents the employer with a termination notice based on the alleged breach of obligations by the employer. In case the employer responds to the employee and states that the termination notice is unfounded, but does not submit an application to the Labour Dispute Committee or bring an action within 30 days, the termination of the employment agreement is regarded as valid. Now the employee has a basis for filing a claim against the employer as the law prescribes that upon termination of the employment agreement due to breach of obligations by the employer, the employee is entitled to an indemnity equalling his or her three months’ average salary.

As a result of the above, the parties to the employment agreement have to keep in mind that when receiving an unfounded termination notice, they have to actively protect their rights and file a claim against the other party. It is also important to note that filing a petition to the Labour Dispute Committee is exempt from state duty.