Remote’s guide to employing in

Estonia
estonia flag

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Services available in this country:
Employer of Record ProductContractor Management
  • Capital City

    Tallinn

  • Currency

    Euro (€, EUR)

  • Languages

    Estonian

  • Population size

    1,329,460

Services available in this country:
Employer of Record ProductContractor Management

Employment termination in Estonia

Termination process

A working relationship can be terminated in cases of gross employee misconduct, willful employee resignation, or a winding down of the relationship as prescribed in the employment contract.

Notice period

Depending on the duration an employee has worked with an employer, the latter should provide written notice to the employee well in advance of termination of the working relationship.

  • Less than 1 year of employment: at least 15 calendar days

  • 1 t0 5 years of employment: at least 30 calendar days

  • 5 to 10 years of service: at least 60 calendar days

  • 10 or more years of service: at least 90 calendar days

Severance pay

If a redundant employee is terminated, the employer should pay the average of the previous one month's salary as severance pay.

Fixed-term employees who are made redundant are entitled to the wages for the remainder of the contract’s term if they’re terminated.

On top of severance pay, terminated employees are entitled to benefits payable by the Estonian Unemployment Insurance Fund.

  • Employees who have been employed for five to 10 years are entitled to one month of gross salary

  • Employees who have been employed for more than 10 years are entitled to two months of gross salary

Probation periods

Probation periods can last up to four months but cannot exceed half of the term of an employment contract. That is, if an employment contract lasts for three months, the probation period cannot exceed six weeks.

An employer should provide notice at least 15 days before terminating a contract that’s still in the probation stage.