Resigning from a job in Estonia

How do I terminate an open-ended contract?

The employee may terminate an open-ended employment contract at any time by ordinary notice (TLS § 85 lg 1) [1]. No reason needs to be given for ordinary termination: the Act requires the employee to give reasons only for extraordinary termination (TLS § 95 lg 2) [4]. For ordinary termination, the employee must give the employer at least 30 calendar days' notice (TLS § 98 lg 1) [2].

A termination is presumed to be ordinary unless the employee proves that it is extraordinary (TLS § 85 lg 3) [1]. If the employee has no ground for extraordinary termination of an open-ended contract, the termination is treated as ordinary with the statutory notice period (TLS § 85 lg 4) [1].

The parties may also end the employment contract by agreement at any time (TLS § 79) [5].

Can a fixed-term contract be terminated?

Not by ordinary notice, as a rule: the employee may not terminate a fixed-term contract by ordinary notice, except a contract concluded for the period of replacing another employee (TLS § 85 lg 2) [1]. For good reason, the employee may terminate both open-ended and fixed-term contracts extraordinarily (TLS § 91 lg 1) [3]; the contract can also be ended by agreement (TLS § 79) [5].

When may the employee terminate extraordinarily?

The employee may terminate the employment contract extraordinarily for good reason, in particular if, taking into account all circumstances and the interests of both parties, continuing the contract cannot reasonably be required (TLS § 91 lg 1) [3]. As an example, the Act names a material breach of the employer's obligations, in particular if the employer (TLS § 91 lg 2) [3]:

1. has treated the employee in a degrading manner, threatened to do so, or allowed co-workers or third parties to do so;
2. has materially delayed paying wages;
3. continuing work involves a real danger to the employee's life, health, morality or good name.

The contract may also be terminated extraordinarily for a reason relating to the employee, in particular if their health or family obligations do not allow them to do the agreed work and the employer does not offer suitable work (TLS § 91 lg 3) [3].

Extraordinary termination is possible only within a reasonable time after the employee learned or should have learned of the circumstance on which it is based (TLS § 91 lg 4) [3]. The employee need not give notice of extraordinary termination if, taking into account all circumstances and the interests of both parties, continuing the contract until the agreed term or the end of the notice period cannot reasonably be required (TLS § 98 lg 2) [2].

If the employee terminates the contract extraordinarily because the employer materially breached it, the employer pays the employee compensation equal to three months' average wage; a court or the labour dispute committee (töövaidluskomisjon) may change the amount (TLS § 100 lg 4) [6].

What if the employee does not give enough notice?

According to the wording of the Act, if the employee gives less notice than required, the employer is entitled to the average daily wage for each working day by which the notice fell short (TLS § 100 lg 5) [6]. The Supreme Court (Riigikohus) has held, however, that if the employee leaves work before the notice period has run, this provision does not entitle the employer to claim compensation in the amount of wages from the employee; if the employee did so intentionally or negligently, they must compensate the employer for the damage caused (RK 3-2-1-126-14) [7].

If the employee leaves work without notice and the employer terminates the contract for that reason, the employer may claim damages; the damage is presumed to equal one month's average wage of the employee (TLS § 74 lg 3) [8].

If the employee has a valid agreement on reimbursing training costs and terminates the contract before the commitment period ends, they reimburse the employer's additional costs in proportion to the remaining period, unless the reason for termination is a material breach of the contract by the employer (TLS § 34 lg 3) [9].

What the law says

• „Töötaja võib tähtajatu töölepingu igal ajal korraliselt üles öelda.“ [1] (translation: the employee may terminate an open-ended employment contract by ordinary notice at any time; TLS § 85 lg 1).
• „Korralisest ülesütlemisest peab töötaja tööandjale ette teatama vähemalt 30 kalendripäeva.“ [2] (translation: the employee must give the employer at least 30 calendar days' notice of ordinary termination; TLS § 98 lg 1).
• „Vorminõuet rikkudes tehtud või tingimuslik ülesütlemisavaldus on tühine.“ [4] (translation: a notice of termination made in breach of the form requirement, or a conditional one, is void; TLS § 95 lg 1) – an oral or conditional termination does not end the contract.
• „Töötaja peab põhjendama erakorralist ülesütlemist.“ [4] (translation: the employee must give reasons for extraordinary termination; TLS § 95 lg 2) – in a form that can be reproduced in writing.

What to do

1. Find out whether your contract is open-ended or fixed-term (TLS § 85 lg 1 and 2) [1].
2. For ordinary termination, give at least 30 calendar days' notice (TLS § 98 lg 1) [2].
3. For extraordinary termination, state your reasons in the notice and act within a reasonable time after learning of the reason (TLS § 95 lg 2; TLS § 91 lg 4) [4] [3].
4. Submit the notice of termination in a form that can be reproduced in writing and without conditions (TLS § 95 lg 1) [4].
5. Check the final settlement: when the contract ends, all claims arising from the employment relationship fall due, and unused, unexpired basic holiday is compensated in money (TLS § 84 lg 1; TLS § 71) [10] [11]. In a dispute, applying to the labour dispute committee is free of state fees under the Labour Dispute Resolution Act (töövaidluse lahendamise seadus, TvLS) (TvLS § 15) [12].

Frequently asked questions

Do I have to tell my employer why I am leaving?

For ordinary termination, the Act does not require reasons; extraordinary termination must be justified by the employee in a form that can be reproduced in writing (TLS § 95 lg 2) [4].

Can I leave immediately, without notice?

No notice is needed for extraordinary termination if continuing the contract cannot reasonably be required (TLS § 98 lg 2) [2]. Otherwise you must observe the notice period: if you leave earlier intentionally or negligently, you must compensate the employer for the damage this causes (RK 3-2-1-126-14) [7]. The contract can be ended by agreement at any time (TLS § 79) [5].

What can I do if my wages are not paid?

If the employer has materially delayed paying wages, the employee may terminate the contract extraordinarily (TLS § 91 lg 2 p 2) [3]; on termination because of a material breach, the employer pays compensation of three months' average wage (TLS § 100 lg 4) [6].

Can I leave a fixed-term contract early?

Not by ordinary notice, except a contract for replacing another employee (TLS § 85 lg 2) [1]; it is possible extraordinarily for good reason or by agreement (TLS § 91 lg 1; TLS § 79) [3] [5].

Can I terminate my contract orally?

No. An employment contract is terminated by a notice in a form that can be reproduced in writing, and a notice made in breach of the form requirement is void (TLS § 95 lg 1) [4].