Employment
The Employment Contracts Act with balanced flexibility
The Employment Contracts Act sets a moderate level of protection, balancing employer flexibility with notice and redundancy rights. Disputes can go to a labour dispute committee or the courts.
Key rules
- Termination requires a lawful ground and appropriate notice.
- A labour dispute committee offers a fast, low-cost first forum.
- A national minimum wage is set annually.
Governing law
- Employment Contracts Act (Töölepingu seadus)
In practice
The labour dispute committees resolve most disputes quickly and cheaply, so few employment cases reach the ordinary courts.