Is unused holiday paid out when you leave a job in Estonia?
It is paid — but only the part that has not expired. On termination of the employment contract the employer must compensate unused, unexpired annual leave in money, and it does so regardless of the ground for termination — including where you resign. But the word “unexpired” is doing the work: the claim to annual leave expires within one year of the end of the calendar year for which the leave was accrued. So leave accrued for 2025 expires at the end of 2026 — and after that it is no longer paid out. Annual leave is normally 28 calendar days.
📋 The rules
- Paid out on termination
- Applies on any ground
- Only unexpired leave
- The claim expires in one year
- Annual leave: 28 calendar days
🔓 Exceptions
- Expiry runs from the end of the calendar year for which the leave was accrued
- During employment, annual leave may not be replaced by money
- The final settlement normally includes the last month's pay and the leave payout
⚠️ Penalties & fines
The costliest mistake is “saving up” holiday. The claim expires one year after the end of the calendar year for which it accrued — so three years of leave cannot be banked: the oldest part vanishes, and the money with it. The second rule: during employment, annual leave may not be replaced by money — “I would rather take the cash” is not a lawful agreement; payout happens only on termination. And third: the final settlement must include the last month's pay and compensation for unused, unexpired leave — check it, because it is one of the most common causes of disputes at the labour dispute committee.
📎 Official sources
❓ Frequently asked
Is unused holiday paid out?
On termination the employer compensates unused, unexpired annual leave in money, regardless of whether the contract ended by redundancy, resignation or agreement.
When does the holiday claim expire?
Within one year of the end of the calendar year for which the leave was accrued. Expired leave is neither paid out nor available to take.
Can holiday be saved up?
It is unwise. Because the claim expires after one year, the oldest part of the accrued leave disappears, and with it the money that would have been paid on departure.
Can I take money instead of leave?
During employment, annual leave may not be replaced by money. A payout is lawful only on termination of the contract, not as a running arrangement between the parties.
What must the final settlement include?
Normally the last month's salary and compensation for unused, unexpired annual leave. It is worth checking, as it is a frequent source of disputes.
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