What redundancy pay and notice do you get in Estonia?
One month's average pay from the employer — and with longer service the Unemployment Fund adds more. On redundancy the employer pays compensation equal to one month's average salary. The notice period depends on length of service: under one year, 15 calendar days; 1–5 years, 30 days; 5–10 years, 60 days; and over 10 years, 90 calendar days. And here is the part many people never claim: where the employment lasted at least five years, the Unemployment Insurance Fund pays an additional insurance benefit — one month's average salary for 5–10 years and two months' for over 10 years.
📋 The rules
- Employer pays 1 month's average
- Under 1 year: 15 days notice
- 1–5 years: 30 days
- 5–10 years: 60 days
- Over 10 years: 90 days
🔓 Exceptions
- With at least 5 years' service the Unemployment Fund adds an insurance benefit
- 5–10 years gives one month's average pay, over 10 years two months'
- Notice not given must be compensated in money
⚠️ Penalties & fines
Two things cost the most money in a redundancy. First, notice: where the employer fails to give the required notice, it must compensate the missing days in money — so “tomorrow is your last day” is not free. Second, the reason: redundancy requires that the work has genuinely ceased to exist — if someone new is hired into your post at once, it is not a redundancy, and the termination can be challenged at the labour dispute committee, which is free. And a third, rarely asked about: with at least five years' service the Unemployment Fund pays an additional benefit — that is not the employer's money and it must be claimed.
📎 Official sources
- Riigi Teataja · Employment Contracts Act →
- Unemployment Insurance Fund · Redundancy benefit →
- Tööelu portal · End of employment →
❓ Frequently asked
How much is redundancy compensation?
The employer pays compensation equal to one month's average salary. With longer service the Unemployment Insurance Fund pays an additional insurance benefit on top of that.
How much notice is required?
Fifteen calendar days for under a year of service, 30 days for one to five years, 60 days for five to ten years, and 90 calendar days for more than ten years.
What does the Unemployment Fund pay?
With at least five years of employment, an insurance benefit: one month's average salary for five to ten years, and two months' average salary for more than ten years.
What if notice is not given?
The employer must compensate the missing notice days in money. Ignoring the notice period is not free and does not release the employer from its obligation.
Can a redundancy be challenged?
It can. Redundancy requires that the work has genuinely ceased. If someone new is hired into your post at once, the termination can be challenged at the labour dispute committee, free of charge.
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