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When do I have to pay back the job creation subsidy?

Prindi

Lisatud 20.12.2016

The employer has to repay the job creation subsidy in full if the employment contract is terminated on the initiative of the employer during the two years following entry into the employment contract, or a fixed-term employment contract of less than two years is terminated on the initiative of the employer before the deadline.

An employer shall return a job creation subsidy in full if the employment contract is terminated on the initiative of the employer, except on the basis of § 88 of the Employment Contracts Act (cancellation of employment contract by employer for reason arising from employee).  The employer has to repay the wage subsidy when e.g. the employment contract is terminated due to redundancy, or on the initiative of the employer due to unsatisfactory results during probationary period under § 86 of the Employment Contracts Act. The wage subsidy does not need to be paid back if the employment contract is terminated on the initiative of the employee or by agreement between the parties.

 

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