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Collective and individual redundancy
Töötukassa provides help to the employee who is made redundant in the form of a redundancy benefit, and counts on your cooperation to be able to provide that help.
When you are faced with the need to fire a large part of your staff, you as an employer have certain obligations towards your employees and towards Töötukassa. Töötukassa helps you to meet these obligations, and makes rapid response services available.
Your obligations as an employer
When making a staff member redundant, compensation has to be paid. The amount of the compensation is fixed by law at one month of the individual’s average wage, but a higher compensation can be due on the basis of the individual employment or service contract.
Employees also have the right to receive an additional redundancy benefit from Töötukassa.
For those employers faced with a collective redundancy, special obligations apply.
Outplacement and other services
When you are faced with the need to let go of a large part of your staff, Töötukassa can organise a rapid response to major redundancies. In this way, your former employees can be served quicker, and can be helped into new employment more effectively.
Insurance benefits upon redundancy
When you are faced with the need to make an employee or civil servant redundant, you are required to pay compensation to that person. The amount of the compensation is set by the Employment Contracts Act at one month of the average wage, but the individual employment or service contract may provide for a higher compensation.
In addition, the employee or civil servant may have the right to receive a redundancy benefit from the Estonian Unemployment Insurance Fund. In order for him or her to receive the benefit, you as the previous employer must apply for it.