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Redundancy benefit


Lisatud 28.03.2018 | Uuendatud 08.04.2020

The insurance benefit upon redundancy (hereafter the redundancy benefit) is granted to an employee whose employment relationship with the employer lasted for at least five years and

  • whose employment contract was terminated on grounds of redundancy or
  • who terminated their employment contract because the employer, due to circumstances beyond their control, failed to provide the employee with work to the agreed extent or reduced the wages based on subsection 37 (5) of the Employment Contracts Act or
  • whose employment contract was terminated based on subsection 90 of the Civil Service Act.



Applying for a redundancy benefit

In order to apply for a redundancy benefit, the employer shall submit an application to the Unemployment Insurance Fund within five calendar days from the termination of the employment relationship. The employer has the right to apply for restitutio in integrum if the application has not been submitted in due time. If the employer has not submitted an application for application of insurance benefit upon redundancy, the employee can submit this application to the Unemployment Insurance Fund instead.

Granting and payment of redundancy benefit

The Unemployment Insurance Fund will review the redundancy benefit application and make a decision on the granting of the redundancy benefit within two weeks of the receipt of the application and relevant documents.


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