• process of applying for the residence permit has become easier: a new and shorter form of the application has been introduced;

• the employees staying in Estonia based on the residency permit for employment can now work with several employers at the same time;

• a 90-day transitional period is provided after the expiration of an existing residence permit. During the 90-day period, the foreign talent may stay in Estonia and apply for a new residence permit.

  Note:

  The employer determined in the residency permit still must fulfil the required criteria (e.g. salary criterion) determined in the permit. All employers still have the obligation to register the employee in the employment register with the Estonian Tax and Customs Board. Please note that there are some restrictions for some nationalities, each case needs to be reviewed and considered separately.

1. By the employer’s initiative. In order to terminate employment, employers must have suitable grounds. These can be either related to the employee’s conduct or capabilities (e.g. gross misconduct, breach of the employment contract, poor performance or permanent incapacity to work due to illness), or to economic, organizational or technological reasons of the company. The reason for dismissal must be given to the employee in writing. Employers must also observe the appropriate period of notice (can be paid in lieu). The general rule is that an employer can only terminate employment without notice if the employee is guilty of gross misconduct.

Notice period:

• less than one year of employment – no less than 15 calendar days;

• one to five years of employment – no less than 30 calendar days;

• five to ten years of employment – no less than 60 calendar days;

• ten and more years of employment – no less than 90 calendar days.

2. By mutual agreement. Employment contract may be terminated at any time by mutual agreement if one party presents a corresponding written request and the other party gives his or her written consent to termination of the contract. The parties can agree on any amount of severance payment and date of termination.

3. By employee’s initiative. The employee can terminate his contract at any time, without specific reason. 1 month notice needs to be provided to the employer in written.

• ➢  In cases of termination of the employment contract due to redundancy, the employer must pay compensation in the amount of one month’s average wage of the employee calculated based on the previous six months’ wage.

• ➢  In case the cancellation of a fixed term contract due to redundancy, the employer must pay compensation to the extent that corresponds to the wage that the employee would have been entitled to until the expiry of the contract term.

• ➢  No compensation shall be paid if the employment contract is cancelled due to force majeure.