Table of Contents
Resolution of Individual Labour Disputes and Collective Labour Disputes
An employee posted to Estonia may also turn to the Labour Dispute Committee for the resolution of an individual labour dispute for the protection of rights guaranteed by the Working Conditions of Employees Posted to Estonia Act.
In addition to individual labour disputes, the Labour Dispute Committee also resolves collective labour disputes arising from the performance of a collective agreement.
Recourse to the Estonian Labour Dispute Committee
If the employer wishes to turn to the Estonian Labour Dispute Committee to resolve an individual labour dispute:
- the employer must be either registered in Estonia, operate in Estonia through a branch, or be registered as a non-resident employer, and
- the employee’s permanent residence must be in Estonia, or the employee must have agreed to resolve the labour dispute in Estonia after the dispute has arisen.
Unlike the employer, the employee can choose whether to turn to the labour dispute body based on the location of the employer or the place of work.
Below are the possible claims and deadlines for both the employer and the employee for turning to the Labour Dispute Committee (hereinafter also LDC) in case of an individual labour dispute.
Employer’s Claims and Deadlines for Turning to the Labour Dispute Committee
| Employer’s Claim | Deadline for Turning to the LDC |
| Claim for determining the voidness of extraordinary cancellation of the employment contract | 30 calendar days as of the receipt of the declaration of cancellation (NB! This is a procedural time limit, i.e. LDC invokes the limitation period on its own initiative) |
| Claim for compensation of damage, e.g., arising from the following breaches: breach of the confidentiality obligation breach of the non-compete obligationbreach of work duties breach of the agreement on proprietary liability | 12 months as of the moment the employer found out or should have found out about the occurrence of damage and the person obliged to compensate it, but no later than three years after the occurrence of damage |
| Claim for compensation of damage if the employer has cancelled the employment contract because the employee: does not commence work without good reason orleaves employment without advance notice | 20 working days as of the employee not commencing work or leaving employment (NB! This is a procedural time limit, i.e. LDC invokes the limitation period on its own initiative) |
| Claim for contractual penalty if the contractual penalty is agreed upon for any of the following breaches: breach of the confidentiality obligation breach of the non-compete obligationthe employee’s refusal to commence workthe employee leaving employment without authorisation | 4 months as of the moment the employer found out or should have found out about the violation of its rights |
| Claim for repayment of overpaid wages | 12 months as of the moment the employee received the wages or the advance wages |
| Claim for reimbursement of training costs | 4 months as of the day the employment relationship terminated |
| Claim for compensation due to violation of the advance notice period for cancelling the employment contract | 4 months as of the day the employment relationship terminated |
| Claim for penalty for late payment together with the principal claim | According to the limitation period of the main claim |
Employee’s Claims and Deadlines for Turning to the Labour Dispute Committee
| Employee’s Claim | Deadline for Turning to the LDC |
| Claim for the identification of an employment relationship and for correcting data in the employment register in the absence of a written employment contract | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for the identification of an employment relationship and for correcting data in the employment register in case of an authorisation agreement or contract for services | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for the identification of the termination of an employment relationship and for correcting data in the employment register, if the employment contract has terminated (e.g., by mutual agreement of the parties, due to expiration, or based on a declaration of cancellation) | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for determining the voidness of extraordinary cancellation of the employment contract, for termination of the employment contract by LDC and making the respective entry in the employment register | 30 calendar days as of the receipt of the declaration of cancellation (NB! This is a procedural time limit, i.e. LDC invokes the limitation period on its own initiative) |
| Claim for unpaid wages (including overtime pay, pay for working on public holidays and at night) | 3 years as of the date the wages become due, i.e. as of the pay day or the day the employment relationship terminated |
| Claim for remuneration payable based on the economic performance and transactions | 3 years as of the time the remuneration becomes due |
| Claim for remuneration payable for on-call time | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for compensation under a proprietary liability agreement | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for compensation under a non-compete agreement applicable after the termination of the employment relationship | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for daily allowance for foreign business trips | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for reimbursement of expenses incurred in the performance of work duties | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for sickness benefit for days 4-8 of sick leave | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for holiday pay | 4 months as of the moment the person found out or should have found out about the violation of their rights |
| Claim for holiday compensation upon termination of employment contract | 4 months as of the day the employment relationship terminated |
| Claim for compensation due to violation of the advance notice period for cancelling the employment contract | 4 months as of the day the employment relationship terminated |
| Claim for compensation upon termination of the employment contract due to extraordinary cancellation arising from the employer’s breach | 4 months as of the day the employment relationship terminated |
| Claim for lay-off compensation | 4 months as of the day the employment relationship terminated |
| Claim for compensation upon termination of the employment contract by LDC | According to the limitation period of the main claim (claim for determining the voidness of the employment contract cancellation) |
| Claim for compensation of damage | Compensation for damage caused to the employee in the course of work duties – 4 months as of the moment the person became aware or should have become aware of the violation of their rights;Compensation for patrimonial and non-patrimonial damage caused to the employee by the employer – 3 years as of becoming aware of the damage |
| Claim for penalty for late payment together with the principal claim | According to the expiration period of the main claim |
There is another exception to the expiry of the employee’s claims. If the employee filed a lawsuit or application in time to determine the voidness of the cancellation of the employment contract, the claims that become due during the dispute and depend on the outcome of the dispute do not expire until three months after the ruling made in the dispute enters into force.
Resolution of Disputes through Conciliation Proceedings
Recourse to the Labour Dispute Committee may also be sought with a conciliation application to simplify the resolution of a labour dispute through the mediation of the chairman of the Labour Dispute Committee (the conciliator).
Both the employee and the employer must agree to the conciliation proceedings. If a settlement agreement is not reached during the conciliation proceedings, the parties have the right to turn to the Labour Dispute Committee or the court for the resolution of the same labour dispute.
During the resolution of a labour dispute, either party may turn to the Labour Dispute Committee as the conciliation body until a decision is made in the labour dispute matter.
If the parties do not reach a settlement agreement in conciliation proceedings commenced in the course of hearing the labour dispute matter, the parties have the right of recourse to court for the adjudication of the same labour dispute matter within 30 calendar days as of the end of the conciliation proceedings.
When to Go Directly to the County Court
Instead of the Labour Dispute Committee, one must turn directly to the county court in cases concerning
- disputes over the compensation for health damage, bodily injury, or death caused by a work accident or an occupational disease;
- disputes arising from or in connection with other contracts (e.g., civil law contracts), except when, for example, the content of the work performed under an authorisation agreement or a contract for services corresponds to an employment relationship.
Resolution of Disputes with Compromise
Although the parties to a labour dispute may also conclude a compromise in the Labour Dispute Committee and the court until the ruling in the labour dispute matter enters into force, we recommend that the parties to the labour dispute strive for a compromise even before turning to the Labour Dispute Committee or the court.
When concluding a compromise, the parties to the labour dispute make mutual concessions regarding the content of the claims.
A compromise approved by a ruling of the Labour Dispute Committee terminates the proceedings in the labour dispute matter, meaning that recourse to the Labour Dispute Committee cannot be sought again against the same party on the same basis.
The Labour Dispute Committee’s ruling approving the compromise enters into force upon signature, and it can be enforced by applying to a bailiff for enforcement, just like a decision of the Labour Dispute Committee that has entered into force.
Do Not Delay in Seeking Expert Assistance in Labour Disputes
If you need advice or representation in a labour dispute, do not hesitate to contact Hedman Law Firm.
The experts at Hedman Law Firm can help you draft a letter of demand, a labour dispute application, or a lawsuit, or respond to a letter of demand, a labour dispute application, or a lawsuit.
In addition, the experts at Hedman Law Firm can represent you in the Labour Dispute Committee or the court.
Do not delay in seeking assistance in a labour dispute, as the deadlines for turning to the Labour Dispute Committee are quite short.
