Koondamisena

Koondamisena is an Estonian term that translates to "layoff" or "redundancy" in English. It refers to the termination of an employment contract initiated by the employer due to reasons related to the economic situation, technological changes, or organizational restructuring of the company. This differs from dismissal due to the employee's misconduct or poor performance.

In Estonia, the process of koondamine is regulated by the Employment Contracts Act. Employers must follow specific procedures, including providing notice periods and, in most cases, severance pay. The length of the notice period and the amount of severance pay are generally dependent on the employee's length of service with the company. For example, an employee who has been with the company for less than five years might receive a minimum of 15 calendar days' notice and one month's average salary as severance pay. Those with longer tenure are entitled to longer notice periods and more substantial severance.

The primary reasons for koondamine typically stem from the employer's inability to continue the employment relationship due to business needs. This can include a reduction in the volume of work, the closure of a specific department, or the introduction of new technologies that make certain roles obsolete. Employees undergoing koondamine are generally entitled to continue receiving unemployment benefits from the state, subject to meeting eligibility criteria.