ALTERNA’s attorney-at-law and partner Annika Vait and lawyer Kristena Paalmäe write about changes in the practice of Supreme Court regarding claiming compensation from an employee
17.11.2017
ALTERNA’s attorney-at-law and partner Annika Vait and lawyer Kristena Paalmäe write about changes in the practice of Supreme Court regarding claiming compensation from an employee.
Section 100(5) of the Employment Contracts Act (hereinafter the Act) establishes: If an employer or employee gives advance notice of cancellation later than provided by law or a collective agreement, the employee or the employer has the right to receive compensation to the extent to which he or she would have been entitled to upon adhering to the term for advance notice.
According to named provision, the employee can claim compensation from the employer in case the employer does not adhere to the term for advance notice. However, the situation is different when the employee does not adhere to the term for advance notice.
The earlier practice of Supreme Court accepted the employer’s right to claim compensation from the employee for not adhering to the term for advance notice under Section 100(5) of the Act (see Supreme Court decision no. 3-2-1-116-12).
However, the Supreme Court has changed its position, finding that Section 100(5) of the Act does not grant an employer the right to claim compensation from the employee for not adhering to the term for advance notice.
Therefore, the Supreme Court practice does not accept the employer’s right to claim for compensation from employee Under Section 100(5) of the Act.
The full text can be found here: http://addenda.ee/muutunud-riigikohtu-praktika
Questions regarding this article can be discussed with Annika or Kristena on annika@alternalaw.ee or kristena@alternalaw.ee or by calling 680 6850.
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