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Final settlement

Viimati uuendatud: 01.10.2019


Upon termination of the employment contract, all claims arising from the employment relationship become chargeable. Thus, on the date of termination of the employment contract, both on an unspecified term and fixed-term basis, the employer pays the employee all the remunerations and benefits earned by the employee. In particular, the final settlement consists of the wages earned by the employee, and the unexpired and unused annual holiday compensation. The employer also has to pay other remunerations at the end of the employment contract, if these become chargeable, such as sickness benefits, daily allowances of assignments abroad, and additional remunerations.

As an exception, the parties may agree on the point in time when the remunerations to be paid for the transactions become chargeable, but only in the case of transactions performed in whole or in part after the termination of the employment contract. The chargeability of the remuneration can be deferred for up to six months. In the case of transactions to be performed in parts, the date on which the claim becomes chargeable may be extended by up to one year and, in the case of insurance and other contracts with a duration of more than half a year, not more than two years. The parties shall agree in writing on the amendment of the time of chargeability of claims.

If the employment contract is terminated with an employee with partial or no work ability, or with a minor employee, the Social Insurance Board reimburses the employer for 20% of the employee’s earned annual holiday (seven days of 35 days of annual holiday). Therefore, if the employee has not worked for a full calendar year, i.e. they have not earned 35 days of annual holiday, the Social Insurance Board will reimburse the employer for 20% of the earned annual holiday. Further information on the annual holiday payable by the Social Insurance Board can be found on the website of the Social Insurance Board.

The employee must return the tools (e.g. keys, door cards, cell phone, etc.) provided by the employer to perform the work.

Külastusi 560, sellel kuul 560

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