Probation Period in Estonian Labor Law
Under the Employment Contracts Act (TLS) § 86, the purpose of a probation period is to assess whether the employee's health, knowledge, skills, and abilities meet the requirements of the position. This period serves as a safeguard for both parties to ensure a successful professional match.
Duration of Probation
According to TLS § 86 (1), the probation period may last up to four months. It is mandatory that the probation period is explicitly agreed upon in the employment contract. If no such agreement exists, no probation period applies. While the period can be extended by mutual agreement, the total duration cannot exceed the four-month limit.
Termination During Probation
Terminating a contract during probation is more flexible than standard termination. Pursuant to TLS § 86 (3), both the employer and the employee may terminate the employment contract by giving at least 15 calendar days' notice.
Key Considerations:
- Justification: Unlike standard termination, there is no legal requirement to provide a written justification for the termination, provided it relates to the employee's suitability for the job.
- Formality: The notice of termination must be submitted in a format that can be reproduced in writing (e.g., email).
- Compensation: No redundancy compensation is payable during the probation period, as this does not constitute a layoff.
Employers must ensure that the termination is not discriminatory or contrary to good practice. Furthermore, it is prohibited to terminate a contract during probation due to pregnancy or parental leave, as these are protected statuses under Estonian law.
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