Vacation Expiration and Compensation Upon Resignation
Under the Estonian Employment Contracts Act (TLS), every employee is entitled to annual leave. Understanding the rules regarding the expiration of leave and its compensation upon termination is crucial for protecting your rights.
Expiration of Vacation
According to TLS § 68 (6), the claim for annual leave expires within one year from the end of the calendar year for which the leave is calculated. If you do not utilize your leave within this timeframe, the right to those specific days lapses, unless the leave was postponed by the employer or other legal exceptions apply.
Compensation Upon Termination
When an employment contract ends, the employer is legally obligated under TLS § 71 to compensate the employee for all unused annual leave that has not yet expired. This is a mandatory payment that cannot be waived by the employee. The compensation is calculated based on the employee's average wages, in accordance with the relevant government regulations.
Key Takeaways:
- Expiration: Leave claims expire one year after the end of the working year for which they were earned.
- Compensation: Upon termination, all non-expired unused leave days must be paid out in cash.
- Calculation: The payout must be proportional to the time worked during the relevant period.
If you are facing a dispute with your employer regarding your unused vacation days or need a precise calculation of your entitlements, professional guidance is essential. Our advanced legal AI assistant at Legal Aid 24 is ready to analyze your unique situation and provide tailored advice. Contact us today to ensure your rights are fully protected!