AGREEMENT TO TERMINATE EMPLOYMENT CONTRACT
This agreement to terminate an employment contract (hereinafter the "Agreement") has been entered into in [Place of signing] on [Date of the agreement] between the following parties (hereinafter together the "Parties"):
1. PARTIES
1.1 [Name of the employer]
Registry code: [Registry code of the employer]
Address: [Address of the employer]
Representative: [Name of the employer's representative]
(hereinafter the "Employer")
1.2 [Name of the employee]
Personal identification code: [Personal identification code of the employee]
Address: [Address of the employee]
(hereinafter the "Employee")
2. EMPLOYMENT CONTRACT BEING TERMINATED
2.1 The Parties entered into an employment contract on [Date of the employment contract being terminated] (hereinafter the "Employment Contract"), on the basis of which the Employee works in the position of [Position of the employee].
2.2 The Parties may terminate both a fixed-term and an open-ended employment contract by agreement at any time (Employment Contracts Act (TLS) § 79). The Agreement is not a cancellation and the periods of advance notice of cancellation do not apply to it.
3. AGREEMENT ON TERMINATION
3.1 The Parties agree that the Employment Contract terminates on [Termination date of the employment contract] by agreement of the Parties.
3.2 The Parties confirm that the Agreement has been entered into of the free will of both Parties, without coercion or pressure, and that each Party has had the opportunity to examine the terms of the Agreement before entering into it.
3.3 The Employee's last working day is [Termination date of the employment contract]. Until the termination of the Employment Contract, the Parties perform the obligations arising from the Employment Contract on the existing terms, including the Employer paying wages and the Employee performing the Employee's work duties, unless the Parties have agreed otherwise.
3.4 No later than on the last working day, the Employee hands over the Employee's work matters, unfinished work duties and the related documents and information to the person designated by the Employer.
4. FINAL SETTLEMENT
4.1 The Employer pays the Employee the final settlement no later than [Payment date of the final settlement]. Upon the termination of the Employment Contract, all claims arising from the employment relationship become collectible (TLS § 84 (1)); if the date specified in clause 4.1 is later than the day of termination of the Employment Contract, this does not postpone the claims becoming collectible.
4.2 The final settlement includes the wages earned but not paid and other amounts payable to the Employee under the Employment Contract and the law.
4.3 The number of unused holiday days is [Unused holiday days]. Monetary compensation for unused annual holiday that has not expired is paid to the Employee together with the final settlement (TLS § 71). Upon the termination of the Employment Contract, the Employer may withhold from the Employee's wages the pay for annual holiday granted in advance but not yet earned (TLS § 78 (3)).
4.4 Other claims of the Employer may be set off against the Employee's claim for wages only with the Employee's consent given in a form reproducible in writing, unless otherwise provided by law (TLS § 78 (1)). The taxes prescribed by law are withheld from and paid on the final settlement.
4.5 The collectibility of remuneration paid for transactions performed in full or in part after the termination of the Employment Contract may be postponed only by a written agreement and for no longer than the term provided for in TLS § 84 (2)–(4).
5. COMPENSATION
5.1 The Employer pays the Employee compensation of [Amount of compensation (€, gross)] euros (gross) for the termination of the employment relationship.
5.2 The compensation is paid together with the final settlement and the taxes prescribed by law are withheld from it. The compensation does not replace the wages or the compensation for unused holiday specified in clause 4.
6. RETURN OF THE EMPLOYER'S PROPERTY
6.1 No later than [Termination date of the employment contract], the Employee returns the following property to the Employer:
[Property to be returned]
6.2 The handover of the property is formalised by a handover and acceptance report. The Employee also returns all documents and data carriers belonging to the Employer and does not retain copies of them; the Employer terminates the Employee's access to its information systems no later than upon the termination of the Employment Contract.
7. CONFIDENTIALITY AND RESTRICTION ON COMPETITION
7.1 If the Parties have entered into an agreement on a restriction on competition applicable after the end of the employment relationship, it remains in force on the terms set out therein, including the Employer's obligation to pay reasonable monthly compensation (TLS § 24 (3)), until the agreement terminates or is cancelled (TLS § 25).
7.2 The confidentiality obligation in force during the employment relationship also remains in force after the termination of the Employment Contract.
7.3 The Employee undertakes to keep confidential the business secrets and other confidential information of the Employer that have become known to the Employee during the employment relationship and does not use them in the Employee's own interests or in the interests of third parties.
8. LETTER OF REFERENCE AND CERTIFICATE
8.1 At the Employee's request, the Employer issues to the Employee a written letter of reference concerning the employment relationship.
8.2 At the Employee's request, the Employer provides information on the wages calculated and paid to the Employee and other statements describing the employee or the employment relationship (TLS § 28 (2) 12)).
9. CLAIMS
9.1 Provided that the obligations agreed in the Agreement have been performed, the Parties have no other known claims against each other arising from the terminated employment relationship apart from what has been agreed in this Agreement.
10. INFORMATION FOR THE EMPLOYEE
10.1 The Agreement does not restrict the Employee's right to the final settlement and compensation for unused holiday or claims that cannot be waived by law (TLS § 2).
10.2 It has been explained to the Employee that the termination of the employment contract by agreement of the parties may affect the Employee's right to unemployment insurance benefit. More detailed information is provided by the Estonian Unemployment Insurance Fund.
11. LEGAL BASIS AND FINAL PROVISIONS
11.1 The Agreement is governed by the law of the Republic of Estonia, in particular the Employment Contracts Act.
11.2 Disputes arising from the Agreement are resolved through negotiations and, failing agreement, by a labour dispute committee or in court. The term for filing a claim arising from the employment relationship is four months unless otherwise provided by law (TLS § 3¹).
11.3 Amendments to the Agreement are made in writing. If any provision of the Agreement is or becomes invalid, this does not affect the validity of the remaining provisions. The Agreement enters into force once both Parties have signed it.