The recent judicial decision demonstrates that conclusion of an agreement on compensation for damages, caused by an employee, involves risks because the employee may subsequently be released from this commitment. A more secure way of getting compensation for damages is to submit a respective claim to the labour dispute committee or a court of law.
In the opinion of Rando Maisvee the recent decision of the Supreme Court is yet another example of how the currently effective Employment Contracts Act affords employees better protection than the previous more formal Act. Thus, for instance, the judgment of the Supreme Court passed on 30.11.2010 based on the previous Act leads to conclude that an agreement entered into upon the termination of the employment contract does not constitute a part of the employment contract, and that the limitations stemming from the Employment Contracts Act do not apply to such agreement; essentially this means that under the previous Act it was possible to agree on compensation for damages, while the new Act does not provide this option.
Employers should take into consideration that
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