LHV Group founder and chairman of the supervisory board Rain Lõhmus told Äripäev that there are no irreplaceable stars at LHV and that 10 percent of the weaker bank employees should be replaced every year.

The owner's idea was explained on ERR broadcast by HR manager of LHV Bank Katri Jürine.

"LHV is simply bold in its statements, but all companies look for ways to operate better and more efficiently and to deliver results," Jürine said.

When asked how LHV would legally handle a situation in which it finds that someone is no longer a good fit for the job, Jürine responded: "This is a matter of performance analysis and evaluation. All employees know what they are expected to do on a daily basis, and if our bank, as I said, is growth-oriented and has international experience, plans, and ambition, then it will become clear accordingly how each person is able to cope."

The LHV Group employs 1,200 people, and annual staff turnover is up to 12 percent, Jürine said.

According to Estonian Labor Inspectorate director Kaire Saarep, Estonian legislation does not provide for the possibility of mass replacement of employees. For example, it cannot be carried out under the pretext of layoffs.

"This 10 percent does not exist in a vacuum — restructuring an organization every year on that scale is probably not realistic. The other option they are referring to is employees failing to perform their duties, which falls into a completely different category under Section 88. That has to be proven, the employee must be warned in advance, and they must be given opportunities beforehand. LHV has about a thousand employees — doing this to a hundred employees again does not seem realistic, and the final outcome, if this is actually implemented, would mean a very large number of labor disputes," Saarep said.

The only option left is departure by mutual agreement, which even for a bank would mean a significant cost at such volumes, Saarep added.

Former Coop Bank CEO Margus Rink said that every company has its own personnel policy, but this is something that should be discussed internally.

"If a company owner wants a change in direction, talking about it inside the company — I think that alone is painful for employees when the owner says that we now need different kinds of workers. And I personally don't understand why this needs to be taken to the public media; it obviously undermines the motivation of current employees, who are the bank's greatest asset," Rink said.

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