Estonia
Capital: Tallinn
Currency: Euro- EUR
Estonia Employment Law and Hiring Policy Overview
Employment Law Overview
- Key Legislation:
- Employment Contracts Act
- Occupational Safety and Health Act
- Social Security Act
- Legal Characteristics:
- Aims to protect employee rights and promote fair employment practices.
- Emphasizes negotiation and agreement between employers and employees.
Employment Contract Requirements
- Contract Types:
- Fixed-term contracts
- Indefinite-term contracts
- Contractual Terms:
- Must include job description, remuneration, working hours, annual leave, etc.
- Must be written in Estonian and use the Euro currency.
- Language and Currency:
- Estonian
- Euro (EUR)
Working Time Regulations
- Standard Working Hours: 40 hours per week, 8 hours per day.
- Rest Days and Breaks: Minimum of 11 hours of rest per week or 48 hours of rest in every 7 days.
Leave Policies
- Annual Leave: 28 days of paid annual leave per year.
- Public Holidays: 12 statutory public holidays.
- Special Leave:
- Sick Leave: Up to 182 days per year, paid by employer for days 4-8, by health insurance from day 9.
- Maternity Leave: 140 days, paid by the government.
- Paternity Leave: 10 days, paid by the government.
- Parental Leave: 2 months for both parents, with parental allowance.
Employee Dismissal and Contract Termination
- Notice Period:
- Less than 1 year: 15 days
- 1-5 years: 30 days
- 5-10 years: 60 days
- 10+ years: 90 days
- Severance Pay:
- In case of redundancy: 1 month's salary
- For service of 5-10 years: Additional 1 month's salary (paid by unemployment insurance)
- For service of 10+ years: Additional 2 months' salary (paid by unemployment insurance)
- Unfair Dismissal Protection: Employers must have valid reasons for dismissal and provide written explanation.
Tax Laws
- Personal Income Tax:
-
Salary Range Tax Rate 0 - 30,000 0% 30,000 - 45,000 10%
-
- Social Security Contributions:
- Employer: 33%
- Employee: 20%
Health Insurance
- Insurance Policy: All employees must participate in the national health insurance scheme.
- Coverage: Medical, dental, and vision care.
Compensation and Benefits
- Minimum Wage: €725 per month.
- Compensation Structure:
- Base salary
- Bonuses
- Allowances
Work Permits and Visas
- Permit Requirement: Non-EU/EEA citizens require a work permit.
- Application Process: Apply through the Estonian Immigration Board.
Confidentiality and Non-Compete Clauses
- Enforceability: Confidentiality and non-compete clauses are enforceable in Estonia, but must be reasonable and not unduly restrict employee's employment opportunities.
- Common Provisions:
- Confidential information
- Non-competition restrictions
Training and Development
- Legal Requirement: Employers must provide safety training and professional development opportunities.
- Government Support: Government-funded training programs and apprenticeships.
Workplace Diversity and Inclusion
- Legal Requirements: Discrimination based on race, gender, religion, or sexual orientation is prohibited.
- Enforcement: Government agencies investigate and enforce anti-discrimination laws.
Remote Work Policies
- Legal Framework: Remote work is legally supported in Estonia.
- Tax and Insurance Implications: Tax and social security implications of remote work vary depending on the specific circumstances.
Authoritative Website Addresses
- Estonian Ministry of Social Affairs: https://www.sm.ee/en