Estonia

Estonia

Capital: Tallinn
Currency: Euro- EUR
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 RangeTax Rate
      0 - 30,0000%
      30,000 - 45,00010%
  • 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

1.Estonia Employment Law and Hiring Policy Overview
1.1Employment Law Overview
1.2Employment Contract Requirements
1.3Working Time Regulations
1.4Leave Policies
1.5Employee Dismissal and Contract Termination
1.6Tax Laws
1.7Health Insurance
1.8Compensation and Benefits
1.9Work Permits and Visas
1.10Confidentiality and Non-Compete Clauses
1.11Training and Development
1.12Workplace Diversity and Inclusion
1.13Remote Work Policies
1.14Authoritative Website Addresses