Navigation path

Staff - Estonia

Updated 07/2012

Legal requirements

Working conditions

The employee-employer relations are regulated by the Employment Contracts Act.

  • Employment Contracts Act eesti

The standard working time is 8 hours a day or 40 hours a week.

The standard length of annual holidays is 28 calendar days. Representatives of certain professions, such as teachers and miners, are entitled to longer holidays.

Employment contracts

Under an employment contract, the employee undertakes to work according to instructions given. In return, the employer agrees to pay wages for this work. Both undertake to abide by the agreement between the parties, a collective employment contract, and the working conditions specified by a legal or an administrative act.

In case, between the employee and the employer, there occurs an individual labour dispute, the procedure and conditions for the settlement can be found within the Individual Labour Dispute Resolution Act.

  • Individual Labour Dispute Resolution Act eesti

Employing foreigners

For an employee posted in Estonia, the working conditions are regulated by the Working Conditions of Workers Posted in Estonia Act. A posted worker is an individual who usually works abroad under an employment contract and who is posted for a fixed period of time by their employer.

  • Working Conditions of Workers Posted in Estonia Act eesti

There are minimum social rules to follow, especially about non-discrimination, gender equality and health and safety.

Administrative procedures

Commencement and termination of employment

An employment contract is concluded in writing in two copies: one for the employee, the other for the employer. If the work is for less than two weeks, an employment contract may be entered into orally.

Social security contributions

On the salary, an employer is required to pay social tax and unemployment insurance premiums and withhold mandatory funded pension contributions.

Sole proprietors pay social tax on their business income, as well as payments in advance.

  • Tax and Customs Board eesti
  • TSD form with appendices eesti

Income tax refunds

The Tax and Customs Board refunds overpaid income tax on the basis of an income tax return for resident natural persons (due date 31 March). European Economic Area Member State residents who received at least 75% of their taxable income from Estonia may submit an income tax return for resident natural persons for deductions to be made.

In order to avoid double taxation, transnational agreements may apply immediately upon payment if residency of the recipient in the state which has entered into an international agreement with Estonia has been proven. Possible overpayments shall be refunded on the basis of an application.

  • Tax and Customs Board eesti
  • Forms of income tax return of resident natural persons eesti
  • Forms for non-residents eesti

Work permits for foreign workers

Foreigners must have a work permit to work in Estonia. These are granted by the Police and Border Guard Board.

  • Issue of a work permit eesti

Any citizen of the European Union has the right to work in Estonia for three months after entering the country or if they have the right of residence (no work permit is required). A family member of a citizen of the European Union may work in Estonia only if they have the right of residence (no work permit is required).

Dismissal

In order to settle an individual labour dispute, an employee and employer may approach the Labour Dispute Committee or Court.

  • Document templates eesti

Resources

EURES, the European job portal, offers employers information and support on recruiting across the EU. As well as assisting jobseekers, it helps entrepreneurs find workers from across the EU. In border regions, EURES provides information on cross-border commuting and helps workers and employers with problems that may arise.

Check also the legislation on this topic in:

  • References

    Legal texts

    • Working Conditions of Workers Posted in Estonia Act eesti
    • Individual Labour Dispute Resolution Act eesti
    • Employment Contracts Act eesti

Living and moving in Europe

Still need help?

Still need help?

Enterprise Europe Network - Contact points

The Enterprise Europe Network provides businesses with information and advice through its local contact points. 

Choose your nearest contact point for personalized help and advice:

Further help

From the Labour Inspectorate, it is possible to acquire information about employment contracts, working and rest time, wages, holidays, the work environment, and collective employment relations over the phone. In the case of more complicated matters it is recommended to contact the lawyer of the Labour Inspectorate.

  • Labour Inspectorate eesti

SOLVIT helps businesses deal with problems that arise when national authorities wrongly apply EU market rules.