Employment Law in Estonia

Employment Law in Estonia

Updated on Monday 09th August 2021


The Labour Law in Estonia

The labor conditions in Estonia are subject to the Estonian Constitution and the Conventions of International Organization of Labor. The Estonian labor contract follows the rules of the Employment Contract Act, the Collective Agreements Act and the Trade Unions Act.
If you want to register a company in Estonia and need details about the employment contract, you can contact our Estonian law firm.

Types of labor agreements in Estonia

The Estonian labor contract is usually concluded in writing and can be indeterminate, on a fixed period of time, temporary or seasonal.  The Estonian Labor Law also establishes types of contracts for people with a second job, people who work from home, or people who provide services. However, the most common type of employment contract in Estonia is the contract for indefinite amount of time.

The work contract in Estonia

The Estonian work contract must contain the names and addresses of the employer and employee, the commencement date, the job description and the entitlement of the job. The contract must contain data about the salary, what it consists of, if any benefits are granted to the employee, the annual leave the employee is entitled to, the payment date, details about how the wages are calculated and the applied withholding taxes. The working hours must also be written in the contract together with the workplace and the notice period in case of termination.
The trial period in the Estonian labor contract should not exceed 4 months in case of indefinite contracts and must not exceed half of the contract period in case of a temporary contract. The notice during the trial period is 15 days and must be given in writing.
The working hours for an employee in Estonia are 8 hours per day, 40 hours per week and the employee has the right to a 28 days annual paid vacation.

The termination of the labor contract in Estonia

An Estonian work contract will be terminated if both parties have agreed to it. In case of a temporary contract, when the contract reaches the expiration date. The labor contract can terminate at the initiative of the employer or the employee.
In case the employer decides to terminate the labor contract, the notice must be given according to the employment period and varies between 15 days for persons with less than a year working period, and 90 days for persons that have worked for over 10 years in a company.
In case the employee decides to terminate the work relations, he or she must present a 30 days notice.
Foreign nationals who wish to relocate to Estonia for employment purposes can reach out to our attorneys if they need additional information.
If you want to open a company in Estonia or need advice on legal matters you can ask our lawyers in Estonia for assistance.