Estonia has one of the higher per capita income levels in Central Europe and the Baltic region. It has strong electronics and telecommunications, as well as trade sectors. However, due to its strong trade ties with Finland, Sweden, Germany, and Russia, its economy is heavily influenced by the economic developments of these countries, making it vulnerable to external shocks. The country’s developmental effort is currently focused on innovations that emphasise technology start-ups and e-commerce.
Employers need to follow the strict employment guidelines set forth by the local authorities before they could employ in Estonia. This process can be time-consuming as the company first needs a legal entity in the country and it needs to manage payroll, tax, benefits and compliance.
Global payroll solutions make it easy to find and hire top talent in Estonia. With one seamless integration and local legal entity, we take care of the compliance matters so that you can start your globelizing plan immediately.
Estonia’s worker classification labour and tax laws distinguish between contractors and full timers. If the individual meets the legal definition of an employee but is classified as a contractor, your company will face penalties.
The labour regulations and provisions in Estonia are laid down in Estonian Constitution and the Conventions of the International Labour Organization, codified in statutes including:
The provisions specify the various forms of employment protection for employees in Estonia.
Globelise will be able to help you navigate through the employment process and so that you will be able to offer a competitive and compliance offer to attract and retain your employees in Estonia.
There are 2 major trade union confederations in Estonia: Confederation of Estonian Trade Unions (EAKL), primarily a confederation of manual workers, and Estonian Employees’ Unions’ Confederation (TALO), primarily non-manual. However, the division is not absolute and both confederations work together to ensure the protection and enshrinement of employee rights in Estonia.
Employees may seek their unions for help when they feel that they are unfairly treated or have been non-compliant with their employment terms.
Probation period in Estonia can last from up to 4 months, but it cannot exceed half of the term of an employment contract.
Company or Individuals who are looking to hire talents and run payroll globally
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