Hiring the employee in Estonia.

Part fourth - Maintaining The Employment Relationship

Changes To The Contract

In the event of changes in production, scope, technology or labour organisation, as well as in other cases of production necessity, an employer is entitled to unilaterally change the conditions of an employment contract. If an employee does not agree to work under the changed working conditions, he may be dismissed from work by the employer provided that the employer follows the established dismissal procedure.

Change In Ownership Of The Business

When there is a change in ownership of a business (except a change merely in the shareholding ownership), all employees are automatically transferred to the new employer on the same terms and conditions. These rules also apply where only a specific part of a business changes ownership.There are obligations imposed on both the old and the new employers to consult with the affected employees though elected representatives, prior to the transfer taking place. Employees are allowed to refuse to transfer to the new employer. However, if they do they will be deemed to have resigned and will not be entitled to any compensation (unless the refusal relates to a failure to maintain the same terms and conditions after the transfer).

Social Security Contributions

Employers and employees are required to make social security contributions (rates are determined annually). Employers are also required to contribute towards allowances payable to employees during their employment. These allowances include sick pay, maternity pay and paternity pay.

Accidents At Work

Employers have a common law duty to have regard to the safety of their employees. Employers are also responsible under common law for accidents caused by the acts of their employees where the employees were acting in the course of their employment. It is compulsory for the employer to take out insurance to cover potential claims by employees in this regard.The employee who is unable to work as a result of an accident at work oroccupational disease will be compensated for the pay lost in accordance with the Law on Social Insurance and Health Insurance Act. If the injured employee has not been covered by the above mentioned social insurance the employee’s lost income, medical aid and treatment costs as well as the expenses related to the victim’s social, medical and professional rehabilitation will be compensated by the employer in accordance with the procedure established by the Civil Code.

Discipline And Grievance

The discipline and grievance procedure of the employer is defined by work regulations. They are approved by the employer subject to the approval by the representatives of the employees.

Harassment/Discrimination/Equal pay

Employees are protected from discrimination on grounds of sex, age, sexual orientation, marital status, race, religion or belief, disability, part-time status and fixed-term status.

Discrimination may occur before the employment relationship commences (for example in advertising the job), during the employment (for example infailing to promote), on termination or even after the employment has ended (for example in writing the reference).

In the case of discrimination on grounds such as sex, race, age or religion the discrimination may be direct (for example refusing to employ a man or woman), or indirect (for example by imposing a condition which is irrelevant to the job, but is such that fewer people of a particular group can qualify). In other instances, such as disability discrimination, there is no specific distinction between direct and indirect discrimination.

The Gender Equality Act prohibits discrimination based on sex in the private and public sectors. The Act also imposes an obligation on state and local government agencies, educational and research institutions and employers to promote gender equality of men and women. Where there is a claim based on gender inequality the employee has the right under the Act to claim for compensation.

Compulsory Training Obligations

There are no compulsory training obligations for employees generally, but obviously some trades/professions will impose their own standards/expectations. Employer is obligated to provide the employee with training based on the nterests of the employer’s enterprise, and bear the training expenses and pay average waged during the training.

Should you wish to receive our assistance on employment regulation in Estonia, Lithuania and Latvia, please feel free to contact our English speaking lawyers at info@gencs.eu