Hiring the employee in Estonia

Part fifth

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 interests of the employer’s enterprise, and bear the training expenses andpay average waged during the training.

Offsetting Earnings

It is possible for employers to offset earnings against employee’s debts. However, the employer may only make a deduction from the employee’s wages if it is required or permitted by a statutory or contractual provision or the employee has given his prior written consent to the deduction.

Payments for Maternity and Disability Leave

The health insurance fund pays benefits to those employees who are temporarily unable to work. Such benefits are a percentage of the employee’s average income per calendar day.When an employee who cares for a child under 3 years of age or for adisabled child under 16 years of age is ill or is receiving obstetrical care oremployees nursing a child under 12 years of age at home, that employeeis entitled to receive a benefit of 80 per cent of their average salary. Employees on maternity or adoptive leave are entitled to 100 per cent of their salary whilst on such leave. Employees who cannot work because of an illness or injury caused as a result of an occupational disease or an accident at work are also entitled to receive 100 per cent of their salary during such leave.

Compulsory Insurance

Unemployment insurance is a type of compulsory insurance for those working in Estonia. The purpose of unemployment insurance is to pay benefits to employees who are unemployed as a result of, collective redundancy orthe insolvency of employers.

The employee’s unemployment insurance contribution is currently 1.6% of the employee’s salary and other remunerations. The employer’s contribution is 0.8% of their salary. The rates of unemployment insurance contributions are established by the Supervisory Board of the Unemployment Insurance Fund. The following persons are exempt from paying unemployment insurance contributions: workers who have reached the age at which they are entitledto old-age pension; workers who have been granted early-retirement pension;sole proprietors; self-employed legal persons; and members of the Riigikogu, the President of the Republic, members of the Government of the Republic,members of local government councils, the Chancellor of Justice and judges.

Absence For Military Or Public Service Duties

Employees are entitled to take leave for military or public service duties.

Works Councils or Trade Unions

In labour relations the rights and interests of employees may be represented and protected by the trade unions. Where there is no functioning trade union and the staff have not transferred the function of employee representation to the appropriate trade union, then the employees shall be represented by the trustee elected by secret ballot at the general meeting of the staff. One and the same person may not represent and protect the interests of both the employees and the employers.

When protecting the rights and interests of the employees, trade unions are guided by laws regulating trade union activities, the Employment Contracts Act and their respective regulations. The status of trustee and their activities are established by law.

Employees’ Right To Strike

The employees and their representatives have the right to organise and manage strikes.

Employees On Strike

Employees shall vote as to whether or not to strike at a general meeting of employees. At least 50 per cent of employees must vote to strike in order for the decision to be legal. Once the decision to strike has been taken, a strike committee must be established to lead the strike and represent the interests of the employees during the strike negotiations with the employer.The employees participating in a strike shall not receive remuneration for work during the strike, and the employer shall not make social security payments for striking employees, unless otherwise agreed by the parties to the collective interest dispute.

Employers’ Responsibility For Actions Of Their Employees

Employers are responsible for the acts of their employees, except where the employee was acting wholly outside the course of his employment.

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