Insights

Discover the new working rules for posted workers in Estonia

Estonia

09.02.21

2 ’

Summary

Find out the new working conditions for posted workers in Estonia, from an employer’s point of view.

Long-term posting rules

After 12 months, posted workers are entitled to all mandatory Estonian employment terms and not only specific conditions listed in the Working Conditions of Employees Posted to Estonia Act, i.e. working time, rest time, remuneration and compensation for overtime work, duration of annual holiday, equal treatment and equal opportunities, conditions relating to temporary agency employment and compensation for costs relating to business travel which have been declared generally binding and which apply from day one of employment in Estonia. There are exceptions for  the rules concerning the conclusion and termination of the employment contract, including non-compete clauses; and contributions to supplementary pension schemes.

The 12-month period can be extended to 18 months upon notification with reasons before the end of the 12-month period (where the posting lasts longer than 12 months but less than 18 months).  Calculating time periods: If another posted worker performs the same task at the same place, the cumulative duration of the two postings periods will be considered for calculating the 12-month period. ‘The same task at the same place’ will be considered taking into account, inter alia, the nature of the work performed and the address of the work place.

Allowances and expenses

Allowances specific to the posting are considered, as before, to be part of remuneration provided that they are not paid to reimburse expenses actually incurred. If it is not possible to determine which elements cover expenses actually incurred and which elements constitute remuneration, then the entire amount of the allowance will be considered as an expense allowance (and will therefore not be taken into consideration for determining whether the required remuneration is paid).

Information requirements

A new information duty relating to temporary agency workers posted to Estonia from abroad is introduced. The Estonian user company must inform the temporary work agency of the mandatory employment conditions applied to long-term posted employees.