Life satisfaction
Data source: 2016 EQLS survey
Ability to choose or change
methods of work
Data source: 2015 EWCS survey
Possibility to accumulate overtime
for days off
Data source: 2013 ECS survey
Living and working in Estonia
28 April 2023
- Population: 1.3 million (2022)
- Real GDP growth: -1.3% (2022)
- Unemployment rate: 5.6% (2022)
Data source: Eurostat
Eurofound provides research, data and analysis on a wide range of social and work-related topics. This information is largely comparative, but also offers country-specific information for each of the EU Member States, which included the UK prior to its withdrawal from the European Union on 31 January 2020. Most information is available in English but some has been translated to facilitate access at national level.
Eurofound strives to strengthen the ongoing link between its own work and national policy debates and priorities related to quality of life and work. Increasingly important in this context are the EU’s policy priorities for a European Green Deal, a digital future, an economy that works for people, promoting and strengthening European democracy. To help repair the economic and social damage caused by the COVID-19 pandemic, the European Commission, the European Parliament and EU leaders have also agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe. The EU’s long-term budget, coupled with NextGenerationEU, the temporary instrument designed to boost the recovery, will be the largest stimulus package ever financed through the EU budget to help rebuild a post-COVID-19 Europe.
The European Semester provides a framework for the coordination of economic policies across the EU. It allows Member States to discuss their economic and budget plans and monitor progress at specific times throughout the year. For 2022, the European Semester resumes it broad economic and employment policy coordination, while further adapting in line with the implementation requirements of the Recovery and Resilience Facility. As part of this, Member States are encouraged to submit national reform programmes and stability/convergence programmes that will set out their economic and fiscal policy plans, as in previous Semester cycles. The main change in the 2022 cycle will be that the national reform programme will play a dual role. Besides its role for the European Semester, it will also fulfil one of the two bi-annual reporting requirements of Member States under the Recovery and Resilience Facility.
- European Commission: The European Semester
- European Commission: European Semester documents for Estonia
- European Commission: Recovery and Resilience Facility
2015 Eurofound EWCS survey results in Estonia: 95% of people consider themselves good at their work
Living and working in Estonia and COVID-19
COVID-19 continues to have a profound impact on people’s lives across the globe, with major implications for quality of life and work. Eurofound has taken a multipronged response to the pandemic, adapting its research focus in a variety of ways. A new database of national-level policy responses, EU PolicyWatch, collates information on measures taken by government and social partners, as well as company practices, aiming to cushion the effects of the crisis. Eurofound's unique e-survey, Living, working and COVID-19, provides an insight into the impact of the pandemic on people’s lives across the EU, with the aim of helping policymakers to bring about an equal recovery from the crisis. Five rounds of the survey have been carried out to date: in April 2020 when most Member States were in lockdown, in July 2020 when society and economies were slowly reopening, in March 2021 as countries dealt again with various levels of lockdown and vaccine rollout, a panel survey in October/November 2021 to track developments since the start of the pandemic, and in March–May 2022, charting the latest developments and looking at how life has changed over the past two years. The survey investigates the impact on quality of life and society, democracy and trust, working and teleworking, the financial situation and security of people, the quality of public services, support measures and vaccinations during COVID-19. Findings for each country and a range of data pages are available.
Explore our data pages by country to find out more on the situation in Estonia.
- Database: EU PolicyWatch – Estonia
- Data: Quality of life during COVID-19 – Estonia
- Data: Democracy and trust during COVID-19 - Estonia
- Data: Working during COVID-19 – Estonia
- Data: Financial situation and security during COVID-19 – Estonia
- Data: Quality of public services during COVID-19 – Estonia
- Data: Support measures during COVID-19 - Estonia
- Data: Vaccinations during COVID-19 - Estonia
- EMCC: Restructuring support instruments database
The country page gives access to Eurofound's most recent survey data and news, directly related to Estonia:
- Living in Estonia - country-level data from the European Quality of Life Survey (EQLS)
- Working life in Estonia - key characteristic of working life across a range of parameters.
Research carried out prior to the UK’s withdrawal from the European Union on 31 January 2020, and published subsequently, may include data relating to the 28 EU Member States. Following this date, research only takes into account the 27 EU Member States (EU28 minus the UK), unless specified otherwise.
Survey results
Recent developments
Eurofound contacts in Estonia
Correspondents in Estonia
Correspondents report on topics related to developments in the country's working life and inform Eurofound’s pan-European comparative analysis. Read more
Praxis Centre for Policy Studies
Eurofound Management Board members from Estonia
Eurofound's Management Board is made up of representatives of the social partners and national governments of all Member States, European Commission representatives and an independent expert appointed by the European Parliament. Read more
Marian Juurik Ministry of Social Affairs of Estonia
Kristi Sõber Estonian Employers' Confederation (ETTK)
Jaan-Hendrik Toomel Confederation of Estonian Trade Unions (EAKL)
Living in Estonia
Quality of life
Quality of life
According to EQLS findings, developments in quality of life in Estonia are positive. Many of the indicators presented in the table below show signs of improvement during the years of observation. The indicators for Estonia are often very close to the respective EU28 averages.
Both life satisfaction and happiness levels in Estonia have improved during the years of observation. Average life satisfaction in Estonia was 5.6 in 2003, rising to 6.7 in 2016, with the respective EU average being 7.1 (on a scale of 1–10). Happiness was 6.9 in 2003, increasing to 7.2 in 2016 which is closer to the EU average of 7.4.
The share of respondents reporting difficulties in making ends meet in Estonia has fluctuated. The level decreased from 68% in 2003 to 50% in 2007, but deteriorated again during the financial crisis rising to 67% in 2011. The level has since improved, falling to 48% in 2016 but remaining above the EU average of 39%.
Respondents in Estonia are on average optimistic. In 2016, 73% reported being optimistic about their own future and 77% about their children’s or grandchildren’s future, both measures being above the EU averages of 64% and 57%, respectively.
| 2003 | 2007 | 2011 | 2016 | ||
| Life satisfaction | Mean (1-10) | 5.9 | 6.7 | 6.3 | 6.7 |
| Taking all things together on a scale of 1 to 10, how happy would you say you are? | Mean (1-10) | 6.9 | 7.4 | 6.8 | 7.2 |
| Optimism about own future | Agree & strongly agree | - | - | - | 73% |
| Optimism about children’s or grandchildren’s future | Agree & strongly agree | - | - | - | 77% |
| Take part in sports or physical exercise | At least once a week | - | - | 48% | 54% |
| In general, how is your health? | Very good | - | 9% | 9% | 14% |
| WHO-5 mental wellbeing index | Mean (1-100) | - | 58 | 58 | 61 |
| Making ends meet | With some difficulty, difficulty, and great difficulty | 68% | 50% | 67% | 48% |
| I feel I am free to decide how to live my life | Strongly agree | - | - | 19% | 30% |
| I find it difficult to deal with important problems that come up in my life | Agree & strongly agree | - | - | - | 23% |
| When things go wrong in my life, it generally takes me a long time to get back to normal | Agree & strongly agree | - | - | - | 24% |
Work-life balance
Work-life balance
Work–life balance related problems in Estonia are similar to the EU28 averages, and there are no large gender differences in the frequency of reported problems. Work–life balance in Estonia has fluctuated a little during the years of observation. All of the three indicators improved between 2003 and 2011, but two of them deteriorated between 2011 and 2016 as presented below.
| 2003 | 2007 | 2011 | 2016 | ||
| (At least several times a month) | |||||
| I have come home from work too tired to do some of the household jobs which need to be done | Total | 66% | 62% | 64% | 62% |
| Men | 57% | 56% | 64% | 59% | |
| Women | 75% | 68% | 64% | 64% | |
| It has been difficult for me to fulfil my family responsibilities because of the amount of time I spend on the job | Total | 39% | 33% | 32% | 40% |
| Men | 37% | 32% | 30% | 43% | |
| Women | 41% | 35% | 34% | 38% | |
| I have found it difficult to concentrate at work because of my family responsibilities | Total | 14% | 12% | 10% | 16% |
| Men | 12% | 12% | 11% | 16% | |
| Women | 16% | 12% | 10% | 17% | |
Quality of society
Quality of society
The Social Exclusion Index has improved from 2.4 in 2011 to 2.0 in 2016 (on a scale of 1–5, where a lower value means better). The 2016 value is also slightly below the EU28 average of 2.1. Additionally, perceived tensions between poor and rich people have decreased during the years of observation. In 2003, 49% of respondents in Estonia reported ‘a lot of’ this type of tension, but this level decreased substantially to 29% in 2016, the same as the EU average (also 29%).
Perceived tensions between different racial and ethnic groups have increased substantially in Estonia from 16% reporting a lot of tension in 2011 to 29% in 2016. This follows the general trend observed also in many other European countries. However, this type of tension is still less prevalent in Estonia in comparison to the EU average of 41% in 2016.
| 2003 | 2007 | 2011 | 2016 | ||
| Social exclusion index | Mean (1-5) | - | 2.2 | 2.4 | 2.0 |
| Trust in people | Mean (1-10) | 5.5 | 5.1 | 4.8 | 5.0 |
| Involvement in unpaid voluntary work | % "at least once a month" | - | - | 6% | 6% |
| Tension between poor and rich people | % reporting 'a lot of tension' | 49% | 31% | 40% | 29% |
| Tension between different racial and ethnic groups | % reporting 'a lot of tension' | 11% | 20% | 16% | 29% |
| I feel safe when I walk alone after dark | Strongly agree | - | - | - | 40% |
Quality of public services
Quality of public services
Quality ratings for seven public services
Note: scale of 1-10, Source: EQLS 2016.
The public service with the lowest quality rating in Estonia is the state pension system, standing at 4.4 in 2016, compared with the EU average of 5.0 (on a scale of 1–10). The public service with the highest rating is childcare services, totalling 7.2 in 2016 and higher than the EU average of 6.7.
The perceived quality of many public services in Estonia has increased during the years of observation. For instance, the quality rating for public transport increased from 6.3 in 2003 to 7.1 in 2016, which is also above the EU average of 6.6. Furthermore, the perceived quality of the education system improved from 6.4 in 2003 to 7.0 in 2016.
| 2003 | 2007 | 2011 | 2016 | ||
| Health services | Mean (1-10) | 5.8 | 6.0 | 5.7 | 6.1 |
| Education system | Mean (1-10) | 6.4 | 6.8 | 6.2 | 7.0 |
| Public transport | Mean (1-10) | 6.3 | 6.7 | 6.4 | 7.1 |
| Childcare services | Mean (1-10) | - | 6.5 | 6.3 | 7.2 |
| Long-term care services | Mean (1-10) | - | - | 5.3 | 5.8 |
| Social housing | Mean (1-10) | - | - | 5.2 | 5.9 |
| State pension system | Mean (1-10) | 4.9 | 5.3 | 3.9 | 4.4 |
Working life in Estonia
About
- Author: Ingel Kadarik and Märt Masso
- Institution: Praxis Centre for Policy Studies
- Published on: Thursday, August 5, 2021
This profile describes the key characteristics of working life in Estonia. It aims to complement other EurWORK research by providing the relevant background information on the structures, institutions and relevant regulations regarding working life. This includes indicators, data and regulatory systems on the following aspects: actors and institutions, collective and individual employment relations, health and well-being, pay, working time, skills and training, and equality and non-discrimination at work. The profiles are updated annually.
Highlights – Working life in 2022
Highlights – Working life in 2022
Author: Ingel Kadarik
Institution: Praxis Centre for Policy Studies
Highlights updated on: 28 April 2023
Working paper: Estonia: Developments in working life in 2022
The war in Ukraine and the consequent rise in inflation have impacted social and economic life in Estonia. Increased living expenses have prompted reactions from the trade unions and an increase in the minimum wage. Although Estonia had two different coalition governments in 2022, there were no huge delays regarding the ongoing negations on measures to alleviate the effects of inflation.
Overall, Estonian working life in 2022 saw major developments in two main areas: collective bargaining and labour legislation. There was a significant number of tripartite initiatives and negotiations undertaken. This is a noteworthy development in Estonia, where the extent of tripartite collaboration has previously been modest. Not only did tripartite collaboration include a collective appeal for equal treatment of Ukrainian refugees and for measures to protect workers’ health, but several amendments to the Employment Contracts Act were the result of tripartite negotiations and agreements (as opposed to the initiative of the Ministry of Social Affairs, as is usual). Changes resulting from tripartite negotiations included the introduction of the variable hours agreement in retail, new provisions on employees with independent decision-making capacity and changes to on-call regulations for ICT workers. Therefore, it can be said that tripartite collaboration has been strong. In light of the new EU directive on minimum wages, which seeks to promote collective bargaining, it is likely that the role of the social partners in Estonia will continue to grow. The importance of strengthening collective bargaining has been emphasised by both the social partners and the Ministry of Social Affairs.
Estonian labour legislation changed significantly in 2009 when the new Employment Contracts Act entered into force. Since then, the legislation has been occasionally updated and adjusted; however, 2022 stands out as a year in which a significant number of amendments were made to labour legislation. The Employment Contracts Act had been criticised for being outdated, with a rigidity that does not meet the needs of contemporary employers and employees. In 2009, the aim of the new law was to introduce the concept of flexible security, and in 2022 this concept was again at the centre of the debates and amendments. On the one hand, the amendments created greater security, for example through provisions bringing in additional requirements on transparency of working conditions and contracts and the introduction of the notion that the duration of unemployment benefits should reflect the state of the economy. On the other hand, greater flexibility was introduced in the form of the variable hours agreement, provisions on employees with independent decision-making capacity, and other initiatives.
It is likely that the focus in the near future will be on the healthcare insurance system, as, according to the Estonian Employers’ Confederation and the Ministry of Social Affairs, some tripartite meetings have already taken place to discuss the matter of ensuring access to healthcare insurance for people covered by all types of employment contract.
Finally, in 2023 Estonia will hold parliamentary elections. The results and the consequent impact on future developments in working life remain to be seen.
Key figures
Key figures
Comparative figures on working life in Estonia
|
2019 |
2020 |
% (point) change 2012–2019 |
% (point) change 2019 –2020 |
|||||
|---|---|---|---|---|---|---|---|---|
|
Estonia |
EU27 |
Estonia |
EU27 |
Estonia |
EU27 |
Estonia |
EU27 |
|
|
GDP per capita |
15,760 |
27,970 |
15,250 |
26,230 |
26.9% |
11.5% |
-3.2% |
-6.2% |
|
Unemployment rate – total |
4.4 |
6.7 |
6.8 |
7.1 |
-5.6 |
-4.1 |
2.4 |
0.4 |
|
Unemployment rate – women |
4.8 |
7 |
6.6 |
7.3 |
-4.3 |
-4.0 |
1.8 |
0.3 |
|
Unemployment rate – men |
4.1 |
6.4 |
7 |
6.8 |
-6.8 |
-4.3 |
2.9 |
0.4 |
|
Unemployment rate – youth |
11.1 |
15 |
17.9 |
16.8 |
-9.8 |
-8.7 |
6.8 |
1.8 |
|
Employment rate – total |
78.9 |
73.4 |
79.3 |
72.9 |
4.1 |
2.4 |
0.4 |
-0.5 |
|
Employment rate – women |
75.8 |
67.9 |
76.3 |
67.5 |
4.4 |
3.0 |
0.5 |
-0.4 |
|
Employment rate – men |
82.1 |
79 |
82.2 |
78.3 |
3.7 |
1.8 |
0.1 |
-0.7 |
|
Employment rate – youth |
44.6 |
39.4 |
43 |
37.9 |
3.8 |
-0.4 |
-1.6 |
-1.5 |
Source: Eurostat – Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012–2020 (both based on sdg_08_10). Unemployment rate by sex and age – annual average, (15–74 years, % active population) and youth (15–24 years) % [une_rt_a]; Employment rate by sex and age – annual average, (15 –64 years, unit % total population, employment indicator active population) % [lfsi_emp_a].
Background
Background
Economic and labour market context
Between 2012 and 2019, Estonia’s GDP had a substantial increase of 26.9%, well above the EU average for the same period (11.5%). During this time, total unemployment decreased from 10% to 4.4% (a drop of 5.6 percentage points). The largest decrease was in youth unemployment (-9.8 percentage points). Employment figures for all categories increased since 2012 and showed remarkable improvement compared to EU average, i.e. the youth employment rate decreased by 0.4 percentage point in EU27, while it increased by 3.8 percentage points in Estonia However, compared to 2018 - until when all employment figures steadily increased, there was a slight decline in 2019 (expect for women). In 2020, the GDP has decreased by 3.2% compared to 2019, less than the 6.2% decrease in EU27. The pandemic had the most significant effect on youth unemployment, which increased by 1.8 pp.
More information on:
- European Commission: EURES - living and working in Estonia
Legal context
The Employment Contracts Act (Töölepinguseadus) regulates employment relations in the private sector and the Civil Service Act ( Avaliku teenistuse seadus) governs the public sector. In 2009 the new Employment Contracts Act and in 2013 the new Civil Service Act came into effect. As of 2014, all forms of employment (paid or voluntary) must be registered in the employment register.
Industrial relations are regulated by the Trade Unions Act (Ametiühingute seadus), the Employees’ Trustee Act ( Töötajate usaldusisiku seadus), the Collective Labour Dispute Resolution Act (Kollektiivse töötüli lahendamise seadus) and the Collective Agreements Act (Kollektiivlepingu seadus).
Industrial relations context
The current industrial relations system in Estonia was developed at the beginning of the 1990s. Although much has changed over the decades, only a few amendments have been made to the legislation on collective bargaining and collective dispute resolution. For example, since 2007, Estonia has had a dual channel of employee representation: employees can be represented by a trade union and/or employee trustee.
In Estonia, collective bargaining has always been decentralised, as the collective bargaining mostly takes place at company level. At sectoral level, there are only two agreements: in transport and in healthcare. At national level, national minimum wages are usually negotiated annually between the Estonian Trade Union Confederation ( EAKL) and the Estonian Employers’ Association (ETKL). It was agreed in 2017 that for 2019–2022 the national minimum wage increase will be annually calculated based on labour productivity and economic growth. The minimum wage of cultural workers is negotiated annually between the Estonian Employees’ Unions’ Confederation (TALO) and the Ministry of Culture (Kultuuriministeerium). It covers all cultural employees with higher education who are working in public authorities, state-owned private foundations and public law agencies in a position of their specialty requiring higher education, but is recommended for the private sector cultural field as well.
Today, the trade union membership level in Estonia is one of the lowest in the EU.
Social dialogue in general is functioning in Estonia (that is, the social partners are involved in policy-making, are members of the supervisory bodies of the main organisations related to working life, etc). Although there are occasions when the social partners are not fully satisfied with the level of their engagement by the government or with the extent to which their proposals are taken into account, overall their involvement is generally good and their voice is heard.
In 2018, following the invitation from the Prime Minister, the national level social partners and the Government re-established tripartite social dialogue by gathering and discussing relevant labour-, tax- and social policy related topics. A similar meeting took place in 2002 last. These meetings have served their purpose well, but in addition regular meetings with the Minister of Social Affairs have also been established.
COVID-19 did not have a substantial impact on industrial relations. The meetings were continued and scheduled negotiations took place. Social dialogue was strong – in cooperation with the social partners, some of the most important crisis mitigation measures (i.e. temporary wage subsidy, sickness benefit employees’ own contribution reduction) were developed, which proved to be successful and showed the will of social partners to cooperate and compromise and the importance of social dialogue.
Actors and institutions
Actors and institutions
Trade unions, employers’ organisations and public institutions play a key role in the governance of the employment relationship, working conditions and industrial relations structures. They are interlocking parts in a multilevel system of governance that includes the European, national, sectoral, regional (provincial or local) and company levels. This section looks into the main actors and institutions and their role in Estonia.
Public authorities involved in regulating working life
The Ministry of Social Affairs (Sotsiaalministeerium) deals with employment policy in general by preparing legislation and cooperating with social partners.
The main institution responsible for the enforcement of employees’ rights is the Labour Inspectorate (Tööinspektsioon), whose role is to supervise compliance with the requirements of legislation regulating labour relations. The Labour Inspectorate informs employees and employers, investigates serious occupational accidents and analyses their causes, and exercises supervision. The Labour Inspectorate also monitors the occupational health and safety, and puts effort into prevention. Within the local inspectorates, there are labour dispute committees ( töövaidluskomisjonid) which resolve individual labour disputes (pre-court mediation). Employees have also the right to turn to court when their rights have been violated.
In cases of discrimination at the workplace, a person can turn to the Gender Equality and Equal Treatment Commissioner (Soolise võrdõiguslikkuse ja võrdse kohtlemise volinik) whose role is to monitor compliance with the requirements of the Gender Equality Act and the Equal Treatment Act.
In cases of collective industrial dispute, if the parties cannot reach an agreement by negotiation, they can turn to the National Conciliator ( Riiklik Lepitaja).
Representativeness
There are no official rules regarding the representativeness of social partner organisations at national level. According to the Trade Unions Act, a trade union may be founded by at least five employees and a federation of trade unions may be founded by at least five trade unions. There are no criteria for employers’ associations. Collective agreements can be extended in respect of wages, working time and rest time in the case of multi- employer agreements: that is, if the agreement is concluded between an association or a federation of employers and an association or a federation of employees or a confederation of employers and a confederation of employees. However, in January 2018, Estonian Trade Union Fonfederation (EAKL) and Estonian Employers Confederation (ETKL) concluded a good practice agreement on the extending of collective agreements which sets a representativeness criterion for social partners. According to the agreement, only the multi-employer agreements concluded between the most representative social partners should be extended. The most representative social partners are those with the highest number of members, and, in the case of similar membership level, the organisation that is a member of EAKL or ETKL will be considered the most representative. The extended collective agreement cannot cover more than one sector of field of activity. The good practice agreement is not officially binding but it is strongly recommended to be followed. In 2020, the Government started to prepare changes to the law in order to establish official representativeness criteria related to the extension of the collective agreements as a response to the resolution of the Supreme Court.
More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.
More information on representativeness of the main social partner organisations can be found in Eurofound’s representativeness study of the cross-industry social partners or in Eurofound’s sectoral representativeness studies.
- Topic: Representativeness
Trade unions
About trade union representation
Trade unions operate under the Trade Unions Act and the Collective Agreements Act. The first Act provides for the general rights of and bases for the activities of trade unions, and their relations with state and local government authorities and employers, while the latter determines the legal base of concluding and performing the collective agreements.
People have the right to freely found, join or not to join trade unions, except members of the Defence Forces (Kaitsevägi) who are in active service.
Both trade union membership and density have been decreasing over the last 10 years. The share of employees being members of a trade union is higher among employees in the non-governmental, non-profit sector (17% in 2015) and in the public sector (12%), while it is lower in private sector organisations (5%).
Trade union membership and trade union density
|
2015 |
2016 |
2017 |
2018 |
2019 |
Source |
|
|
Trade union density in terms of active employees |
4.8 |
4.8 |
4.4 |
4.4 |
4.2 |
OECD/AIAS ICTWSS Database 2021 |
|
Trade union membership in 1000 |
28 |
27 |
26 |
26 |
25 |
OECD/AIAS ICTWSS Database 2021 |
Main trade union confederations and federations
Estonian Trade Union Confederation (EAKL) is the largest trade union in Estonia and the main national level trade union, also the partner in national minimum wage negotiations.
The second important trade union organisation is Estonian Employees’ Unions’ Confederation (TALO), which mostly represents cultural workers and public servants.
Main trade union confederations and federations
|
Long name |
Abbreviation |
Members |
Involved in collective bargaining? |
|
Estonian Trade Union Confederation (Eesti Ametiühingute Keskliit) |
EAKL |
19,200 (in 2020) |
Yes |
|
Estonian Employees’ Unions’ Confederation (Teenistujate Ametiliitude Keskorganisatsioon) |
TALO |
Around 3,200 (in 2020) |
Yes |
Source: Trade unions’ representatives
There have not been any major developments in the past five years. The overall trend is declining trade union membership level.
Employers’ organisations
About employers’ representation
The rights and obligations to establish or join employers’ associations are not specifically regulated in legislation. However, the Constitution ( Põhiseadus) stipulates the right to freely join the associations. Although there are many business associations, there are only a few employers’ organisation involved in collective bargaining.
In recent years, there have not been any significant changes or developments on the employers’ side and employers’ organisations density has remained stable.
Employers’ organisations – membership and density
|
2015 |
2016 |
2017 |
2018 |
2019 |
Source |
|
|
Employers’ organisation density in terms of active employees |
n.a. |
n.a. |
n.a. |
50.5 |
n.a. |
OECD/AIAS ICTWSS Database 2021 |
|
Employers’ organisation density in private sector establishments* |
n.a. |
n.a. |
n.a. |
n.a. |
3% |
*Percentage of employees working in an establishment which is member of any employer organisation (in 2013) that is involved in collective bargaining (in 2019).
Main employers’ organisations
The only employer organisation recognised as a national-level social partner is ETKL. Its members include associations as well as enterprises. Although there are no representativeness criteria set in Estonia, ETKL is the largest employer organisation involved in collective bargaining and the only employer organisations involved in national level collective bargaining and hence it is considered to be a national-level social partner.
Important business associations in Estonia are the Estonian Chamber of Commerce and Industry (Eesti Kaubandus-Tööstuskoda) and the Estonian Association of SMEs ( Eesti Väike- ja Keskmiste Ettevõtjate Assotsiatsioon) but neither of them take part in collective bargaining, and they both concentrates on developing entrepreneurship and the economy as a whole.
Main employers’ organisations and confederations
|
Long name |
Abbreviation |
Members |
Year |
Involved in collective bargaining? |
|
Estonian Employers’ Confederation (Eesti Tööandjate Keskliit) |
ETKL |
149 (altogether directly and indirectly it represents around 1,980 companies) |
2020 |
Yes |
|
Estonian Chamber of Commerce and Industry (Eesti Kaubandus-Tööstuskoda) |
EKTK |
3,471 (altogether directly and indirectly represents around 5,000 companies) |
2020 |
No |
|
Estonian Association of SMEs ( Eesti Väike- ja Keskmiste Ettevõtjare Assotsiatsioon ) |
EVEA |
386 (altogether directly and indirectly represents around 5,200 companies) |
2020 |
No |
Source: Representatives of the associations
The data on employers’ associations density is scarce. However, the overall trend of the membership level of companies’ associations has been upward in recent years. Still, the share of employers’ association involved in collective bargaining, has remained very low as there are only a few such associations.
Tripartite and bipartite bodies and concertation
The system of tripartite concertation is not specifically regulated in Estonia. Social partners take part in the consultation phase of drafting legislation. In addition to that, the social partners are members of the supervisory boards of the Estonian Health Insurance Fund (EHIF), which is responsible for managing health insurance, covering the costs of health services, paying sickness benefits and participating in the planning of healthcare; the Estonian Unemployment Insurance Fund (EUIF), which is responsible for public employment services (PES) and for implementing active labour market policies; and the Estonian Qualification Authority (EQA), which is responsible for developing the professional qualifications system in Estonia. In the EUIF, for example, they make proposals about the rate of unemployment insurance premium and approve temporary employment programmes.
There are also often many temporary tripartite working groups, committees or other groups formed to discuss specific topics or issues (for example, immigration and immigration quota, caring for dependent relatives, Welfare Development Plan 2016-2023).
In addition, since 2018 the social partners (EAKL and ETKL) and the government re-established tripartite meetings which take place 2-3 times per year. These meetings are used for discussing relevant topics at the time and for a platform for social partners to raise the most important topics in their agenda.
Main tripartite and bipartite bodies
|
Name |
Type |
Level |
Issues covered |
|
Estonian Health Insurance Fund (EHIF, Eesti Haigekassa) |
Tripartite |
National |
Health insurance, sickness, temporary incapacity for work |
|
Estonian Unemployment Insurance Fund (EUIF, Eesti Töötukassa) |
Tripartite |
National |
Unemployment, permanent incapacity for work |
|
Estonian Qualification Authority (EQA, Kutsekoda) |
Tripartite |
Sectoral, national |
Skills, training |
Workplace-level employee representation
Since 2007, Estonia has had a dual channel of employee representation – employees can be represented by a trade union and/or employee trustee. Employee representation is regulated with the Trade Unions Act and the Employees’ Trustee Act. Trade union representatives are elected from among the trade union members, and employee trustees are elected by the employees at a general meeting in the company. Both may be present in a given company at the same time; however, the trade union has the prior right to take part in collective bargaining and collective dispute resolution. If no trade union exists in the company, the trustee has the right to conclude agreements or represent employees in collective dispute resolution. Employee trustees mainly operate in the area of information and consultation procedures. Trade union representatives are also allowed to participate in this process, regardless of the presence of a general representative.
Employees are also represented by a working environment representative, who is a representative in occupational health and safety (OSH) issues: monitoring that OSH measures are implemented, participating in the investigation of an occupational accident or disease; informing employees, and so on. In a company with 10 or more employees, the employees elect one working environment representative from among themselves. If an enterprise employs fewer than 10 employees, the employer is required to consult with the employees in matters of occupational health and safety. Also, in companies with 150 or more employees, the employer has the obligation to set up a working environment council, which shall comprise an equal number of representatives designated by the employer and representatives elected by the employees (altogether at least four members). The Labour Inspectorate has the right to demand that a working environment council be set up also in a company with fewer than 150 employees depending on the hazards present and the number of occupational accidents and cases of occupational disease in the enterprise. The council analyses regularly the working conditions, participates in preparing the OSH development plan of the company and analyses occupational accidents. The rights and obligations of the working environment representative and council are stipulated in the Occupational Health and Safety Act ( Töötervishoiu ja tööohutuse seadus).
Regulation, composition and competences of the bodies
|
Regulation |
Composition |
Competences of the body Involved in company level collective bargaining? |
Thresholds/rules when they need to be/can be set up |
|
|
Trade union (Ametiühing) |
Law |
Employees |
Yes |
A trade union may be founded freely by at least five employees. |
|
Employees’ trustee (Töötajate usaldusisik) |
Law |
Employees |
Yes, if trade union is not present in the company |
Trustees can be elected by the general meeting of the employees of the employer in case at least half of the employees participate in the meeting. |
|
Working environment representative ( Töökeskkonnavolinik) |
Law |
Employee |
Yes, in OSH issues |
Must be elected among employees in the case of companies with 10 or more employees. |
|
Working environment council (Töökeskkonnanõukogu) |
Law |
Representatives of employees and employer |
Yes, in OSH issues |
Must be set up in the case of companies with 150 or more employees |
Industrial action and disputes
Industrial action and disputes
Legal aspects
Collective Labour Dispute Resolution Act ( Kollektiivse töötüli lahendamise seadus) regulates industrial action types and therefore the rights of employees or associations or federations of employees to organise a strike (streik) and the right of employers or associations or federations of employers to lock out (töösulg) employees to resolve a labour dispute. The right to strike or lockout arises only if there is no prohibition against disruption of work in force, if conciliation procedures prescribed have been conducted but no conciliation has been achieved, if an agreement is not complied with, or if a court judgment is not executed. The organiser of a strike or a lock-out is required to notify the other party, the national conciliator and the local government of a planned strike or lock-out in writing at least two weeks in advance. In addition to strikes or lock outs, employees and their associations or federations have the right to organise warning strikes (hoiatusstreik) of up to one hour. Also, sympathy strikes (toetusstreik) are permitted in support of employees engaging in a strike. The duration of such strikes are decided by the parties, but may not last longer than three days. The representative, an association or a federation of employees is required to notify the employer, association or federation of employers and the local government of a planned warning strike in writing at least three days and of a planned sympathy strike in writing at least five days in advance.
Industrial action developments 2015–2019
|
2015 |
2016 |
2017 |
2018 |
2019 |
Source |
|
|
Working days lost per 1000 employees |
0 |
0 |
0 |
1.8 |
0 |
Author’s calculations |
|
Number of strikes |
0 |
0 |
0 |
1 |
0 |
Statistics Estonia, Strikes by economic activity (2012, 2018), authors estimation |
Note: Strikes are rare in Estonia. The two strikes in 2012 lasted for days and weeks. The table does not contain statistics on warning strikes (which can last up to one hour); there have been only a few such strikes during the time frame.
Dispute resolution mechanisms
Collective dispute resolution mechanisms
If the parties to a dispute cannot reach an agreement by negotiations, they can turn to the National Conciliator (Riiklik Lepitaja), who leads the conciliation process. Also, in the case of a collective labour dispute between an employer and an employee representative, they have the right to turn to a federation of employers and a federation of employees who then must establish a committee for the resolution of the dispute and notify the National Conciliator. The decision of the committee is binding on the parties of the dispute. In cases where there is a dispute arising from the performance of a collective agreement, the parties have the right of recourse to a labour dispute committee or the court for the resolution of the dispute.
If, despite these conciliation procedures, the parties still cannot conclude an agreement, strikes and lock-outs are permitted.
Individual dispute resolution mechanisms
Individual labour disputes can be resolved by an agreement between the employee and the employer through the mediation of an employees’ trustee or a trade union. The parties have also the right to turn to local labour dispute committee (töövaidluskomisjon, LDC) or to court.
LDCs are independent, extra-judicial individual labour dispute resolution bodies established within the local branches of the Labour Inspectorate ( Tööinspektsioon) and have three members – the chair of the labour dispute committee and representatives of employees and employers who are appointed by the Estonian Trade Union Confederation ( Eesti Ametiühingute Keskliit, EAKL) and the Estonian Employers' Confederation (Eesti Tööandjate Keskliit, ETKL). Also, there is a three-tier court system in Estonia with county/city courts and administrative courts, circuit courts, and the Supreme Court.
Most recent important changes in the system were approved in 2017. These include the possibility to turn to the LDC with monetary claims exceeding €10,000 which were previously accepted only by courts; the possibility to turn to the LDC with issues related to working conditions (for example, health and safety at work) and with issues arising from the performance of a collective agreement; previously only issues related to employment contracts were resolved in LDC; and new resolution mechanisms, i.e. written proceedings, conciliation procedure and agreement procedure.
Use of alternative dispute resolution mechanisms
There are no labour courts in Estonia. The table includes the total number of applications received by the Labour Dispute Committees submitted by employers, as well as employees per year; and the number of cases regarding labour law in the courts of first instance.
Use of dispute resolution mechanisms
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
Labour Dispute Committees |
2,691 |
2,671 |
2,605 |
2,716 |
2,942 |
|
Courts |
386 |
446 |
356 |
282 |
291 |
Source: Labour Inspectorate, labour disputes statistics
Estonian Court Statistics
Individual employment relations
Individual employment relations
Individual employment relations are the relationship between the individual worker and their employer. This relationship is shaped by legal regulation and by the outcomes of social partner negotiations over the terms and conditions governing the employment relationship. This section looks into the start and termination of the employment relationship and entitlements and obligations in Estonia.
- European Industrial Relations Dictionary: Employment relationship
Start and termination of the employment relationship
Requirements regarding an employment contract
The Employment Contracts act (Töölepinguseadus) stipulates that as a rule an employer shall not enter into an employment contract with a minor under 15 years of age or a minor subject to the obligation to attend school, or allow such a minor to work. However, exceptionally, an employer may enter into an employment contract with a minor of 13–14 years of age or a minor of 15–16 years of age subject to the obligation to attend school and allow him or her to work if the duties are simple and do not require any major physical or mental effort (light work). Minors of 7–12 years of age are allowed to do light work in the field of culture, art, sports or advertising.
An employment contract shall be entered into in writing. An employment contract shall also be deemed entered into if an employee commences work which, under the circumstances, can be expected to be done only for remuneration. An employment contract is presumed to be concluded for an unspecified term. It may be concluded for a specified term of up to five years if it is justified by good reasons, or of up to the period of substitution in case of substitution of an employee who is being temporarily absent, or in case of temporary agency work.
Since 2014, all forms of employment (paid or voluntary work) must be registered by the employer in the employment register under the Tax and Customs Board at the time the employee starts working.
Dismissal and termination procedures
Dismissal and termination procedures are described in the Employment Contracts Act. According to the Act, parties to the contract may terminate an employment contract at any time by agreement. However, the employee must notify the employer at least 30 days in advance, while the employer must notify the employee at least 15–90 days in advance (depending on length of employment relationship).
Contracts can also be terminated extraordinarily under certain circumstances. An employee can extraordinarily terminate a contract if they are unable to perform their duties or if the employer has committed a fundamental breach of obligation to the employee. The employer can terminate the contract if there are good reasons arising from a worker’s long-term inability to perform duties or for economic reasons such as decrease in work volume, reorganisation of work or bankruptcy.
In case of collective dismissal, the employer must inform and consult with employee representative or with the employees, if they do not have a representative, and notify the Estonian Unemployment Insurance Fund ( Töötukassa).
Collective dismissal means cancellation, within 30 calendar days due to lay-off, of the employment contract of no less than:
1) 5 employees in an enterprise where the average number of employees is up to 19;
2) 10 employees in an enterprise where the average number of employees is 20–99;
3) 10% of the employees in an enterprise where the average number of employees is 100 to 299;
4) 30 employees in an enterprise where the average number of employees is at least 300.
See also further information on:
Entitlements and obligations
Parental, maternity and paternity leave
This section looks at the terms and conditions of parental, maternity and paternity leave. In 2018, the reform of the parental leave and benefit system was finalised. The changes aim to achieve a more flexible system, promote working and encourage fathers’ participation in childcare and take effect gradually from March 2018 to April 2022. With these changes it is possible to receive the benefit simultaneously by both parents, to receive it over a longer period (3 years instead of 1.5) and to receive higher income from employment while on parental leave. Also, a 30 days paternity leave, reserved only for fathers, was introduced as of July 2020. The take up of parental leave by fathers has steadily increased during the past couple of years from 6% in 2014 to 16% in the end of 2020, with a more rapid change taking place in 2018-2020 when it increased from 8% to 16%.
Statutory leave arrangements
|
Maternity leave |
|
|
Maximum duration |
A woman has the right to pregnancy and maternity leave of 140 calendar days. The pregnancy and maternity leave may be taken 30–70 days before the estimated date of birth (30th to 36th week of pregnancy), as determined by a doctor or midwife. If a woman starts pregnancy and maternity leave less than 30 days before the estimated date of birth, leave is shortened by the respective period. |
|
Reimbursement |
100% of average income per calendar day (maternity benefit). |
|
Who pays? |
Estonian Health Insurance Fund (Haigekassa, EHIF). |
|
Legal basis |
Employment Contract Act,Article 59; Health Insurance Act, Article 54. |
|
Parental leave |
|
|
Maximum duration |
A mother or father has the right to child care leave until his or her child reaches the age of three years. Child care leave may be used by one person at a time. As of April 2022, parents will be allowed to be on the leave simultaneously for up to two months. |
|
Reimbursement |
The benefit shall be granted for the period of 435 days as of the date on which the right to receive the benefit arises. If the mother of the child does not have the right to receive maternity benefit, parental benefit shall be granted until the day the child attains 18 months of age. The amount of the benefit per calendar month shall be 100% of the average income per calendar month calculated on the basis of the social tax paid during the period of 12 months preceding the pregnancy (9 months are deducted from the birth and the preceding 12 months are taken as the basis for the calculation), |
|
Who pays? |
State budget, social insurance tax. |
|
Legal basis |
Employment Contract Act,Article 62; Family Benefits Act, Division 3. |
|
Paternity leave |
|
|
Maximum duration |
30 calendar days as of July 2020. This can be taken at once or in parts. This is added to the period of parental leave. |
|
Reimbursement |
Paternity leave shall be remunerated on the basis of his average wages on the same conditions as parental leave benefit. |
|
Who pays? |
State budget, social insurance tax. |
|
Legal basis |
Employment Contract Act, Article 60, Family Benefits Act, Article 33. |
Sick leave
In case of sickness, the employee has the right to receive sickness benefit from the fourth day of illness. The first five days are paid by the employer (4th to 8th day of sickness); and from the ninth day by the EHIF. The amount of the benefit is 70% of the person’s average wage. The benefit is paid for a maximum of 182 consecutive calendar days. As of 2017, employers can compensate for (but are not obliged to) the second and the third day of sickness leave social tax free to the maximum amount of 100% of the person’s average wage.
The employment contract act (Article 88) states that an employer may extraordinarily cancel an employment contract if the employee has for a long time (four months) been unable to perform his or her duties due to his or her state of health. Before cancellation of an employment contract the employer shall offer other work to the employee, accommodate his or her work, and provide training where possible.
Retirement age
According to State Pension Insurance Act (Article 7), as a rule, the minimum formal retirement age is 65. At present, however, it is lower and varies for persons depending on when they were born up until 2026. By 2016, the retirement age for women was gradually increased from 60 to 63, hence as of 2016, the retirement age for both men and women was 63. It will continue to gradually increase to 65 by 2026. In 2018, the pension reform was finalised. With these changes, as of 2027, the retirement age will be tied to life expectancy. It is expected that by 2060 the retirement age will be 68 years and 10 months. A person has the right to receive old-age pension one to five years before (depending on the pension qualifying period) and at any time after attaining the retirement age.
Pay
Pay
Pay: For workers, the reward for work and main source of income; for employers, a cost of production and focus of bargaining and legislation. This section looks into minimum wage setting in Estonia and guides the reader to further material on collective wage bargaining.
Overall, the national average monthly wage has increased by 40% over the past 5 years (from €1,005 in 2014 to €1,407 in 2019). A wage increase of under 30% was seen in construction (29%%); agriculture, forestry and fishing (25%); mining and quarrying (25%); professional, scientific and technical activities (24%). A wage increase of over 50% was seen in other service activities (92%); education (55%) and arts, entertainment and recreation (51%) sectors. The highest wage level has been in information and communication sector, at €1,586 in 2014 and €2,342 in 2019 (increase of 48%) and financial activities at €1,704 and €2,321, respectfully (36%).. The sectors with the lowest wages are accommodation and food service (€629 in 2014 and €905 in 2019); real estate activities (€730 and €1042, respectively) and other activities (€557 and €1,070).
It has been argued before that the average wage had increased too quickly compared to the actual labour productivity and that this might affect the competitiveness of the companies. With the COVID-19 crisis, however, the increase in wage level has slowed down and due to the containment measures and decreased labour demand, it is expected that the wage increase will continue to be slower than before the crisis.
ETKL has also argued that the national minimum wage has increased more quickly than the national average wage (by 54.7% from €278 in 2011 to €430 in 2016), hence as of 2019 the minimum wage will be calculated annually based on the labour productivity and economic growth.
Average monthly basic wages and salaries per full-time worker, annual average
|
NACE Full economy A-R |
2012 |
2019 |
|
|
887 |
1,407 |
||
|
A |
Agriculture, forestry and fishing |
752 |
1,141 |
|
B |
Mining and quarrying |
1,135 |
1,638 |
|
C |
Manufacturing |
864 |
1,339 |
|
D |
Electricity, gas, steam and air conditioning supply |
1,297 |
1,996 |
|
E |
Water supply; sewerage, waste management and remediation activities |
903 |
1,368 |
|
F |
Construction |
938 |
1,356 |
|
G |
Wholesale and retail trade; repair of motor vehicles and motorcycles |
840 |
1,315 |
|
H |
Transportation and storage |
849 |
1,346 |
|
I |
Accommodation and food service activities |
557 |
905 |
|
J |
Information and communication |
1,448 |
2,342 |
|
K |
Financial and insurance activities |
1,433 |
2,321 |
|
L |
Real estate activities |
653 |
1,042 |
|
M |
Professional, scientific and technical activities |
1,147 |
1,552 |
|
N |
Administrative and support service activities |
785 |
1,211 |
|
O |
Public administration and defence; compulsory social security |
1,037 |
1,781 |
|
P |
Education |
735 |
1,333 |
|
Q |
Human health and social work activities |
882 |
1,495 |
|
R |
Arts, entertainment and recreation |
729 |
1,115 |
|
S |
Other service activities |
498 |
1,070 |
Note: Until 2018, indirect benefits to employees were not included. Source: Statistics Estonia, PA001: average gross wages (salaries), labour cost, hours actually worked and number of employees by economic activity section (quarterly) (see Eurostat RAMON for description and classification).
Minimum wages
Since 2002, the national minimum wage in Estonia is negotiated by the national social partners and then brought into effect by government decree (in 1992–2001 the minimum wage was agreed in a tripartite agreement). It is usually negotiated annually. In 2018, it was agreed that the minimum wage increase will be annually calculated and negotiated based on economic indicators, i.e. labour productivity and economic growth
Minimum wage
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
Adult rate |
390 |
430 |
470 |
500 |
540 |
For more information regarding the level and development of minimum wages, please see:
- Eurofound publication series: Minimum wages in the EU
- Eurostat: Minimum wage statistics
Collectively agreed pay outcomes
For more detailed information on the most recent outcomes in terms of collectively agreed pay, please see:
- Topic: Collective bargaining
Working time
Working time
Working time: ‘Any period during which the worker is working, at the employer’s disposal and carrying out his activities or duties, in accordance with national laws and/or practice’ (Directive 2003/88/EC). This section briefly summarises regulation and issues regarding working time, overtime, part-time work as well as working time flexibility in Estonia.
Working time regulation
The statutory working time regulation, including maximum working day and working week, are stipulated in the Employment Contracts Act. The statutory weekly working time in Estonia is 40 hours a week.
For more detailed information on working time (including annual leave, statutory and collectively agreed working time), please consult:
- Topic: Working time
Overtime regulation
Overtime work is regulated by Employment Contracts act (Article 44). The regulation stipulates that an employer and employee may agree that the employee undertakes to do work over the agreed working time (overtime work). In general, overtime work shall be agreed between the parties in line with the principle of good faith. An employer may demand that an employee work overtime due to unforeseen circumstances pertaining to the enterprise or activity of the employer, in particular for prevention of damage. Also, the legislation excludes overtime work where it might be harmful for employee health.
An employer shall compensate for overtime work by time off equal to the overtime, unless it has been agreed that overtime is compensated for in money, in which case the employer should pay 1.5 times the normal hourly wage for each hour of overtime.
Part-time work
The Employment Contracts Act (Article 43) concludes that employer and employee can also agree on a shorter working time or part-time work. The exact working time is determined by individual or collective agreement. According to Eurostat LFS, the share of part-time workers in Estonia has been at around 9% until 2018, when itslightly increased to 10.5%, but being still considerably lower than the EU27 average. While the share of women in Estonia working part time is twice the share of men, the gender gap is significantly smaller compared to the EU27. While the share of men working part time in 2019 was closer to the EU27 average (6.9% vs 7.8%, respectively), the share of women working part time was considerably smaller in Estonia compared to the EU27 (15.1% vs 29.4%, respectively).
Persons employed part-time in Estonia and EU27 (% of total employment)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
Total (EU27) |
18.2 |
18.1 |
18 |
17.8 |
17.8 |
16.6 |
|
Total (Estonia) |
9.2 |
9.5 |
9.2 |
10.5 |
10.8 |
11.9 |
|
Women (EU27) |
30.2 |
30 |
29.8 |
29.5 |
29.4 |
27.6 |
|
Women (Estonia) |
12.9 |
12.8 |
12.9 |
14.7 |
15.1 |
16.3 |
|
Men (EU27) |
8 |
7.9 |
7.9 |
7.7 |
7.8 |
7.2 |
|
Men (Estonia) |
5.7 |
6.4 |
5.8 |
6.8 |
6.9 |
7.8 |
Source: Eurostat Labour Force Survey [lfsi_pt_a] – Persons employed part-time (20 to 64 years of age) – total and by sex.
Involuntary part-time
Involuntary part-time workers can be defined as those working part time because they could not find a full-time job.
Persons employed in involuntary part time in Estonia and EU27 (% of total part-time employment)
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
|
|
Total (EU27) |
32.3 |
31 |
29.7 |
28 |
26.5 |
25 |
|
Total (Estonia) |
13.9 |
10.4 |
7.8 |
6 |
6.4 |
7.5 |
|
Women (EU27) |
28.8 |
27.7 |
26.4 |
25.2 |
23.9 |
22.5 |
|
Women (Estonia) |
12.7 |
9.5 |
7.5 |
6.6 |
6.4 |
7.1 |
|
Men (EU27) |
43.6 |
41.8 |
40.4 |
37.2 |
34.9 |
33.1 |
|
Men (Estonia) |
16.3 |
12.1 |
8.4 |
4.8 |
6.4 |
8.1 |
Source: Eurostat Labour Force Survey [lfsa_eppgai]- involuntary part-time employment as a percentage of the total part-time employment, by sex and age (20 to 64 years of age)
Involuntary part-time work is significantly less prevalent in Estonia than in the EU, on average. Moreover, while on average the level has remained rather stable in EU, it has consistently decreased in Estonia.
Night work
According to the Employment Contracts Act (Article 45), night work is defined as working time between 22.00 and 6.00. Night work is paid 1.25 times the employee’s wage, unless it has been agreed that the wage include remuneration for working at night. The parties may also agree on compensation for work done at night by granting additional time off.
Shift work
Shift work is not defined in Estonian legislation.
Weekend work
Weekend work is not specifically defined in Estonian legislation. The Employment Contracts Act stipulates that it is presumed that an employee works 40 hours per week, 8 hours a day, and the weekly rest time is granted on Saturday and Sunday. However, employers and employees are allowed to agree on different working time arrangements, provided that it is in compliance with the law.
Rest and breaks
Daily rest time is defined in the Employment Contracts Act (Article 51). In general, an employee is entitled to 11 hours of consecutive rest time over a period of 24 hours. Exceptions may be made in the cases specified in Council Directive 2003/88/EC. For minors, the rest time is longer (between 14 and 22 hours) depending on their age and whether there is a school break or not. This provision shall not be applied to healthcare professionals and welfare workers, provided that such working does not harm their health and safety.
In the case where an employee works more than 13 hours over a period of 24 hours, the employer must give the employee additional time off, immediately after the end of the working day, equal to the number of hours by which the 13 working hours were exceeded, it cannot be compensated with money.
During the working day an employee must have a break no less than 30 minutes for work longer than 6 hours.
Weekly rest time is defined in the Employment Contracts Act (Articles 52). In general, employees must have at least 48 hours of consecutive rest time over a period of seven days. In the case of calculation of the summarised working time, the rest time must be 36 hours of consecutive time over a period of seven days.
Working time flexibility
In principle, an employer and employee may agree the working hours and work schedule that best suits their interest, and the legislation only limits working time and places some restrictions on night work. However, the legislation favours employers’ discretion by stipulating that the employer has the right to establish the rules of work organisation; and that an employer may unilaterally change the organisation of working time, provided the changes arise from the needs of the employer’s enterprise and are reasonable, considering mutual interests (Article 47).
The statistics indicate that 33% of employees have at least some discretion over their working time (EWCS 2010) and in 25% of establishments more than 80% of employees may adapt the start and end of their working day to their personal needs.
Health and well-being
Health and well-being
Maintaining health and well-being should be a high priority for workers and employers alike. Health is an asset closely associated with a person’s quality of life and longevity, as well as their ability to work. A healthy economy depends on a healthy workforce: organisations can experience loss of productivity through the ill-health of their workers. This section looks into psychosocial risks and health and safety in Estonia.
Health and safety at work
The framework of the Estonian health and safety system is provided by the Occupational Health And Safety Act, which provides for the occupational health and safety requirements for work performed by employees, the rights and obligations of an employer and an employee in creating and ensuring a working environment which is safe for health, the organisation of occupational health and safety in enterprises and at state level, the procedure for challenge proceedings, and the liability for violation of the occupational health and safety requirements. (for more information about the topic, see the OSHWiki page ).
Recent debates regarding health and safety have revolved around telework. According to law, the employer is responsible for the employee’s health and safety at work, irrespective of the actual workplace. In 2019, the Ministry of Social Affairs published guidelines and recommendations for employers and employees with the aim of explaining how to ensure safety in case of telework. It gives thorough explanations and guiding questions about telework: when, where and how can telework be performed, how to ensure health and safety, and how to assess risks in the remote working environment. In the context of the increased used of telework due to the COVID-19 crisis, the employers have called for the state to improve the legislative regulations.
Compared to the EU27, the number of working days lost per 1,000 employees is somewhat lower in Estonia. However, it has been argued that workplace accidents are underreported in Estonia and also that the administrative system encourages the rule of staying-at-work or a quick return to work, after a work accident occurred.
Accidents at work
Accidents per 1,000 employees and % change from previous year
|
2015 |
2016 |
2017 |
2018 |
2019 |
|
|
All accidents |
5,273 |
5,440 |
5,402 |
5,216 |
n.a. |
|
Percent change on previous year |
-2.2 |
3.2 |
-0.7 |
-3.4 |
n.a. |
|
Per 1,000 employees |
9.1 |
9.3 |
9.1 |
8.8 |
n.a. |
Source: Eurostat, [hsw_mi01] and [lfsa_eegaed]
Since 2015, the metal and commerce sectors have had the highest number of accidents while the financial and insurance, fishery and ICT sectors have had the lowest number (Labour Inspectorate data).
Psychosocial risks
The basis of occupational health and safety policy is the Occupational Health and Safety Act that entered into force in 1999. The act stipulates that, among other things, the purpose of the act is to guarantee the psychological and social well-being of an employee. In 2018, changes to the Act were approved giving more attention to psychosocial hazards as of 2019. The psychological hazards were replaced with psychosocial hazards, in order to emphasize the importance of social aspects of work environment and work organisation on the development of stress or burnout. The new definition of psychosocial hazards includes work with a risk of accident or violence; unequal treatment, bullying and harassment at work; and other factors related to management, work organisation and working environment that can affect employee mental or physical health, including work-related stress. In order to prevent mental stress, the employer shall adapt the work to suit the employee as much as possible (for instance, allow for breaks within the working time).
Compared to the EU27 average, in Estonia the share of employees working to tight deadlines, working long hours, and having been subjected to discrimination is rather comparable (taking into account the margin of error of the sample). The share of employees working more than 10 hours a day once or more in a month has decreased, although this might be due to the economic turbulence during the second half of the last decade.
For more detailed information on health and well-being at work, please consult:
Skills, learning and employability
Skills, learning and employability
Skills are the passport to employment; the better skilled an individual, the more employable they are. Good skills also tend to secure better-quality jobs and better earnings. This section briefly summarises the Estonian system for ensuring skills and employability and looks into the extent of training.
National system for ensuring skills and employability
The institution that involves the social partners in skills and employability measures is the Estonian Qualifications Authority ( Kutsekoda). The authority is developing a support structure for an occupational qualifications system to increase the competitiveness of Estonian employees and to promote the development, assessment, recognition and comparison of their occupational competence. The authority was established by the Estonian Chamber of Commerce and Industry, ETKL, the Ministry of Social Affairs, TALO, EAKL. In addition to the founders of the Authority, the Supervisory Board of the Authority includes a representative of the Ministry of Education and Research.
In 2012, a Task Force was established at the Government Office of Estonia to address and better manage the situation concerning skill needs and labour market imbalances. The OECD recommended the establishment of this type of task force in its 2011 governance report. The Task Force concluded its activities in the summer of 2014. Under the leadership of the Task Force, the coordination system of the surveillance and forecasting of the labour market and the development of skills (the OSKA system) was created.
The OSKA system creates a regular cooperation platform in order to plan the structure, volume, and the content of educational services between employers and parties offering educational services. It also combines and analyses information on the trends of the labour market and economy and forecasts labour needs. It ensures relevant regular outreach activities and supports the education system in planning the training places to take into account the professional and occupational needs in a better way. In addition, the changes taking place in the labour market will in the near future be documented through an annually updated database.
The Minister of Education and Research is responsible for implementing the system and the activity is organised by the Estonian Qualifications Authority.
At the end of 2016, the Estonian Unemployment Insurance Fund published an occupational barometer, which is a qualitative method of forecasting short-term (12 months) labour demand by occupation, and thus helps to forecast the short-term skills demand.
Training
The mission of the Ministry of Education and Research ( Haridus-ja teadusministeerium) is to coordinate the education policy developments and create the conditions and prerequisites in order to ensure the lifelong learning possibilities for every Estonian citizen in an innovative and growth-oriented society.
EUIF is a quasi-governmental organisation, and a legal person in public law. The legal basis of the activities of EUIF is found in two acts: the Unemployment Insurance Act which describes the unemployment insurance system and the organisation of EUIF, and the Labour Market Services and Benefits Act, which contains the provisions concerning job mediation and related services, including labour market training and vocational training. EUIF is strongly related to training activities as active labour market policies by providing training for unemployed as well as for those in employment in order to prevent unemployment.
Work organisation
Work organisation
Work organisation underpins economic and business development and has important consequences for productivity, innovation and working conditions. Eurofound research finds that some types of work organisation are associated with a better quality of work and employment. Therefore, developing or introducing different forms of work organisation are of particular interest because of the expected effects on productivity, efficiency and competitiveness of companies, as well as on workers’ working conditions. Ongoing research by Eurofound, based on EurWORK, the European Working Conditions Survey and the European Company Survey, monitors developments in work organisation.
For more detailed information on work organisation, please consult:
- Topic: Work organisation
- Survey: European Working Conditions Survey (EWCS) 2015
- Survey : European Company Survey (ECS) 2019
For Estonia, the European Company Survey (ECS) 2013 shows that between 2010 and 2013, 44.2% of establishments with 10 or more employees reported changes in the use of technology, 39.9% introduced changes in ways to coordinate and allocate the work to workers and 23.6% saw changes in their working time arrangements.
Equality and non-discrimination at work
Equality and non-discrimination at work
The principle of equal treatment requires that all people, and in the context of the workplace all workers, have the right to receive the same treatment, and will not be discriminated against on the basis of criteria such as age, disability, nationality, sex, race and religion.
- European Industrial Relations Dictionary: Equal treatment
The Estonian constitution stipulates that everyone is equal before the law and no one shall be discriminated against on the basis of nationality, race, colour, sex, language, origin, religion, political or other opinion, property or social status, or on other grounds. As of 2009, the Equal Treatment Act that took effect. It ensures the protection of persons against discrimination on grounds of nationality (ethnic origin), race, colour, religion or other beliefs, age, disability or sexual orientation. The Act regulates the principles of equal treatment; the duties upon implementation and promotion of the principle of equal treatment; and resolution of discrimination disputes. According to the law, the Gender Equality and Equal Treatment Commissioner position was created, an independent and impartial expert who acts independently, monitors compliance with the requirements of this Act and the Gender Equality Act and performs other functions imposed by law. The Commissioner deals specifically with discrimination issues stipulated in the aforementioned Acts, but at the same time the Labour Inspectorate monitors compliance with the requirements of legislation regulating labour relations more generally (ensuring equal treatment for all in employment relations).
Equal pay and gender pay gap
The Equal Treatment Act ensures the protection of persons against discrimination on grounds of nationality (ethnic origin), race, colour, religion or other beliefs, age, disability or sexual orientation. There is no other specific law ensuring equal pay for equal work. Information on gender pay gap has been available since 2006. The unadjusted gender pay gap has remained around 25–30% over the period 2006–2015, but has decreased in the recent years (from 26.7 in 2015 to 21.8 in 2018) It is still the highest of the EU. According to Statistics Estonia, which started to measure the gender pay gap from 2011, it was the highest in 2013 (24.8%) and has since then steadily decreased down to 17.1% in 2019. The difference between Eurostat and national statistics is likely caused by different data (Estonian Enterprise Register data) and by the fact that Statistics Estonia includes small enterprises (below 10 people) and all fields of activities excluded by Eurostat such as public administration, agriculture, forestry and fishing.
The first comprehensive state-commissioned study on the gender pay gap was conducted in 2009–2010 (Anspal et al). It analysed the unadjusted and adjusted gender pay gap in Estonia and gave policy recommendations to reduce it. In 2014 (Espenberg et al), another large-scale study on the gender wage gap was conducted. These both brought out that there is a large share of unexplained part of the pay gap. The most recent studies try to find the explanations. For example, University of Tallinn (Täht (ed), 2019) looked at gender wage gap and childcare policies (being part of a larger project where different pay gap analyses will be carried out by the end of 2021) and in 2020 Masso et al analysed the role of company-level factors.
There are no legislative support measures for addressing the gender pay gap. However, in 2012-2015, an action plan to reduce gender pay gap was in place, and in 2016, the national Welfare Development Plan 2016-2023 ( Heaolu arengukava) was approved, which gives an overview of the main challenges, objectives and activities of labour policies, social security policies, and policies of gender equality and equal treatment in Estonia for 2016–2023. Serving as a unified strategic basis for these policies, the Plan simultaneously takes into account the needs of people, society and the economy, and the challenges arising from demographic and socioeconomic trends, international obligations and opportunities of the state. One of the objectives of the Plan is to reduce social inequality and there are several measures foreseen to tackle the gender pay gap (for example, increase the transparency of wages, analyse the pay gap, collect gender-based pay data and develop guidelines).
There are no pay transparency instruments in place in Estonia.
There are also some projects that social partners have participated in (for example, a project which aimed at finding new solutions to tackle the pay gap). In 2017, a document ‘Against the pay gap!plan’ (‘Palgalõhe vastu!plaan’) was signed by the Human Rights Centre, Estonian Women’s Studies and Resource Centre, Estonian Association of Business and Professional Women, ETKL and the Gender Equality and Equal Treatment Commissioner. The signatory parties are convinced that the pay gap can be narrowed only in cooperation with all parties – the state, employers and employees. Targeting them all, the plan includes six proposals: to continue with the parental leave system reform; to gather and publish gender-based data on wages; to ensure flexible childcare places; for employers to use management practices that promote and support diversity and reconciliation of work and family life; for employers to use self-auditing measures to develop those practices; and for employees to publicly discuss their wages. The Estonian Employers’ Confederation did not sign the plan. No significant developments have been made on the basis of the Plan by 2020.
Quota regulations
There are no provisions for quotas in Estonia.
Working life links
Working life links
Employers
Trade unions
Government
- Ministry of Social Affairs (En)
- Labour Inspectorate (en)
- Gender Equality and Equal Treatment Commissioner (en)
- National Conciliator
- Estonian Unemployment Insurance Fund (en)
General
Bibliography
Bibliography
Anspal, S. , Kraut, L., Rõõm, T. (2010), ‘Sooline palgalõhe Eestis. Empiiriline analüüs.’ Eesti Rakendusuuringute Keskus Centar and Poliitikauuringute Keskus Praxis.
Espenberg, K., Aksen, M., Lees, K., Puolokainen, T. (2014), ‘Palgaerinevuste statistika parem kättesaadavus. Soolise palgaerinevuse analüüs.’ Tartu Ülikool RAKE.
Eurofound (2020a), Industrial relations: Developments 2015–2019 , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg
Eurofound (2020b), Minimum Wages in 2020: Annual review , Publications Office of the European Union, Luxembourg.
Eurofound (2020c), Collective agreements and bargaining coverage in the EU: A mapping of types, regulations and first findings from the European Company Survey 2019, working paper, Dublin.
Eurofound (2020d), Employee representation at establishment or company level: A mapping report ahead of the 4th European Company Survey, working paper, Dublin.
Eurofound (2021), Working conditions and sustainable work: An analysis using the job quality framework , Challenges and prospects in the EU series, Publications Office of the European Union, Luxembourg.
Eurofound and Cedefop (2020), European Company Survey 2019: Workplace practices unlocking employee potentia l , European Company Survey 2019 series, Publications Office of the European Union, Luxembourg
Eurostat, LFS ad-hoc modules: 2019. Work organisation and working time arrangements . Eurostat database.
Eurostat, Part-time employment and temporary contracts - quarterly data [lfsi_pt_q]. Eurostat database.
Masso, J., Meriküll, J., Vahter, P. (2020), ‘The role of firms in the gender wage gap’, University of Tartu.
OECD (2021), OECD/AIAS ICTWSS Database , version: 17 Feb 2021, Paris
Põldis, E. and Proos, M. (2013), Kollektiivlepingud Eestis, Teemaleht Sotsiaalministeeriumi Toimetised 1/2013, Sotsiaalministeerium, Tallinn.
Täht, K. (Ed.) (2019), ‘Soolise palgalõhe kirjeldamine ja seletamine – tehniline ülevaade’. RASI toimetised nr 10. Tallinn: Tallinna Ülikool.
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