Skip to main content
Looking for help? Contact our Help & Support Team
Estonia

How to Hire Workers in Estonia | Employer of Record (EOR) in Estonia

Navigating the labor laws and regulations of Estonia is made easy with our EOR services. We handle all aspects of local employment, ensuring compliance and smooth operations for your business. From payroll to benefits, our team provides comprehensive support tailored to meet the unique needs of your business in Estonia. Expand into the Estonian market with confidence, knowing that you have a reliable partner managing your international employment needs.

Why You're Here!

Estonia, known for its digital innovation, high standard of living, and business-friendly environment, is an attractive destination for international expansion. TCWGlobal simplifies the process of hiring in Estonia, offering comprehensive solutions for building your contingent workforce.

With a population of over 1.3 million people, Estonia boasts a highly skilled and educated workforce. From the historic streets of Tallinn to the picturesque countryside of the Baltic region, the country offers a unique blend of culture and innovation.

When expanding your business into Estonia, compliance with local regulations is crucial. TCWGlobal, as your employer of record, ensures that your contingent workforce is fully compliant, allowing you to focus on your business objectives.

In addition to compliance, TCWGlobal provides personalized services and benefits for your contingent workforce. Whether you require assistance with payrolling management, benefits administration, or any other aspect of HR, our team is dedicated to meeting your needs.

By partnering with TCWGlobal, you can confidently expand your business into Estonia, knowing that your contingent workforce is in capable hands. Our expertise and comprehensive solutions make us the ideal partner for businesses seeking to establish a presence in this dynamic market.
Fixed-Term Contracts

Fixed-term contracts are permitted in Estonia for a specified term of up to five years for reason relating to temporary fixed-term characteristics of the work. If a fixed-term contract for similar work is entered into twice in a row or renewed more than once within five years, the employment relationship shall be deemed indefinite.

Holidays

Workers in Estonia recognize 12 paid public holidays: New Year's Day, Independence Day, Good Friday, Easter Sunday, Labor Day, Pentecost, Victory Day, Midsummer Day, Independence Restoration Day, Christmas Eve, Christmas Day, and Boxing Day. Work performed on public holidays must be paid at 200%. The law requires the shorten of the workday by three hours on the day directly preceding the following holidays: New Year's Day, Independence Day, Victory Day, and Christmas Eve. If the workday cannot be shortened, it must be compensated by time off in lieu or 150% of wages.

Vacation

Most Workers receive 28 calendar days of paid vacation per year. In the first year of employment, a pro-rata portion of the annual leave allotment is earned after six months. At least 14 calendar days of holiday shall be used by a Worker successively. An unused part of holiday shall be transferred to the next calendar year, but shall expire by the end of the following calendar year after the holiday entitlement occurred. Upon termination, any unused and non-expired vacation days shall be paid out to the Worker.

Worker Classifications

There are no official subcategories of Workers in Estonia.

Probationary Periods

Probationary periods are permitted up to four months. For fixed term contracts up to 8 months in duration, the probationary period may not be longer than half of the contract's term. During the probationary period, a 15 day notice period is required to terminate a Worker.

Sick Leave

Workers are entitled to up to 182 days of paid leave for injury or illness. Employers are responsible for paying the leave from the fourth through the eighth day of absence. After that, it is paid by the government.

Working Hours

A standard workweek is 40 hours per week, eight hours per day. The average workweek over a four-month period should not exceed 48 hours, inclusive of overtime.

Overtime

Overtime must be compensated with time off in lieu or 150% of wages.

Mandatory Bonuses

There are no mandatory or customary bonuses in Estonia.

Termination

Except in cases of gross misconduct, termination requires suitable grounds and adequate notice or payment in lieu. The amount of notice required depends on the Worker’s length of service as outlined, below: <1 year of service: 15 calendar days 1 - 5 years of service: 30 calendar days 5 - 10 years of service: 60 calendar days 10+ years of service: 90 calendar days

Resignation

Workers must provide 30 days' notice of resignation, unless they are within a probationary period. If a Worker resigns based on extraordinarily on the grounds that there was a fundamental breach of the employment contract, the Worker is entitled to three months' of compensation based on their average wages.

Other End of Employment Rules

If a Worker is made redundant and dismissed without fault, the Worker is entitled to severance equal to one month's average salary. If the Worker’s length of service is between 5 years to 10 years, the Worker is entitled to two months’ severance and if the Worker’s length of employment is 10+ years they are entitled to three months’ severance.

How an EOR Can Help You Win Fast

TCWGlobal stands unmatched as the leading employer of record service provider. Our global reach, expertise in diverse industries, and commitment to client satisfaction makes us the best choice. Looking for a global employer of record or international payrolling partner that will work with you and not for you? Trust TCWGlobal. We are here for you.

Common Pitfalls in Choosing an EOR

When choosing an Employer of Record (EOR) service, people often make mistakes such as overlooking compliance, global reach, technology integration, company experience, and fee transparency. Watch this video to see what to consider when picking an EOR.