Part II: Working in estonia The second part of the material discusses mattes related to employment contracts (signing and termination) and remuneration, work time and rest time, and solving labour disputes. The rights and obligations related to holidays are also explained. Additionally, the material discusses the field of concealed employment relations and the employees’ opportunities to belong to unions and the possibilities opening up through that. Work has a very important role in Estonian culture and the worldview
of Estonian people. As the country is small, the work-related structures in Estonia are less hierarchical and more flexible. Hard-working nature is highly valued in Estonian society, so it may be easier to move up on a career ladder and to achieve self-actualisation in Estonia. Work-related matters can be agreed in three main types of contracts – an employment contract, a contract for services and an authorisation agreement.
2.1. Employment contract When starting to work, it is very important to sign a written contract setting out the rights and obligations of both the employee and the employer, as well as other significant matters concerning the work. The existence of a contract provides you with certainty that agreements are kept and also serves as a clear basis for solving any disputes. An employment contract may be signed for a fixed term or an indefinite term. A fixed-term employment contract may be signed only for a justified reason and for the time of performing work that has a temporary nature, for example in case of a temporary increase of work volumes, to perform seasonal works or to substitute for an absent employee. Therefore, it must be known at the time of signing a fixed-term employment contract that the agreed work will end. In the employment contract, the employer must clarify the reasons for signing a fixed-term employment contract so that the employee understands it. A fixed-term employment contract may be signed for up to five years or for the duration of substituting for an absent employee. No more than two fixedterm employment contracts may be signed for work of a similar nature, and a fixed-term employment con22
tract may be extended only once in the five-year period. If a third consecutive contract is signed for work of a similar nature or a contract is extended for the second time then it is considered that the employment contract has an indefinite validity term since its signing. Contracts are consecutive if the time between one contract’s end and the other’s beginning does not exceed two months. If the employee does not continue working after the term’s end then the employment contract expires upon the term’s end. But if the employee continues working after the term’s end and the employer does not express a wish to the contrary within five days of becoming aware of it then the employment contract is considered to have an indefinite term. Employment contracts in Estonia are governed by the Employment Contracts Act. The natural person (employee) works for the other person (employer) under the employment contract in subordination to the management and supervision of the employer. The employer undertakes to remunerate the employee for such work. Pursuant to the legislation, the employer and the employee conclude a written employment contract (see exceptions below).
