Growing a business and hiring employees in Estonia requires understanding Estonian labor laws and employment practices. These regulations aim to ensure fair working conditions, promote work–life balance, and protect employee well-being. By following Estonia’s working hours and employment laws, employers can avoid penalties and foster a positive workplace culture, particularly when recruiting in-country staff from abroad.
Standard working hours in Estonia
The standard full-time workweek in Estonia is 40 hours. This is usually spread over five days, from Monday to Friday. Office workers typically work from 9 AM to 5 PM and have a 30-minute lunch break. In sectors like manufacturing, shifts may start at 7 AM and end by 3:30 PM.
Part-time workers have schedules that are less than 40 hours per week. These schedules are set in their contracts.
Estonian law regulates working hours under the Employment Contracts Act. The average working hours cannot exceed 48 hours over a seven-day period within a four-month timeframe. For certain holidays, workdays may be shortened by law.
Overtime regulations
Overtime in Estonia is regulated by the Employment Contracts Act. Overtime is taken to be any work performed beyond the standard 40-hour workweek. Employees are entitled to overtime compensation of 150% of their regular hourly wage.
Employers may also offer compensatory time off instead of additional pay, depending on the agreement with the employee. While employers can request overtime, it must be reasonable, and employees can refuse if the request is excessive or not justified by business needs.
Flexible working arrangements
In Estonia, employees can request flexible working arrangements under the Employment Contracts Act. This allows changes to working hours, patterns, or locations to help balance personal and professional life: Employees with children under three, caregivers, and those with health issues are usually eligible for these options.
Employers and employees can negotiate individual agreements to meet their needs. Common arrangements include part-time work, remote work, and adjusted schedules based on the employee’s situation.
Estonia’s labor laws support flexibility while ensuring employee rights. For example, employees are entitled to a minimum of 28 days of paid annual leave and must receive adequate rest periods. The law also mandates a minimum daily rest of 11 consecutive hours and at least 36 consecutive hours of weekly rest.
Breaks and rest periods
In Estonia, employees working more than six hours a day are entitled to at least one 30-minute unpaid meal break. This break must be provided during the working day, ensuring employees have adequate time to rest. Additionally, employees must have a minimum continuous rest period of 11 hours between shifts. Over a seven-day period, employees are also entitled to at least 48 consecutive hours of rest, usually given over the weekend. Reductions to rest periods may be negotiated but must comply with the applicable labor laws.
Night work and shift work
In Estonia, night work is defined as any work done between 10 PM and 6 AM. Employees who work during these hours are entitled to additional pay, typically 25% more than their regular hourly wage, unless their employment contract states a higher rate.
Shift work arrangements, including night shifts, must be agreed upon in advance and clearly communicated to employees. Those engaged in shift work are entitled to a minimum rest period of 11 hours between shifts.
Compensation for night and shift work can vary by industry or collective agreements. These agreements may also provide additional allowances for weekend shifts or limit the frequency of night shifts to ensure worker well-being.
Part-time and minor employment
Part-time employees in Estonia work fewer than 40 hours per week, often with regular and predictable schedules. The specifics of part-time work can vary depending on the industry and any applicable collective agreements.
Estonia has specific regulations governing the employment of minors. The minimum age for employment is 13, and children may work under certain conditions. Young people aged 13 to 15 can work limited hours, typically not exceeding 4 hours per day and 20 hours per week during school terms. Those aged 16 and older can work up to 8 hours per day and 40 hours per week. Restrictions also apply to working hours, especially for school-aged children, ensuring that their education is not compromised.
Compliance and penalties
In Estonia, employers are required to maintain accurate records of employee working hours, including overtime and breaks. These records must be kept for at least five years and be accessible for inspection by labor inspectors.
Failure to maintain proper records can result in significant fines. Depending on the severity and frequency of the infractions, employers may face penalties ranging from €400 to €4,000 per violation.
Employers are expected to respect employees’ time off, ensuring that employees can disconnect from work communications outside of regular working hours without facing repercussions.
Cultural considerations
Grasping the cultural dynamics surrounding employment in Estonia is vital for creating an effective workplace.
Estonian employees value work-life balance, usually working about 8 hours a day, and they appreciate flexible work arrangements that accommodate personal commitments. Estonia also supports employee well-being through various leave policies, including parental leave and vacation time.
Estonia’s diverse workforce reflects various cultural attitudes toward work. Employees from different backgrounds may have distinct perspectives on breaks, family commitments, and the importance of time off. Recognizing and adapting to these cultural differences can help foster a more inclusive and harmonious workplace.
Get started with Multiplier’s Employer of Record (EOR) services
Multiplier simplifies the process of managing your employees in Estonia. With our global payroll and EOR platform, you can hire employees in Estonia without needing to establish a local entity. We handle all HR responsibilities, including compliant contracts, payroll, working hour regulations, and benefits administration.
Multiplier allows you to focus on expanding your business and building your team in Estonia, all while ensuring compliance with local labor laws.
Schedule a demo with Multiplier’s experts to learn how we can assist you in growing your team in Estonia.
