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
20 May 2020
- Population: 1.3 million (2019)
- Real GDP growth: 4.8% (2018)
- Unemployment rate: 5.4% (2018)
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 28 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 is the Europe 2020 growth and jobs strategy launched in 2010, which has five headline targets, covering employment through to social inclusion and poverty reduction. The strategy is implemented in the context of the European Semester process – the EU's annual cycle of economic policy guidance and surveillance – which ensures that Member States keep their budgetary and economic policies in line with their EU commitments through, in part, National Reform Programmes. These programmes form the basis for the European Commission's proposals for country-specific recommendations (CSRs) for each Member State.
European Commission: The European Semester
European Commission: The European Semester - EU country-specific recommendations
European Commission: European Semester documents for Estonia
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, COVID-19 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 launched an e-survey in early April, Living, working and COVID-19, to capture the immediate economic and social effects of the crisis across the European Union and beyond. The survey investigates the impact on well-being, work and telework and on the financial situation of people living in Europe. The first findings for each country, as well as a range of data pages are now available.
Explore our data pages by country to find out more on the situation in Estonia.
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 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 Center 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
Heleena Suija Ministry of Social Affairs of Estonia
Eve Päärendson Estonian Employers' Confederation (ETTK)
Peep Peterson 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: Monday, November 18, 2019
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 2019
Highlights – Working life in 2019
Highlights updated on: 28 february 2020
For more information, see working paper:
Estonia: Developments in working life 2018
In 2019, the industrial relations landscape was fairly stable and not many changes regarding working conditions were made. This is largely due to the new government taking office in April, which resulted in a fairly tumultuous political landscape. Throughout the year, the main topics for discussion were the foreign workforce, potential employment crisis and social policy issues. In addition, a few developments took place, such as the formation of a new sectoral trade union and the signing of some collective agreements.
There were several changes to legislation in health and safety at the workplace, the first major changes in this area in the last couple of decades. For example, it is now possible for employers and employees to agree to insert a penalty clause in the employment contract, to be enforced if either of them violates the occupational health and safety requirements – hence also obliging employees to adhere to the requirements. The definition of psychosocial hazards was broadened, and an employer’s obligations related to the risks were defined. In July, the Ministry of Social Affairs published guidelines and recommendations for employers and employees on health and safety in telework: these outline when, where and how telework can be performed; how to ensure health and safety; and how to assess risks in the remote working environment.
The guidelines and recommendations were published in the wake of the telework agreement that was concluded by the Estonian Trade Union Confederation (EAKL) and the Estonian Employers’ Confederation (ETTK) in June 2017 (and in the public sector in 2018). For employers, the most challenging part of telework has been how to safeguard employees’ health and safety when working outside the employer’s premises. This is because, according to legislation, the employer is responsible for ensuring an employee’s health and safety, regardless of the location of the employee. The guidelines aim to address the concerns that had been raised that the agreements were too general for everyday use.
The national minimum wage negotiations were particularly difficult in 2019 and there was a risk of no agreement being reached or the government unilaterally determining the minimum wage, which has not happened in Estonia before. The difficulties arose, in part, because the EAKL council did not agree with the minimum wage level initially agreed by EAKL and ETTK. Finally, with the help of the national conciliator, the minimum wage was agreed by the social partners in November 2019: increasing the minimum wage by 7.6% from €540 to €584 in 2020.
There was heated debate on the government coalition’s initiative to make the compulsory funded pension scheme voluntary, by allowing persons to opt out of the scheme. The plan received negative feedback from interest groups, including EAKL and ETTK, who argued that while the plan might result in temporary economic growth, over the long term it could result in a greater risk of poverty among retired people, a higher retirement age, an increased tax burden, or a larger share of foreign workforce. Despite the criticism, the draft legislation was discussed by parliament and is expected to be adopted in January 2020.
Key figures
Key figures
Comparative figures on working life in Estonia
|
2012 |
2018 |
% (point) change 2012-2018 |
||||
|
Estonia |
EU28 |
Estonia |
EU28 |
Estonia |
EU28 |
|
|
GDP per capita |
12,500 |
25,700 |
15,100 |
28,200 |
20.80% |
9.73% |
|
Unemployment rate – total |
10.0 |
10.5 |
5.4 |
6.8 |
-4.60 |
-3.70 |
|
Unemployment rate – women |
9.1 |
10.6 |
5.3 |
7.1 |
-3.80 |
-3.50 |
|
Unemployment rate – men |
10.9 |
10.4 |
5.4 |
6.6 |
-5.50 |
-3.80 |
|
Unemployment rate – youth |
20.9 |
23.3 |
11.9 |
15.2 |
-9.00 |
-8.10 |
|
Employment rate – total |
74.8 |
71.7 |
79.1 |
73.7 |
4.30 |
2.00 |
|
Employment rate – women |
71.4 |
65.5 |
75.6 |
68.3 |
4.20 |
2.80 |
|
Employment rate - men |
78.4 |
77.8 |
82.6 |
79.2 |
4.20 |
1.40 |
|
Employment rate - youth |
40.8 |
42.4 |
47.3 |
41.7 |
6.50 |
-0.70 |
Source: Eurostat - Real GDP per capita (chain linked volumes [2010], in EUR) and percentage change 2012-2018 (both based on tsdec100). Unemployment rate by sex and age - annual average, % [une_rt_a]; Employment rate by sex and age - annual average, % [lfsi_emp_a].
Background
Background
Economic and labour market context
Between 2012 and 2018, Estonia’s GDP had a substantial increase of 20.8%, well above the EU average for the same period (9.73%). During this time, total unemployment decreased from 10% to 5.4% (a drop of 4.6 percentage points). The largest decrease was in youth unemployment (9.0 percentage points). Employment figures for all categories increased since 2012.
More information on:
- European Commission: EURES – Living and working in Estonia
- European Industrial Relations Dictionary: Undeclared work
- Database: Tackling undeclared work in Europe
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 (ETTK). 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, there are also recent examples of social partners’ proposals being enacted into law.
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 last took place in 2002.
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 Ministry also developed and maintains a database of collective agreements.
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 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, the Estonian Trade Union Confederation (EAKL) and the 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.
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 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
|
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
Source |
|
|
Trade union density in terms of active employees |
10.7 |
7.65 |
6.80 |
6.41 |
n.a. |
n.a. |
7.2 |
2010-2012: OECD/Visser (2014), based on Visser, 1991, 1992, 1993 and 2006, Eurofound and European Social Survey (2002 and 2004 waves). 2009 and 2015: Estonian Work Life Survey |
|
Trade union membership in 1000 |
51.7 |
39.82 |
37.783 |
36.45 |
n.a. |
n.a. |
38.1 |
2010-2012: OECD/Visser (2014), based on Visser, 1991, 1992, 1993 and 2006, Eurofound and European Social Survey (2002 and 2004 waves). 2009 and 2015: Estonian Work Life Survey |
Note: The Estonian Work Life Survey 2009 and 2015 included only employees of economically active companies with 5 or more employees.
Main trade union confederations and federations
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 |
20,385 (2018) |
Yes |
|
Estonian Employees’ Unions’ Confederation (Teenistujate Ametiliitude Keskorganisatsioon) |
TALO |
Around 4,000 (in 2018) |
Yes |
There have not been any major developments in the past five years.
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 employers’ 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
|
2012 |
2013 |
2014 |
Source |
|
|
Employers’ organisation density in terms of active employees |
n.a. |
n.a. |
n.a. |
Visser (2014), based on Visser, 1991, 1992, 1993 and 2006, Eurofound and European Social Survey (2002 and 2004 waves). |
|
Employers’ organisation density in private sector establishments* |
n.a. |
18% |
n.a. |
European Company Survey, 2013 |
*Percentage of employees working in an establishment which is member of any employer organisation that is involved in collective bargaining.
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.
The biggest employer association in Estonia is the Estonian Chamber of Commerce and Industry (Eesti Kaubandus-Tööstuskoda), but it does not take part in collective bargaining, and 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 |
139 (altogether directly and indirectly it represents around 1,500 companies) |
2018 |
Yes |
|
Estonian Chamber of Commerce and Industry (Eesti Kaubandus-Tööstuskoda) |
ECCI |
3,251 |
2018 |
No |
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).
Main tripartite and bipartite bodies
|
Name |
Type |
Level |
Issues covered |
|
Estonian Health Insurance Fund ( Eesti Haigekassa) |
Tripartite |
National |
Health insurance, sickness, temporary incapacity for work |
|
Estonian Unemployment Insurance Fund ( Eesti Töötukassa) |
Tripartite |
National |
Unemployment, permanent incapacity for work |
|
Estonian Qualification Authority (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 2012–2016
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
Source |
|
|
Working days lost per 1000 employees |
64 |
0 |
0 |
0 |
0 |
0 |
1.8 |
Author’s calculations |
|
Number of strikes |
2 |
0 |
0 |
0 |
0 |
0 |
1 |
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 (LDC) or to court.
LDCs are independent, extra-judicial individual labour dispute resolution bodies and their introduction was motivated by the slow handling of cases in courts. Labour dispute committees are 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, ETTK). Also, there is a three-tier court system in Estonia with county/city courts and administrative courts, circuit courts, and the Supreme Court.
In 2017, amendments to the Individual Labour Dispute Resolution Act, which has remained almost the same for two decades, were approved. The most important changes 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
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Labour Dispute Committees |
2,983 |
2,965 |
2,364 |
2,691 |
2,671 |
2,606 |
No information available |
|
Courts |
368 |
451 |
375 |
386 |
446 |
356 |
No information available |
Source: Statistics of Labour Inspectorate; 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, Article 7) 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.
The employment contract act (Article 4) stipulates that 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.
In 2014, changes to the Taxation Act were made, which established an employment register to address undeclared work and envelope wages, and to increase tax revenue. All forms of employment (paid or voluntary work) must be registered by the employer 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 EUIF.
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. It will be possible for both parents to receive the benefit simultaneously, to receive it over a longer period (3 years instead of 1.5) and to receive a higher income from employment while on parental leave. Also, 30 days’ paternity leave, reserved for fathers, will be introduced. The take up of parental leave by fathers has been in the range 8–10% in recent years. The first change that took place concerns receiving parental benefit while working. Previously, the benefit was reduced in cases where the salary exceeded the national minimum wage of the previous year (€470 in 2018). As of March 2018, the ceiling is 1.5 times the national average gross wage (which would be approximately €1,544 in 2018).
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? |
The health insurance fund (Haigekassa, EHIF). |
|
Legal basis |
Employment Contract Act (2017), Article 59; Health Insurance Act (2017), 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. There is currently no mandatory period for fathers: a 30 day paternal leave not transferrable to mothers will be introduced as of July 2020. |
|
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 in the calendar year prior to the date on which the right to receive the benefit occurs. As of September 2019, instead of taking into account the income of the previous calendar year before the birth, the income of the 12 months preceding the pregnancy will be taken into account. |
|
Who pays? |
State budget, social insurance tax. |
|
Legal basis |
Employment Contract Act (2018), Article 62; Family Benefits Act (2018), Division 3. |
|
Paternity leave |
|
|
Maximum duration |
10 working days. As of July 2020, 30 calendar days. |
|
Reimbursement |
Paternity leave shall be remunerated on the basis of his average wages but no more than three times the average gross monthly salary in Estonia. |
|
Who pays? |
The remuneration is compensated to the employer from the state budget. |
|
Legal basis |
Employment Contract Act (2018), Article 60. |
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.
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 37.7% over the past 5 years (from €887 in 2012 to €1,221 in 2017). A wage increase of under 30% was seen in construction (24.5%); professional, scientific and technical activities (24.1%); and arts, entertainment and recreation (27.7%). A wage increase of over 50% was seen in real estate activities (52.2%). The highest wage level was in the information and communication sector, at €1,448 in 2012 and €2,094 in 2017 (an increase of 44.6%), and financial activities at €1,433 and €1,996, respectively (39.3%). The sectors with the lowest wages are accommodation and food service (€557 in 2012 and €812 in 2017) and other activities (€498 and €671).
It has been argued that the average wage has increased too quickly recently compared to the actual labour productivity and this might affect the competitiveness of the companies. However, in the context of decreasing population, low unemployment rate and considerably higher wage levels in the main labour emigration country, Finland, it is not likely that the rapid increase in wages will stop soon.
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 |
2012 |
2017 |
|
Full economy A–R |
887 |
1,221 |
|
A |
752 |
1,064 |
|
B |
1,135 |
1,512 |
|
C |
864 |
1,173 |
|
D |
1,297 |
1,742 |
|
E |
903 |
1,214 |
|
F |
938 |
1,168 |
|
G |
840 |
1,105 |
|
H |
849 |
1,199 |
|
I |
557 |
812 |
|
J |
1,448 |
2,094 |
|
K |
1,433 |
1,996 |
|
L |
653 |
994 |
|
M |
1,147 |
1,424 |
|
N |
785 |
1,119 |
|
O |
1,037 |
1,485 |
|
P |
735 |
1,080 |
|
Q |
882 |
1,246 |
|
R |
729 |
931 |
|
S |
498 |
671 |
Source: Statistics Estonia, WS5211: average monthly gross and net wages (salaries) by economic activity (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 2017, the minimum wage was €470 and in 2018 it was €500 per month. The latest agreement was concluded in 2018, which increased the minimum wage to €540 in 2019. It was agreed in 2017 that as of 2018 (for the years 2019 to 2022), the minimum wage increase will be annually calculated based on economic indicators i.e. labour productivity and economic growth.
Minimum wage
|
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Adult rate |
320 |
355 |
390 |
430 |
470 |
500 |
For more information regarding the level and development of minimum wages, please see:
- Publication: Minimum wages in 2019 – Annual review
- 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
- Publication – Developments in collectively agreed pay 2000–2017
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:
- Publication: Working time developments in the 21st century: Work duration and its regulation in the EU
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 stayed at around 9%, around 10 percentage points lower than the EU28 average, over the last decade. 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 EU28. While the share of men working part time in 2018 was closer to the EU28 average (6.8% as against 8%, respectively), the share of women working part time was considerably smaller in Estonia compared to the EU28 (14.7% as against 30.8%, respectively).
Persons employed part-time in Estonia and EU28 (% of total employment)
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Total (EU28) |
18.6 |
19 |
19 |
19 |
18.9 |
18.7 |
18.5 |
|
Total (Estonia) |
9 |
8.7 |
8.2 |
9.2 |
9.5 |
9.2 |
10.5 |
|
Women (EU28) |
31.4 |
31.8 |
31.7 |
31.5 |
31.4 |
31.1 |
30.8 |
|
Women (Estonia) |
13.1 |
12.2 |
10.9 |
12.9 |
12.8 |
12.9 |
14.7 |
|
Men (EU28) |
7.7 |
8.1 |
8.2 |
8.2 |
8.2 |
8.1 |
8 |
|
Men (Estonia) |
4.9 |
5.3 |
5.6 |
5.7 |
6.4 |
5.8 |
6.8 |
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 EU28 (% of total part-time employment)
|
2012 |
2013 |
2014 |
2015 |
2016 |
2017 |
2018 |
|
|
Total (EU28) |
27.7 |
29.3 |
29.6 |
29.1 |
27.7 |
26.4 |
24.8 |
|
Total (Estonia) |
20.7 |
18.5 |
15.1 |
13.3 |
10.1 |
7.5 |
5.8 |
|
Women (EU28) |
24.5 |
26 |
26.3 |
25.7 |
24.6 |
23.2 |
22.1 |
|
Women (Estonia) |
21.2 |
18.1 |
16.1 |
12.3 |
9.4 |
7.2 |
6.4 |
|
Men (EU28) |
38.5 |
39.9 |
40.2 |
39.9 |
37.6 |
36.2 |
33.4 |
|
Men (Estonia) |
19.5 |
19.5 |
13.4 |
15.4 |
11.3 |
8.2 |
n. a |
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 17 and 21 hours) depending on their age. 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.
- OSH Wiki: OSH system at national level – Estonia
The number of accidents at work decreased during the economic recession at the end of the last decade, and has increased during the economic recovery. Compared to EU28/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 1000 employees and % change from previous year
|
2008 |
2009 |
2010 |
2011 |
2012 |
2013 |
2014 |
2015 |
2016 |
|
|
All accidents |
6,567 |
4,255 |
4,756 |
5,145 |
4,993 |
5,363 |
5,393 |
5,273 |
5,440 |
|
Percent change on previous year |
-35.2 |
11.8 |
8.2 |
-3.0 |
7.4 |
0.6 |
-2.2 |
3.2 |
|
|
Per 1,000 employees |
10.9 |
7.8 |
9.1 |
9.3 |
8.9 |
9.5 |
9.5 |
9.1 |
9.3 |
Source: Eurostat, [hsw_mi01] and [lfsa_eegaed]
According to national statistics, which take into account all registered accidents at work, the number of accidents has steadily increased since 2009, from 2,973 accidents (495 per 100,000 employees) to 5,440 in 2018 (787 per 100,000 employees). Since 2014, the number has been the highest for more than two decades in Estonia. At the same time, since 1995, the number of accidents resulting in death has decreased from 8–9 per 100,000 employees in the 1990s to around 3 per 100,000 employees in recent years. In 2017, there was 1 such accident per 100,000 employees (9 accidents altogether). Since 2012, the metal and commerce sectors have had the highest number of accidents while the food production and health sector have had the lowest number (according to data from the Labour Inspectorate).
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 term ‘psychological hazards’ was replaced with ‘psychosocial hazards’, to emphasise the importance of social aspects of work environment and work organisation on the development of stress or burnout. The definition of psychological hazards includes monotonous or jobs unsuited to employee’ abilities, poor work organisation and working alone for a long time. 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.
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, ETTK, 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. It was composed of officials from the Ministry of Education and Research, the Ministry of Economic Affairs and Communications, the Ministry of Social Affairs, the Ministry of Finance, the Ministry of the Interior and the Foundation Innove, The Estonian Qualifications Authority, Enterprise Estonia, the Estonian Unemployment Insurance Fund, the Association of Municipalities of Estonia, and the Association of Estonian Cities.
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, vocational training.
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.
More information on:
For Estonia, the European Company Survey 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. On 11 December 2008, the parliament approved the Equal Treatment Act that took effect from 1 January 2009 and that 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). Moreover, the government plans to give the Labour Inspectorate the authority to monitor the remuneration and benefits paid by employers to men and women for equal work.
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 2006–2016, but has decreased in recent years (from 29.9% in 2012 to 25.3% in 2016). According to Statistics Estonia, which started to measure the gender pay gap from 2011, it was 24.6% in 2012, 24.8% in 2013, 23.5% in 2014, 22.2% in 2015, 20.9 in 2016 and remained unchanged in 2017. 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 study on the gender pay gap was conducted in 2009–2010. It analysed the unadjusted and adjusted gender pay gap in Estonia and gave policy recommendations to reduce it. In 2014, another study on the gender wage gap was conducted.
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 measures were foreseen in five areas:
- improving the implementation of the existing gender equality act, for instance, through improvement of the collection of statistics and awareness raising;
- improving family, work and private life reconciliation by working with employers;
- gender mainstreaming, especially in the fields of education and employment policies;
- reducing gender segregation in the labour market and education;
- analysing organisational practices and pay systems, and improving the situation where necessary.
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.
Quota regulations
There are no provisions for quotas in Estonia.
Working life links
Working life links
Employers
Trade unions
Government
Bibliography
Bibliography
Põldis, E. and Proos, M. (2013), Kollektiivlepingud Eestis, Teemaleht Sotsiaalministeeriumi Toimetised 1/2013, Sotsiaalministeerium, Tallinn.
Sotsiaalministeerium (2010), Eesti tööelu-uuring 2009 [Estonian Work Life Survey 2009], Sotsiaalministeeriumi toimetused nr 3/2011, Tallinn.
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