Find your employer of record in Estonia

With contractor management services, you can make visa management in Estonia easier. In addition, business visitors must apply for a Schengen C-type visa, unless they are exempt from the visa based on treaty or nationality.

Therefore, the visitor is entitled to 90 days in 180 days. In this case, this visa can be requested at the Estonian consulate or a Schengen member state representing the country.

To hire and onboard workers in Estonia, you must take into account the residence permit for employment. Thus, you will be able to obtain it for workers from other countries who have skills that are not available locally. In addition, in the country, there is a program to employ for a short period of up to 12 months. There is also a nomadic visa for remote workers for up to 12 months.

VAT in Estonia is at a rate of 20.00%.

Termination Process

With payroll outsourcing, the employer can manage the termination of the contract for misconduct, personal, commercial, or of the workers. Likewise, the employer must present a written notification expressing the reason for the termination of the contract. Also, if the reason is misconduct, the employer will give the worker a warning and an opportunity to explain himself.

Notice Period

The notice period for an employee who has worked in a single company applies as follows:

• If it is less than one year, it will be 15 days of notice.
• Upon completing between 1-5 years of employment, there will be 30 days of notice.
• To meet between 5-10 years, will be 60 days of notice.
• With 10 years or more, it will be 90 days of notice.

Additionally, the employer may give a payment instead of notice. On the other hand, if an employer decides to terminate employment in the trial period, it must do so 15 days before and in writing.

Severance Pay

Severance pay is equal to one month of salary, which is calculated based on the average salary of the previous 6 months. Likewise, if the employee has 5 to 10 years of work, the employer will cancel 1 additional month of salary. In this case, it is granted through the employment insurance fund (Töötukassa). Also, the same happens with employees with 10 years or more.

In addition, each of these provisions applies to cases of individual or collective dismissal.

Probation Period

In Estonia, you can do employee onboarding through global employment outsourcing. In this case, the trial period will depend on the type of employment and will be established in the contract. However, the trial period cannot exceed more than 4 months.

Paid Time Offs

Holidays in Estonia depend on the position of the employee in the company, as well as the current contract or collective agreement. In addition, according to the Employment Contracts Act in section 55, the annual paid vacation is 28 days. However, this can vary if the employee and the employer agree in advance or if the law provides otherwise.

For example, a government official may be entitled to 35 days of vacation per year, while a staff member in the academic area receives 56 days. Likewise, an international PEO can be in charge of all these efforts for you.

Public Holidays

There are 12 national holidays throughout the year.

Vacation Holidays

There are 28 vacation holidays throughout the year.

Sick Days

Estonian employees must receive this leave of 182 days with a payment of 70% of the average salary of previous years. Likewise, the employer must pay the worker for the illness up to the 9th day. In addition, the Health Insurance will pay the worker for the leave time that exceeds 9 days.