Are you preparing for an expansion to Estonia? If so, you need a strong team of skilled professionals to help you succeed. But before hiring employees in Estonia, you’ll have to set up a subsidiary, which can prove difficult while trying to run your company at the same time.
Fortunately, G-P can help. As a global Employer of Record (EOR), you can use our existing Estonia entity to begin hiring in minutes, not months. With us, you won’t have to worry about compliance. We’ll manage all of Estonia’s employment laws, so you can focus on what’s important — building your team.
Recruiting in Estonia
Navigating Estonia’s culture is just one aspect of hiring and recruiting. You’ll also need to consider the logistics of the recruitment process, such as the best channels for sourcing talent and the laws your recruiting team will have to follow to keep your company compliant.
Laws against discrimination in Estonia
The Estonian constitution protects citizens from discriminatory practices in their day-to-day lives. All companies must comply with the country’s legislation from day one of the recruitment process. The law prohibits discrimination based on the following:
- Sex
- Race
- Nationality
- Color
- Property or social status
- Religion
- Origin
- Language
- Political or other views
Some of these traits might become apparent as you get to know potential hires throughout the recruitment process, but it’s up to you to make sure they don’t play a role in any hiring decisions. Consider hiring a translator if the candidates you interview are not fluent in your language.
How to hire employees in Estonia
Although Estonia is a small country, its developed nature means you can hire from a highly educated and creative workforce.
Most employees in the country should have an employment contract unless they’re an independent contractor. Employers are responsible for making sure employees are eligible to work in the country. European Union (EU) citizens can work in Estonia as long as they get a right of residency, but temporary residents must have work permits.
Estonia employment laws
Estonia’s employment compliance laws require you to use a written employment contract to hire employees. Each contract must include a specific set of terms, including:
- Identification for both parties
- Date of entry into employment
- Description of duties
- Official title
- Salary and other monetary benefits
- Working hours
- Place of performance of work
- Duration of holidays
On Aug. 1, 2022, the Estonian Employment Contracts Act was amended, expanding the information employers must provide workers in writing. Additional information required includes:
- Paid holidays
- Duration of the probation period
- Overtime compensation and procedures
- Information on taxes, institutions receiving the taxes, and the protections received by paying these taxes.
Keep in mind that all contracts should be written in the employee’s local language. All salary and compensation amounts should also be in euro instead of another currency. Make sure new employees sign the contract before their first day and that all the times are satisfactory between parties.
Onboarding in Estonia
You can decide on the best way to onboard employees, but you should take certain steps to make the employment relationship successful. We recommend reviewing all important company documents on an employee’s first day. Then, you can develop a training program specific to the new hire’s position with the company.
Grow globally with G-P.
G-P never forgets that behind every hire is a human being. That’s why we’ve backed our fully customizable suite of global employment products with our robust team of HR and legal experts, so we can remain at your side, ready to support you as you build your global teams. With the #1 global employment platform, you have the recruitment tools and services you need to find your perfect full-time or contract match.
Contact us today to learn more about how we can help you recruit, hire, and onboard anyone, anywhere.