Registration of employment
- The employer is responsible for the accuracy of the entries in the employment register.
- Every instance of employment of natural persons must be registered in the employment register.
- The termination of employment must be entered in the employment register within 10 days of the date of termination.
The obligation to register employment applies to all natural and legal persons who provide work.
The person providing work (employer) is an Estonian resident or non-resident legal entity, an Estonian state agency or local government agency, a natural person or a sole proprietor, who enters into an agreement on the basis of which the work is performed or appoints the person performing the work (employee) to a position.
Any employment of natural persons that gives rise to tax liability in Estonia, regardless of the form of the contract and its duration, must be registered in the Employment Register. If a person performing work carries out work tasks in a foreign country and no tax liability arises in Estonia, then their employment does not need to be registered.
As an exception, unpaid work for a company or sole proprietor must also be entered in the employment register.
The person making the entry, i.e. the employer, is responsible for the accuracy of the entry in the employment register.
An entry must be made in the employment register:
- no later than the moment when the person starts work;
- in the case of employment of a child aged 7–12 – ten working days before the child starts work;
- suspension – within ten days from the date of suspension;
- termination – within ten days from the date of termination.
Please note! Unless a labour dispute committee or a court has decided otherwise, the legal basis for the termination of employment is the notice of termination of the employment contract submitted by the employee or employer, together with the legal basis contained therein, i.e. the relevant section of the Employment Contracts Act. The parties have the right to challenge the notice of termination before a labour dispute committee or in court, which may result in a change in the grounds for the termination of the employment relationship.
Who should I contact if the information in the employment register is incorrect?
The employer is responsible for the accuracy of the data in the Employment Register (TÖR or töötamise register in Estonian), because, according to the Taxation Act, it is the employer’s responsibility to make entries in the employment register regarding the commencement of employment, i.e. the conclusion of an employment contract, the suspension of the employment relationship (e.g. for parental leave or a longer period of unpaid leave agreed by the parties), and the termination of the employment contract.
The data in the employment register is the primary basis for receiving a number of social benefits that are important for many people, including the right to health insurance, the right to parental benefits, and the right to register as unemployed and apply for unemployment benefits in the event of unemployment. It is important for the termination of employment to be based on the actual reason. Not all grounds for termination of employment entitle the employee to the aforementioned benefits. An entry in the Employment Register alone does not guarantee these rights, but combined with other important documents, it can be decisive.
Unfortunately, there are situations in life when an incorrect entry in the Employment Register can prevent a person from receiving benefits and social protection provided for by law. Below is a brief guide on the steps to take in such situations, who to contact, and in what order.
Frequently Asked Questions
- You must contact the company by email at least (keep a copy of the email you sent), and if necessary, contact them repeatedly and through different channels, using the official address of the company as listed in the Commercial Register (search for the details at https://www.rik.ee/en/e-business-register/e-business-register-portal), and request that the entry be deleted.
- If an employee has made every effort to contact the employer but has been unsuccessful, it is possible to apply to a labour dispute committee to establish the employment relationship (this is necessary so that the labour dispute committee could establish that there is no employment relationship) and to request a change to the entry in the Employment Register. Instead of a labour dispute committee, it is possible to submit a claim to a court for the determination of the absence of an employment relationship, and based on a judgment that has entered into force, it is possible to apply to the Tax and Customs Board, which will make changes in the entry based on the judgment.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If a court has passed a judgment on the matter, the final judgment must be submitted to the Tax and Customs Board, which will make the necessary changes based on the judgment.
The employer registered the employment when the employee started work, but cancelled it a few days later, saying that the employee had not passed the probationary period and that the employment contract had therefore been terminated.
Cancelling an entry in the employment register or marking an entry as terminated does not end the employment relationship. The conditions for terminating an employment contract are set out in the Employment Contracts Act. An employment contract can only be terminated verbally by a mutual agreement between the parties. In other cases, i.e. in the event of the ordinary or extraordinary termination of an employment contract, the employer or employee must provide the other party with a clearly worded notice of termination in a format that can be reproduced in writing (e.g. by email).
If an employee discovers that the data in the Employment Register is incorrect, then:
- they should contact the employer by email at least (and retain a copy of the email) and ask them to restore the entry and make correct entries that correspond to reality and comply with the provisions of the Employment Contracts Act. Attention! The employment relationship continues until one of the parties submits a notice of termination!
- If the employer refuses to restore the cancelled entry, the employee must continue to go to work and request work or terminate the employment contract during the probationary period pursuant to subsection 86 (1) of the Employment Contracts Act, giving 15 calendar days of notice. If no work is provided or the employer creates obstacles to starting work, the employee may terminate the contract without observing the notification period pursuant to subsection 91 (2) of the Employment Contracts Act.
- If you have a notice of termination but no entry in the Employment Register, you can contact a labour dispute committee and request that they:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
- You can send a tip-off regarding tax-related violations to the Tax and Customs Board by emailing [email protected]. When providing information, please try to describe the circumstances of the offence as accurately as possible, including the time and place of the offence and the details of the person/company involved. If possible, please provide the first name, last name, and date of birth/personal identification code of the person; the name and the registration code of the company.
A written employment contract has been concluded with the employee, but the type of employment in the Employment Register is ‘Contract under the law of obligations’.
- The employee should contact the employer by email at least and request that the Employment Register entry be corrected to reflect the actual situation. Attention! The employer can change the entry themselves up to three months from the start or end of employment (i.e. retroactively for three months from the start of employment, as well as retroactively for three months from the end of employment, etc.). If more than three months have passed, the employer must contact the Tax and Customs Board via an authenticated channel (via the Tax and Customs Board’s communication application) or with a digitally signed application. Any changes to the Employment Register entry (including changes to the type of employment) must be justified and consistent with the type of payment declared on the declaration form TSD.
- If an employee has made every effort to contact the employer but has been unsuccessful, the employee may contact a labour dispute committee and request that the committee:
- establish an employment relationship; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish an employment relationship; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The employment contract has long since been terminated and this can be proven, i.e. there is a notice of termination, an agreement between the parties, etc., but the employment relationship is still valid in the Employment Register, i.e. the end of the contract has not been entered into the register.
- The employee should contact the employer by email at least and request that the Employment Register entry be corrected to reflect the actual situation. Attention! The employer can change the entry themselves up to three months from the start or end of employment (i.e. retroactively for three months from the start of employment, as well as retroactively for three months from the end of employment, etc.). If more than three months have passed, the employer must contact the Tax and Customs Board via an authenticated channel (via the Tax and Customs Board’s communication application) or with a digitally signed application.
- If an employee has made every effort to contact the employer but has been unsuccessful, the employee may contact a labour dispute committee and request that the committee:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The employment relationship has long since ended (the parties do not communicate or request/allow work), but the termination of the employment contract has not been formalised in any way and there is no evidence of this and the employment relationship continues to be valid in the Employment Register, i.e. an entry to indicate the end of the employment relationship has not been added.
- You must contact the employer by email at least (retain a copy of the email you sent) – if necessary, contact them repeatedly and through different channels – using the official address of the company, i.e. the address listed in the Commercial Register (search for the details at https://www.rik.ee/en/e-business-register/e-business-register-portal) and propose to terminate the employment contract by mutual agreement. Attention! The agreement requires that the other party accepts the proposal.
- If the company does not respond or does not change the entry, the next step is to send an email to the official address of the company, listed in the Commercial Register, with a notice of ordinary termination of the employment contract (within the meaning of subsection 85 (1) of the Employment Contracts Act, i.e. at your own request) or a notice of extraordinary termination (pursuant to subsection 91 (2) of the Employment Contracts Act).
- If the employee has made every effort to contact the employer but has been unsuccessful, the employee may apply to a labour dispute committee, requesting that the committee:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The company was experiencing financial difficulties and the employer agreed with the employees on unpaid leave for an indefinite period. Then the member of the management board of the company disappeared, and soon, completely unfamiliar names appeared in the Commercial Register as members of the management board. Now, there is no work, but the entries regarding the employment contract have not been terminated from the register.
- You must contact them by email at least (retain a copy of the email you sent) – if necessary, contact them repeatedly and through different channels – using the official address of the company as listed in the Commercial Register (search for the details at https://www.rik.ee/en/e-business-register/e-business-register-portal), describe the situation, and ask what the new board members plan to do with the company and its employees. If desired, a proposal to terminate the employment contract by a mutual agreement between the parties can also be made immediately, for example. Attention! The agreement requires that the other party accepts the proposal.
- If the company does not respond or does not change the entry, the next step is to send an email to the official address of the company, listed in the Commercial Register, with a notice of ordinary termination of the employment contract (within the meaning of subsection 85 (1) of the Employment Contracts Act, i.e. at your own request) or a notice of extraordinary termination (pursuant to subsection 91 (2) of the Employment Contracts Act).
- If the employee has made every effort to contact the employer but has been unsuccessful, the employee may apply to a labour dispute committee, requesting that the committee:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The employee went on parental leave two years ago. In the meantime, the company was sold to new owners, changed its field of activity, and replaced its board members. The employment contract has not been terminated, and the entry regarding the employment contract has been suspended in the employment register.
- You must contact them by email at least (retain a copy of the email you sent) – if necessary, contact them repeatedly and through different channels – using the official address of the company listed in the Commercial Register (search for the details at https://www.rik.ee/en/e-business-register/e-business-register-portal), describe the situation, and ask what the new board members plan to do. The employee must also be clear about whether they wish to return to work or whether they are no longer interested in the employment relationship. If desired, a proposal to terminate the employment contract by a mutual agreement between the parties can also be made immediately, for example. Attention! The agreement requires that the other party accepts the proposal.
- In such a situation, the employee has the right to notify the employer of the end of the parental leave on a specific date (with 30 calendar days’ notice) and of their return to work, and the employer is then obligated to decide what to do next – whether to allow the current employment contract to be fulfilled, offer a new position, or use legal options to terminate the employment contract.
- If the company does not respond to repeated emails within a reasonable period of time (such as within two weeks from the last email), the next option available to the employee is terminating the employment contract on an extraordinary basis pursuant to subsection 91 (2) of the Employment Contracts Act due to a contractual violation by the employer, consisting of a refusal to perform the employment contract and failure to provide work. Making such a statement requires that the prior notice of termination of parental leave and the requirement to perform the employment contract can be proven by the employee in the event of a dispute (e.g. emails sent to the employer are still available).
- If the employee has made every effort to contact the employer but has been unsuccessful, the employee may apply to a labour dispute committee, requesting that the committee:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The employee submitted a notice of extraordinary termination pursuant to subsection 91 (2) of the Employment Contracts Act, because they believed that the employer had materially breached the employment contract. The employer disagrees with this, but has not contested the termination in a labour dispute committee or in a court and refuses to revoke the entry.
- The employee can bring to the employer’s attention (by email, for example) the fact that it is the obligation of the employer to register the end of the employment in the Employment Register, and if the employer fails to fulfil this obligation, the employee will be forced to go to a labour dispute committee or a court.
- If the employer does not respond to repeated warnings, the employee may turn to the labour dispute committee and request that the latter:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The company had only one board member and sole shareholder, who passed away two months ago. The activities of the company have essentially come to a standstill, no one is giving work to the three employees, and they cannot do anything on their own due to not having the necessary authorisations. The Employment Register contains a valid employment contract entry. What now?
- The employees can contact a notary to obtain information about a potential heir, and once this information has been obtained, they can contact the heir to ask about the future of the company.
- Another option is to wait until the opening of succession, and then find out whether and who will take over the management of the company.
- As there is no work and the employment relationship is with a legal entity, it is also possible to terminate the employment contract on an extraordinary basis pursuant to subsection 91 (2) of the Employment Contracts Act due to a breach by the employer, consisting of a refusal to perform the employment contract and failure to provide work, by sending a corresponding notice of termination to the official address of the company as indicated in the Commercial Register.
- If the notice of termination has been delivered to the company and can be verified in the future if necessary, the employee may go to a labour dispute committee and request that the committee:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
The sole member of the management board of the company with the authority to perform certain operations is currently in a detention facility abroad. The company keeps operating in part, but no one knows how long the board member will be absent or what will happen next. Who cancels or terminates employment relationships in the Employment Register?
- There must be a legal basis for terminating an employment contract; the imprisonment of a member of the management board alone is not sufficient grounds for terminating the employment relationship.
- The employer is responsible for making, amending, and terminating entries in the employment register. If the termination of employment has taken place in accordance with the requirements of the law, a representative of the employer must also make an entry regarding the termination. If no one other than a member of the management board has been granted the right to make changes in the Employment Register and no one can currently grant authorisations, the employee may terminate the employment contract extraordinarily pursuant to subsection 91 (2) of the Employment Contracts Act due to a violation committed by the employer, which consists of a refusal to perform the employment contract and failure to provide work, by sending a corresponding notice of termination to the official address of the company as indicated in the Commercial Register.
- If the notice of termination has been delivered to the company and can be verified in the future if necessary, the employee may go to a labour dispute committee and request that the committee:
- establish the termination of employment; and
- amend the entry in the Employment Register based on the decision of the labour dispute committee.
- Instead of a labour dispute committee, the employee may go to court and request that the court:
- establish the termination of employment; and
- require the employer to amend the entry in the Employment Register.
- Once the labour dispute committee has made a decision on the matter, it can make the necessary changes itself based on the decision that has come into force. If the court has passed a judgment on the matter and the employer has not changed the entry, the judgment that has entered into force must be submitted to the Tax and Customs Board, which will make the necessary changes to the entry on the basis of the judgment.
