The obligation to register employment lies with all natural and legal persons who provide employment.
A person enabling work (employer) is a legal person resident in Estonia or a non-resident, an Estonian state agency or local government agency, a natural person or a self-employed person who enters into an agreement on the basis of employment or appoints a person (employee).
The Employment Register must record the employment of all natural persons for which a tax liability arises in Estonia, regardless of the form of the contract and its duration. If a person performs work duties abroad and no tax liability arises in Estonia, they do not have to be registered in the Employment Register.
As an exception, unpaid employment in a company and self-employment must also be entered in the Employment Register.
The maker of the entry, i.e. the employer, is responsible for the correctness of the entry in the Employment Register.
An entry in the Employment Register must be made:
- at the latest by the time the employed person starts work;
- employment of a child aged 7–14 for ten working days before the child starts working ;
- within ten days as from the date of expiry of the employment relationship;
- within ten days as from the date of termination of the employment relationship.
NB! Until the labour dispute committee or the court decides otherwise, the legal basis for making an entry is a declaration for cancellation of an employment contract submitted by an employee together with the legal basis contained therein, i.e. a section of the Employment Contracts Act. An employer is entitled to contest the extraordinary cancellation by an employee in the labour dispute committee or court and the grounds for expiry of the employment relationship may be changed as a result. An employer cannot do this at their own initiative.
Who to contact if an entry in the Employment Register is incorrect?
The employer is primarily responsible for the correctness of the entries in the Employment Register, because according to the Taxation Act it is their obligation to make an entry in the Employment Register upon commencing employment, suspension of the employment (for example, during parental leave or a longer period of holiday without pay, if so agreed between the parties) and expiry of employment.
The entry in the Employment Register is related to several rights that are important for a person, including the right to health insurance, the right to parental benefit, as well as the right to register as unemployed and apply for unemployment benefits. It is important that the termination of the employment relationship takes place on the basis of the actual reason. Not all grounds for termination of employment entitle to the aforementioned benefits. An entry in the Employment Register alone does not guarantee these rights, but together with other important documents, it can be crucial.
Unfortunately, situations arise in life when an incorrect entry in the Employment Register becomes an obstacle for a person, for example, to receive the benefits and social protection prescribed by law.
The following is a brief guide on how to deal with such situations, who to turn to and in what order.
Frequently asked Questions
A person discovers in the Employment Register that they are registered as an employee of a company where they have never worked and have not been involved with in any other way.
- You must contact the employer, sending at least an e-mail (a copy of which you should also keep yourself) – if necessary, contact repeatedly and use different channels – to the official address of the company, i.e. indicated in the Commercial Register (data search https://www.rik.ee/en/e-business-register), and request deletion of the entry.
- If the employee has made every effort to find the employer but has not been successful, the employee shall apply to the Tax and Customs Board (hereinafter MTA) to terminate the entry. The official of the MTA reviews the appeal and tries to find ways to improve the entry of the employment register (incl. an entry by the employer).
- If repeated appeals to the company do not help, the person must seek recourse from a court and demand
- Acknowledgement of termination of employment (even though you know that there has never been an employment relationship, this requirement is necessary so that the dispute body can establish that there has been no employment relationship ), and
- Modification of entries in the Employment Register on the basis of a decision of a court.
- If a court has made a decision in the matter, then
- The court can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The employer made an entry about starting work, but deleted it after a few days and said that the employee did not pass the probationary period, i.e. the employment contract had expired.
Deleting an entry from the Employment Register or marking an entry as terminated does not terminate the employment contract. The conditions for termination of an employment contract arise from the Employment Contracts Act. An employment contract can be terminated orally only by agreement of the parties; in other cases, i.e. in the event of ordinary or extraordinary cancellation of the employment contract, the employer or employee must give the other party a clearly expressed notice of cancellation in a format which can be reproduced in writing (e.g. by e-mail).
If the employee discovers that the entries in the Employment Register are still unchanged, i.e. the entries are incorrect, then:
- You must contact the employer, sending at least an e-mail (a copy of which you should also keep yourself) and ask them to restore the entry and make correct entries that correspond to reality and are in accordance with the provisions of the Employment Contracts Act. Please note! The employment relationship continues until one or the other party gives notice of cancellation!
- If the employer refuses to restore the cancelled entry, the employee must continue to work and demand work or cancel the employment contract themselves during the probationary period on the basis of subsection 86 (1) of the Employment Contracts Act, giving 15 calendar days' notice.
- If a notice of cancellation is received, but there is no corresponding entry in the Employment Register, you can recourse to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
A written employment contract has been entered into with the employee, but the Employment Register lists an entry ‘other contract under the law of obligations’ as the basis of employment.
- The employee contacts the employer, sending at least an e-mail and asks them to correct the entry in the Employment Register, i.e. to make it correspond to reality. Please note! Up to three months from the beginning of the employment, the employer can make the entries themselves (this way, three months retroactively from the beginning of the employment, as well as the termination entry three months retroactively from the termination, etc.). If more than three months have elapsed since the entry was made, the employer must apply to the MTA from an authenticated channel (via the MTA communication application) or with a digitally signed application. A change in the entry in the Employment Register (including a change in the type of employment) must be in accordance with the type of payment declared in the TSD.
- If the employer refuses to change the entry, the employee can recourse to a labour dispute committee or a court and demand
- Acknowledgement of the employment relationship and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The employment contract has been terminated for a long time and it is verifiable, i.e. there is a notice of cancellation, an agreement between the parties, etc., but the entry in the Employment Register still indicates a valid employment relationship, i.e. no termination entry has been made.
- The employee contacts the employer, sending at least an e-mail and asks them to correct the entry in the Employment Register, i.e. to make it correspond to reality. Please note! Up to three months from the beginning of the employment, the employer can make the entries themselves (this way, three months retroactively from the beginning of the employment, as well as the termination entry three months retroactively from the termination, etc.). If more than three months have elapsed since the entry was made, the employer must apply to the MTA from an authenticated channel (via the MTA communication application) or with a digitally signed application. A change in the entry in the Employment Register (including a change in the type of employment) must be in accordance with the type of payment declared in the TSD.
- If the employee has made all efforts to communicate with the employer, but this has not led to the correction of the entry in the employment register, the employee shall apply to the Tax and Customs Board (hereinafter MTA) for changes in the entry. An official of the MTA reviews the appeal, tries to find ways to correct the employment register entry (incl. an entry by the employer) and if this is not possible, the MTA official forwards the employee's application to the Labour Inspectorate to the e-mail address [email protected] so that the Labour Inspectorate can give the applicant the necessary instructions for further activities.
- If the former employer refuses to change the entry, the employee can recourse to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The employment relationship has long since ended (the parties do not communicate or ask/allow employment), but the termination of the employment contract has not been formalised in any way and there is no evidence of it, the entry in the Employment Register still indicates a valid employment relationship, i.e. no termination entry has been made.
- You must contact the employer, sending at least an e-mail (a copy of which you should also keep yourself) – if necessary, repeatedly and using different channels – to the company's official address, i.e. the one indicated in the Commercial Register (data search https://www.rik.ee/en/e-ariregister ) and make a proposal to terminate the employment contract by agreement of the parties. Please note! An agreement requires the other party to agree to the proposal.
- If the company does not take action, does not respond and does not change the entry, the next option is to send an application for ordinary cancellation of the employment contract (within the meaning of section 85 of the Employment Contracts Act, i.e. so-called own request) or extraordinary cancellation (pursuant to subsections 91 (2) or (3) of the Employment Contracts Act) by e-mail or, for example, by registered mail, so that, if necessary, it can be evidenced which document was delivered to what address, who accepted it and when.
- If the notice of cancellation has been served, but the entry in the Employment Register is still not changed, the employee can apply to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The company was in financial difficulties and the employer agreed with the employees on holiday without pay of indefinite duration. After that, the member of the management board of the company disappeared, but soon completely new names appeared in the Commercial Register as members of the management board. No further work is provided, but the entries for the employment contract are still not terminated in the register.
- You must contact the employer, sending at least an e-mail (a copy of which you should also keep yourself) – if necessary, repeatedly and using different channels – to the official address of the company, i.e. indicated in the Commercial Register (data search https://www.rik.ee/en/e-ariregister), describe the situation and ask what are the plans of the new board members regarding the company and employees. If desired, it may also be proposed to terminate the employment contract immediately, for example by agreement of the parties. Please note! An agreement requires the other party to agree to the proposal.
- If the company does not take action, does not respond and does not change the entry, the next option is to send an application for ordinary cancellation of the employment contract (within the meaning of section 85 of the Employment Contracts Act, i.e. so-called own request) or extraordinary cancellation (pursuant to subsections 91 (2) or (3) of the Employment Contracts Act) by e-mail or, for example, by registered mail, so that, if necessary, it can be evidenced which document was delivered to what address, who accepted it and when.
- If the notice of cancellation has been served, but the entry in the Employment Register is still not changed, the employee can apply to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- The labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made 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, the company has changed its field of activity and the members of the management board have also changed. The employment contract has not been terminated, the entry on the employment contract has been suspended in the Employment Register.
- You must contact the employer, sending at least an e-mail (a copy of which you should also keep yourself) – if necessary, repeatedly and using different channels – to the official address of the company, i.e. indicated in the Commercial Register (data search https://www.rik.ee/en/e-ariregister), describe the situation and ask what are the plans of the new board members regarding the company and employees. The employee must also be clear whether they wish to return to work or whether they no longer have an interest in the employment relationship. If desired, it may also be proposed to terminate the employment contract immediately, for example by agreement of the parties. Please note! An agreement requires the other party to agree to the proposal.
- In such a situation, the employee has the right to give notice of the termination of parental leave and the start of work with a specific date, and then the company is already forced to decide what to do next. Namely, this involves whether to enable the performance of an existing employment contract, to offer a new job or to use legal possibilities to terminate the employment contract.
- If the company does not respond to repeated e-mails and letters within a reasonable time, i.e. two weeks from the last letter, then the next possibility is extraordinary cancellation of the employment contract by the employee on the basis of subsection 91 (2) of the Employment Contracts Act in connection with a violation by the employer, which consists of refusing to perform the employment contract by not providing work. Applying for such cancellation presupposes that the prior notice of termination of parental leave and the requirement to perform the employment contract are verifiable by the employee in the event of a dispute (for example, existence of e-mails sent to the employer).
- If the notice of cancellation has been served, but the entry in the Employment Register is still not changed, the employee can apply to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- The labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The employee submitted a notice of extraordinary cancellation on the basis of subsection 91 (2) of the Employment Contracts Act because they found that the employer had performed a significant breach of the employment contract. The employer does not agree with this, but has not challenged the cancellation in a labour dispute committee or in court and refuses to make an entry in the Employment Register regarding the termination of the employment contract.
- The employee can opt to send the employer an e-mail and draw their attention to the fact that making an entry in the Employment Register is their obligation, and if this obligation is not fulfilled, the employee is forced to apply to a labour dispute committee or a court.
- If the employer does not respond to these repeated requests, the employee can apply to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The company had only one board member who was also the sole shareholder, but they passed away two months ago. The company's activities have essentially come to a standstill, three of its employees no longer receive any work and, due to lack of authority, the employees themselves cannot do anything. There is a valid entry on the employment contract in the Employment Register. What is the next step?
- Employees have the opportunity to contact a notary to obtain information about the potential successor, and if this information has been received, to contact them to obtain information about the future of the company.
- It is also possible to wait until the estate opens in order to find out if and who will take over the company's activities.
- As there is no work provided and the employment relationship is with a legal person, there is also the option of extraordinary cancellation of the employment contract on the basis of subsection 91 (2) of the Employment Contracts Act by sending a corresponding notice of termination to the company's official address, i.e. indicated in the Commercial Register.
- If the cancellation application has been delivered to the company and it can be evidenced in the future, the employee can apply to a labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
The only board member of the company who is authorised to perform operations is held in a detention facility abroad. The company's activities will continue in part, but no one knows how long the board member will be absent or what will happen next. Who terminates the entry of an employment contract in the Employment Register?
- There must be a legal basis for terminating the employment contract, i.e. the employment relationship will not end merely due to the imprisonment of a member of the management board.
- The employer has the obligation to make, amend and terminate entries in the Employment Register. If the termination of employment has taken place in accordance with the requirements of law, the representative of the employer must also make an entry of termination.
- If the right to change an entry in the Employment Register is granted only to the member of the management board and it is not possible to reassign the authorisation, then the employee can apply to the labour dispute committee or a court and demand
- Acknowledgement of termination of employment and
- modification of entries in the Employment Register on the basis of a decision of a court or a labour dispute committee.
- If a labour dispute committee or a court has made a decision in the matter, then
- the labour dispute committee can make changes to entries on the basis of a decision that has entered into force.
- It is possible to apply again to the former employer for a change of entry on the basis of a decision, or
- A court judgment that has entered into force must be applied to the Tax and Customs Board, where changes are made on the basis of the judgment.
