Working in Estonia

What are the options for employing a foreign national?

If a foreign national is staying in Estonia legally and wishes to work on a temporary basis, it is advisable to register their employment as short-term employment. If the employee intends to work for a longer period, they must apply for a residence permit for employment.

What obligations does an employer have in connection with receiving a foreign national?

The inviting party is required to:

• verify that the foreign national invited to Estonia has a legal basis for staying in Estonia,
• receive the foreign national in Estonia,
• ensure accommodation for the foreign national, if necessary,
• cover the costs of the foreign national’s stay in Estonia and departure from Estonia, if necessary.

The employer also has an obligation to notify the authorities when hiring a foreign national.

What is the employer’s notification obligation in connection with receiving a foreign national?

As a representative of the employer who has submitted an invitation for the purpose of granting a residence permit to a foreign national, you must notify the Police and Border Guard Board if the foreign national who has been granted a residence permit:

• does not conclude an employment contract
• experiences changes in the terms and conditions of employment
• does not commence work on time, or
• has their employment contract terminated.

What are the employer’s obligations when recruiting a foreign national?

If you are hiring a foreign national, you must fulfill the following requirements:

• Qualified Hiring: Ensure the candidate has the necessary education, work experience, and professional skills for the position.
• Business Registration: Your company must be officially registered in the Estonian Business Register.
• Salary Standards: Pay the employee at least the Estonian average gross salary (exceptions may apply depending on the role).
• Unemployment Insurance Fund Permission: If the employee is applying for a residence permit, you must first obtain permission from the Estonian Unemployment Insurance Fund (Töötukassa) to fill the position with a foreign national.

* As of 01.01.2023, pursuant to the amendment to the Aliens Act, in the case of employment in a start-up company.

** As of 24.05.2022, with the amendment to the Aliens Act regarding the regulation of top specialists, there are no categories of employment to which the double salary criterion rate applies. This means that the double rate no longer applies to new applications for residence permits for employment or to applications for short-term employment. However, the double rate continues to apply to residence permits for employment and to short-term employment registrations that were issued by the Police and Border Guard Board before the entry into force of the respective amendment.

If no specific salary criterion rate applies to a residence permit or short-term employment right, the remuneration of the foreign national must allow for their subsistence in Estonia.

Grounds for employment

• skilled workers (under general conditions)
• temporary agency workers
• seasonal workers (only short-term employment)
• top specialists
• members of the management body of a company
• experts
• clergy
• start-up employees
• researchers, lecturers
• teachers
• athletes
• creative workers
• EU Blue Card holders (only employment with a residence permit is possible)
• graduates of Estonian higher education institutions
• employees posted from the EU countries
• employees of international companies
• or other exceptional cases

Each ground for employment is subject to separate conditions that both the foreign national and the employer must comply with. When applying, there may be a requirement to provide additional information or evidence.

When to register a foreign national’s short-term employment?

Short-term employment can be registered if the foreign national is staying in Estonia legally and their period of employment is more than 5 days within 1 month and up to 365 days within 455 days. Registration of short-term employment does not grant the foreign national the right to stay in Estonia. To stay in Estonia, foreign nationals must apply for a visa.

When can an employee work short-term without registering short-term employment?

In certain exceptional cases, it is possible to work short-term in Estonia without registering the employment with the Police and Border Guard Board. This applies only if employee is staying in the country legally.

Employee has the right to work without registration if:

• The work is very brief: The work lasts up to 5 days within a 30-day period.
• Post-permit period: Employee is staying in Estonia during the permitted period after his/her residence permit has expired.

A migration consultant is available to help you every step of the way. Seek advice from a migration consultant.