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Registration of employment

All the natural and legal persons providing the work are required to register the persons employed by them in the employment register. Since 1 July 2014 the employers are not required to submit the data on the employed persons to the Estonian Health Insurance Fund.

What are the data of the employment register used for?
Definitions relating to the register
Who is expected to register the employment?
Whose employment has to be registered?
What kind of data must be entered in the register?
How a foreigner can obtain the Estonian personal identification code needed for registration of the employment?
When must the data be entered in the register?
How to register the employment?
Is it possible to correct the data in the employment register?
What has changed for the employers upon implementation of the employment register?

What are the data of the employment register used for?

 

  • The Estonian Health Insurance Fund uses the data of the employment register for granting the health insurance benefits;
  • the Estonian Unemployment Insurance Fund uses the data of the employment register for registration of persons as unemployed, termination of the persons’ registration as unemployed, for granting unemployment allowances and other unemployment insurance benefits prescribed by the Unemployment Insurance Act;
  • the Social Insurance Board uses the data of the employment register for verification of the employment status;
  • the Police and Border Guard Board uses the data of the employment register for exercising supervisory control over the working conditions of foreigners;
  • the Estonian Tax and Customs Board uses the data of the employment register for  monitoring the performance of the tax liabilities of taxable persons.

Definitions relating to the register

Employment – working under an employment contract or a contract under the law of obligations, civil service as defined in § 5 of the Civil Service Act or working on a voluntary basis without receiving any remuneration for work;

Person performing the work – a natural person who is working under an employment contract or under the law of obligations, a person in civil service as defined in § 5 of the Civil Service Act, or who is working on a voluntary basis without receiving any remuneration for work.  

Person providing the work – a resident or non-resident legal person in Estonia, Estonian state authority or local government authority, a natural person or a self-employed person who concludes an agreement which forms the basis for working or who appoints a person performing the work to office.

Commencement of employment – the exact date of commencement of work of a person performing the work under an employment contract or on voluntary basis, the date of entering into force of an employment contract under the law of obligations, or the date of assumption of an office in civil service.

Suspension of employment – a period during which a person performing the work is having a parental leave, is in conscript service or in alternative service, or on leave granted without pay by agreement of the parties.

Termination of employment – the exact date of termination of work of a person performing the work under an employment contract or on voluntary basis, the date of termination of an employment contract under the law of obligations, the date of release from service and the date of transfer of a tax liability of a person performing the work to another state.

Further on in this text the definition “employer” will be used in the meaning of the person providing the work and “employee” in the meaning of the person performing the work in order to make reading of the document easier.

Who is expected to register the employment?

All natural and legal persons providing the work are required to register the employment. Employer is a resident or non-resident legal person in Estonia, Estonian state authority or a local government authority, a natural person or a self-employed person who concludes an agreement which forms the basis for working or who appoints a person performing the work to office.

Whose employment has to be registered?

Employments of all natural persons through whose working a tax liability will be created in Estonia, irrespective of the form of a contract, must be recorded in the employment register. Data of the persons working on a voluntary basis in a company or at a self-employed person, i.e. the persons who are receiving no remuneration for their work that would be subject to taxation, must also be recorded in the employment register.

Registration of employment within the framework of practical training is not required, unless an employment contract or a contract under the law of obligations is concluded with a trainee for performing the work.

What kind of data must be entered in the register?

  • Employee’s given and family name and a personal identification code;
  • employee’s date of birth, if the personal identification code is not available and the duration of the employment will be up to five days;
  • employer’s name and registry code, or a personal identification code;
  • date of commencement of the employment;
  • type of the employment;
  • initial and final dates of and the reason for the suspension of the employment;  
  • date of termination of the employment and the reason for termination.

Additional data required are the official title and the address of the place of employment if a third-country national or a person with unspecified citizenship is concerned who is residing in Estonia under a temporary residence permit granting the admission to employment, or if a third-country national or a person with unspecified citizenship is concerned who is staying in Estonia with a visa or on the basis of a visa waiver and who has the right to work in Estonia.  

How a foreigner can obtain the Estonian personal identification code needed for registration of the employment?

  • Persons who are staying in Estonia on a temporary basis (e.g. are working in Estonia but are residing in Latvia) can apply for a personal identification code with the closest county government upon going there in person;
  • upon submission of a notice of residence at the local government unit;
  • persons who do not have the possibility to apply for the personal identification code in Estonia, e.g. are coming to work in Estonia with a visa, can submit the application with the foreign mission of Estonia in a foreign state.

When must the data be entered in the register?

Commencement of the employment must be recorded latest by the moment when an employee commences the work, which means directly before starting the work.

Employers have time for recording the suspension or termination of the employment for ten calendar days as of the day of suspension or termination of the employment.

How to register the employment?

It is also possible to use a simplified procedure for first registration by making a phone call or sending the SMS message. As the simplified registration covers only part of the required data, the registration must definitely be supplemented within 7 calendar days in order to complete the registration. Format of the SMS message is as follows: ”employer’s code(space)employee’s code(space)date of commencement of the employment“ and the SMS has to be sent at the phone number 1811.

Example: 12345(space)23456789012(space)01.07.2014

Is it possible to correct the data in the employment register?

Within the three months’ period since the date of commencement, suspension or termination of the employment the employers themselves can correct in the electronic environment the erroneous entries they have made in the employment register. After the expiry of this three months’ period the entries can be corrected only at a service bureau of the Estonian Tax and Customs Board.

What has changed for the employers upon implementation of the employment register?

The Estonian Health Insurance Fund

  • Insurance data related to employment was transferred from the health insurance database to the employment register as at 30.06.2014;
  • insurance data of the employees is delivered from the employment register and there is no need to submit these data to the Estonian Health Insurance Fund anymore;
  • the data is sent to the Estonian Health Insurance Fund once a day after all the data needed for granting the health insurance benefits have been entered in the employment register (but if the simplified procedure was used for registration of the employment the data is not delivered to the Health Insurance Fund because in that case part of the required data are missing);
  • starting from 1 July 2014 the employers cannot use anymore the present service provided by the Estonian Health Insurance Fund for submission of the insurance data through the general national portal in order to amend the health insurance data of their employees. However, the possibility to check and survey the lists of persons covered by health insurance by using this service has been retained.

The Estonian Unemployment Insurance Fund

  • Employers have no need to issue supplementary documents supporting the data entered in the employment register to the Estonian Unemployment Insurance Fund anymore;
  • having been registered as unemployed and applying for unemployment benefits means that the need to produce supplementary documents has been diminished, because all the necessary data (employment period and the reason for termination of the employment relationship) is available in the employment register.

 The Estonian Tax and Customs Board

  • Employees can check their employment registration and whether the disbursements made to them have been declared and the taxes paid. 

 

07.02.2017