Guides · Employment contracts

Employment contracts in Estonia: what to check before you sign

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Estonian employment contracts are governed by the Employment Contracts Act (TLS), and most of its protections cannot be reduced by contract: a term that deviates from the Act to the employee’s detriment is void (TLS § 2). Still, the contract you are offered may try to go below the law. This guide covers the terms foreign employees ask about most.

In short

  • Probation lasts at most four months from your first working day (TLS § 10¹(1)).
  • Annual leave is at least 28 calendar days (TLS § 55).
  • An employer gives 15, 30, 60 or 90 calendar days’ notice, depending on how long you have worked there (TLS § 97(2)).
  • You can resign from an indefinite contract with 30 calendar days’ notice (TLS § 98(1)).
  • A non-compete that applies after the job ends must be in writing, last no more than one year and be paid for with reasonable monthly compensation (TLS § 24).

Laws referred to: Employment Contracts Act (TLS) § 2, § 4–6 (form and required terms) · Employment Contracts Act (TLS) § 9, § 10, § 10¹ (fixed term and probation) · Employment Contracts Act (TLS) § 22–24 (confidentiality and non-compete) · Employment Contracts Act (TLS) § 43–46, § 51–55, § 68–71 (working time and holidays) · Employment Contracts Act (TLS) § 85–100, § 105 (termination and notice) · Law of Obligations Act (VÕS) § 162 (reducing a contractual penalty) · General Part of the Civil Code Act (TsÜS) § 80 (electronic form) · Rome I Regulation, Article 8 (law applicable to employment contracts)

What must an Estonian employment contract contain?

An employment contract must be in writing (TLS § 4(2)) and must set out at least the 14 terms listed in TLS § 5(1). A contract that breaks the form rule is still valid (TLS § 4(4)).

The list covers the parties, the start date, your duties, pay and how it is calculated and paid, benefits, working time, place of work, annual leave, a reference to the termination rules, the employer’s work rules, any collective agreement, how overtime is ordered and compensated, and the length of probation.

The employer should give you these terms before you start; if it has not, it must do so within seven calendar days of your first working day (TLS § 5(3), as amended from 13 July 2026). Some terms, such as a fixed term or a non-compete, must be notified in writing under TLS § 6, or the law presumes there is no such agreement (TLS § 6(9)).

Written form does not mean paper: a qualified digital signature, for example with an Estonian ID card or e-Residency card, counts as written form (General Part of the Civil Code Act (TsÜS) § 80).

How long can probation last in Estonia?

At most four months from your first working day (TLS § 10¹(1)). Probation can be shortened or excluded but not extended, and a fixed-term contract of up to eight months can have probation of no more than half its length (TLS § 10¹(2)–(3)).

Probation applies by law, even if the contract says nothing about it, and a clause promising six months is not valid beyond four. Time when you could not work, in particular sick leave and holidays, is not counted (TLS § 10¹(4)). No new probation applies when a fixed-term contract for similar work is extended or renewed (TLS § 10¹(5)).

Either party may end the contract during probation (TLS § 86(1)) with at least 15 calendar days’ notice (TLS § 96). Labour Inspectorate guidance says notice given by the last day of probation is valid even if the employment ends after probation. The employer must give reasons (TLS § 95(2)) and may not rely on a reason that conflicts with the purpose of probation, which is to assess whether you suit the job (TLS § 10¹(1), § 86(4)).

Check these clauses in your own contract – free summary →

When is a fixed-term employment contract allowed?

The law presumes an employment contract is indefinite. A fixed term of up to five years is allowed only where the temporary nature of the work justifies it, such as a temporary rise in workload or seasonal work, or to replace an absent employee (TLS § 9).

The employer must tell you in writing, before you start, how long the contract lasts and why it is fixed-term; otherwise it is presumed to be indefinite (TLS § 6(2), § 6(9)). If you conclude fixed-term contracts for similar work more than twice in a row, or one is extended more than once, within five years, the employment is treated as indefinite from the start. Contracts count as consecutive if no more than two months pass between them (TLS § 10(1)).

You cannot give ordinary notice on a fixed-term contract unless the contract was concluded to replace an absent employee (TLS § 85(2)), and an employer that makes you redundant early must generally pay the wages you would have earned until the end date (TLS § 100(3)).

What are the rules on working hours, overtime and holidays?

Full-time work is presumed to be 40 hours over seven days and 8 hours a day (TLS § 43). Overtime needs your agreement and is compensated with equal time off, or 1.5 times your pay if money was agreed (TLS § 44). Annual leave is at least 28 calendar days (TLS § 55).

The employer may demand overtime without your agreement only because of unforeseen circumstances, such as preventing damage (TLS § 44(4)). Total working time must not exceed 48 hours a week on average over up to four months (TLS § 46(1)); you may agree to up to 52 hours on average, and can cancel that agreement with two weeks’ notice (TLS § 46(3)). Night work (22.00–6.00) is paid at 1.25 times the wage unless your pay already includes it, and public holiday work at twice the wage; extra time off can be agreed instead (TLS § 45). Be cautious about a clause saying your salary “covers all overtime”: terms that deviate from the TLS to your detriment are void (TLS § 2).

Public holidays do not count towards the 28 days (TLS § 54(3)). Leave is split only by agreement, with one part of at least 14 days in a row (TLS § 68(5)). Holiday pay is due by the second-to-last working day before the leave unless agreed otherwise (TLS § 70(2)). Swapping leave for money during employment is void (TLS § 70(3)); unused leave is paid out when the contract ends (TLS § 71).

How much notice applies when an Estonian employment contract ends?

An employer cannot give ordinary notice (TLS § 85(5)); it needs a legal ground such as redundancy, and then gives 15, 30, 60 or 90 calendar days’ notice after less than 1, 1–5, 5–10 or 10+ years of service (TLS § 97(2)). You can resign from an indefinite contract with 30 calendar days’ notice (TLS § 98(1)).

Notice must be given in a form reproducible in writing, such as email (TLS § 95(1)). Before a redundancy the employer must offer other work where possible (TLS § 89(3)), and it pays one month’s average pay (TLS § 100(1)). Pregnant employees, women entitled to maternity leave and employees on paternity, adoption or parental leave cannot be made redundant unless the business ends (TLS § 93(1)); a parent of a child under three only has a priority right to stay (TLS § 89(5)).

Labour Inspectorate guidance says an employee cannot be required to give more than 30 days’ notice, so question a longer notice clause. If either side gives too little notice, the other can claim average daily pay for each working day of shortfall (TLS § 100(5)). You may leave without notice for a good reason, such as a significant delay in pay (TLS § 91(2), § 98(2)); if you resign because of the employer’s material breach, it owes you three months’ average pay (TLS § 100(4)).

To challenge a termination, you must go to a court or a labour dispute committee within 30 calendar days of receiving the notice (TLS § 105(1)).

Are non-compete and confidentiality clauses enforceable in Estonia?

A non-compete is valid only if it protects the employer’s special economic interest and is reasonably limited in area, time and subject matter (TLS § 23). After the job ends, it must also be in writing, last no more than one year and be paid for with reasonable monthly compensation (TLS § 24).

Without a non-compete, the employer may not forbid you from working for another employer (TLS § 23(1)), and an agreement that fails the conditions is void (TLS § 23(4)). The law sets no amount for the compensation, only that it is reasonable and monthly (TLS § 24(3)); a restriction with no pay, or lasting two years, does not qualify. If you comply with a restriction that breaks these rules, the employer cannot rely on its invalidity (TLS § 24(2)).

Confidentiality works differently. The employer can specify which information is a trade or business secret (TLS § 22(1)), a contractual penalty for breach may be agreed (TLS § 22(2)), and damages the penalty does not cover can still be claimed (TLS § 22(3)). Check that the protected information is defined and the penalty is proportionate; a court can reduce an unreasonably high penalty (Law of Obligations Act (VÕS) § 162(1)).

Clauses to check before you sign

  • Probation of no more than four months, or half of a fixed term of up to eight months, with no clause extending it.
  • For a fixed-term contract: the end date, the reason for the fixed term, and no chain of renewals for similar work.
  • Working time, place of work and overtime compensation of equal time off or at least 1.5 times pay.
  • At least 28 calendar days of annual leave and a holiday pay date that complies with TLS § 70.
  • Notice clauses that ask no more than 30 days of you and give the employer no termination right without a legal ground.
  • A post-employment non-compete in writing, limited to one year, with a defined area and scope and monthly compensation.
  • A confidentiality clause that defines the protected information and sets a proportionate penalty.
  • The contract language, the governing law and, in a bilingual contract, which version prevails.

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Frequently asked questions

Can my Estonian employment contract be in English?

Yes. Labour Inspectorate guidance says an employment contract may be in another language if both parties agree and understand it the same way. The Inspectorate works in Estonian and can ask for a translation, so a bilingual contract is often recommended; if you sign one, check which version prevails.

Can my employer extend my probation to six months?

No. Four months is the maximum (TLS § 10¹(1)). Only days when you could not work, such as sick leave or holidays, push the end date back (TLS § 10¹(4)).

My contract says Estonian law applies, but I work from another country. Which rules protect me?

Under Article 8 of the Rome I Regulation, a choice of law cannot deprive you of the mandatory protection of the law that would otherwise apply, usually that of the country where you habitually work. Have a lawyer check any cross-border set-up.

Is a job offer binding if I never signed a contract?

It can be. A contract is treated as concluded once you start paid work (TLS § 4(2)), and missing written form does not void it (TLS § 4(4)). The employer must still give you the written terms (TLS § 5(3)).

How can I check my contract before signing?

Upload it for a free risk summary. The full report quotes each problem clause alongside the TLS section it conflicts with. For a dismissal or an ongoing dispute, speak to an Estonian employment lawyer.

This guide explains general rules of Estonian law and is not legal advice. Synclex OÜ is not a law firm. For your own situation, consult a qualified Estonian lawyer.

Contract Review Estonia · Synclex OÜ · Tallinn, Estonia · contact@lexforge.ee