Overview of the amendments to the law that entered into force on August 1

The Chamber of Commerce prepared an overview of the most important amendments to the law for companies that entered into force on August 1. A total of nearly 20 legal acts entered into force on the first day of August. Amendments to the Employment Contracts Act are the most important for companies. 

Important amendments in the Employment Contracts Act 
On August 1, amendments to the Employment Contracts Act entered into force, according to which employers must provide employees in a written document with more information than before about working conditions. For example, the employer must provide the employee with information about the institutions to which labour taxes are paid and what protection the employee receives from these payments. The employer shall start providing the employee with information about the procedure for overtime work and the compensation. From now on the employer must also point out that the application for cancellation of the employment contract must be submitted in a form that allows re-submission in writing (e.g. by e-mail) and it must be justified, except in case the employee cancels the employment contract ordinarily. The employee must also be given more information about holidays and training. In addition, from now on, the employee must also be informed about the duration of the probationary period, even if the duration of the probationary period is four months. 

Employers do not have to immediately change employment contracts concluded before August 1. If the employment contract was concluded before August 1, the employer is obliged to provide the employee with additional information about the working conditions only if the employee requests it. Employment contracts concluded from August 1 must comply with the previously described amendments. 

A positive change for companies to the Employment Contracts Act is that from now on the probationary period of the employee will be extended by the time spent away from work. For example, if a probationary employee's performance of duties is impeded by holiday or illness, the probationary period is extended by holiday or sick days. 

As of August 1, an employee can apply for a full-time job instead of a part-time job or formalization of a specified term employment contract for an unspecified period. At the same time, the employer is not obliged to provide the employee with suitable working conditions, but the employer must respond to the employee's request within 14 calendar days of receiving the request. 

See more: Comprehensive overview of the amendments to the Employment Contracts Act coming into force on 01.08, Employment Contracts Act, templates of employment contracts 

The employee has a new obligation to ensure safety at work 
The Occupational Health and Safety Act adds an obligation to the employee to ensure that if they work for several employers or provide services on the basis of a contractual agreement, working at several jobs must not endanger their life or the health of other people. If the employee violates this obligation and the employer finds that the employee's health does not allow safe work, the employer may warn the employee or cancel the employment contract if certain conditions are met. 

See more: Occupational Health and Safety Act 

The employer will have new notification obligations regarding the employees posted to Estonia 
On August 1, amendments to the Working Conditions of Employees Posted to Estonia Act came into force, according to which the employer must inform the employee posted to Estonia certain information in writing if the employee's posting lasts more than one month. From now on, the employer of a posted employee must inform the employee in writing about the duration of the posting period in Estonia, the amount of the salary and the currency of payment (whether the payment is in euros or other currency), the benefits related to the posting (e.g. housing), the procedure for reimbursement of travel, meal and accommodation expenses and the conditions of returning from the country (date of departure from the country, transport). In addition, the employer must provide the posted employee with a link to the website of the Labour Inspectorate, where important information for the posted employee in Estonia can be found. If the data provided in writing changes, for example the duration of the posting period or the procedure for reimbursement of accommodation costs, the employer must submit the changed data to the posted employee in writing no later than on the day the change takes effect. 

See more: Working Conditions of Employees Posted to Estonia Act

The VAT rate for press publications will be reduced to 5 percent
Previously, the VAT rate for press publications was 9 percent, but as of August 1, it was reduced to 5 percent. The change applies to both physical media and electronic press publications, with the exception of publications that mainly publish advertising or personal announcements or that mainly have erotic or pornographic content or video or music content. The purpose of reducing the VAT rate is to support the availability of Estonian quality journalism in the environment of the information war that is part of the war in Ukraine. 

See more: Value-Added Tax Act 

If you have any questions about the amendments to the law that entered into force on August 1, please contact the chamber's lawyers at the e-mail address juristid@koda.ee.