Overview of the legislation coming into force on July 1
The Chamber’s lawyers have prepared an overview of the most important law amendments for companies, which will enter into force on July 1 of this year. In total, more than 20 legal acts will enter into force at the beginning of July.
The pre-corona compensation procedure of sick days will be restored
On July 1, law amendments will enter into force, according to which the employer is obliged to pay the employee sickness benefits from the fourth to the eighth day. The employee’s own responsibility is for the first three days of illness, and the Health Insurance Fund starts paying benefits for temporary incapacity for work from the ninth day. Such a system was valid in Estonia until the end of 2020.
The current compensation system of sick days applies to sick leaves issued before July 1, 2023, where the employee’s own responsibility for compensating sick days is for the first workday, the employer’s responsibility is the second to the fifth day, and the Health Insurance Fund’s responsibility is from the sixth day of illness and onwards.
Read more about the changes related to the compensation of sick days HERE.
See also: Occupational Health and Safety Act, Health Insurance Act, Social Tax Act
The new Public Water Supply and Sewerage Act will come into force
On July 1 this year, the new Public Water Supply and Sewerage Act will enter into force, which, among other things, will affect both water companies and companies using public water supply and sewerage services.
The new law introduces a new obligation for industrial or production companies subject to an environmental permit or complex permit which use hazardous substances in their operations that are discharged into the public sewer, namely the obligation to report the amount and content of emissions of these substances together with the methodology of their calculation to the Environmental Board once a year.
In addition, the new law subjects the companies to the obligation of building a pre-treatment plant in certain cases. If the content of hazardous substances or other pollution indicators in the company’s wastewater or rainwater exceeds the established limit values, or if the pollution indicators of the wastewater managed by the common sewerage, for which no limit values have been set, are so high that they may damage the structures or equipment of the common sewerage system, the wastewater treatment process, or the state of the environment, then the company is obligated by the new law to use pre-treatment or take other measures to bring sewage and storm water into compliance with the requirements before directing those waters into the common sewer system, unless otherwise agreed with the water company.
As one of the important changes, the new law gives the water company the right to terminate the provision of public water supply and sewerage services to the company, if the waste water or rainwater discharged by the company into the public sewer is continually non-compliant and the water company has granted the company at least a six-month grace period so that the company could reorganise its production, change its production process or change the composition of the water fed into the public sewer system. As an exception, the water company does not have to grant the six-month grace period if the management of continually non-compliant sewage water or rainwater in the public sewer entails a risk to human health, the environment, the functioning of the public water supply and sewerage, or the water treatment process.
The new law also includes more precise rules for directing hazardous substances and other pollutants into public sewers. In addition, the new law provides more precise rules for measuring sewage and rainwater pollution. Also, more detailed requirements for evaluating the compliance of wastewater and rainwater will apply from July 1.
Read more about the new Public Water Supply and Sewerage Act HERE.
See also: Public Water Supply and Sewerage Act
The owners of wind farms must pay a fee for the production of electricity
On July 1, the amendments to the Environmental Charges Act also come into force, according to which the owners of wind power plants or persons entitled to use them must pay local governments and, in certain cases, also fishing companies a fee upon production of electricity from wind energy.
The fee rate for the production of electricity from wind energy at an onshore wind farm is between 0.7 and 1 percent of the product of the following two indicators: first, the amount of electricity produced at the wind farm per quarter of the year in megawatt hours, but not less than 70% of the nominal capacity of the wind farm multiplied by 3,000, and second, the corresponding arithmetic average exchange price of electricity in the next-day market of the Estonian price area for the relevant quarter of the year. The fee rate shall be adopted by the local government.
In the case of a wind power plant located on land, the fee must be paid to the local government in whose territory the plant is located. In the case of a wind power plant located in the sea, the fee must be paid to the local government located in the area of influence of the offshore wind farm, and in the case of a decrease in fish catch caused by the wind power plant, to the relevant fishing company.
The new fee shall apply to owners of wind farms who start the construction activities related to their wind farm or start their electricity production after July 1, 2023.
Read more about the changes to the Environmental Charges Act HERE.
See also: Environmental Charges Act
The payment period of the unemployment insurance benefit will depend on the number of unemployed
On June 30, amendments to the Unemployment Insurance Act will enter into force, according to which the payment period of unemployment insurance benefits will depend on the number of registered employees, in addition to the length of the person’s insurance period. If the unemployment rate is high, the payment period of the unemployment insurance benefit will be longer, and if unemployment is low, the benefit’s payment period will be shorter.
The main purpose of the changes is to increase the flexibility of the unemployment insurance benefit system and to offer greater social protection to the unemployed in a more difficult labour market situation, as well as to promote the faster return of the unemployed to the labour market in better economic times.
Read more about the changes related to unemployment insurance benefits HERE.
See also: Unemployment Insurance Act
If you have any questions about the legislation coming into force on July 1, please contact the Chamber’s lawyers at the e-mail address of juristid@koda.ee.