Employment contract in Estonia: what it must contain and your basic rights

By Ero Liivik, lawyer (jurist) at Erovik Law Office · Updated 2 November 2026

In general, every employment contract in Estonia is governed by the Employment Contracts Act (TLS), and a term that is worse for the employee than the Act is void unless the Act itself allows it (TLS § 2). The contract must be in writing and contain at least 14 items of information, and fixed terms, overtime and non-compete clauses are valid only within set limits.

Key points

• If work can be expected only for pay, the law presumes an employment contract (TLS § 1(2)).
• Written form is required, but employment without a written contract is still valid (TLS § 4).
• Contracts are presumed open-ended; a fixed term of up to five years needs a reason linked to temporary work (TLS § 9).
• Full time is presumed to be 40 hours a week; overtime is compensated with equal time off or, if agreed, 1.5 times pay (TLS §§ 43, 44).
• Rest: as a rule, at least 11 hours a day and 48 hours a week, or 36 with summarised working time (TLS §§ 51, 52).
• A non-compete after the job ends must be in writing, last no more than one year and be paid for monthly (TLS § 24).

Employment contract or service contract?

Under an employment contract (tööleping), a person works for an employer under its management and control and is paid for it (TLS § 1(1)). Some employers use a service or contractor agreement under the Law of Obligations Act (võlaõiguslik leping) instead. However, if the work can be expected only for pay, the law presumes an employment contract (TLS § 1(2)). The rules on employment contracts do not apply if the person is substantially independent in choosing how, when and where to work (TLS § 1(4)). They also do not apply to a management board member’s contract (TLS § 1(5)), which matters for e-residents running their own OÜ.

If the relationship is in fact employment, the employee has the rights under the Act, such as paid holiday and protection against dismissal. The employer must also register the start of work in the employment register (töötamise register) no later than the moment the person starts working (§ 25²(3) of the Taxation Act (MKS)).

Written form and required information

The contract must be in writing (TLS § 4(2)), that is, signed by hand or with a digital signature (§§ 78 and 80 of the General Part of the Civil Code Act (TsÜS)), unless it lasts no more than two weeks (TLS § 4(5)). A missing written contract does not make the employment void (TLS § 4(4)).

The written contract must state at least (TLS § 5(1)):

• the parties’ names, codes and addresses, the date of the contract and the start date;
• the duties, and the job title if it has legal effect;
• the pay, how it is calculated and paid, the payday, and the taxes and contributions withheld and paid;
• agreed training and other benefits;
• working time, place of work and the length of basic holiday;
• a reference to the rules on termination (form, reasons and notice), the employer’s work rules, any collective agreement and overtime;
• the length of probation.

Information not given before work starts must be given within seven calendar days of the start, and changes in writing no later than the day they take effect (TLS § 5(3), (4)). Extra information is required, for example, for a fixed term (its length and reason), a non-compete or confidentiality obligation, remote work, temporary agency work and work abroad for more than a month (TLS § 6). If a fixed term, non-compete, remote work or agency work was not notified in writing, it is presumed not to have been agreed (TLS § 6(9)).

Before the job interview, the employer must state the pay or pay range in a form that can be reproduced in writing, and it may not ask about your previous or current pay (TLS § 11(2¹), (2²)).

Fixed-term contracts

A contract is presumed to be open-ended. A fixed-term contract (tähtajaline tööleping) may be made for up to five years if good reasons arising from the temporary nature of the work justify it, such as a temporary increase in workload or seasonal work (TLS § 9(1)). A contract to replace an absent employee may run for the period of absence (TLS § 9(2)). Limits:

• except for replacement contracts, more than two consecutive fixed-term contracts for similar work, or more than one extension, within five years make the employment open-ended from the start; a gap of up to two months still counts as consecutive (TLS § 10(1));
• a fixed term agreed in breach of the law makes the contract open-ended from the start (TLS § 80(2));
• if the employee keeps working after the end date, the contract becomes open-ended unless the employer objects within five working days of learning of it (TLS § 80(3));
• an employee cannot end a fixed-term contract early by ordinary notice, except a replacement contract or during probation (TLS §§ 85(2), 86(1)).

Ending a contract is covered in our guide on termination of employment in Estonia.

Working time and overtime

• Full time is presumed to be 40 hours in seven days and 8 hours a day, unless part-time is agreed (TLS § 43(1)–(2)). Working time cannot be agreed as a range, such as 20–40 hours, except in a written flexible working time agreement (TLS §§ 43(1), 43³).
• Maximum: as a rule, on average 48 hours a week, including overtime, over a period of up to four months; by agreement up to 52 hours on average, which the employee can cancel at any time with two weeks’ notice (TLS § 46(1), (3)).
• Overtime (ületunnitöö) needs an agreement. In good faith, the employer may require it for unforeseen reasons, for example to prevent damage, but not from minors, pregnant employees or those entitled to maternity leave. It is compensated with equal time off, or 1.5 times pay if money was agreed (TLS § 44).
• Night work and public holidays: 1.25 times pay between 22:00 and 6:00 unless the pay already includes it, and double pay on public holidays; extra time off may be agreed instead (TLS § 45).

The employer must keep working time records (TLS § 28(2) point 4).

Rest, breaks and holiday

• Daily rest: as a rule, at least 11 consecutive hours in every 24 (TLS § 51(1)). Hours worked beyond 13 in 24 hours must be given back as time off immediately afterwards, not paid out (TLS § 51(5)).
• Weekly rest: at least 48 consecutive hours in seven days, or 36 with summarised working time, presumed to be Saturday and Sunday (TLS § 52).
• Breaks: at least 30 minutes when working more than six hours, normally not counted as working time (TLS § 47(2)).
• Holiday: 28 calendar days a year unless more is agreed or provided by law, for example 35 for minors; public holidays are not counted (TLS §§ 54(3), 55, 56). See our guide on holiday pay in Estonia.

Probation

Probation (katseaeg) lasts four months from the first day of work unless the contract shortens or excludes it, and either party may terminate during it with at least 15 calendar days’ notice (TLS §§ 10¹, 86, 96). See our probation period guide.

Non-compete agreements

Without a non-compete agreement (konkurentsipiirangu kokkulepe), the employer cannot forbid you to work for another employer (TLS § 23(1)). A non-compete is void unless it is needed to protect the employer’s special economic interest, for example because your job gives you access to its clients or trade secrets, and is reasonably limited in territory, time and subject matter (TLS § 23(2)–(4)). One that applies after the employment ends must also (TLS § 24(1), (3)):

• be in writing;
• last no more than one year from the end of employment;
• come with reasonable monthly compensation.

The employer may cancel a non-compete at any time with 30 calendar days’ notice. The employee may cancel it with 15 days’ notice if the employer’s interest is no longer reasonable, or within 30 days of resigning because of the employer’s material breach (TLS § 25). A contractual penalty may be agreed (TLS § 26).

Changing the contract

The contract can be changed only by agreement (TLS § 12). The employer may change start and end times and breaks only if business needs require it and the change is reasonable for both sides (TLS § 47(4)). You may ask for different conditions, such as an open-ended or full-time contract; a refusal must be reasoned in a form that can be reproduced in writing within 14 calendar days (TLS § 18¹(2)).

Where disputes go

An individual employment dispute goes to the Labour Dispute Committee (töövaidluskomisjon) at the Labour Inspectorate, which charges no state fee, or to a court (§§ 2, 4 and 15 of the Labour Dispute Resolution Act (TvLS)). Pay claims can be brought within three years of falling due, most other claims within four months of when you learned or should have learned of the breach, and a termination must be challenged within 30 calendar days of receiving it (TLS §§ 3¹, 29(9), 105(1)). See our employment law page and unpaid salary guide.

Checklist before signing

1. Is it really employment, or a service contract for work that is in fact employment?
2. Are the items required by TLS § 5 there, especially gross pay, payday, working time and place of work?
3. For a fixed term: are the end date and the reason in writing?
4. Is remote work, agency work or work abroad stated where relevant?
5. Is probation no longer than four months, or half the term for a fixed-term contract of up to eight months (TLS § 10¹(3))?
6. Is any non-compete limited, in writing and, after the job ends, paid and no longer than a year?
7. Does a training cost clause meet the conditions: in writing, stating the training and its cost, with a commitment of no more than three years that is not unreasonably long (TLS § 34(2))?
8. Is the contract signed, and has the work been registered?

Frequently asked questions

Is an oral employment contract valid in Estonia?

Yes. Breaching the written form does not make the contract void, and a contract is deemed concluded once you start work that can be expected only for pay (TLS § 4(2), (4)). The employer must still give you the required information in writing.

How many hours is full time in Estonia?

40 hours in seven days, presumed 8 hours a day. As a rule, including overtime, the average may not exceed 48 hours a week over up to four months (TLS §§ 43, 46).

Can my employer forbid a second job?

Only with a valid non-compete agreement (TLS § 23(1)). A duty to keep business secrets that the employer has set still applies (TLS § 22).

How Erovik Law Office can help

We review and amend employment contracts, including non-compete and training cost clauses, for employers, among them foreign companies hiring in Estonia, and check contracts for employees before they sign. Review of a contract starts from EUR 120. Employers may also read our guide on dismissing an employee in Estonia. See our fees and contact us.

This guide reflects Estonian law in force on 1 November 2026. It is general information, not legal advice for your situation.