- The most common violations include cases where an Estonian company employs a foreigner who is lawfully staying in Estonia, but fails to register the employment at the Police and Border Guard Board and does not pay at least the required average Estonian salary and labour taxes.
- Even if one person’s short-term employment is not registered and the Estonian labour taxes are not paid, the state loses 5,188 euros in tax revenue a year.
- According to various assessments, there are between 1,000 and 5,000 foreigners who violate the requirements for working in Estonia. We can talk more accurately about the number of violations: in 2017, misdemeanour punishments were imposed on 382 foreigners, in 2018 on 182 and in 2019 on 122 for violating the requirements for working in Estonia. Six years ago, or in 2013 the number was 68.
- The state has also discovered an increasing number of violations by employers. While misdemeanour punishments were imposed on 39 employers due to the illegal employment of foreigners in 2013, in 2019 the number was 219.
Illegal employment violations by employers for 2013–2018
Source: Police and Border Guard Board
Overview of activities:
- Future plans include simplifying the exchange of information between institutions and for companies. To that end, the idea of a common registration environment for foreign employees is being developed. Currently, the Police and Border Guard Board, the Tax and Customs Board and the Labour Inspectorate gather various data.
- The plan is also to simplify the documentation related to employing a foreigner and to hold information days, and prepare information materials for employers and job intermediaries.
- With the formerly applicable rates of fines, violators that were fined still saved more by not paying taxes. The amendment to the Aliens Act that entered into force on 15 July 2018 increased the maximum monetary fine tenfold for employers who are legal persons and use illegal labour. While the former maximum rate was 3,200 euros, the new maximum is 32,000 euros.
Violations of employment in Estonia by foreigners in 2018, by counties
Source: Police and Border Guard Board
- Since 15 July 2018, there is an obligation to exclude a participant from public procurement proceedings, if the participant is a company that has been punished for facilitating a violation of the requirements for foreigners working in Estonia. In the case of public contracts for construction works, sub-contractors have to be replaced or another way to perform the work must be found, if the sub-contractors have not complied with the rules for the employment of foreigners. Possibilities are created for prohibiting the economic operation of companies that consistently employ foreigners in violation of legal acts.
- Since 15 August 2018, with regard to employees sent on assignment to Estonia, employers are obligated to submit data concerning the assignment to the Labour Inspectorate before the employee commences work. Currently, this has to be done on the first day of work. Since the same date, there is an obligation to register short-term employment if the foreigner is working in Estonia on the basis of a visa or residence permit issued by another Schengen Member State and is working for a company founded in another Member State. Before that date, the employment of such foreigners in Estonia did not have to be registered at the Police and Border Guard Board.
Violations of the employment of foreigners in Estonia for 2013–2018, by citizenship
Source: Police and Border Guard Board
Last updated: 11.09.2023
