Background information

In 2020, a couple of changes were made in the Labour Market Services and Benefits Act due to the social protection of the unemployed being insufficient to avoid poverty.

The change aimed at ensuring sufficient financial support for the unemployed during the period of unemployment, which does not create an unemployment trap and motivates the unemployed to return to the labor market. One of the measures in the package includes temporary employment during unemployment period, which allows the unemployed to keep a connection with the labour market and work habit as well as continuously use their skills and thus avoid long-term unemployment.

Content of measure

Previously, every activity that generated income for registered unemployed (e.g., one-time paid lecture or published article, a few hours of platform work, etc.) terminated their unemployment status, lost their unemployment benefits and they had to register as unemployed again.

Now is possible for people registered as unemployed to be temporarily employed while looking for a full-time job, without their registration as unemployed and payment of benefits terminating due to employment.

Temporary employment is allowed for up to eight days per calendar month on the basis of an employment contract, contract under the law of obligations (i.e., service agreement) or in civil service. The contract duration cannot thus be longer than eight calendar days. Gross wage cannot be higher than 40% of the monthly national minimum wage (€261.6 in 2022). Temporary working is allowed a total of 12 months during a 24-month-period.

Remuneration for temporary employment is not included in income when paying unemployment benefits, but at the same time the temporary work is not included in the unemployment insurance period.

Use of measure

Between September 2020 - August 2022 (i.e. in the first two years), 17,000 individuals used the opportunity to work temporarily during registered unemployment, which is around 3% of all unemployed.

On average, people worked 4.1 days per month and the average pay was €149 per month. Most temporary employments were recorded in service and commerce sectors, followed by catering, accommodation, cleaning and construction. Data shows temporary working during unemployment is most common among young women.

Target groups

Workers	Businesses	Citizens
Unemployed	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations Public employment service	No special funding required

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Consultation through tripartite or bipartite social dialogue bodies	Consultation through tripartite or bipartite social dialogue bodies

Social partners' role in the implementation, monitoring and assessment phase:

• Unknown
• Main level of involvement: Unknown

Involvement

The peak-level social partners (Estonian Trade Union Confederation and the Estonian Employers Confederation) are part of the Estonian Unemployment Insurance Fund's council. The measure was discussed in the council meetings several times.

In addition, the Ministry of Social Affairs discussed the draft law with the peak-level social partners as well as some other topic-related social partners in a meeting.

The draft law was also circulated among stakeholders, including the social partners, to gather feedback.

Views and reactions

Estonian Employment Confederation has been critical of the conditions of the measure, citing that they do not correspond to the needs of employers.

A few specific proposals by social partners include:

• The Estonian Sharing Economy Association poposed to increase the temporary work days per month from five to eight days, which was supported by the policy makers.
• The Estonian Trade Union Confederation poposed to increase the allowed income threshold to 50% of the national minimum wage, which was not supported.

Sources

• 01 June 2020: Seaduseelnõu seletuskiri (Explanatory note of the draft act) (www.riigikogu.ee)
• 16 June 2020: Seaduseelnõu teise lugemise seletuskiri (Explanatory note of the second reading of the draft act) (www.riigikogu.ee)
• 01 September 2020: Töötukassa: Ajutine töötamine arveloleku ajal (Unemployment Insurance Fund: temporary working during unemployment) (www.tootukassa.ee)
• 23 September 2021: Ülevaade töötukassa tööampsudest: kuidas inimesed uuenduse vastu võtsid? Loe pikemalt Äripäeva veebist: https://www.aripaev.ee/sisuturundus/2021/09/23/ulevaade-tootukassa-tooampsudest-kuidas-inimesed-uuenduse-vastu-votsid? (Overview of the use of temporary employment) (www.aripaev.ee)
• 02 September 2022: Ajutine töötamine arveloleku ajal: ülevaade (www.tootukassa.ee)
• 22 October 2023: Jäik tööõigus paneb sama töötajat kaheksa korda tööle (Rigid labor law causes the same employee to be hired eight times) (employers.ee)