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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case EE-2020-53/1645 – measures in Estonia

Compensation of employment costs in the Ida-Virumaa region

Tööjõukulude komensatsioon

Country Estonia , applies regionally

    • – EE001 Põhja-Eesti
      – EE007 Kirde-Eesti
Time period Temporary, 28 December 2020 – 28 February 2021
Type Legislations or other statutory regulations
Category Employment protection and retention
– Income support for people in employment (e.g. short-time work)
Author Ingel Kadarik (Praxis Center for Policy Studies) and Eurofound
Case created 04 January 2021 (updated 13 January 2021)

Background information

Ida-Virumaa, a north-eastern region in Estonia has had a higher rate of COVID-19 cases during the second wave compared to the rest of Estonia and thus additional, more severe containment measures were introduced there as of 12 December. This meant that for three weeks all entertainment facilities and leisure activities were forbidden: public events, cinemas, theatres, concert venues, museums, restaurants, sport clubs, pools, spas, accommodation facilities were closed, and the restrictions applied both indoors and outdoors. To support the region, as they suffered more than other areas in Estonia, the Government allocated additional finances to this region.

Content of measure

€16 million will be allocated to Ida-Virumaa and Harjumaa to compensate the wage of employees of the companies whose activities were restricted. The compensation will cover the period from 28 December 2020 to 17 January 2021.

Eligible are all companies, non-profit organisations, foundations and self-employed whose employees worked in Ida-Virumaa or Harjumaa at 22 December 2020 and whose activities correspond to the activities that were restricted.

The support is paid on the basis of the wage costs of November 2020, while the maximum amount is €180,000 per company. It can be applied for by the employers during February 2021 from the Estonian Unemployment Insurance Fund. The support offers a dismissal protection for the employees, as during a month from receiving the support, the employees cannot be dismissed.

Use of measure

No information available.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
Does not apply to citizens

Actors and funding

Actors Funding
National government
Trade unions
Employers' organisations
Public employment service
National funds

Social partners

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

Trade unions Employers' organisations
Role Negotiated Negotiated
Form Any other form of consultation, institutionalised (as stable working groups or committees) or informal Any other form of consultation, institutionalised (as stable working groups or committees) or informal

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

  • No involvement
  • Main level of involvement: Peak or cross-sectoral level

Involvement

Social partners are part of the council of the Estonian Unemployment Insurance Fund. The council discussed the measure and made the proposal to the Government. Thus, the social partners were directly involved in the discussions of this measure.

Views and reactions

No information available.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      R - Arts, Entertainment And Recreation R90 Creative, arts and entertainment activities
      R91 Libraries, archives, museums and other cultural activities
      R92 Gambling and betting activities
      R93 Sports activities and amusement and recreation activities

This case is not occupation-specific.

Sources

  • 30 December 2020: Second wave comepnsation measures (Valitsus kinnitas COVID-19 teise laine kahjude toetusmeetmed) (vv.valitsus.ee)

Citation

Eurofound (2021), Compensation of employment costs in the Ida-Virumaa region, case EE-2020-53/1645 (measures in Estonia), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.