Estonia has long been one of the most technologically forward-thinking countries for entrepreneurs in the European Union (EU). Responsible for launching the world’s first e-residency system in 2014 to attract non-resident entrepreneurs, the small Baltic nation is an attractive proposition for business owners the world over.

But running any business means hiring the right team, and probation periods give both sides the opportunity to ensure the relationship is suitable for them. In this guide, we explore how probation periods work in Estonia and how its labor laws establish the rights and obligations of employers and employees alike.

Definition of a Probation Period in Estonia

Estonian law offers probation periods, known as “proovi aeg.” It’s a formal trial phase that allows employers to assess an employee’s abilities, including their knowledge, abilities, and suitability for the role, whereas employees get to assess their role and the workplace environment.

In Estonia, the Employment Contracts Act, known as “Töölepingu seadus” under Section 10, outlines probation periods. In Estonia, the standard probationary period is four months, but it can run up to eight months for a fixed-term contract, as long as they’re no longer than half of the contract term.

All probation periods should be explicitly stated in writing. Additionally, any probation periods longer than four months are unenforceable under Estonian law.

Lengths of Probationary Periods in Estonia

The maximum probation period in Estonia is four months. It applies to all employment contracts, regardless of role or qualifications required. Fixed-term employment contracts may be no more than half the stated contract length, but still not exceeding four months.

Under Estonian law, probation clauses must be provided in writing. If it isn’t included, it’s unenforceable, and employees will be viewed legally as holding an indefinite contract from day one of employment.

Permanent or Indefinite Contracts

Employees working under indefinite contracts can receive an initial assessment phase up to a maximum of four months. In Estonia, probationary employees continue to receive full employment rights, but they can be terminated simply by providing the minimum notice period of 15 calendar days.

Should the worker continue working after their probationary period, it’s considered to be a successful probation phase, and so they will be classified as a permanent employee under the law. No extra action needs to be taken to convert a probationary employee into an indefinite one.

Fixed-Term or Definite Contracts

Combatting excessively long trial periods on short-term contracts is done by not allowing probation periods to exceed half the length of a fixed-term employment contract. It means that if a worker is on a six-month contract, their probation can’t be longer than three months.

In any case, probation periods still cannot exceed the standard four months. Plus, probation can’t be reapplied if an employee signs another fixed-term contract or is rehired within a short space of time for the same role.

Legal Considerations for Probation Periods in Estonia

The Employment Contracts Act (Töölepingu seadus), specifically Section 10, is the primary piece of legislation governing employment contracts and probation periods. The labor courts will then interpret these laws in cases of dispute.

Note that the purpose of this part of the law behooves employers to enter into probation periods with good faith, rather than using it as a loophole for arbitrary dismissal.

Pay and Working Conditions

All probationary employees are entitled to the same legal rights and working conditions as everyone else. In Estonia, the Working Time and Rest Time Act sets the standard maximum workday at eight hours. Plus, any worker working at least six consecutive hours is entitled to a 30-minute, unpaid break. Night workers must receive 11 hours of consecutive rest every 24 hours or 48 hours of rest within every seven-day period.

 The Estonian national minimum wage is currently 886 Euros per month, or 5.31 Euros per hour. It was most recently increased in January 2025, after an agreement was signed between the Estonian Employers’ Confederation and the Estonian Trade Union Confederation.

 Employers and employees are obligated to contribute to a pension scheme. Under the terms of the compulsory accumulative pension scheme, employee contributions are set at 2% and employer contributions at 4%. 33% of the latter is also transferred directly to the employee’s individual pension account.

Termination and Notice

The law allows either party to terminate their employment by providing a notice period of 15 calendar days to comply with the law. However, termination must still be made without discrimination and cannot violate the ethical standards set by Estonian employment law.

In other words, employers must still comply with all anti-discrimination laws even when terminating a probationary employee.

Vacation / Holidays

Estonia boasts 12 national public holidays throughout the year, including Independence Day, Spring Day, and Victory Day. None of these holidays count towards an employee’s legal annual leave entitlement.

Under the law, all employees are entitled to 28 calendar days of annual leave after they have completed their first working day. For incomplete first years, leave entitlement will be calculated on a pro rata basis.

Essentially, Estonians who have completed a full work year are entitled to a total of 40 calendar days of the year (28 + 12). All leave periods are calculated in collaboration with the employer and employees. Employees are entitled to take 14 days consecutively unless agreed otherwise.

Benefits of Probation Periods in Estonia

Probation periods are designed for both sides to get a feel for each other’s suitability for the role. Interviews can only tell employers so much, which is why the law allows for formal probation periods for all employers and employees in the country.

  • For Employees

Employees can get a sense of what it’s like to work in a particular role for up to four months to decide whether it meets their expectations.

All employees are entitled to depart their roles with a notice period of 15 calendar days without being penalized.

Full employment rights and protections under Estonian law are available from day one of an employee’s probation period, including entitlements to the national minimum wage and pension contributions.

  • For Employers

Employers receive an opportunity to test out new hires for four months before deciding whether to proceed further with the relationship.

Employers may terminate an employee by providing a minimum notice period of 15 calendar days at any point during the probation period.

 

Employers know that they are protected under Estonian law on probationary periods, should any disputes occur regarding the termination of probationary workers.

Conclusion

Estonia boasts a favorable tax system and a digitized government system. It’s one of the most favorable places for people to do business due to the lack of bureaucracy and the ease of getting started, even for non-residents.

Despite this, Estonia still has firm protections for every type of worker, and the cost of violating local labor laws can be high. If your organization is looking to hire top talent in Estonia for the first time, turn to Remote People for the strategic advantage you need.

Our team plugs into your team to manage everything from hiring and onboarding to employment law compliance, so you can focus on growing your business. Schedule a consultation with one of our Estonia hiring consultants now to start your journey.

Frequently Asked Questions

Estonia doesn’t obligate companies to initiate probation periods for new hires. Some firms may choose to skip the probation period entirely. However, if employers want to incorporate probation periods, this must be stated in writing, or it’s legally unenforceable.

 

If a probation period isn’t included in writing, the law will view a new hire as an indefinite-term employee automatically, which gives them full rights pertaining to termination processes, from day one.

Indefinite-term employees can receive a maximum probation period of four months. Firms are entitled to opt for shorter probation periods if they so choose. Any probation phase lasting over four months is unenforceable under Estonian law.

 

In terms of fixed-term contracts for temporary, project-based, and seasonal work, the maximum probation period remains at four months. However, the length of the probation phase can’t exceed 50% of the total length of the contract. Again, if these limits are exceeded, probation becomes unenforceable under the law.

Employers are entitled to terminate at will if a worker is currently on probation. Unlike other countries, firms must still go through a formal process. The only requirement is that there must be a 15-day notice period for probationary employees, and the employer doesn’t want to proceed any further with them.

 

Additionally, probationary workers cannot be terminated on arbitrary or discriminatory grounds. If termination is challenged, employers must provide documentation that outlines their decision.

Probationary workers have the same rights and legal protections as all other workers from their very first day of work. That includes the right to the national minimum wage, minimum rest periods, compensation for public holidays, and contributions to the country’s social security system.

 

Since annual leave entitlements only kick in after a full working year, probation has no relevance to this right.