Employer of Record (EOR) in Estonia
Use Native Teams’ EOR services to hire, onboard, and pay talent in Estonia. We eliminate the need for a legal entity, enabling quick market entry.
How does an EOR in Estonia work?
The traditional way of hiring employees beyond borders necessitates opening a legal entity in the country — which is also the case for Estonia. This entails obtaining a tax number from authorities, opening physical offices, and meeting other mandatory requirements. The whole process can take up to a year to complete and might significantly drain your budget.
Native Teams has legal entities across 85+ countries, so you don’t have to spend time or money opening ones yourself. We act as the legal employer of your employees while you manage their day-to-day work. The only thing that you’ll have to do is make payments for our services.
Who can use EOR services in Estonia?
Any company which has set its efforts towards hiring employees in Estonia can benefit from EOR services. This includes startups that need to scale their headcount fast, mid-size companies whose paperwork needs to be offloaded, or large enterprises that need all-in-one services. No matter your size, we’re at your service for compliant global expansion.
We work in the background, handling tedious HR tasks such as crafting employment contracts, running a global payroll, managing social security contributions, and more. In that way, you can expand in Estonia without worrying about legal compliance.
Features of Native Teams EOR services in Estonia
Employment status
By employing Native Teams to recruit fresh staff members, you can be assured that they will be officially hired within our organisation and will be provided with an agreement that completely adheres to the employment laws and rules of Estonia.
HR administration and documentation
We will enhance and streamline all HR administrative tasks, ensuring that your employees' documents are safely stored in your Native Teams dashboard and granting you convenient one-click entry to essential data.
Global payroll
Dealing with the complexities of calculating salaries, taxes, perks, and deductions for your worldwide staff can pose difficulties. Our payroll calculators present an easy-to-use answer, enabling you to handle payroll for all your global personnel using a cohesive system, significantly streamlining the procedure.
Benefits
We guarantee that your newly onboarded employee obtains all essential advantages, which include healthcare, insurance, and retirement provisions. Additionally, you have the option to provide them with added perks like gym memberships and well-being choices!
Learn more about labour laws in Estonia by checking out our hiring guide
What legal requirements exist for employment in Estonia
Employment contract
Employees must receive a written employment contract which specifies the terms and conditions of employment.
Minimum wage
Employees must be paid at least the minimum wage that’s set by law.
Social security contributions
Employers have to deduct a certain amount of their employees’ salary for social security contributions, like pension, health insurance, and parental insurance.
Tax withholding
Employers are responsible for withholding income tax from their employees’ salaries and remitting it to tax authorities on behalf of the employees.
Employment registration
Employers must register their employees with the Estonian Tax and Customs Board and comply with reporting obligations.
Health and safety regulations
Employees must perform their duties in a safe and healthy working environment that complies with health and safety regulations in Estonia.
Please note that all these requirements may vary depending on the job type, the employer and individual circumstances.
Why choose Native Teams as your Estonia Employer of Record?
Native Teams is your one-stop shop for managing employment and payments in Estonia. Our legal entities across 85+ countries allow you to hire talent quickly without any hassle. We fast-track the onboarding process and manage admin tasks compliantly. Plus, with our legal expertise you can rest assured that your global expansion hits all the compliance marks.
``What is an Employer of Record?
An Employer of Record (EOR) is a third-party organisation that acts as the legal employer for your team on behalf of your company. In other words, an EOR provider employs your team through their legal entities and takes on administrative and compliance responsibilities, such as payroll processing, tax withholding, benefits administration, and ensuring adherence to local labour laws.
What are the costs of using an Employer of Record in Estonia?
The costs of using an EOR provider in Estonia can vary based on factors such as the EOR provider you choose, the number of employees you wish to hire, and the range of services your business needs.
Native Teams, a trusted EOR provider in over 85 countries, offers flexible pricing that can be tailored to your specific needs. To learn more about our pricing, please visit our pricing page.
What is the difference between PEO and EOR?
EOR providers take on the role of legal employers for your company, assuming full responsibility for employment management, payroll processing, benefits administration, tax withholding, and compliance with local laws. EORs are ideal for companies that wish to hire in foreign countries but lack a legal entity there.
PEO providers, on the other hand, share some of these responsibilities (like payroll and benefits), but the client company remains the legal employer and shares responsibility for compliance and employment management. PEOs are best for businesses with their own legal entities in the hiring countries that need assistance with HR operations.
What are the responsibilities of an Employer of Record (EOR)?
The EOR provider’s primary responsibility is being the legal employer for your team members in their country of residence. They employ your staff through their legal entities, handling tasks such as employment contracts, payroll, benefits administration, compliance with labour laws, and other HR-related duties. This allows your company to focus on its core business while the EOR takes care of employment-related tasks.
Is using an Employer of Record in Estonia legal?
Yes, using EOR services in Estonia is entirely legal. In fact, one of the EOR’s key responsibilities is ensuring that clients comply with local labour laws. By partnering with Native Teams, you can hire talent in over 85 countries, including Estonia, with confidence that employment law compliance is being managed professionally.
Why should I use EOR instead of opening my own company or office in Estonia?
Setting up your own company or office in Estonia can be a complex and resource-intensive process. It involves registering with local authorities, obtaining a tax number, setting up a business bank account, and securing office space before you can even hire employees.
With an EOR, you can bypass these steps and hire directly through the provider’s legal entities in Estonia, ensuring compliance with all local laws while avoiding the administrative burden. The EOR takes care of employment management, payroll, taxes, and compliance, so you can focus on hiring the best talent without the hassle.
How many people can I employ in Estonia?
There is no limit to the number of employees you can hire in Estonia. With Native Teams’ EOR services, you can employ as many people as you need, whether you’re expanding your team locally or globally.