Estonia, Law and Regulations, Legislation, Markets and Companies

The confederation stated that entrepreneurs have worked hard to maintain jobs, hoping for the quick entry into force of the new Labour Contract Act, limiting significantly the already high level of unemployment rate and the spending of the Unemployment Insurance Fund. The organisation noted that postponing the implementation of this new law would certainly bring about an extensive wave of bankruptcies as reserves for paying redundancy compensations have been spent on wages and taxes.

"Many think that a wave of bankruptcies could be the fastest way to reach the bottom of the economic decline, but its impact on the employment rate would be brutal. In postponing the new Labour Contract Act, Estonia might be threatened by the level of unemployment of 25%," said the head of the Confederation of Employers Tarmo Kriis.

He added that in postponing the law, small enterprises would end up in a particularly difficult position.

The employers' organisation is of the opinion that in order to avoid multiplying the unemployment insurance tax calculated from the wages of employees, the situation should be assessed realistically and measures should be adopted to avoid the insolvency of the Unemployment Insurance Fund.