Overtime Compensation Rules in Estonia
In Estonia, overtime is strictly regulated by the Employment Contracts Act (TLS). According to § 44 (1), overtime is work performed by an employee in excess of the agreed working time. Overtime is considered an exception and must be agreed upon between the employer and the employee.
How is Overtime Compensated?
Pursuant to § 44 (7) of the TLS, overtime is primarily compensated by time off equal to the duration of the overtime work. This means that for every hour of overtime worked, the employee is entitled to one hour of paid time off during their regular working hours.
If the parties have not agreed on providing time off, the employer must compensate the overtime in monetary form. In this case, the employer is required to pay 1.5 times the employee's wage. This is a statutory minimum, and any agreement to pay less is void.
Key Considerations
- Summed Working Time: In cases of summed working time, overtime is calculated at the end of the accounting period. Overtime consists of hours exceeding the total agreed working time for that period.
- Mutual Agreement: Overtime work requires a mutual agreement. Exceptions apply only in emergency situations, such as preventing accidents or force majeure (§ 44 (2)).
- Legal Limits: Employers must ensure that overtime does not exceed legal limits, guaranteeing the employee sufficient rest periods.
If you believe your overtime has not been compensated correctly or you require a detailed analysis of your specific employment contract, do not hesitate to contact us. The experts at Legal Aid 24 are here to support you. Ask our advanced legal AI assistant for a personalized analysis of your situation today!