Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
INS Global is a local partner that seeks to provide international companies with global Human Resources outsourcing services.
A PEO (Professional Employer Organization) offers companies around the world a quick and safe way to expand their operations to overseas markets by taking charge of essential HR services. Through a PEO in Estonia, companies can hire and manage employees overseas in as little as 48h.
An Employer of Record (EOR) in Estonia provides companies with a cost-efficient and secure way to follow global expansion strategies by acting as the employer for oversees workers to simplify tax and compliance assurance responsibilities. For companies looking to boost their global mobility potential, INS Global’s EOR provides the perfect mix of experience and expertise in the international market.
With our PEO, you can establish your company, hire talented employees, and start operations in over 80 countries around the world, all without the inconveniences that traditionally come with global expansion.
A PEO has a team of legal specialists that understand the minute details of the local law and regulations and will make sure that you can be in complete legal compliance every step of the way.
Misunderstandings and mistakes with local regulations can lead to a surprisingly high occurrence of fees and fines. With the expert counsel of a PEO you can minimize and even all together avoid these errors
With a PEO taking care of your HR needs being taken care of, such as headhunting, payroll outsourcing, and contractor management, you will have more time to focus on your company goals and achieve market growth.
On average it takes 4-12 months for company incorporation in a new country.
With a PEO, you can begin operations in the new location in just 2-5 days.
*Estimate
Your PEO partner offers full support for all of your HR needs, streamlining your communications and organizational duties into a single point of contact
Bringing your company into a new foreign market is not an easy process; it demands a legal and physical presence to begin operations. A Global PEO helps you to avoid these issues and any other potential setbacks by operating as a legal intermediary for essential HR services.
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
INS Global’s PEO in Estonia can be used to manage your employee recruitment or assignment needs in 4 all-inclusive steps:
After you’ve decided to bring your company to Estonia and want to make the most of a PEO agreement, you need to be sure that you understand the difference between PEOs and EORs. This way you’ll be able to choose the one that best fits your business needs:
Regardless of which one you prefer, INS Global offers both Professional Employer Organization and Employer of Record services in Estonia. Contact our team of experts today, or read this article to learn more about the specifics of these two services.
In Estonia any working agreement longer than two weeks must have a written contract. The contract should detail all of the employee’s duties and benefits. The contract language is Estonian and the currency should be in Euros.
Work contracts in Estonia typically are set for an unlimited period, unless the nature of the work is specified to be temporary, such as seasonal work. Probation periods cannot last longer than four months.
The notice time before terminating a contract with an employee ranges from 15 to 90 days, depending on how long the employee has been with the company.
Severance pay is usually one month of salary; if an employee has worked for 5-10 years for the employer, they will receive an additional month. For employees who have worked for over 10 years their severance pay includes two additional months.
A five-day, 40-hour working week is the norm in Estonia. Any work that is beyond 8 hours a day is counted as overtime, and must be compensated at 150% more than the regular wages.
Overtime work done at night (between 10 pm to 6 am) is compensated at 125%. Including overtime hours, a worker cannot be expected to work more than 13 hours in a single day. In one week the number of working hours may not exceed 48.
There are 12 days of paid public holidays each year in Estonia. If an employee is asked to work on one of these holidays, it entitled them to an additional 200% of their usual wage.
Employees receive 28 days of paid vacation time per year. Unused vacation time may be carried over. The leave may be split and taken in increments of 14 days. Employers can stipulate that employees take no less than 7 consecutive days of leave.
Sick leave in Estonia is paid by both the employer and the state. The first three days of sick leave are unpaid; afterwards, from the fourth to the eighth day, the employer will compensate the employee with 70% of their salary.
From the ninth day and forward to a maximum of 128 days, the state covers the paid sick leave at 70% of the social security tax paid by the employee the year before.
Maternity leave in Estonia is 140 days, or 20 weeks. These days of paid leave are covered by the state.
Paid paternity leave is a total of 10 days, and also covered by the state.
Adoptive parents are entitled to 70 days of paid leave if they are adopting a child under 10 years of age, and have received approval of adoption from the court.
Annual parental leave is 3 days for those with 2 or less children under the age of 14, and 6 days for those with 3 or more children under the age of 14. Before a child turns 3 years old parents, step-parents, and guardians are entitled to a total of 435 days of paid parental leave. All paid parental leave is covered by the state.
Income tax in Estonia is 20%; corporate tax is the same percentage, but may vary depending on specific situations. Employers in Estonia are also expected to pay taxes towards employee benefits:
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
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