Overtime and how it is compensated in Estonia

What is overtime and when do you have to work it?

Overtime is work the employee does beyond the agreed working time (TLS § 44 lg 1) [1]. Unless agreed otherwise, the employee is presumed to work 40 hours per seven-day period and 8 hours a day (TLS § 43 lg 1 and 2) [3]. For a part-time employee, overtime is work beyond the shorter working time agreed with them (TLS § 43 lg 1; TLS § 44 lg 1) [3] [1].

The employer and the employee agree on overtime (TLS § 44 lg 1) [1]. Without such an agreement, the employer may require overtime in good faith because of unforeseen circumstances related to its business or activities, „eelkõige kahju tekkimise ärahoidmiseks“ [1] (translation: in particular to prevent damage; TLS § 44 lg 4).

In some cases overtime is ruled out:

• an overtime agreement with a minor is void (TLS § 44 lg 2) [1];
• an overtime agreement is also void with an employee exposed to a hazard in the working environment whose working time has been shortened by law for that reason (TLS § 44 lg 3) [1];
• overtime because of unforeseen circumstances cannot be required from a minor, a pregnant employee or an employee entitled to maternity leave (emapuhkus) (TLS § 44 lg 5) [1].

The written employment contract document must refer to the procedure for working and compensating overtime (TLS § 5 lg 1 p 13) [4].

How is overtime compensated?

The basic rule is time off: the employer compensates overtime with time off equal to the overtime worked, unless payment in money has been agreed (TLS § 44 lg 6) [1]. When overtime is compensated in money, the employer pays the employee 1.5 times the wage (TLS § 44 lg 7) [1].

Separate supplements apply to night work and work on public holidays. If working time falls at night (22.00 to 6.00), the employer pays 1.25 times the wage, unless it has been agreed that the wage includes pay for night work; for work on a public holiday the employer pays twice the wage (2-kordne töötasu) (TLS § 45 lg 1 and 2) [5]. The employer and the employee may agree to compensate night or public holiday work with additional time off (TLS § 45 lg 3) [5].

A claim for wages must be filed within three years of the wage becoming due (TLS § 29 lg 9) [6].

How much may you work in total?

• General limit. Total working time may not exceed an average of 48 hours per seven-day period over a reference period of up to four months, unless the law sets a different reference period (TLS § 46 lg 1) [2]. For health care, social welfare, agricultural, road maintenance and tourism workers, the reference period may be extended to up to 12 months by a collective agreement (TLS § 46 lg 2) [2].
• Individual agreement. The employer and the employee may agree on longer working time if total working time does not exceed an average of 52 hours per seven-day period over a four-month reference period and the agreement does not unreasonably harm the employee; the employee may terminate such an agreement at any time with two weeks' notice (TLS § 46 lg 3) [2]. The employer keeps a separate record of these employees (TLS § 46 lg 5) [2]; failing to keep it is punishable, for a legal person, by a fine of up to 32 000 euros (TLS § 123 lg 2) [7].
• Daily rest. An agreement leaving the employee less than 11 consecutive hours of rest within a 24-hour period is void, unless the law provides otherwise (TLS § 51 lg 1) [8]. If the employee works more than 13 hours within a 24-hour period, the employer grants additional time off immediately after the end of the working day equal to the number of hours worked beyond 13; an agreement to compensate such work in money is void (TLS § 51 lg 5) [8].
• Weekly rest. An agreement leaving the employee less than 48 consecutive hours of rest within a seven-day period is void; with summarised working time the limit is 36 hours, unless the law provides otherwise (TLS § 52 lg 1 and 2) [9].

How is overtime counted with summarised working time?

With summarised working time (summeeritud tööaeg), the agreed working time is counted per seven-day period over the reference period (TLS § 43 lg 3) [3]. Overtime is then the work exceeding the agreed working time at the end of the reference period (TLS § 44 lg 1) [1]: the number of overtime hours follows from the hours of the whole reference period, not from a single long day. Where summarised working time is agreed, the employer must inform the employee of the conditions for announcing and changing the work schedule (TLS § 6 lg 6) [10]. The employer must keep a record of working time in any case (TLS § 28 lg 2 p 4) [11].

The Supreme Court (Riigikohus) has explained that with summarised working time, to establish overtime, the agreed working time is reduced only by temporary incapacity for work falling on working time; incapacity falling on days off in the schedule does not reduce the agreed working time (RK 3-2-1-143-15) [12]. Working time falling on the national holiday or public holidays does not reduce the agreed working time, and only working time exceeding the agreed working time at the end of the reference period counts as overtime (RK 3-2-1-69-17) [13].

What the law says

• „Tööandja ja töötaja võivad kokku leppida, et töötaja kohustub tegema tööd üle kokkulepitud tööaja (ületunnitöö).“ [1] (translation: the employer and the employee may agree that the employee undertakes to work beyond the agreed working time (overtime); TLS § 44 lg 1) – overtime is based on agreement.
• „Summeeritud tööaja arvestuse korral on ületunnitöö kokkulepitud tööaega ületav töö arvestusperioodi lõpul.“ [1] (translation: with summarised working time, overtime is the work exceeding the agreed working time at the end of the reference period; TLS § 44 lg 1).
• „Tööandja hüvitab ületunnitöö vaba ajaga ületunnitöö ajaga võrdses ulatuses, kui ei ole kokku lepitud ületunnitöö hüvitamist rahas.“ [1] (translation: the employer compensates overtime with time off equal to the overtime worked, unless payment in money has been agreed; TLS § 44 lg 6).
• „Ületunnitöö hüvitamisel rahas maksab tööandja töötajale 1,5-kordset töötasu.“ [1] (translation: when compensating overtime in money, the employer pays the employee 1.5 times the wage; TLS § 44 lg 7).
• „Tööaeg kokku ei tohi ületada keskmiselt 48 tundi seitsmepäevase ajavahemiku kohta kuni neljakuulise arvestusperioodi jooksul“ [2] (translation: total working time may not exceed an average of 48 hours per seven-day period over a reference period of up to four months; TLS § 46 lg 1) – this caps normal working time and overtime together.

What to do

1. Check the working time agreed in your employment contract and the reference to the procedure for overtime and its compensation (TLS § 5 lg 1 p 7 and 13) [4].
2. Write down your working hours and ask the employer for the working time record – the employer is obliged to keep it (TLS § 28 lg 2 p 4) [11]; on your request it must also give you information on the wages calculated and paid to you (TLS § 28 lg 2 p 12) [11].
3. With summarised working time, compare the hours worked at the end of the reference period with the agreed working time (TLS § 44 lg 1) [1].
4. If payment in money has not been agreed, ask for time off equal to the overtime; if it has, check that you were paid 1.5 times the wage (TLS § 44 lg 6 and 7) [1].
5. If the employer does not compensate, file a claim with the labour dispute committee (töövaidluskomisjon) or a court – a claim for wages must be filed within three years of the wage becoming due (TLS § 29 lg 9) [6]. Applying to the labour dispute committee is free of state fees (riigilõivuvaba) under the Labour Dispute Resolution Act (töövaidluse lahendamise seadus, TvLS) (TvLS § 15) [14].

Frequently asked questions

Can I refuse to work overtime?

Overtime is based on agreement (TLS § 44 lg 1) [1]. Without an agreement the employer may require it in good faith because of unforeseen circumstances (TLS § 44 lg 4) [1], but not from a minor, a pregnant employee or an employee entitled to maternity leave (TLS § 44 lg 5) [1]. Under an agreement on longer working time (TLS § 46 lg 3) [2], the employee has the right to refuse overtime under that agreement, and the labour inspector may prohibit or restrict overtime, if the employer does not meet the conditions set in lg 3 (an average of no more than 52 hours, an agreement not unreasonably harmful to the employee) or occupational health and safety requirements (TLS § 46 lg 4) [2].

Can the employer pay the same rate for overtime as for normal work?

No. If overtime is compensated in money, the employer pays 1.5 times the wage (TLS § 44 lg 7) [1]. An agreement deviating from the law to the employee's detriment is void, unless the law itself allows such an agreement (TLS § 2) [15].

Can overtime be compensated with time off?

Yes, that is the default: time off is given equal to the overtime worked, unless payment in money has been agreed (TLS § 44 lg 6) [1].

Is work on a public holiday overtime?

Not by itself. Work on a public holiday is paid at twice the wage (TLS § 45 lg 2) [5]. According to the Supreme Court, with summarised working time only working time exceeding the agreed working time at the end of the reference period counts as overtime (RK 3-2-1-69-17) [13].

What if I work under a flexible working time agreement?

If the employee works beyond the agreed working hours and additional hours, the overtime rules apply (TLS § 43³ lg 5) [16]. The employee has the right to refuse additional hours (TLS § 43³ lg 6) [16].