Nuances of Employment Contract Conclusion

17 February, 2025

Decision by the Supreme Court of Estonia have clarified disputes regarding the validity of employment contracts. In particular, decision No. 3-2-1-45-22 highlights that an employment contract may be considered concluded even if the employer has not signed the document, if the employee:

✅ Signed the contract and started working, but the employer did not complete the paperwork properly.
✅ Was ready to start work, but the employer refused to formalize the agreement in writing.

💡 Important! Even if the contract is not signed, it does not mean it is invalid. Court practice shows that actual employment relationships are the determining factor.

Why is a Written Contract Important?

📌 Prevents disputes – clearly documented terms protect both parties.
📌 Ensures rights – the contract specifies salary, working hours, and responsibilities.
📌 Serves as legal protection – written evidence is crucial in case of conflicts.

⚠ Lack of a written contract can lead to problems such as:
❌ Disagreements over wages.
❌ Difficulty proving working conditions.
❌ Insufficient legal protection for employees.

Learn more about employee rights.

Recommendations for Employers and Employees

🔹 For Employers:
✔ Always draft and sign employment contracts before the employee starts working.
✔ Ensure the employee fully understands the terms and agrees to them.

🔹 For Employees:
✔ Always request a written contract before starting work.
✔ Keep records of any verbal agreements via email or other written forms.

📌 Remember: as soon as an employee starts working and the employer accepts their performance, an employment relationship is legally established.

Official employment contract requirements.

Is Your Employment Contract Still Valid? Check It Now!

📢 Employment laws change over time! If your contract was signed years ago, it may no longer comply with current Estonian labor regulations.

🔎 Review your contract today to ensure it meets the latest legal standards. This will help you avoid potential disputes and safeguard your rights.

Conclusion

Court practice confirms that even if an employment contract is not signed, employment relationships can still be legally recognized. However, having a written contract is essential to protect both employees and employers and to prevent legal disputes.

Want to learn more? Check the official regulations in the Estonian Labor Code.

📢 Share this information! It may help someone protect their employment rights.

 

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