Source: https://www.riigiteataja.ee/en/eli/ee/Riigikogu/act/504022019002/consolide
Timestamp: 2019-04-20 15:08:32+00:00

Document:
11.05.2017 RT I, 12.05.2017, 8 11.05.2017 - Judgment of Constitutional Review Chamber of Supreme Court declares clause 6 (5) 4) of the Labour Market Services and Benefits Act and clause 6 (1) 1) of the Unemployment Insurance Act to be in conflict with the Constitution and repeals said clauses to the extent that they exclude the payment of unemployment insurance benefits to insured persons specified in subsection 3 (1) of the Unemployment Insurance Act, who would have the right to receive unemployment insurance benefits pursuant to § 6 of the Unemployment Insurance Act, solely on the basis that the person is a member of the management board of a company, a procurator, a partner authorised to represent a general or limited partnership, the director of a branch of a foreign company or manager of another permanent establishment of a non-resident.
(1) This Act regulates the conditions and procedure for the grant and payment of benefits upon unemployment, lay-offs and insolvency of employers, the organisation of unemployment insurance and participation in the financing of labour market services and benefits, except unemployment allowance.
(2) This Act establishes a legal person in public law, the Estonian Unemployment Insurance Fund (hereinafter unemployment insurance fund) who shall perform the obligations arising from this Act, the Labour Market Services and Benefits Act, the Work Ability Allowance Act and other legislation.
(4) This Act applies in the cases provided for in an international agreement with the specifications arising from the international agreement.
Unemployment insurance is a type of compulsory insurance the purpose of which is to provide labour market services, pay labour market benefits, except unemployment allowance, provide, upon unemployment, partial compensation for the lost income to insured persons for the time of the search for work, compensation of the expenses related to the termination of employment contracts to employees and service relationships to officials in the case of lay-offs, and the protection of the claims of the employees upon insolvency of employers.
(1) For the purposes of this Act, an insured person is an employee, an official, a natural person providing services on the basis of a contract under the law of obligations, a Public Conciliator, a member of a rural municipality or city government, a rural municipality or city district elder, a non-working spouse accompanying an official on a long-term assignment abroad, and a non-working spouse accompanying an official serving in a foreign mission of the Republic of Estonia who have paid the unemployment insurance premiums on the bases and pursuant to the procedure provided for in this Act.
6) is a service provider or seller of goods within the meaning of the Simplified Business Income Taxation Act.
(3) Insurer of unemployment insurance is unemployment insurance fund.
4) non-residents having a permanent establishment or operating as employers in Estonia, within the meaning of the Income Tax Act, who make payments specified in subsection 40 (1) of this Act to insured persons.
3) benefit upon insolvency of the employer.
2) their unemployment insurance period is at least 12 months during the 36 months prior to registration as unemployed.
3) by agreement of the parties.
(3) An insured person who has received unemployment allowance based on the Labour Market Services and Benefits Act has the right to receive unemployment insurance benefit if, after the termination of the payment of the unemployment allowance, the person has been engaged in public service or provided a service based on a contract under the law of obligations, and the person complies with the other terms and conditions for receipt of unemployment insurance benefit provided by this Act.
2) the employment with that employer or service in case of an official had lasted more than ten years - 60 calendar days after the date of termination of the employment or service relationship.
(5) For an insured person who used a pregnancy leave, maternity leave, adoptive parents leave or parental leave during the 36 months specified in clause (1) 2) of this section, the 36 months period shall be extended by the time spent on leave if there is no information in the unemployment insurance database concerning the person's unemployment insurance period.
2) during which an insured person receives remuneration for provision of a service on the basis of a contract under the law of obligations, if an unemployment insurance premium has been withheld from such payments pursuant to the procedure provided by this Act.
(2) An insurance period shall be calculated in months and years. One month of insurance period shall be calculated for one calendar month regardless of the basis for the insurance period. Each 12 months of an insurance period shall be calculated as one year of the insurance period.
2) in the case provided for in clause (1) 2) of this section, for each calendar month during which the insured person received remuneration from which unemployment insurance premium has been withheld.
(22) The period during which a person used pregnancy leave and maternity leave, adoptive parents leave, parental leave, holiday without pay granted by agreement of the parties, was temporarily incapacitated for work within the meaning of the Health Insurance Act or was in compulsory military service or alternative service, except for the period during which the insurance period is accumulated by the person on the basis of subsection (1) or (2) of this section, shall not be calculated as insurance period.
(3) The calculation of an insurance period shall be terminated and the insurance period is deemed to be zero as of the date when an unemployment insurance benefit is granted to an insured person pursuant to this Act. The calculation of the insurance period shall begin again when the insured person recommences work.
2) in the case provided for in clause (1) 2) of this section, are entered in the database based on the data in the register provided for in § 17 of the Taxation Act submitted by the Tax and Customs Board.
3) 360 calendar days if the insurance period of the insured person is 10 years or longer.
3) complies with the other terms for receipt of unemployment insurance benefit provided by this Act, except for the insurance period requirement specified in clause 6 (1) 2) of this Act.
(3) In the case specified in subsection (2) of this section, the payment of unemployment insurance benefit for two or more periods of the person's registration as unemployed shall not continue longer than for the number of days provided in clauses (1) 1)-3) of this section.
(1) The amount of an insured person's unemployment insurance benefit per calendar day shall be calculated on the basis of the average remuneration of the insured person per calendar day during nine months based on the information in the unemployment insurance database. The average remuneration of the insured person per calendar day shall be calculated on the basis of the payments made to the insured person during the nine months of employment prior to the last three months of employment from which unemployment insurance premiums have been withheld. The months during which, based on the data in the unemployment insurance database, an insured person has been paid remuneration are deemed to be the months of work for such person. In calculation of this amount, the payments specified in subsection 40 (2) of this Act shall not be taken into account.
(11) If the insured person last worked in Estonia for less than 12 months before becoming unemployed and prior to that worked outside of Estonia in another EEA country or the Swiss Confederation, the average remuneration of that person per calendar day shall be calculated on the basis of payments made to that person in Estonia during the nine months of employment prior to the last three months of employment from which unemployment insurance premiums have been withheld. The months during which, based on the data in the unemployment insurance database, the insured person has been paid remuneration and the months entered in the database on the basis of data submitted by a competent authority of another EEA country or the Swiss Confederation are deemed to be the months of work for such person.
(2) In calculation of the average remuneration per calendar day, the total amount of remuneration specified in subsections (1) or (11) of this section shall be divided by 270.
(3) If the average remuneration per calendar day of an insured person calculated on the basis of subsections (1)-(2) of this section is higher than three times the average remuneration per calendar day in Estonia during the calendar year before the date of commencement of the calculation of the benefit, then the benefit shall be calculated based on such amount.
2) 40 per cent for the period of 101 to 360 calendar days.
(5) If the amount of the insured person's unemployment insurance benefit per calendar day calculated on the basis of this section is less than 50 % of the minimum wage rate per calendar day calculated on the basis of the minimum monthly wage rate established on the basis of subsection 29 (5) of the Employment Contracts Act for the previous calendar year, the amount of the unemployment insurance benefit per calendar day shall be equal to 50 % of the above. The minimum wage rate per calendar day shall be calculated by dividing the minimum monthly wage rate by 30.
(6) The procedure for calculation of the average remuneration per calendar day in Estonia shall be established by a regulation of the Government of the Republic.
(7) The amount of unemployment insurance benefit shall not be recalculated at the turn of calendar year.
(1) In order to apply for an unemployment insurance benefit, an insured person shall submit an application to the unemployment insurance fund. The list of information to be entered in the application and the list of documents to be appended to the application shall be established by a regulation of the minister responsible for the area.
(1) The unemployment insurance fund shall make a decision on the grant of or refusal to grant an unemployment insurance benefit (hereinafter decision) within 14 calendar days after the date of submission of an application for an unemployment insurance benefit and documents appended thereto to the unemployment insurance fund.
5) the procedure and term for contestation of the decision.
(4) The decision specified in subsection (1) of this section shall be delivered to the insured person by electronic means, by sending an unregistered letter or at the local department of the unemployment insurance fund.
(5) Upon grant of an unemployment insurance benefit, the unemployment insurance benefit shall be calculated as of the eighth day after submission of an application for the unemployment insurance benefit and documents appended thereto to the unemployment insurance fund, but not earlier than as of the eighth day of registration of the person as unemployed. If the right to receive unemployment insurance benefit arises from subsection 8 (2) of this Act, the unemployment insurance benefit shall be calculated as of the day of submission of an application for the unemployment insurance benefit and documents appended thereto to the unemployment insurance fund, but not earlier than as of the day of registration of the person as unemployed.
(6) Upon grant of unemployment insurance benefit in the cases specified in subsection 6 (4) of this Act, the benefit shall be calculated beginning from the date of expiry of the term specified in the same subsection, unless the application for the grant of the benefit is submitted after the expiry of such term. If the application for the grant of the benefit is submitted after the expiry of the term specified in subsection 6 (4) of this Act, the benefit shall be calculated according to subsection (5) of this section.
(1) The unemployment insurance fund shall pay unemployment insurance benefits to insured persons monthly by the 10th day of the given calendar month for the previous calendar month.
(2) Unemployment insurance benefit shall not be paid if the registration of an insured person as unemployed is terminated earlier than eight days after submission of an application for an unemployment insurance benefit to the unemployment insurance fund unless the right to receive unemployment insurance benefit arises from subsection 8 (2) of this Act.
3) on the basis of an electronic application, a notarially authenticated application or a written application prepared at the unemployment insurance fund of the insured person to the bank account of another person in Estonia at the expense of the payer.
5) as of the date of submission of the application if the insured person submits a written application to this effect.
(3) A decision on termination of payment of unemployment insurance benefit shall be made by the unemployment insurance fund.
(4) The unemployment insurance fund shall deliver the decision specified in subsection (3) of this section to the insured person by electronic means or by sending an unregistered letter.
(1) An insured person is required to promptly inform the unemployment insurance fund of all circumstances which bring about extinguishment of the right to receive unemployment insurance benefit.
Employees whose employment relationship with the employer lasted for at least five years and whose employment contract was cancelled due to a lay-off or who cancelled their employment contract based on subsection 37 (5) of the Employment Contracts Act and officials who were employed in the service for at least five years and whose service relationship was terminated based on § 90 of the Public Service Act have the right to an insurance benefit in the case of lay-offs.
2) over ten years - in the amount of two months' average salary or wages.
(2) The amount of the benefit specified in subsection (1) of this section shall be calculated, based on the data in the unemployment insurance database, from the employee's or official's average salary or wages for one calendar day during a period of nine months. The employee's or official's average salary or wages for one calendar day shall be calculated by dividing the total amount of remuneration paid by the employer during the nine months preceding the final three months of work to such employee or official by the factor 270. In calculation of this amount, the payments specified in subsection 40 (2) of this Act shall not be taken into account. In the case of an employee or official who, during the period before the last three months of work, has been paid a salary or wages for a shorter time than for nine months, the basis for calculation shall be the total of the sums actually paid to that person divided by the number of months of work multiplied by the factor 30. The months during which, based on the data in the unemployment insurance database, an employee or official has been paid remuneration are deemed to be the months of work for such person.
(1) In order to apply for insurance benefit in the case of a lay-off, the employer shall submit an application to the unemployment insurance fund within five calendar days after the end of the employment or service relationship.
(2) If the employer fails to submit an application for insurance benefit in the case of a lay-off within the term provided for in subsection (1) of this section, the employee or official shall also have the right to submit the abovementioned application to the unemployment insurance fund.
4) the length of service of the official.
(4) At the request of the unemployment insurance fund, the employer, employee or official shall submit documents certifying the information necessary for the grant of insurance benefit in the case of a lay-off.
(1) The unemployment insurance fund shall review the application for insurance benefit in the case of a lay-off and make a decision within 14 calendar days after the receipt of the application and documents in compliance with the requirements provided for in § 143 of this Act.
(2) The unemployment insurance fund may extend the term for the review of an application by 14 calendar days for good reason. The unemployment insurance fund shall immediately notify the employer and the employee or official of the extension of the term and inform them of the reason for extension.
(3) The unemployment insurance fund shall deliver the decision specified in subsection (1) of this section to the employer and the employee or official by electronic means or by sending an unregistered letter.
3) on the basis of an electronic application, a notarially authenticated application or a written application prepared at the unemployment insurance fund to the bank account of another person in Estonia at the expense of the payer.
4) a court or another competent body has declared the employer as insolvent in another EEA country within the meaning of Council Regulation (EC) No. 1346/2000 on insolvency proceedings (OJ L 160, 30.06.2000, pp. 1-18) or Regulation (EU) 2015/848 of the European Parliament and of the Council on insolvency proceedings (OJ L 141, 05.06.2015, pp. 19-72).
3) benefits from the period before or after the declaration of the employer as insolvent which were not received at the time of cancellation of the employment contract but which were prescribed by the Employment Contracts Act.
(2) In the case of insolvency of an employer which operated in Estonia and another EEA country, the remuneration specified in subsection (1) of this section shall be compensated to the employees whose place of work or usual place of work is Estonia.
(3) An employee shall receive a benefit on the basis specified in clause (1) 1) of this section in the amount equal to up to the employee's gross wages for the last three months of work but not exceeding in total, according to the data published by the Statistical Office, the amount equal to three average gross monthly wages in Estonia during the quarter preceding the declaration of the employer as insolvent.
(4) An employee shall receive a benefit on the basis specified in clause (1) 2) of this section in an amount to the extent of the employee's one gross monthly wage but not exceeding, according to the data published by the Statistical Office, the amount equal to one average gross monthly wage in Estonia during the quarter preceding the declaration of the employer as insolvent.
(5) An employee shall receive a benefit on the basis specified in clause (1) 3) of this section in the amount equal to up to the employee's two gross monthly wages but in total not exceeding, according to the data published by the Statistical Office, the amount equal to one average gross monthly wage in Estonia during the quarter preceding the declaration of the employer as insolvent.
4) an employee upon the declaration of the employer as insolvent on the basis of clause 19 3) of this Act.
4) information on the employee's unreceived salary and holiday pay, information on benefits which were not received by the employee at the time of cancellation of the employment contract and information on the employee's average salary.
(12) Documents certifying the employer's insolvency and the basis and amount of the employee's claim as well as the employee's confirmation regarding the mount of the claim shall be added to the application.
3) upon declaration of the employer as insolvent in another EEA country, a copy of the decision of the competent authority of such country, certified according to the law of the country of decision, together with the translation of the document into Estonian made by a sworn translator or certified by a notary.
(3) An application for the benefit is deemed to be accepted as of the day when the unemployment insurance fund receives the application together with the documents conforming to the requirements.
(1) The unemployment insurance fund shall review the application for the benefit paid upon insolvency of an employer, verify the justifiability of the amount applied for and decide on the grant of or refusal to grant a benefit not later than on the 30th day as of the date of acceptance of the application.
(11) The unemployment insurance fund shall refuse to grant a benefit if the employee has no claim against the employer arising from the employment relationship or if the amount applied for is not justified.
3) an employment contract is entered into after the termination of the business activities of the employer and the employer does not prove that he or she had the possibility to ensure that the employee was provided with the work agreed on.
(2) The unemployment insurance fund may extend the term for the review of an application by 14 days for good reason. The unemployment insurance fund shall promptly notify the applicant of extension of the term together with the reasons therefor.
(3) The unemployment insurance fund shall deliver the decision specified in subsection (1) of this section to the applicant by electronic means or by sending an unregistered letter.
(4) Upon grant of a benefit, the unemployment insurance fund shall pay the benefit to the employee not later than on the fifth day after the grant of the benefit.
3) on the basis of an electronic application, a notarially authenticated application or a written application prepared at the unemployment insurance fund of the employee to the bank account of another person in Estonia at the expense of the payer.
(1) The objective of the unemployment insurance fund is implementation of the labour market policy and organisation of unemployment insurance pursuant to the procedure provided for in this Act, the Labour Market Services and Benefits Act, the Work Ability Allowance Act and other legislation.
9) perform other functions arising from legislation.
(21) The terms and conditions and procedure for admission to become EURES Members and Partners specified in clause (2) 81) of this section shall be established by a regulation of the minister responsible for the area.
(3) In order to achieve its objectives, the unemployment insurance fund has the right to receive the necessary information from all state and local government agencies and the databases maintained by them and from insured persons, employers, persons seeking work, unemployed persons or applicants for benefits unless the receipt of information is restricted by law.
(1) The unemployment insurance fund is a legal person in public law.
(2) The statutes of the unemployment insurance fund shall be established and amended by a regulation of the Government of the Republic.
(3) The unemployment insurance fund cannot be a bankrupt.
(4) The unemployment insurance fund has the right to take a loan only in the case provided for in subsection 39 (2) of this Act. The unemployment insurance fund is prohibited from giving loans and securing commitments of other persons.
(5) The State Audit Office shall audit the unemployment insurance fund.
(6) The unemployment insurance fund shall be registered in the state register of state and local government agencies pursuant to the procedure provided for in the statutes of the register.
(1) The name of the unemployment insurance fund is Eesti Töötukassa (the Estonian Unemployment Insurance Fund).
(2) The unemployment insurance fund has the exclusive right to its name.
(1) The seat of the unemployment insurance fund shall be in Tallinn.
(2) The address of the unemployment insurance fund shall be the place where the management board of the unemployment insurance fund is located.
(1) The supervisory board of the unemployment insurance fund and the management board of the unemployment insurance fund shall direct the unemployment insurance fund.
(2) The chairman of the supervisory board shall represent the supervisory board of the unemployment insurance fund.
(3) The chairman of the management board shall represent the unemployment insurance fund. The chairman of the management board has the right to delegate authority. The right of representation of the members of the management board, and the right to delegate authority shall be provided in the statutes of the unemployment insurance fund. The right of representation of the management board may be restricted by a resolution of the supervisory board. A restriction on the right of representation does not apply with regard to third persons.
(1) The highest body of the unemployment insurance fund is the supervisory board of the unemployment insurance fund. The supervisory board shall consist of six members.
13) determine the auditor of the unemployment insurance fund and the amount of fees paid to the auditor.
(3) The supervisory board shall conduct work in meetings. A resolution of the supervisory board shall be adopted if more than one-half of the members of the supervisory board vote in favour of the resolution.
(1) The Government of the Republic shall appoint one member of the supervisory board. The Estonian Central Federation of Trade Unions and the Estonian Employees' Unions' Confederation shall both appoint one member of the supervisory board. The Estonian Employers’ Confederation shall appoint two members of the supervisory board. The minister responsible for the area is a member of the supervisory board by virtue of office.
(2) A member of the supervisory board must be a citizen of Estonia with active legal capacity whose permanent residence is in Estonia and who has the knowledge necessary for performance of the duties of a member of the supervisory board and an impeccable reputation.
(3) The term of authority of a member of the supervisory board is five years. The supervisory board may remove a member prior to expiry of the term of authority of the member at the request of the person who appointed the member, and a court may remove a member at the request of an interested person, with good reason.
(31) The provisions of subsections (2) and (3) of this section do not apply to the minister responsible for the area.
(4) Members of the supervisory board who do not belong to the supervisory board by virtue of office shall be paid remuneration for the performance of the duties of a member of the supervisory board, the amount and procedure for payment of which shall be established by a regulation of the Government of the Republic.
(1) The management board of the unemployment insurance fund shall direct the unemployment insurance fund.
(2) The management board shall consist of up to five members.
(3) The term of authority of the members of the management board is up to five years. The due date for termination of the authority of a member of the management board shall be determined upon appointment of the member of the management board.
(4) In directing the unemployment insurance fund, the management board performs the functions assigned to the board by this Act, the statutes of the unemployment insurance fund and the resolutions of the supervisory board. The management board shall ensure performance of the functions, fulfilment of the obligations and exercise of the rights of the unemployment insurance fund in so far as, pursuant to this Act or the statutes, this is not the duty of the supervisory board.
(5) The management board shall report to the supervisory board.
(6) The resolutions of the management board shall be adopted by a majority vote. Upon an equal division of votes, the vote of the chairman of the management board governs.
(1) Members of the supervisory board and the management board of the unemployment insurance fund shall be solidarily liable for any damage caused to the unemployment insurance fund by violation of the requirements of this Act or the statutes of the unemployment insurance fund, or by failure to perform their duties.
(2) Members of the supervisory board and the management board of the unemployment insurance fund who cause damage to a creditor of the unemployment insurance fund by failure to perform their duties or unsatisfactory performance of their duties shall be solidarily liable with the unemployment insurance fund to the creditor.
(3) A member of the supervisory board and the management board of the unemployment insurance fund shall be released from liability to the unemployment insurance fund or to the creditor if the member, upon adoption of a resolution, voted against the resolution, or he or she did not participate in the adoption of the resolution if non-participation was permitted, or if he or she did not participate in the meeting of a body of the unemployment insurance fund.
(4) The limitation period for assertion of a claim against a member of the supervisory board and the management board of the unemployment insurance fund is five years from the occurrence of a violation or from the commencement of the violation.
(5) In order to insure members of the supervisory board and the management board of the unemployment insurance fund against proprietary liability, the unemployment insurance fund may conclude a liability insurance contract.
11) other rules which are necessary for the regulation of the activities of the unemployment insurance fund unless such rules are established by this Act or other legislation.
(1) The budget of the unemployment insurance fund shall determine the revenue and expenditure of the unemployment insurance fund in a calendar year.
(2) The budget revenue of the unemployment insurance fund consists of proceeds from unemployment insurance premiums, interest income, allocations from the state budget and other income.
5) allocations from the state budget for the provision of labour market services and for the payment of labour market benefits, work ability allowance, and social tax in special cases.
(4) The operating expenses of the unemployment insurance fund and the transfers to the legal reserve shall be allocated proportionally between the unemployment insurance benefit trust fund and the trust fund for benefits upon lay-offs and insolvency of employers.
(5) The budget of the unemployment insurance fund shall be prepared, approved and the implementation of the budget shall be monitored in accordance with this Act and the statutes of the unemployment insurance fund.
(6) If the state budget has not entered into force by the beginning of the budgetary year, the expenditure of each month of the new budgetary year may be up to 1/12 of the expenditure prescribed in the preceding budget of the unemployment insurance fund until the time the budget of the unemployment insurance fund is passed. Expenditure the amount of which arises from law and expenditure for the payment of benefits on the basis of this Act may be made in accordance with actual expenditure.
(1) The legal reserve of the unemployment insurance fund means the reserve formed of the budget funds of the unemployment insurance fund for the reduction of the risk which macro-economic changes may cause to the unemployment insurance system.
(2) The legal reserve shall amount to at least 10 per cent of the assets of the unemployment insurance fund.
(3) The legal reserve may only be used as an exception by a resolution of the supervisory board of the unemployment insurance fund if the assets of the trust fund of the unemployment insurance fund are insufficient. Before adopting the corresponding resolution, the supervisory board shall make a proposal to the Government of the Republic through the minister responsible for the area for increasing the rate of unemployment insurance premium to the level which ensures the receipt of funds which are sufficient in order to fulfil the objectives of the unemployment insurance fund.
(1) Pursuant to a deposit contract entered into with the state, the unemployment insurance fund shall deposit financial resources in the bank account within the state group account and make payments therefrom.
(2) The deposit contract specified in subsection (1) of this section shall enable the unemployment insurance fund to make payments out of the financial resources deposited in the bank account within the state group account under the conditions provided by legislation for the performance of the functions imposed on the unemployed insurance fund by this Act. The detailed conditions for notifying the Ministry of Finance of the payments planned by the unemployment insurance fund shall be agreed upon in the deposit contract.
(3) The state shall pay an interest to the unemployment insurance fund on the balance of the financial resources deposited in the bank account within the state group account the amount of which is equal to the profitability of the liquid financial assets of the state unless otherwise agreed upon in the deposit contract entered into with the unemployment insurance fund.
(4) The Ministry of Finance shall deposit, together with state money, the financial resources deposited in the bank account within the state group account pursuant to the principles for the management of state cash-flow established by a regulation of the Government of the Republic on the basis of subsection 66 (5) of the State Budget Act.
(1) The unemployment insurance database (hereinafter database) is a database of a legal person in public law within the meaning of the Public Data Act which is maintained by the unemployment insurance fund.
3) data concerning the grant and payment of benefits.
(3) The procedure for the maintenance of the database and the processing, use and issue of data of the database is provided for in the statutes for the maintenance of the unemployment insurance database which are established by a regulation of the Government of the Republic.
(4) The chief processor of the database shall be the unemployment insurance fund. The database shall be maintained pursuant to the Personal Data Protection Act and the Public Data Act.
7) information on the employment or service relationship of the persons specified in clause 3 (2) 5) of this Act by employers.
(51) The Tax and Customs Board shall submit the information specified in subsection (5) of this section to the unemployment insurance fund within 15 working days as of receipt of the information by the Tax and Customs Board.
(6) The unemployment insurance fund shall process the information in the register of persons registered as unemployed or job-seekers, and of provision of labour market services established on the basis of § 8 of the Labour Market Services and Benefits Act in order to grant benefits on the basis of this Act.
(1) The funds derived from unemployment insurance premiums shall be used only in the cases and pursuant to the procedure provided for in this Act.
2) the trust fund for benefits upon lay-offs and insolvency of employers.
(21) The foundation of labour market services and benefits (hereinafter foundation) shall be established from the assets of the unemployment insurance benefit trust fund and the trust fund for benefits upon lay-offs and insolvency of employers, and from the funds allocated from the state budget for specific purposes through the budget of the Ministry of Social Affairs.
(3) The unemployment insurance fund shall administer the trust funds and the foundation specified in subsections (2) and (21) of this section.
(4) Separate records shall be kept of the trust funds.
(1) The unemployment insurance premiums of insured persons and the interest income received from the deposit thereof shall form the unemployment insurance benefit trust fund.
6) for partial financing of the foundation.
(3) The unemployment insurance fund has the right to use the assets of the unemployment insurance benefit trust fund temporarily for financing the expenditure of the activities co-financed from the funds of the European Union for the promotion of employment until the payment application is satisfied. In the case of denial of the payment application, the expenditure of the abovementioned activities shall be covered from the funds prescribed in § 381 of this Act.
(1) The unemployment insurance premiums of employers and the interest income received from the deposit thereof shall form the trust fund for benefits upon lay-offs and insolvency of employers.
(3) The unemployment insurance fund has the right to use the assets of the trust fund for benefits upon lay-offs and insolvency of employers temporarily for financing the expenditure of the activities co-financed from the funds of the European Union for the promotion of employment until the payment application is satisfied. In the case of denial of the payment application, the expenditure of the abovementioned activities shall be covered from the funds prescribed in § 381 of this Act.
(1) Up to 30 per cent of the unemployment insurance premiums of insured persons received by the unemployment insurance benefit trust fund, up to 30 per cent of the unemployment insurance premiums of employers received by the trust fund for benefits upon lay-offs and insolvency of employers, the funds allocated from the state budget for specific purposes through the budget of the Ministry of Social Affairs and the interest income received from the deposit thereof shall form the foundation.
(2) The supervisory board of the unemployment insurance fund shall submit a proposal to the Government of the Republic through the minister responsible for the area for the establishment of the rate of assets transferred to the foundation from the payments received by the unemployment insurance benefit trust fund and the trust fund for benefits upon lay-offs and insolvency of employers at least once during a calendar year, not later than by 21 August of the current calendar year.
(3) The rate of the assets transferred to the foundation of labour market services and benefits for the following calendar year shall be established by a regulation of the Government of the Republic not later than by 1 October of the current calendar year. If the assets of the foundation are insufficient, the Government of the Republic may, on the proposal of the supervisory board of the unemployment insurance fund, amend the rate of the assets transferred to the foundation.
4) in order to provide services and pay benefits co-financed from the funds of the European Union for the promotion of employment.
(1) In case the assets of the trust fund and the foundation are insufficient, the funds of the legal reserve of the unemployment insurance fund shall be used for the payment of the benefits provided for in this Act, provision of labour market services and payment of labour market benefits, except unemployment allowance, pursuant to the procedure provided for in subsection 34 (3) of this Act.
(2) If the funds of the legal reserve of the unemployment insurance fund are insufficient, the unemployment insurance fund has the right to take loans, and use as security the things which are in the ownership of the unemployment insurance fund and the unemployment insurance fund has the right to take loans if secured by the state, by a resolution of the supervisory board.
(3) If the assets of the trust fund specified in clause 37 (2) 1) of this Act are insufficient, the unemployment insurance fund may, by a resolution of the supervisory board, use the assets of the trust fund specified in clause 38 (2) 1) of this Act in order to pay unemployment insurance benefits.
2) on wages, salaries and other remuneration paid to the persons specified in clause 3 (2) 5) of this Act according to the rate of unemployment insurance premium established for the employers.
4) on the amounts specified in § 3 of the Social Tax Act.
(1) The rate of unemployment insurance premium for insured persons shall be 0.5 to 2.8 per cent on the amounts specified in § 40 of this Act.
(2) The rate of unemployment insurance premium for employers shall be 0.25 to 1.4 per cent on the amounts specified in § 40 of this Act.
(3) The supervisory board of the unemployment insurance fund shall submit a proposal to the Government of the Republic through the minister responsible for the area concerning the rates of unemployment insurance premium for the following four years not later than by 21 August of the current calendar year by making, in justified cases, a proposal to amend the rates established for the future calendar years. An analysis which indicates the sufficiency of the rates of unemployment insurance premium in order to achieve the objectives of the unemployment insurance fund within the following four years, taking into account the forecasts regarding macroeconomics and the development of labour market, shall be submitted together with the proposal.
(4) The rates of unemployment insurance premium for insured persons and employers for the following four calendar years shall be established by a regulation of the Government of the Republic not later than by 1 October of the current calendar year. The rate of unemployment insurance premium in the current calendar year shall not be reduced during the calendar year.
(5) In the case provided for in subsection 34 (3) of this Act the Government of the Republic shall establish a new rate of unemployment insurance premium not later than as of the first day of the second calendar month after the calendar month during which the supervisory board of the unemployment insurance fund makes the proposal.
5) issue or send by electronic means, at the request of an insured person, upon termination of an employment or service relationship or of payment of spouse allowance, a certificate concerning the types and amount of remuneration paid to the person during the last three calendar months of employment and unemployment insurance premiums withheld on the remuneration for each calendar month during the last three calendar months of employment, the basis and time of termination of the person's last employment or service relationship, the time of termination of payment of spouse allowance, the length of his or her employment relationship with that employer, the length of service in case of an official and the duration of any pregnancy and maternity leave, adoptive parents or parental leave.
(11) If the employer has been declared bankrupt, the returns specified in clause (1) 3) of this section shall be submitted separately for the part of taxation period preceding the declaration of bankruptcy and the part of the taxation period following the declaration of bankruptcy.
(2) The forms of returns and certificates provided for in clauses (1) 3) and 4) of this section shall be established by a regulation of the minister responsible for the area.
(21) The form of certificates provided for in clause (1) 5) of this section shall be established by a regulation of the minister responsible for the area.
(3) The amount of unemployment insurance premium calculated for each insured person and payable by employers shall be rounded to the accuracy of one cent.
(4) The provisions of the Taxation Act concerning taxes apply to unemployment insurance premiums. The Tax and Customs Board shall verify the correctness of tax payments, assess amounts of tax due or subject to return if necessary, collect taxes pursuant to the procedure provided for in the Taxation Act and apply coercive measures permitted by law against persons who violate tax law for obliging them to perform their obligations.
(5) The provisions of the Taxation Act concerning taxable persons apply to employers. Sanctions prescribed in the Taxation Act and the Penal law concerning taxable persons shall be imposed on employers for any violation of obligations provided for in this Act.
(6) Information on insured persons and withholding agents shall be entered in the register of taxable persons established according to the Taxation Act.
(7) The procedure for withholding and calculation of unemployment insurance premiums of insured persons who are employed in agencies whose staff, consolidated data or specific duties constitute a state secret shall be established by the minister responsible for the area.
The Tax and Customs Board shall transfer the received unemployment insurance premiums to the account of the unemployment insurance fund within 15 working days as of the receipt of the premiums on the bank account of the Tax and Customs Board.
Upon insolvency of an employer, the state represented by the Tax and Customs Board shall, in bankruptcy proceedings, be the creditor regarding unemployment insurance premiums not received within the term. The collected amounts shall be transferred to the account of the unemployment insurance fund within 15 working days as of the receipt of the premiums on the bank account of the Tax and Customs Board.
(1) A person who finds that his or her rights are violated or his or her freedoms are restricted in the course of grant and payment of benefits may file a challenge with the unemployment insurance fund.
(2) Disputes related to the payment and withholding of unemployment insurance premiums shall be resolved pursuant to the procedure provided for in the Taxation Act.
(1) The unemployment insurance fund may reclaim a benefit granted and paid without legal basis to an insured person, employee or official (hereinafter beneficiary) from the beneficiary.
(2) The unemployment insurance fund may reclaim an unemployment insurance benefit granted and paid to a beneficiary without legal basis from the employer if the benefit had been paid due to incorrect data submitted by the employer and the benefit cannot be reclaimed from the beneficiary.
(3) The unemployment insurance fund may reclaim a lay-offs benefit granted and paid to a beneficiary without legal basis from the employer if the benefit had been paid due to incorrect data submitted by the employer and the benefit cannot be reclaimed from the beneficiary.
(4) The unemployment insurance fund may reclaim an insolvency benefit granted and paid to a beneficiary without legal basis from the trustee if the benefit had been paid due to incorrect data submitted by the trustee and the benefit cannot be reclaimed from the person.
(5) The unemployment insurance fund may reclaim a benefit granted and paid without basis from the persons specified in subsections (1)-(4) of this section at one time or according to a repayment profile prepared upon agreement with the person.
(6) If a person fails to repay benefits granted and paid without basis, a precept together with a warning shall be issued for reclamation of the overpaid amounts. Upon failure to comply with the precept within a term set out in the warning, the unemployment insurance fund has the right to issue a precept for compulsory enforcement pursuant to the procedure provided in the Code of Enforcement Procedure.
(7) The precept together with the warning shall be delivered by electronic means or by sending a registered letter with advice of delivery.
(1) The Government of the Republic shall appoint two members of the supervisory board of the unemployment insurance fund not later than by 1 November 2001. The Estonian Confederation of Employers and Industry shall appoint two members of the supervisory board of the unemployment insurance fund not later than by 1 November 2001. The Central Federation of Trade Unions and the Estonian Employees’ Unions’ Confederation shall both appoint one member of the supervisory board of the unemployment insurance fund not later than by 1 November 2001.
(2) The supervisory board of the unemployment insurance fund shall make a proposal to the Government of the Republic through the minister responsible for the area for the establishment of the statutes of the unemployment insurance fund not later than on 1 December 2001. The statutes of the unemployment insurance fund shall be established by a regulation of the Government of the Republic not later than on 15 December 2001.
(3) The form of applications for unemployment insurance benefits, the list of information to be entered in the applications and the list of documents to be appended to the applications shall be established by a regulation of the minister responsible for the area not later than on 15 December 2001.
(4) The supervisory board of the unemployment insurance fund shall appoint the members of the management board of the unemployment insurance fund to office and shall enter into contracts of service with the members of the management board not later than on 1 December 2001. The authority of members of the management board commences as of entry into force of this Act.
(5) The supervisory board of the unemployment insurance fund shall establish the documents provided for in clauses 28 (2) 5) and 7) of this Act not later than on 1 June 2002.
(6) The rate of unemployment insurance premium for insured persons in year 2002 shall be 1 per cent on the amounts specified in § 40 of this Act. The rate of unemployment insurance premium for employers in year 2002 shall be 0.5 per cent on the amounts specified in § 40 of this Act.
(61) The insurance period accumulated by an applicant for the unemployment insurance benefit on the basis of this Act or legislation of an EEA country or the Swiss Confederation after 1 January 2002 shall be taken into account upon grant of unemployment insurance benefit based this Act.
(7) Benefits specified in clauses 5 2) and 3) of this Act shall be paid as of 1 January 2003.
(71) Upon collective termination of employment contracts, benefits shall be paid pursuant to this Act if the termination of employment contracts or release from services takes place after 1 January 2003. If the collective termination of employment contracts is initiated and notice of termination of employment contracts or release from service is given before 1 January 2003, the employer shall submit an application for a benefit on the basis and pursuant to the procedure in force until 31 December 2002.
(72) Upon insolvency of an employer, benefits shall be paid pursuant to this Act if a court judgment concerning the declaration of bankruptcy of the employer or a court ruling concerning the abatement of bankruptcy proceedings has entered into force after 1 January 2003, except in the case provided for in subsection (73) of this section.
(73) In the case of a judgment on the bankruptcy of an employer which has entered into force before 1 January 2003, benefits shall be paid pursuant to this Act if the trustee in bankruptcy has not submitted an application for payments to be made to employees from the compensation fund of the Government of the Republic pursuant to the Bankruptcy Act or has submitted the application after 10 December 2002 and the application is being processed. The Ministry of Finance shall forward applications specified in this subsection which are being processed to the unemployment insurance fund not later than by 15 January 2003.
(8) The unemployment insurance premium for insured persons shall not be paid on amounts specified in subsection 40 (1) of this Act which are paid to persons who, on 1 January 2002, will attain the pensionable age in less than 12 months.
(9) Starting from 1 February 2009, the benefits granted before 1 February 2009 shall be paid pursuant to the procedure provided in subsection 12 (3), 18 (4) and 22 (5) of this Act.
(10) The insurance benefits for lay-offs provided in clause 5 2) and the waiting periods specified in subsection 6 (4) of this Act shall apply to employees and officials whose employment or service relationship is cancelled after 30 June 2009.
(11) A person whose employment contract is cancelled collectively and to whom a benefit is applied for before 1 July 2009 but whose employment or service relationship ends after 30 June 2009 shall be paid a benefit for the collective cancellation of employment contracts on the basis and pursuant to the procedure in force before 1 July 2009. Such person shall not be paid the insurance benefit for lay-offs provided in clause 5 2) and the waiting period specified in subsection 6 (4) of this Act shall not apply to him or her.
(12) The amount of unemployment insurance benefit provided beginning from 1 July 2009 in subsection 9 (4) of this Act shall apply to insured persons to whom a benefit is granted after 30 June 2009, whereas the benefits granted before 1 July 2009 shall not be recalculated. If a benefit granted to a person before 1 July 2009 is less than the benefit calculated based on subsection 9 (5) of this Act, the benefit shall be recalculated as of 1 July 2009.
(13) The unemployment insurance fund has the right to use the assets of the unemployment insurance benefit trust fund and the assets of the trust fund for benefits upon lay-offs and insolvency of employers for financing labour market services and benefits, except unemployment allowance, in the years 2011 and 2012. The assets used shall be returned from the foundation to the unemployment insurance benefit trust fund and the trust fund for benefits upon lay-offs and insolvency of employers by the end of the year 2015.
(14) The supervisory board of the unemployment insurance fund shall submit a proposal to the Government of the Republic through the minister responsible for the area for the establishment of the rate of assets transferred to the foundation from the payments received by the unemployment insurance benefit trust fund and the trust fund for benefits upon lay-offs and insolvency of employers for the year 2011 not later than by 1 March 2011.
(15) The rate of the assets transferred to the foundation of labour market services and benefits for the calendar year 2011 shall be established by a regulation of the Government of the Republic not later than by 1 May 2011.
(16) Until the establishment of the rate specified in subsection (15) of this section, the rate of assets transferred to the foundation from the payments received by the unemployment insurance benefit trust fund and the trust fund for benefits upon lay-offs and insolvency of employers shall be 12 per cent.
(17) Section 121 of this Act shall be implemented as of 1 May 2010 in the cases specified in Article 90 (1) of Regulation (EC) No 883/2004 of the European Parliament and of the Council on the coordination of social security systems (OJ L 166, 30.04.2004, pp. 1-123) and Article 96 (1) of Regulation (EC) No 987/2009 of the European Parliament and Council laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (OJ L 284, 30.10.2009, pp. 1-42).
2) complies with the other terms for receipt of unemployment insurance benefit provided by this Act, except for the insurance period requirement specified in clause 6 (1) 2) of this Act.
(19) In the cases specified in subsection (18) of this section and subsection 8 (2) of this Act, the payment of unemployment insurance benefit for two or more periods of the person's registration as unemployed shall not continue longer than for the number of days provided for in clauses 8 (1) 1)-3) of this Act.
3) the person complies with the other terms for receipt of unemployment insurance benefit provided by this Act, except for the insurance period requirement specified in clause 6 (1) 2) of this Act.
(1) The deposit contract specified in subsection 341 (1) of this Act shall be concluded between the chairman of the management board of the unemployment insurance fund and the minister responsible for the area by 16 January 2012. The management board of the unemployment insurance fund shall realise the financial assets acquired out of the financial resources and terminate the contracts related to the deposit and administration of the financial resources by 30 June 2012.
(2) Until the realisation, the procedure for and the limitations on the administration of the financial resources in force prior to the entry into force of this section shall apply to the financial assets specified in subsection (1) of this section.
(3) Financial resources received from the realisation of financial assets specified in subsection (1) of this section shall promptly be transferred to the bank account specified in subsection 341 (1) of this Act.
(1) Until 1 April 2018, in addition to the provisions of 141 of this Act, employees with whom an employment contract under favourable conditions has been entered into on the basis of the Public Service Act and whose employment contract was cancelled due to a lay-off or who cancelled their employment contract based on subsection 37 (5) of the Employment Contracts Act and the employment contract under favourable conditions terminates before 1 April 2018 and the duration of employment contracts under favourable conditions and employment in the service is at least five years in total have the right to an insurance benefit in the case of lay-offs.
(2) Upon calculation of the amount of insurance benefit, the duration of employment contracts under favourable conditions specified in subsection (1) of this section and employment of a person in the service which do not overlap shall be totalled.
(1) The procedure for calculation of insurance period in force as of 1 July 2014 shall be applied upon calculation of an insurance period accumulated after 1 July 2014. An insurance period accumulated before 1 July 2014 shall be calculated pursuant to the procedure in force until 1 July 2014. The months of insurance period shall be totalled.
(2) Unemployment insurance benefits granted before 1 July 2014 shall not be recalculated.
(2) Clauses 48 1) and 5) of this Act enter into force on 1 January 2003.
1 Directive 2002/74/EC of the European Parliament and of the Council amending Council Directive 80/987/EEC on the approximation of the laws of the Member States relating to the protection of employees in the event of the insolvency of their employer (OJ L 270, 08.10.2002, pp. 10-13).

References: § 6
 § 17
 § 90
 § 143
 § 8
 § 381
 § 381
 § 3
 § 40
 § 40
 § 40
 § 40