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On 13 February, amendments to the Employment Contracts Act entered into force, opening the door to more flexible work organisation and providing employees and employers with an innovative opportunity to conclude flexible working time agreements.

If an employer has not taken steps to ensure a psychologically safe work environment, cases involving suspected workplace bullying often end up in the labour dispute committee. If bullying is confirmed, the employer must open their wallet.

The Estonian Parliament has approved several amendments affecting employment relationships. Many of these will enter into force over the coming year and will alter the content of agreements related to work arrangements. This article provides an overview of the changes that will most significantly impact both employers and employees.

Every company must prepare and communicate the annual vacation schedule during the first quarter of the year. This is not just a formality – the purpose of the schedule is to ensure smooth work organisation and conscious, mutually considerate planning of employees’ vacation needs.

Last year, the optical retail chain Pro Optika took a bold step by acquiring its competitor Pere Optika — a move that doubled both its store network and its team. With 50 stores now across Estonia, the company is entering a new growth phase and redefining what it means to be a modern family-run business.

In December 2024, AS Kodupaber signed a purchase agreement to acquire the long-established wholesale company Ristart AS. The transaction marked an important milestone in Kodupaber’s growth strategy, supported throughout by Grant Thornton Baltic – from the first negotiations to the successful merger of the two companies in June 2025.

Starting from September 2025, Grant Thornton Baltic offers both existing and new clients a comprehensive debt collection service. Our goal is to make debt recovery clear, efficient, and results-oriented.

An overview of remote work developments in 15 countries before, during and after the Covid-19 pandemic.

Pursuant to amendments that entered into force last year, the Commercial Register can fine or compulsorily dissolve those who are late filing an annual report. Compulsory dissolution can be done if the company lacks registered assets (i.e. no assets evident in the land register, ship register, Commercial Register or Estonian securities register), is not a party to any current judicial proceedings, criminal enforcement proceedings or tax disputes.

The rules on the contact person underwent a facelift as part of company law reform, the majority of the amendments of which came into force on 1 February 2023.

Last year, an amendment to the Commercial Register Act was passed, which meant more fines for companies for the purpose of making the Estonian business environment more transparent.

Grant Thornton Baltic provided consultation to OptiPRO OÜ, which operates a retail chain of optometry stores under the brand Pro Optika and acquired the holding company of the Pere Optika chain, Optiland Eesti OÜ. After receiving a merger permit from the Competition Authority, the transaction was completed on June 10, 2024, and OptiPRO OÜ acquired a stake in Optiland Eesti OÜ.

On 16 April 2024, Parliament adopted legislation allowing those on sick leave for extended periods to continue working under adapted conditions.

For years, the Commercial Register allowed companies to operate in the Estonian business environment as if disclosure of economic figures was optional. Last year, an abrupt change in direction occurred.

Many foreign nationals doing business in Estonia recently received an unpleasant surprise: they are unable to submit their annual report for their company to the Business Register, since they failed to renew their digital ID by the deadline. Meanwhile, the Estonian Police and Border Guard Board (PPA) has imposed additional conditions on applying for a new digital ID.

The most important aspect of extraordinary cancellation of an employment contract is that the notice has to be reproducible in writing. The employee should thus be precise in their wording, and the employer should be quick to respond.