Choose an employment contract

Autor:Kaia Alev
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Šrift:Väiksem АаSuurem Aa

Author: Kaia Alev

Editor: Luisa

Layout and print: Agentuur La Ecwador OÜ


Crossword puzzles ristsõnaajakiri Ristik (Ajakirjade Kirjastus)

Epub: OÜ Flagella

2nd revised edition

© Labour Inspectorate, 2016

ISBN 978-9949-592-26-5 (trükis)

ISBN 978-9949-592-27-2 (pdf)

ISBN 978-9949-592-28-9 (epub)


If the goal is to regulate the performance of a specific task (e.g. representation in court, holding a lecture), an authorisation agreement is signed.

If the achievement of a specific task for a specific date (e.g. installing a door, laying parquet) needs to be regulated, a contract for services should be chosen.

But if the goal is to regulate the process of achieving a result and manage activities, an employment contract should be signed.

Employment contract and contract under the law of obligations

In Estonia, the framework law for regulating all contractual relations is the Law of Obligations Act.

Relations under an employment contract are regulated by the Employment Contracts Act as a special law, but in addition, the provisions about the General Part of the Law of Obligations Act and an authorisation agreement are applied. An employment contract is a contract under the law of obligations, but not every contract under the law of obligations is an employment contract. Whether a contract is an employment contract or any other (e.g. contract for services, authorisation agreement, agency contract, etc.) depends on the intention of the parties and the nature of the contractual relationship.

A contract signed between the parties must indicate the actual intention of the parties – what they agreed upon as a result of negotiations. The title of a written contract, and sometimes even the content, is not always sufficient for determining the actual legal consequences of an agreement. If there is no written contract, the contractual relationship still exists.

The Employment Contracts Act stipulates that if work is done for remuneration, it is presumed to be an employment contract. However, if a person obligated to perform the work is to a significant extent independent in choosing the manner, time and place of performance of the work, the provisions concerning the employment contract are not applied to a contract.

The above means that if according to the work conditions agreed upon by parties, the employee is subordinate to the management and control of the employer, the provisions concerning employment contract are applied. However, under an employment contract, a person (employer) is obligated to prepare or change a thing or achieve any other result (work) agreed upon by providing a service and another person (contracting party) must pay remuneration for it.