The Estonian Parliament adopted on 21 November 2018 changes to the Taxation Act, according to which data requirements for the employment register will be established by the regulation on taxpayers register.
• The changes made to that regulation by the Government prescribe that from 1 June 2019 the employer must enter to the employment register in addition to the existing data also the job position and the employment address of each new employee.
• For existing entries made to the employment register by 31 May 2019, the job position and employment address must be added by 30 June 2019, at the latest.
• However, the working time rate of each new employee must be entered to the employment register already from 1 January 2019.
• The job position of the employee must be entered to the register according to the public state classification of occupations (http://metaweb.stat.ee/view_xml.htm?id=4456531&siteLanguage=ee) or in the absence of it according to the International Standard Classification of Occupations of ILO (ISCO-08, http://www.ilo.org/public/english/bureau/stat/isco/isco08/). The Statistics Estonia has prepared the guidance for determining the appropriate classification: https://www.emta.ee/sites/default/files/ariklient/registreerimine-ettevotlus/tootamine/choosing_occupational_title_in_tor.pdf.
• The employment address must also be entered to the register, which is generally deemed to be the location of the employer’s local unit. If the employee is working in more than one place or at home, then the employment address will be deemed to be the employer’s local unit where the employee’s work is managed from. The guidance on the requirements of registration of the employment address can be found on the website of the Tax and Customs Board: https://www.emta.ee/eng/business-client/registration-business/employment/instructions-how-determine-place-work-address.
• From 1 January 2019, the working time rate should no longer be entered to form TSD, as the respective entry should instead of it entered to the employment register. The liability to enter the working time rate to the register will be effective from the tax declaration to be submitted for January 2019. If the employee has been entered to the employment register prior to 1 January 2019, then the employer is not liable to enter the working time rate to the register, as the Tax and Customs Board will itself transfer the existing data on the working time rate to the employment register.
• The working time rate of the full-time employee is 1,00, but in case of part-time employee the working time must be entered with the accuracy of two decimal places (figure 0 and two decimal places after it, in accordance with the agreed working time rate). For example, in case of working at quarter-time basis, the working time rate will be 0,25. For this purposes, the working time rate proceeds from the worktime agreed in the employment contract, not the effective number of work hours.