The Estonian government has imposed new restrictions on business owners and employers hiring foreign workers, with the changes being effective January 1, 2026.
The new rules include the requirement for companies to apply for a temporary residence permit, so that this business owner or employer proves six consecutive months of actual business activity in the country, Schengen.News reports.
Moreover, the authorities also require that temporary work agencies that enable the recruitment of foreign workers prove that their business has been active for six months in Estonia or any other Schengen state.
Here Are the New Changes That the Estonian Government Has Implemented
The authorities have enforced new business activity requirements, in order for these employers to have a stable and continuous activity when they hire foreign workers.
For example, companies applying for a temporary residence permit, unlike other employers that do not need to present such proof, have to prove that their business has been ongoing for at least six months in order to be eligible for this permit.
Companies hiring foreigners based on short-term employment registration are exempted from this requirement.
The impact that this reform will have is expected to be positive, favoring established companies but also delaying the new businesses from hiring foreign workers.
New Rules to Ensure Better Conditions for Foreign Workers
The rule that requires temporary work agencies to guarantee a month’s salary for the foreign workers that they lease out will no longer be effective.
Instead, these work agencies will be required to prove six months of business activity in Estonia or other Schengen countries.
In this way, temporary work agencies are less exposed to financial pressure, but, on the other hand, there might not be wage security for employees.
Furthermore, employers will only be able to employ foreign workers if their employer is registered with the Estonian authorities. This applies to both temporary residence work permits and those registered for short-term employment.
Since the reforms will enter into force in 2025, assignments will only be possible for intra-corporate transferee permits.
Recently, the Estonian authorities have approved a proposal to bring more foreign workers into the countryas labour shortages are threatening some of the country’s most vital sectors.
Certainly, EKRE and its transfers in parliament are afraid that seven million people will come to Estonia, but I urge the public to discuss the needs of the economy. If the media is interested and able, they could introduce the OSKA report to the public.
The OSKA report mentioned by PM Michal has revealed that Estonia is in serious need of foreign workers. One of the reasons for this phenomenon is related to the population demographics, which are rapidly changing.