Employ Candidates Compliantly in Estonia

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  1. Overview:Estonia
  2. Global HR Compliance
  3. Global PEO and payroll
  4. Work permit for hiring expats via PEO
  5. Contractor vs. employee: which is better?
  6. Expand without a Company Set Up
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Global Employer of Record in Estonia

What Is a Global Employer of Record?

A Global Employer of Record is a legal entity that eliminates employment liability and compliance risks. It allows you to remain the actual employer and concentrate on your business objectives. Our model uses a flexible price model with terms based on the number of employees, with no limits to project duration or employee number.

The Global Employer of Record has revolutionised employers hiring workers in other countries. With this innovative new talent engagement model, employers can access a single point of contact for all their foreign employment needs, making it easier to comply with local labour laws and streamline their HR processes in Estonia.

Employers often find themselves in a difficult position when expanding globally. To comply with local laws, they often need to establish a legal entity in the country where they are expanding. This process can be costly and time-consuming, making many businesses hesitate before taking on the challenge. Fortunately, there is a Global Employer of Record solution available that can help simplify the process.

To help your organization legally onboard and payroll a workforce in Estonia, Acumen International offers a global employment solution that circumvents the legalities of direct hiring.  Our global employer of record services provides a range of additional services like medical insurance, cars, laptops and technology, so you can easily manage your personnel across multiple countries.

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When You Should Use a Global Employer of Record

1. Using Global EORs to Explore and Evaluate International Markets

The process of exploring a new market can be a lengthy and expensive one, but there are some options that can help you to get a quick read on the potential demand for your products and services.

A Global Employer of Record is a great way to test the readiness of an international market for your products or services. Hiring workers via Global EOR in target countries, including Estonia, allow you to get a feel for the market without committing time and resources to set up a local entity. This is a great way to gauge interest and potential demand before making a major investment.

Companies often use EORs for temporary workers who may need to work in multiple locations during their contract period. For example, if you’re an IT company looking for temporary help in another office, you might hire an employee through an EOR to fill that spot without worrying about payroll, benefits, or local tax and compliance issues.

2. Leveraging Short-term Employee Engagements

Although Estonia offers companies several advantages when expanding their business, many business owners find setting up an Estonian company time-consuming and difficult. Alternative solutions, such as working with a Global Employer of Record (EOR), offer a more streamlined approach that eliminates some of the hassles involved in establishing a legal entity. The EOR will take on all tax and regulatory obligations on behalf of your company, ensuring that operations run smoothly without any unnecessary delays. By engaging a global  EOR, you can also avoid additional expenses associated with running a foreign subsidiary, such as consultancy fees, office space and equipment rentals.

Partnering with an Employer of Record, you will retain full control over your employees and business operations while benefitting from substantial cost savings and avoiding non-compliance risk. 

3. An EOR (Employer of Record) Lets You Onboard the Best Talent Faster

As the global economy continues strengthening, many companies are searching for ways to decrease costs and increase efficiency. One solution is to outsource employment overseas, which can be risky and complex. Employers of Record (EORs), on the other hand, allow you to hire talent from any location without needing an entity. This makes it a clean and compliant option with global regulations.

What Services Can a Global Employer of Record Provide?

1. Onboarding of Local and Ex-pat Employees in Estonia

With the growing need to hire talent in a rapidly emerging, competitive and international market, it is important to partner with a trusted Global Employer of Record that can provide international employment expertise and labour law compliance for your company expanding to Estonia. The Acumen International Global Employer of Record is an efficient, effective and reliable EOR service portfolio to manage the entire employment process.

A Global Employer of Record with a wealth of international and local expertise and necessary processes can be a great resource to help orchestrate the employment process while complying with all applicable regulations in Estonia.

Global Employer of Record companies can help businesses bridge the gap when establishing a legal foreign entity.

Acumen International can help your business get a foothold in Estonia by offering world-class immigration and compliance services. A smart approach to hiring, coupled with a vast array of global EOR services that minimize up-front costs, can provide your organization with a robust workforce pipeline in one fell swoop.

2. Compliant Employment Contracts in Estonia

The global EOR in Estonia provider drafts employment contracts in compliance with the applicable local employment regulations. The contracts are tailored to meet best the needs of both employees and your organisation as the factual employer. Employment Contracts are designed to reflect the specific local employment regulations at the time of contract execution in Estonia.

Employment Contracts can be drafted for temporary or permanent assignments or full-time or part-time work. Global EORs help ensure that all employees in Estonia have access to a standardised set of terms and conditions appropriate for their employment status and location.

The Global Employer of Record solutions provider will provide administrative support for any legal matters that arise from your collaboration.

3. A Global EOR Provides Payroll Administration Services in Estonia

An EOR is a company that helps companies to manage the administration of employee pay in other countries. When you employ someone in another country through an EOR, you provide the funds, and the EOR handles the distribution of salary, social security contributions, and retirement accounts.

An EOR, or Employer of Record, can help you avoid costly fines and headaches regarding international payroll. By working with an EOR, you can safely and securely hire workers from foreign countries without worrying about each country’s complex tax laws and employment regulations. Find the best candidate for the job, and let your Global EOR take care of the rest!

4. Work Permits for EOR Employment of  Your Selected Candidates in Estonia

We provide work permits and immigration support for our ex-pat clients. Our team of specialists will help you navigate the complicated process of obtaining a work visa or residency permit to facilitate your early arrival in the country. By working with one provider, you’ll avoid the hassle and rejection of dealing with multiple agencies.

Benefits and Infrastructure of Acumen International Employer of Record

Our Employer of Record (EOR) Solution is the most efficient and cost-effective way to manage global talent. We offer a full suite of services, including payroll, compliance, employee administration and other HR functions.

We know what it takes to hire and manage employees worldwide. Our experience helps us save you time and money by eliminating the need for you to research and implement local laws and regulations for each country in which you operate.

Using our global Employer of Record Solution, you can convert your existing freelancers/contractors into employees, engage global talent for short-term projects, and employ your global workforce anywhere in the world. Attracting, motivating, and retaining the best global talent is a competitive advantage.

Acument’s Global Employer of Record provides a full range of business support services, including but not limited to:

  • Car leasing
  • Office and showroom rental
  • Equipment provision (notebook, mobile, etc.)
  • Arrangement of business trips
  • Business expense management
  • Medical insurance
  • Accommodation (housing) on demand

Global EOR (Employer of Record) Services: Save Up to 80% of Employment Cost in Estonia

Average Cost & Time Our Solution *
Time to Market 10+ weeks 72 hours
Legal Advisors Fees $ 10 000 + ………….
Official Employment & Benefits $ 20 000 + ………….
Incorporation & Liquidation Costs $ 11 000 + ………….
Bank Account Setup $ 2 000 + ………….
Maintenance costs and in-house staff to manage the foreign entity, payroll set up, and administration. $ 25 000+ ………….
The approximate total cost of new market entry** $ 74 000 + $ 15 000

* Per one Employee
** Costs vary from country to country

Is Global Employer of Record Legal in Estonia?

It is legal to hire employees in other countries through an EOR. However, not all global EORs are created equal. Some may be more compliant than others when it comes to local regulations. Before working with an EOR, do your research to find one that is reliable and has a high compliance rate.

Employ your Selected Workforce via Acumen Employer of Record (EOR) in Estonia

As a Global Employer of Record services provider, Acumen International helps businesses legally engage and pay the selected highly skilled professionals in Estonia.

Businesses desiring to hire local employees should be prepared to pay competitive salaries to attract and retain the most qualified candidates. Acumen International serves end employers and service companies representing international clients as a global employment organization.

Acumen’s Global employment services are designed to provide our clients with professional assistance to meet their global HR needs, such as:

  • Global talent acquisition and retention
  • Global expansion to help you quickly enter new global markets without legal and HR compliance risks
  • Local support for international clients and their ex-pat employees

Acumen’s Employer of Record / EOR service in Estonia offers an efficient and inexpensive alternative to direct hire. Our employer of record solution allows companies to operate in Estonia and in 190 international markets where we serve our clients without registering as a local business entity.

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Legally Onboard and Payroll Employees in Estonia via Acumen Employer of Record (EOR)

Acumen’s EOR global employment solution helps businesses overcome legal challenges by hiring and compensating your local and ex-pat workforce in Estonia on your behalf risk-free and cost-effectively. If you are looking to reinforce your internal team with the expertise of Estonia-based global talent, or if you have already selected a local candidate to work for you remotely and in full legal compliance in Estonia, our global EOR solution is the ideal choice for you.

You can trust Acumen to handle your workforce management’s global employment and HR details in Estonia to ensure full compliance with in-country employment laws.

Acumen’s Global Employer of Record (EOR) solution was designed to help international companies like yours expand their global reach and engage the brightest global talent for their projects.

In addition to legally onboarding local citizens, we can organize work permits and business visa sponsorship for your expatriate team via our Global Employer of Record and employ them on your behalf once legal permissions have been attained.

Partner with Acumen International, and let us help you handle your global employment and HR needs. With Acumen, you can rest assured that all legal requirements are met for compliant hiring and compensating your local and expatriate employees in Estonia and 190 countries worldwide where we serve our international clients.

Reduce risks while expanding your business without establishing your legal entity in Estonia. Leave it to Acumen to hire and compensate your employees on your behalf, so you can focus on growing your business.

Trust us to handle the global employment and HR side of your workforce management in Estonia, so you are sure that none of these nuances is missed and that your employees are employed and payrolled properly and compliantly on your behalf.

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Spotlight on Estonia

Estonia (Republic of Estonia) is located in Northeastern Europe, bordered by the Baltic Sea to the west, the Gulf of Finland to the north, Latvia to the south, and Russia to the east. It is divided into 15 counties and 79 local municipalities. Estonia has a modern, market-based economy and one of the higher per capita income levels in Central Europe and the Baltic region.

  • Capital: Tallinn.
  • Official language: Estonian.
  • Population: 1.220.042 (July 2021).
  • Labor force: 648.000 (2020).
  • Local currency: The euro has been the official currency since 1 January 2011.
  • Minimum statutory salary: The minimum monthly wage in Estonia in the case of full-time working time is 584 euros in the third quarter of 2021. It was agreed in the national minimum wage agreement that from 2019 until 2022, the minimum wage increase would be calculated annually based on labor productivity and economic growth instead of on classic negotiations between the social partners.
  • Salary Currency: The Employment Contracts Act does not stipulate currency the salary should be remunerated. According to Article 33, an employer shall transfer an employee’s wages and other remuneration to the bank account indicated by the employee unless agreed otherwise.
  • Most developing industries: The services sector is the most developed, in particular, transport and logistics, biotechnology, and financial services) and accounts for roughly 60.4% of the Estonian GDP. The industrial sector represents around 24.1% of the GDP. The main industrial subsectors are the food industry (dairy products and meat processing), the chemical industry, the wood processing industry, and electronics & IT (a traditional sector). Agriculture accounts for only 2.7% of the GDP. With rich shale oil reserves, Estonia draws much of its energy production from this resource. The main crops include cereals, potatoes, and vegetables.
  • Trading partners: Estonia’s economy benefits from strong electronics and telecommunications sectors and strong trade ties with Finland, Sweden, and Germany. The main trading partners are Latvia, the United States, Lithuania, Poland, and China. Export/import commodities include broadcasting equipment, refined petroleum, coal tar oil, cars, prefabricated buildings, and packaged medicines.
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