The Riigikogu adopted amended versions of two Acts which had not been promulgated

At today's sitting, the Riigikogu adopted amended versions of two Acts which the President of the Republic had refused to promulgate. One of them allows for flexible working time agreements and the other allows for better involvement of reservists, conscripts, and civilians working in the Defence Forces in the activities of the Defence Forces.

The Riigikogu adopted an amended version of  the Act on Amendments to the Employment Contracts Act and Other Acts (602 UA) which the President of the Republic had refused to promulgate.  A technical inaccuracy in the text of the Act allowing for flexible working time agreements was corrected in the course of renewed deliberation.

The Riigikogu initially adopted the bill, initiated by the Government, on 19 November. The Act allows the employer and employee to agree on a more flexible work arrangement than before where a part-time employee can work additional hours until they reach full-time hours if they wish. An important aim of the Act is to discourage employers from concluding, in addition to employment contracts, currently widespread contracts under the law of obligations, such as contract for services and authorisation agreement which do not guarantee employees adequate social guarantees and the necessary employment protection.

The Act establishes separate requirements for flexible working time agreements: for example, the agreement must be concluded in writing and the employee’s hourly wage must be at least 1.2 times the minimum hourly wage. An employee will have to be employed at least quarter-time, meaning they will have to work at least ten hours a week. Thus, they will be able to work up to 30 hours on a flexible basis. At the end of the calculation period, employees will have to be provided with a schedule that clearly outlines the agreed hours of work, additional hours, and overtime during that period. During the proceedings, parliament included a provision in the Act to prevent situations where a company wishes, for example, to conclude flexible working time agreements with employees who have previously worked full-time, in order to optimize costs.

President Alar Karis refused to promulgate the Act early last December. In his opinion, the Constitution had been violated in the processing of the Act when it had been sought to be amended with a notification of correction of an error after its adoption. It had been intended to amend the provision concerning the information that must be included in flexible working time agreements. The adopted Act states that information on the calculation of working hours must be included, while the amendment concerns the employee’s right to refuse an agreement. According to the President, that had not been a case of an obvious inaccuracy, but a substantive amendment that would affect the rights and obligations of the parties to agreements. Therefore, he considered it necessary to renew the deliberation of the Act in the Riigikogu and to bring it into line with the Constitution.

The Riigikogu decided in mid-December that it would not pass the Act again without amendments but would begin amending it. During the second reading, parliament decided to amend a reference which had been intended to be corrected with an error notice after the initial passing of the Act.

Vladimir Arhipov from the Centre Party Group and Madis Timpson from the Reform Party Parliamentary Group took the floor during the debate. Tanel Kiik made a speech on behalf of the Social Democratic Party Group.

44 members of the Riigikogu supported the passing of the amended version of the Act and 23 voted against.

The Riigikogu adopted an amended version of the Act on Amendments to the Military Service Act and Amendments to Other Associated Act (664 UA), which the President of the Republic had refused to promulgate. It was decided to omit the provision concerning the language proficiency requirement for conscripts from the Act.

The Riigikogu initially adopted the bill, initiated by the Government, on 19 November. The aim of the Act is to better involve reservists, conscripts, and civilians working in the Defence Forces in the activities of the Defence Forces. To this end, a new type of service – voluntary service – will be created with the amendments. Among other things, the Act waives the requirement that, for reservist, the age of their rank must be double the age of the rank, provides for the possibility of paying additional remuneration for time served in active service as part of the salary arrangement for active servicemen, and provides that only conscripts living abroad are paid separate travel expense compensation when they go on leave.

During the procedure, an amendment was also incorporated into the Act according to which call-up selectees would have to have at least an intermediate level of proficiency in Estonian in order to be eligible for conscript service. According to the explanation of the motion to amend, the training of conscripts is conducted in Estonian and increasingly complex weapons and communications systems, and specific professional terms are used in the training. A person with language skills below B1 level is unable to adequately master the instructions and training content, which in turn prevents the successful completion of effective military training.

President Alar Karis refused to promulgate the Act early last December. In his opinion, the Act violates the principle of equal treatment because it gives an unjustified advantage in the performance of the national defence obligation to conscripts who do not speak Estonian. President of the Republic considered it necessary to renew the deliberation of the Act in the Riigikogu and to bring it into line with the Constitution.

The Riigikogu decided in mid-December that it would not pass the Act again without amendments but would begin amending it. The disputed provision was removed from the bill at the second reading, and the National Defence Committee plans to initiate a separate bill to establish a language proficiency requirement for conscripts.

Peeter Tali from Estonia 200 Parliamentary Group, Mati Raidma from the Reform Party Group and Vladimir Arhipov from the Centre Party Group took the floor during the debate.

60 members of the Riigikogu supported the passing of the amended version of the Act and four voted against.

Another Act was passed

The Riigikogu passed the Act on Amendments to the Electricity Market Act (776 SE), initiated by Member of the Riigikogu Mario Kadastik. Its aim is to resolve the bottlenecks that have emerged against the backdrop of the energy crisis. The amendments eliminate the obligation for producers of renewable energy primarily for domestic use to pay the electricity network underutilization fee.

To solve the problem of so-called phantom connections, amendments were made to the Electricity Market Act in 2023, according to which owners of unused connection capacity must start paying a network underutilization fee from March this year. According to the Act passed today, owners of generating installations with a capacity of up to 15 kW are exempted from the obligation to pay underutilization fee if they fail to use their connection capacity for its intended purpose to the extent of at least 95% for at least one trading period once a year.

The explanatory memorandum states that micro and small producers of renewable energy who at the same time are also consumers generally transmit electrical energy to the electricity grid only in excess of their own consumption needs, i.e. they do not produce electrical energy as part of their economic or professional activities and burdening them with the same requirements as large producers is disproportionate. The exemption applies to 3,700 connection points in the distribution network with a total production capacity of 143 MW whose average annual underutilisation fee would be EUR 114.

Under the Act, the exemption from the underutilization fee also applies to the island operation capability service provider that wins the tender. In addition, the amendments will promote the wider adoption of energy storage units by eliminating double taxation.

57 members of the Riigikogu voted in favour of passing the Act and two were against it.

The Riigikogu made a Statement in support of the people of Iran

The Riigikogu also passed the Statement of the Riigikogu “In Support of the People of Iran” (802 AE), submitted by 68 members of the Riigikogu. It expresses support to the people of Iran, condemns the systematic and extensive violations of human rights by the authorities, and calls on democratic countries to increase political and diplomatic pressure on the Iranian regime. The Riigikogu made the statement in a situation where Iran has been engulfed in a wave of protests because of the deepening economic and political crisis, with the authorities responding to peaceful protests with repressions and restrictions of fundamental rights.

The explanatory memorandum describes how the protests started on 28 December last year after the exchange rate of the Iranian rial plummeted compared to the US dollar, which has exacerbated the inflation crisis and seriously harmed the livelihood of the population. The protests started with a strike of the merchants on the Tehran Grand Bazaar and spread to other Iranian provinces. The initial economic demands have expanded into a broader opposition to the authoritarian governing style of the theocratic regime in Iran.

“The Iranian authorities have responded to the protests with extreme repressions. Independent sources report that thousands have been killed during the crackdown, and thousands have been arbitrarily arrested. The regime is systematically using intimidation and violence, including threatening the protesters with death penalty, which is a gross violation of the standards of international human rights and the international commitments of Iran,” the explanatory memorandum says.

The explanatory memorandum also cited extensive restrictions on the freedom of speech and freedom of information. Independent supervisory organisations have reported blocked internet connections and other means of digital censorship in Iran that form an obstacle to the public right to communicate and to receive reliable information at a critical moment.

“Iran’s domestic repressions and aggressive foreign policy are inextricably linked. Iran has become part of the axis of authoritarian regimes and is an active supporter of the war of aggression of the Russian Federation against Ukraine, including by providing military aid and cooperation, thus jeopardising international security and the principles enshrined in the UN Charter,” reads the explanatory memorandum.

In its Statement today, the Riigikogu condemns unequivocally the systematic and extensive violations of human rights by the Iranian authorities and emphasises that lasting peace and stability cannot be achieved without respecting the fundamental rights and freedoms of the Iranian people.

According to the Statement, the Riigikogu advocates for an increased political and diplomatic pressure on the Iranian regime, including through targeted sanctions against the leaders of the regime, its security authorities, and people responsible for violations of human rights. The parliament also calls for support for the civil society, independent media, and internet freedom, as well as keeping the focus on human rights in Iran, and for support for independent investigation mechanisms to document the mass crimes committed by the Iranian authorities.

In addition, in the Statement, the Riigikogu defines the Islamic Revolutionary Guard Corps (IRGC) as a terrorist organisation and urges the European Union, its Member States, and other democracies across the world to do the same, considering the role of the organisation in supporting terrorism, breaches of international law, and repressions and mass violation of the human rights of the Iranian people. The Riigikogu also calls on all countries of the free world to not keep silent about the violations of human rights, and to stand firm in support of the right of the Iranian people to live in free, safe, and dignified society.

Urmas Reinsalu from Isamaa Parliamentary Group, Luisa Rõivas from the Reform Party Group, Juku-Kalle Raid from Eesti 200 Parliamentary Group and Mart Helme from the Estonian Conservative People’s Party Parliamentary Group took the floor during the debate.

80 members of the Riigikogu supported the adoption of the Statement.

Two Bills passed the second reading

The Bill on Amendments to the President of the Republic Election Act (684 SE), initiated by 37 members of the Riigikogu, passed the second reading in the Riigikogu. It will bring forward the deadline for nominating presidential candidates and give candidates the opportunity to introduce themselves before the voting rounds. The aim of the amendments is to make the presidential election process smoother, more transparent, and more inclusive of the public.

While under the current Act, candidates can be nominated both in the Riigikogu and later in the electoral body from the fourth to the second day before the first round of voting, according to the Bill, the nomination of candidates will begin on the 12th day and end on the ninth day before the first round. According to the initiators, the amendment will give the public an opportunity to familiarize themselves more thoroughly with the candidates and their positions before elections and help prevent a situation where candidates are nominated immediately before a vote.

In addition, the Bill will establish the procedure for introducing candidates before the first and second rounds of voting in the Riigikogu and before the first round of voting in the electoral body. According to the bill, all candidates will give a presentation of up to 10 minutes before the voting rounds. According to the initiators, the aim of the amendment is to ensure equal opportunities for candidates to introduce themselves and to increase the transparency and credibility of the election process, which in turn will support the authority and legitimacy of the presidential institution.

 Lauri Läänemets from the Social Democratic Party Group, Helir-Valdor Seeder and Urmas Reinsalu from Isamaa Parliamentary Group, Lauri Hussar from Estonia 200 Parliamentary Group, Lauri Laats from the Centre Party Group, Mart Helme from the Estonian Conservative People’s Party Group and Õnne Pillak from the Reform Party Parliamentary Group took the floor during the debate. Non-attached Member of the Riigikogu Peeter Ernits also took the floor.

Isamaa Parliamentary Group moved to suspend the second reading of the Bill, but the plenary did not support the motion. 19 members of the Riigikogu supported suspension but 44 voted against it.

The Bill on Amendments to the Railways Act and the State Fees Act  (716 SE), initiated by the Government, also passed the second reading. Its aim is to eliminate the shortcomings highlighted in the audit of the European Union Agency for Railways, improve railway safety, and bring the Act into line with EU law.

Based on the proposals presented in the audit, the Railway Act will be amended to ensure continuous assessment of the railway system and compliance of the certification process with applicable requirements. The Bill will improve the mechanisms for assessing and controlling the safety of rail traffic, specify safety monitoring and assessment procedures, and address the implementation of risk management systems.

During the procedure, Parliament introduced amendments to the bill that will harmonise the requirements for public and non-public railway infrastructure managers / railway undertakings and fully transfer the registration of railway vehicles to the European Vehicle Register. According to the amendments, the maintenance of railway infrastructure data will be transferred from the railway traffic register to the register of buildings from the beginning of next year.

Seven Bills passed the first reading

The Bill on Amendments to the Electricity Market Act and the Alcohol, Tobacco, Fuel and Electricity Excise Duty Act  (787 SE), initiated by the Government, passed the first reading. It is intended to establish a preferential rate for renewable energy charge for large industrial companies.

According to the explanatory memorandum, the renewable energy charge and energy price in Estonia are significantly higher than the average in neighbouring countries and Europe. This makes it expensive for industrial companies to operate in Estonia and reduces the attractiveness of Estonian investments. In order to bring down prices, support the competitiveness of the industry and bring new investments to Estonia, it is planned to establish a 75–85 percent preferential rate for renewable energy charge for consumers who consume more than one GWh of electrical energy per year. The amendment will concern around 90 undertakings.

The bill will also omit storing of electrical energy as one of the restrictions on qualifying as a gas intensive undertaking and receiving the associated reduction on excise duty on gas. A company’s gas consumption intensity will have to be 13 percent or higher on average in order to receive a reduction on excise duty on gas. Storing electrical energy allows businesses to reduce their energy costs by storing energy during low-price hours and consuming the stored electrical energy during high-price hours.

The implementation of the measures will require obtaining authorisation for state aid from the European Commission. The renewable energy charge reduction is intended to be applied retroactively from 1 January 2026.

Lauri Laats from the Centre Party Group, Reili Rand from the Social Democratic Party Group, Martin Helme from the Estonian Conservative People’s Party Group, Urmas Reinsalu from Isamaa Parliamentary Group and Tarmo Tamm from Estonia 200 Parliamentary Group took the floor during the debate.

The Estonian Conservative People’s Party Group moved to reject the Bill at the first reading, but the motion was not supported. Eight members of the Riigikogu supported rejection and 44 voted against.

The Bill on Amendments to the Building Code and Other Associated Acts (acceleration of the planning and construction of construction works that serve national defence purposes) (789 SE), initiated by the Government, passed the first reading. It will speed up the planning and construction of construction works necessary to ensure national security, including military national defence, and related legal proceedings.

According to the bill, when designing and constructing construction works necessary to ensure national security, the multi-stage planning process will be skipped and the obligation to assess environmental impact will be reduced. The bill will also reduce the obligation to submit a forest notification if logging or forest management activities are carried out for direct national defence purposes or for security considerations.

The Bill also provides that courts will have to resolve complaints related to construction works that serve national defence purposes as a matter of priority and generally within four months from the filing the complaint and within six months in exceptional cases. In the case of such complaints, moving for interim protection will also be restricted in order to protect the public interest. The amendments are intended to significantly speed up the process of reaching a final court decision in legal disputes which, according to the explanatory memorandum, will help ensure that lengthy disputes do not hinder the strengthening of the country’s defence capabilities and that changes in the security environment can be responded to promptly.

According to the explanatory memorandum, the need for accelerated construction of structures important for national defence arises from the regional security situation which is why it is necessary to ensure both the ability to host allies and the practical applicability of defence plans. Other European countries, such as Denmark and Lithuania, have also made changes to their national legislation in order to speed up the planning and construction of construction works that serve national defence purposes.

According to the bill, the amendments will enter into force on 1 April this year so that the construction of construction works that serve national defence purposes can begin as early as the second half of the year. According to the bill, the special regulation will remain in force until 31 December 2032.

Kalev Stoicescu from Estonia 200 Parliamentary Group and Tiit Maran from the Social Democratic Party Parliamentary Group took the floor during the debate. Alar Laneman made a speech on behalf of the Reform Party Parliamentary Group.

 The Bill on Amendments to the Aliens Act (specification for sectors with labour shortages) (785 SE), initiated by the Government, passed the first reading. Its aim is to alleviate the shortage of qualified labour which is limiting the competitiveness of Estonian companies and holding back economic growth.

Forecasts by the Estonian labour and skills needs monitoring and forecasting system (OSKA) show that Estonia lacks around 1,400 top specialists and 700 skilled workers every year and this need is not covered by graduates of the Estonian education system. The bill will replace the current specification for short-term employment with a specification for sectors with labour shortages which will allow companies to recruit foreign labour more flexibly. In such sectors, no immigration quotas will apply, no permission from the Estonian Unemployment Insurance Fund will be required, and the salary criterion will be set at 80 percent of the average gross monthly salary in Estonia.

 The list of sectors experiencing labour shortages will be compiled taking into account OSKA forecasts, the share of exports, and the average wage level in the sectors. According to a preliminary analysis, the greatest need is in the manufacturing industry, and transportation and warehousing, but the list will be updated according to changes in the economic environment, and the government will establish it for up to five years.

In order to maintain a balance between the needs of the labour market and the absorption capacity of society, an annual volume limit will be established for residence permits issued on the basis of the specification which will depend on the state of the economy: up to 0.2 percent of the permanent population, or approximately 2,600 permits, during growth periods, and up to 0.1 percent of the permanent population, or approximately 1,300 permits, under other circumstances. The assessment of the state of the economy will be based on the Ministry of Finance’s forecast for real GDP growth for the current year.

 Martin Helme from the Estonian Conservative People’s Party Group, Lauri Läänemets from the Social Democratic Party Group and Helir-Valdor Seeder from Isamaa Parliamentary Group took the floor during the debate.

The Estonian Conservative People’s Party Group, the Social Democratic Party Parliamentary Group and Isamaa Parliamentary Group moved to reject the Bill at the first reading, but the plenary did not support the motion. 19 members of the Riigikogu supported rejection but 42 voted against.

The Bill on Amendments to the Aliens Act and Other Associated Acts (single permit)  (786 SE), initiated by the Government, passed the first reading. It will transpose into Estonian law a European Union directive that regulates the right of residence and work of third-country nationals and ensures equal treatment of foreign workers.

According to the bill, during the period of validity of a temporary residence permit issued for employment, it will be possible to change employers without applying for a new residence permit and it will be sufficient for the new employer to register the change of employment with the Police and Border Guard Board. When working for a new employer, the usual employment requirements will apply, such as salary criteria and permission from the Estonian Unemployment Insurance Fund.

In the future, a foreign employee may be unemployed for up to three months if their residence permit has been valid for less than two years, and for up to six months if their residence permit has been valid for at least two years, on the basis of a residence permit issued for employment. In exceptional cases, the period of unemployment may extend to up to nine months. In the event of unemployment lasting longer than three months, the person will have to provide evidence of having sufficient financial resources to maintain themselves in Estonia.

According to the bill, people staying in Estonia while working on a long-term visa will be entitled to several social security benefits, such as parental benefit and work ability and pension allowances, if they actually work in Estonia and meet the general eligibility conditions. Family benefits will not extend to foreign workers.

Considering the increase in the number of violations in the employment of foreigners in recent years and the fact that fine rates date back to 2010, the bill will also update the fine rates for legal entities and provide that fines of up to EUR 100,000 may be imposed in cases of significant violations in the future.

Urmas Reinsalu from Isamaa Parliamentary Group and Anti Poolamets from the Estonian Conservative People’s Party Group took the floor during the debate.

Isamaa Parliamentary Group moved to reject the Bill at the first reading. However, as eight members of the Riigikogu supported the motion and 39 were against, the motion was not supported.

The Bill on Amendments to § 44 of the Law Enforcement Act (774 SE), initiated by the Government, passed the first reading. It will allow for imposing prohibitions on stay for up to 72 hours on perpetrators of domestic violence in order to protect victims.

While currently patrol officers can impose prohibitions on stay for up to 12 hours on perpetrators of domestic violence, the bill will allow for prohibitions on stay for up to 72 hours to be applied. According to the explanatory memorandum, a prohibition on stay is often applied in cases of domestic violence as it is one of the quickest and most effective ways to protect the victim from immediate danger and break the cycle of violence.

According to the bill, the police will be able to apply a prohibition on stay to ascertain or counter a significant or serious threat in order to protect the rights of victims of domestic violence. In future, in cases of domestic violence, the imposition of a prohibition on stay will have to be recorded in minutes and delivered in writing and it can no longer be imposed orally.

Timo Suslov from the Reform Party Group and Marek Reinaas from Estonia 200 Parliamentary Group took the floor during the debate. Andres Hanimägi took the floor on behalf of the Social Democratic Party.

The Bill on Amendments to § 44 of the Law Enforcement Act  (771 SE), initiated by the Social Democratic Party Parliamentary Group and Members of the Riigikogu Jaak Aab, Ester Karuse, Tanel Kiik, Andre Hanimägi and Züleyxa Izmailova, also passed the first reading. According to it, the police will be able to apply prohibitions on stay for up to 72 hours to protect victims of domestic violence.

According to the bill, it will be possible for the police to apply a prohibition on stay for 72 hours to ascertain or counter a significant or serious threat in order to protect the rights of victims of domestic violence. In addition, according to the bill, it will become mandatory to record prohibitions on stay in minutes in cases of domestic violence.

The Bill on Amendments to the Waste Act (799 SE), initiated by the Environment Committee, also passed the first reading. Its aim is to give the private sector more investment certainty in waste handling and to improve competition and service quality.

The bill to amend the regulation on in-house transactions will amend the provision relating to contracts for the recovery and disposal of waste. The amendments will apply to the contracting of the recovery and disposal of the waste collected by order of local governments.

According to the bill, the obligation for local governments to also organize waste handling through procurement will enter into force on 1 January 2031 to allow sufficient time to take the new requirement into account. Most municipalities are already organizing procurements and about 10 municipalities are using in-house transactions which will be prohibited once the bill is adopted. If an open or restricted procurement procedure is concluded due to a lack of tenders, the provisions of the Public Procurement Act provide for the possibility of an in-house transaction, i.e. the use of a negotiated procurement procedure without prior publication.

The bill is related to the amendments passed at the end of last year the main aim of which was to increase the use of secondary raw materials contained in municipal waste. The amendments will create the conditions for timely achievement of the recycling targets established in the European Union.

Tiit Maran from the Social Democratic Party Group took the floor during the debate.

The Social Democratic Party Parliamentary Group moved to reject the Bill at the first reading, but the plenary did not support the motion. Nine members of the Riigikogu supported rejection and 33 voted against.

The first reading of the Bill on the Repeal of the Estonian Public Broadcasting Act (758 SE), initiated by the Estonian Conservative People’s Party Group, was cancelled at Wednesday’s sitting due to the absence of the presenter.

The sitting ended at 1.08 a.m.

Verbatim record of the sitting (in Estonian)

Video recording will be available to watch later on the Riigikogu YouTube channel.

Riigikogu Press Service
Karin Kangro
+372 631 6356, +372 520 0323
[email protected]
Questions: [email protected]