Employment, Estonia, Financial Services, Insurance, Legislation, Markets and Companies

Under the plan, a person serving as member of the management board of a company would be able to register as unemployed if he or she gets no remuneration as board member and taxes have been paid for at least 180 working days for that person during the past 12 months. Likewise, it would be possible for a self-employed person to register as unemployed if the person's business has been suspended and he or she has worked for at least 180 days during the past 12 months.

"The government is planning to discuss this subject at a Cabinet sitting shortly," Jana Rosenfeld, spokesperson for the Ministry of Social Affairs, told BNS. Estimates by the ministry suggest that restoring unemployment insurance for board members would cost from 8-10 million euros per year.

According to the Tax and Customs Board there were 153,209 persons related altogether to 149,453 enterprises in Estonia in December 2015 who received no remuneration for their role in the enterprise. According to the ministry, the amendment would raise the number of unemployed people by up to 1,800.

Justice Minister Urmas Reinsalu, commenting on the proposal for the legislative amendment in February, said its aim was to basically restore the situation preceding the summer of 2014 when members of management boards had the opportunity to register as unemployed if they were not paid a salary for their job on the management board.

In addition, the problem of self-employed persons not being able to register as unemployed has to be addresse, Reinsalu said.

Estonia's Chancellor of Justice Ulle Madise in mid-December proposed to the Riigikogu to change the law so that members of a company's board would have the right to get unemployment insurance benefit when they lose their job and income.

The 101-seat Riigikogu in February supported the proposal of Madise with 69 votes, with no one voting against and three abstentions.