Unemployment Convention, 1919 (No. 2) - Estonia (RATIFICATION: 1922)

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Articles 1 and 3 of the Convention. Information concerning unemployment and measures taken to address it. Unemployment insurance. Application in practice. The Committee notes the comprehensive information provided by the Government concerning unemployment and the measures taken to tackle it. In particular, the Committee notes the Government’s indication that the Ministry of Social Affairs is formulating a new Welfare Development Plan, which is expected to effectively address significant challenges faced by Estonia in the areas of social security, inclusion and equal opportunities for the period from 2023 onwards. The Government adds that, due to Estonia’s low birth rate and aging population, the number of working age persons is set to decrease by 4,800 persons a year, a trend which is expected to have an immense impact on the national social security system. The Estonian Unemployment Insurance Fund (EUIF –Eesti Töötukassa) is responsible for the implementation of active and passive labour market policy, planning and providing labour market services and unemployment insurance. Additional labour market services and benefits are provided by additional programmes funded by the European Social Fund (ESF). The Committee notes the Government’s indication that during the COVID-19 pandemic and ensuing economic crisis, the number of unemployed persons increased, as did the demand for labour market services, which required more flexible and efficient labour market policies. Pursuant to the Labour Market Services and Benefits Act of 2011, the Supervisory Board of the EUIF is competent to put in place temporary employment programmes which can adapt more quickly to changing labour market demands, such as the ESF-funded programme on the “Provision of labour market services that guarantee better opportunities to become employed (2014–2021)”. In this context, the Government reports that the unemployment rate has particularly increased for young persons, whose opportunities for employment are limited due to low education levels, as well as a lack of skills and experience. In addition, regional disparities also limit the employment potential of the workforce, making it necessary to promote working further away from home. Accordingly, to prevent youth unemployment and encourage employment among older workers, the ESF Programme, which is implemented by the EUIF, targets students, young unemployed persons and those who have reached retirement age. It also encourages regional mobility by providing unemployed persons with a mobility subsidy if they take up a job that is at least 30 kilometres from their home. The Committee also notes the Government’s indication that, given the declining working age population, all persons are needed in the labour market. In this respect, the Government refers to the Work Ability Reform, which entered into force on 1 January 2016, and expanded the scope of labour market services provided to persons with disabilities. The competencies of the EUIF were expanded under the ESF programme on the “Provision of labour market services to the work ability reform target group (2015–2023)”. The Government indicates that, prior to the reform, only about 40 per cent of persons registered as having a permanent disability were in employment. The work ability reform aims to increase the rate of employment of persons with disabilities while also shifting society’s perceptions of persons with disabilities. The Committee notes with interestthat, according to Statistics Estonia, following the adoption of the work ability reform, the employment rate of persons with disabilities has continued to increase, as has Estonian society’s awareness about disabilities. With respect to unemployment insurance, the Government indicates that there are no special arrangements under Article 3 of the Convention regarding equal treatment of national and foreign workers, as both have the right to receive unemployment benefits. The Committee further notes the information communicated by the Government concerning the package of economic measures adopted on 19 March 2020 to alleviate the impact of the pandemic and support both workers and enterprises. The package included a new short-time work scheme (STW), implemented by the EUIF as a temporary employment programme, which provided a temporary subsidy for workers whose employers were significantly impacted by the pandemic. The subsidy was extended and modified several times in 2020 and 2021. The Committee requests the Government to continue to provide updated information, including statistical data disaggregated by age, sex and region, in relation to the application of the Convention in practice.

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Article 3 of the Convention. Unemployment insurance. In reply to the previous comments, the Government indicates in its report that equality of treatment of national and foreign workers with regard to unemployment insurance is guaranteed. It adds that unemployment insurance benefits are paid only when a person resides legally in Estonia. Nevertheless, additional rights may be conferred by the legislation of the European Union or by bilateral agreements. The Committee notes in this regard the bilateral agreement between Estonia and Ukraine concerning unemployment insurance and the aggregation of insurance periods. It also notes the detailed information provided by the Government concerning the national policy and legislation with respect to application of the other provisions of the Convention, such as the administrative supervision over the compliance of private employment agencies by the Ministry of Social Affairs. The Committee requests the Government to continue to provide information on the application of the Convention in practice.

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The Committee notes the report provided by the Government in September 2010 including detailed data on the national policy and legislation in connection with unemployment. It invites the Government to include in its next report information on any arrangements concerning the equality of treatment of national and foreign workers as regards unemployment insurance and the other information requested by the report form in accordance with Article 3 of the Convention.

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Article 2, paragraph 1, of the Convention. In reply to the Committee’s 1998 direct request, the Government reports that 15 regional employment councils have been established as tripartite advisory and cooperation bodies in all counties of Estonia. The National Employment Council (established in 2003) acts as a tripartite advisory body and coordinator of the activities of the regional employment councils. Comprehensive training of the members of the regional employment councils was organized in the framework of the implementation of the PHARE-Twining project on social dialogue (2002-04). The Committee welcomes this progress and looks forward to the Government’s report on the application of the Employment Policy Convention, 1964 (No. 122), and on the involvement of the social partners in the operation of the system of free public employment agencies.

Article 3. The Committee also notes with interest that the 2000 Social Protection of the Unemployed Act and the 2001 Unemployment Insurance Act regulate conditions and procedure for the payment and grant of benefits upon unemployment. The Committee would be grateful if the Government would include in its next report information on any arrangements concerning the equality of treatment of national and foreign workers as regards unemployment insurance and the other information requested by the report form in accordance with this Article.

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Article 2, paragraph 1, of the Convention. The Committee notes from the Government's report that informal consultation with social partners takes place, especially in Tallinin and that the Labour Market Board has started consultations on the establishment of employment councils. The Committee recalls in this connection that this Article provides for the establishment of advisory committees, which shall include representatives of employers and workers, to advise on matters concerning the carrying on of free public employment agencies. It would be grateful if the Government would supply, in its next report, information on any progress on the measures taken to establish such committees, to give effect to this provision of the Convention. Please indicate how the committees are constituted and appointed and what method is adopted for the choice of the employers' and workers' representatives. The Committee notes from the Government's report that the Government has formed a governmental commission for the creation of an insurance system and that by 18 January 1999 the Government is due to receive a basic concept of the system.

Article 3. The Committee also notes the information provided by the Association of Trade Unions included in the Government's report on unemployment funds established by eight of the trade unions, and that the level of the unemployment subsidies provided by the trade unions seems to exceed the Government's benefits.

The Committee would be grateful if the Government would supply information on any developments and asks the Government, when such system of insurance is established, to provide information on any arrangements concerning the equality of treatment of national and foreign workers as regards unemployment insurance, which shall be made in accordance with this Article.

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The Committee takes note with interest of the Government's report on the application of the Convention. It notes, in particular, comprehensive statistical information concerning the situation on the labour market in Estonia, as well as information on measures taken to combat unemployment, including those provided for in legislative texts adopted in 1990-94, which the Government has supplied with its report. The Committee would be grateful if the Government would supply, in its next report, additional information on the following points:

Article 2, paragraph 1, of the Convention. The Committee notes from the Government's report that a network of public employment offices which covers the whole country was set up in 1994. The Government states, however, that there is no mechanism for consultation with employers and workers concerning the functioning of these offices. The Committee recalls in this connection that this Article provides for the establishment of advisory committees, which shall include representatives of employers and workers, to advise on matters concerning the carrying on of free public employment agencies. It therefore asks the Government to supply, in its next report, information on measures taken to establish such committees, in order to give effect to this provision of the Convention, indicating, in particular, how these committees are constituted and appointed and what method is adopted for the choice of the employers' and workers' representatives.

Article 3. The Government indicates in its report that there is no system of insurance against unemployment in the country, but the establishment of such a system is envisaged. The Committee would be grateful if the Government would keep it informed on any developments in this sphere. It also asks the Government, when such system of insurance is established, to provide information on any arrangements concerning the equality of treatment of national and foreign workers as regards unemployment insurance, which shall be made in accordance with this Article.