Amendments to the Aliens Act would allow a more flexible response to economic needs

The Ministry of the Interior has sent for inter-agency approval amendments to the Aliens Act that ease restrictions on engaging foreign labour in sectors facing acute labour shortages. The Estonian Chamber of Commerce and Industry (the Chamber / ECCI) considers the changes necessary and justified to ensure access to qualified labour and safeguard our companies’ international competitiveness.

“Lack of labour with the right skills is one of the biggest brakes on Estonia’s economic development. If we want our economy to grow and for tax revenues to continue funding public services in the future, we must create opportunities to engage qualified foreign labour. At the same time, we also need to modernise the education system and expand reskilling opportunities,” said Mait Palts, Director General of the Estonian Chamber of Commerce and Industry, adding that foreign labour can never replace our people, but foreigners make it possible to fill gaps where our people lack the skills or often the desire to work, regardless of pay levels.

The main changes planned in the draft:

• The current exception for short-term employment would be replaced with an exception for sectors with labour shortages, under which a fixed-term residence permit for employment could be granted outside the immigration quota and without the Estonian Unemployment Insurance Fund’s permit.
• For work in sectors with labour shortages, a special wage criterion would apply: the employer must pay the foreign worker at least 80% of the most recently published annual average gross monthly wage in Estonia, as reported by Statistics Estonia.

Palts stressed that a well-managed migration policy must be an integral part of Estonia’s economic policy and that these amendments are the first concrete steps in that direction. “Making targeted, evidence-based exceptions in the Aliens Act is necessary and fully justified, because it helps raise the value added created by companies and significantly supports our economy,” he explained.