Trade Unions Act (consolidated text July 2002)

Trade Unions Act

Passed 14 June 2000

(RT¹ I 2000, 57, 372),

entered into force 23 July 2000,

amended by the following Act:

19.06.2002 entered into force 01.09.2002 - RT I 2002, 63, 387.

Chapter 1

General Provisions

§ 1. Purposes of Act

(1) This Act provides the general rights of and bases for the activities of trade unions, and their relations with state and local government agencies and employers.

(2) This Act provides the specifications for the foundation, activities and dissolution of trade unions which operate as non-profit associations.

§ 2. Definition and objectives of trade unions

(1) A trade union is an independent and voluntary association of persons which is founded on the initiative of the persons and the objective of which is to represent and protect the employment, service-related, professional, economic and social rights and interests of employees.

(2) For the purposes of this Act, the term “trade union” is used for all associations which are in the form of trade unions and are provided for in this Act.

(3) For the purposes of this Act, an employee means any person who is employed, regardless of the nature of the work performed.

§ 3. Trade unions as social dialogue partners

Trade unions achieve their objectives acting as social dialogue partners to employers, associations of employers, local governments and the Government of the Republic in mutual informing, consulting and collective bargaining and in issues involving the interests of employees set out in subsection 2 (1) of this Act.

§ 4. Freedom to join in trade unions

(1) Persons have the right to found trade unions freely, without prior permission, and to join or not to join trade unions. Members of the armed forces who are in active service in the Defence Forces shall not found or join trade unions.

(2) Trade unions have the right to form and join federations and central federations in order to represent the rights and interests of employees. Trade unions have the right to join the international organisations of employees.

§ 5. Independence of trade unions

(1) In their legal activities, trade unions are independent of employers, associations of employers and representatives thereof, state agencies and local governments and other organisations.

(2) Trade unions have the right to independently organise their activities and management, to prepare their articles of association, action plans and freely elect their representatives.

(3) Employers, associations of employers and representatives thereof, state agencies and local governments shall not dissolve, restrict or prohibit the activities of trade unions, or intervene in the internal matters of trade unions.

(4) The activities of a trade union shall be terminated only voluntarily or by a court judgment.

Chapter 2

Passive Legal Capacity, Foundation and Management of Trade Unions

§ 6. Passive legal capacity of trade unions

(1) A trade union is a non-profit association if it is entered in the register of trade unions of its location. The Non-profit Associations Act (RT I 1996, 42, 811; 1998, 96, 1515; 1999, 10, 155; 23, 355; 67, 658; 2000, 55, 365; 88, 576; 2001, 24, 133; 56, 336; 93, 565; 2002, 53, 336) applies to trade unions with the specifications resulting from this Act.

(2) The passive legal capacity of a trade union commences as of entry of the trade union in the register of trade unions of its location (hereinafter register) and terminates as of deletion from the register.

(3) Transformation of a trade union into a non-profit association of a different class is prohibited.

§ 7. Foundation

(1) A trade union may be founded by at least five employees. A federation of trade unions may be founded by at least five trade unions. The central federation of trade unions may be founded by at least five national trade unions or federations of trade unions of an area of activity or profession.

(2) A trade union shall be founded at a foundation meeting pursuant to subsections 9 (2), (4) and (5) of this Act.

(3) The foundation of a trade union shall be effected by a memorandum of association which in addition to the requirements provided for in the Non-profit Associations Act shall set out:

1) the time and place of the foundation meeting, voting results and the adopted resolution;

2) the names and residences of members of the management board, and the personal identification codes or registry codes of the founders.

(4) The articles of association shall be approved by the memorandum of association. The memorandum of association and articles of association shall be signed by the chair and the secretary of the meeting. The list of participants in the foundation meeting with the signature of each participant shall be an integral part of the memorandum of association. If the founders are trade unions, the resolutions of founder bodies on foundation and the copies of registry cards shall be appended to the memorandum of association.

§ 8. Articles of association

(1) The articles of association shall be in writing. The articles of association shall set out:

1) the name and registered office of the trade union;

2) the objective of the trade union;

3) the conditions of and procedure for membership in the trade union and for leaving and exclusion from the trade union;

4) the rights and obligations of members or the procedure for establishment of obligations for members in respect of the union;

5) the procedure for representation of members, the liability of members;

6) the organisational structure of the trade union, the competence of structural units;

7) the names, procedure for foundation, terms of authority, quorum, competence and procedure for decision-making of the trade union bodies;

8) the procedure for calling the general meeting, including calling the general meeting at the request of members;

9) the procedure for establishment and payment of entrance and membership fees;

10) the procedure for amendment of the articles of association;

11) the procedure for exercising supervision over the activities of the trade union bodies and the use of funds, designation of controllers and their reporting;

12) the procedure for dissolution of the trade union;

13) the principles of distribution of assets of the trade union upon dissolution of the union;

14) other conditions provided by law.

(2) The provisions of the articles of association shall ensure that trade union bodies are formed and representatives are elected with the participation of as many members or their representatives as possible and that the members are well informed of the work of the bodies.

(3) The articles of association may also prescribe other conditions which are not contrary to law. If a provision of the articles of association is contrary to a provision of law, the provision of law applies.

§ 9. General meeting

(1) The highest body of a trade union shall be the general meeting, conference or congress (hereinafter general meeting) pursuant to its articles of association. All members of the trade union or their representatives may participate in the general meeting pursuant to the procedure provided for in the articles of association.

(2) Resolutions of the general meeting are adopted if over one-half of the members or their representatives who participate in the meeting vote in favour of the resolution unless the articles of association prescribe a greater majority requirement.

(3) The following shall be within the competence of the general meeting:

1) passage and amendment of the articles of association;

2) change of objectives;

3) voluntary dissolution;

4) other issues provided for in the articles of association.

(4) In issues provided for in clauses (3) 1)-3) of this section, a resolution of the general meeting is adopted if at least two-thirds of the members or their representatives who participate in the general meeting vote in favour of the resolution unless the articles of association prescribe a greater majority requirement.

(5) Each member who is a natural person shall have one vote. Each trade union which is a member shall have at least one vote.

§ 10. Specifications for application of Non-profit Associations Act

(1) The requirements specified in subsection 13 (2), subsection 16 (4), §§ 19-20 and §§ 22-23 of the Non-profit Associations Act apply to trade unions unless otherwise provided for in the articles of association.

(2) The requirement for submission of reports to the general meeting and the approval thereof at the general meeting provided for in subsections 36 (2) and (3) of the Non-profit Associations Act apply to trade unions unless otherwise provided for in the articles of association.

(3) The requirement for notarisation of signatures provided for in clause 8 (1) 3), the fourth sentence of subsection 10 (3), the third sentence of subsection 44 (1) and subsection 79 (2) of the Non-profit Associations Act does not apply to trade unions.

(4) The notarisation requirement provided for in clause 60 (1) 1) and clause 69 (1) 1) of the Non-profit Associations Act does not apply to trade unions.

(5) Subsection 17 (1), subsection 21 (5), subsection 22 (4), the second sentence of subsection 25 (1), § 30 and subsection 82 (3) of the Non-profit Associations Act do not apply to trade unions.

§ 11. Register of trade unions

(1) The register of trade unions is a part of the non-profit associations and foundations register with regard to which the provisions of legislation concerning the non-profit associations and foundations register apply unless otherwise provided for in this Act.

(2) The register shall be maintained concerning trade unions.

(3) The registration departments (registrars) of county and city courts shall maintain the register of trade unions located in their jurisdiction.

(4) Entries in the register shall be made by the registrar in whose jurisdiction the trade union is located.

§ 12. Prohibition on refusal to enter in register

If a trade union complies with the requirements of this Act regarding the objectives of the trade union, the founders, the members, the number of members, foundation resolutions of trade union bodies, the existence and competence of directing bodies arising from law, and if the articles of association of the trade union regulate the requirements provided for in § 8 of this Act, and if the name of the trade union is not misleading regarding the scope of competence and legal form of the trade union, the registrar does not have the right to refuse registration.

Chapter 3

Dissolution of Trade Unions

§ 13. Voluntary dissolution of trade unions

A trade union is dissolved voluntarily by a resolution of the general meeting. The general meeting shall adopt a resolution on the procedure for liquidation pursuant to the articles of association and law.

§ 14. Dissolution by court judgment

(1) A trade union is dissolved by a court judgment at the request of an interested person if:

1) the foundation or activities of the trade union are contrary to law or the objectives of the trade union specified in the articles of association;

2) the number of members falls below the number provided for in subsection 7 (1) of this Act and the management board does not initiate voluntary dissolution within six months;

3) a bankruptcy order is made with regard to the trade union.

(2) A court may set a deadline for elimination of deficiencies specified in clause (1) 1) of this section.

§ 15. Distribution of assets

(1) Upon liquidation of a trade union, the assets remaining after satisfaction of all claims of creditors and the deposit of money shall be distributed pursuant to the articles of association.

(2) If it is not possible to apply the procedure for the distribution of assets pursuant to the articles of association, the remaining assets provided for in subsection (1) of this section shall be transferred to the federation or central federation to which the trade union belongs. If a trade union does not belong to a federation or central federation, the remaining assets shall be distributed between the trade unions of a similar area of activity or profession.

Chapter 4

Competence and Rights of Trade Unions

§ 16. Principles of representation of employees

(1) In collective employment relationships, trade unions have the right to represent and protect the rights and interests of employees within the limits of their competence.

(2) In individual employment relationships, trade unions shall represent and protect the rights and interests of their members on the basis of authorisations from the members unless otherwise provided by law.

(3) In individual employment relationships, trade unions have the right to represent and protect the rights and interests of employees who are not members of trade unions provided that the employees submit corresponding written authorisations to the trade unions.

§ 17. Competence of trade unions

In order to represent, exercise and protect the rights and interests of employees, the following is within the competence of a trade union:

1) entry into collective agreements or other contracts pertaining to employment, service or social affairs with employers or the associations of employees, state agencies, local governments or the Government of the Republic;

2) submission of proposals into draft legislation in issues relating to the employment, service-related, professional, economic and social rights and interests of employees;

3) submission of proposals to state and local government agencies for the amendment of legislation regulating employment and social issues;

4) in order to improve the situation of occupational health and safety, co-operation with the corresponding state and government agencies, and employers and their associations;

5) co-operation with state employment agencies and local governments in issues relating to the improvement of employment, training, in-service training, professional skills and professional training;

6) participation in the consulting and informing of employees, and in decision-making to the extent which is regulated by this Act, other legislation and agreements;

7) representation and protection of the members of trade unions in labour dispute resolution bodies, in relations with state and local government agencies, employers and associations of employers.

§ 18. Rights of trade unions

(1) In order to exercise their competence, trade unions have the right to:

1) receive freely information concerning employment and social affairs and other information concerning issues involving the interests of employees from employers, their representatives, state agencies and local governments;

2) conduct bargaining in employment, service-related and social issues with employers and the associations of employers, state agencies and local governments for entry into collective and other agreements;

3) submit proposals concerning draft legislation relating to the employment, service-related, professional, economic and social rights and interests of members of the trade unions (federations);

4) receive information on the situation in the labour market, vacant jobs and possibilities of employment training from state employment agencies through representatives elected by the trade unions;

5) disseminate their positions through mass media, own printing facilities and media, develop publishing, and to issue and distribute newspapers and other printed matter;

6) in order to achieve their objectives, organise meetings, political meetings, street parades, pickets and strikes pursuant to the procedure prescribed by law;

7) freely develop any kind of foreign relations in order to carry out their objectives specified in the articles of association, including joining international organisations of employees;

8) train and consult their members in employment and social issues and other issues involving the interests of employees.

(2) Trade unions have the right to exercise other rights prescribed in Acts or agreements.

Chapter 5

Relations between Trade Unions and Employers

§ 19. Rights of employees

(1) Employees have the right to be members of trade unions of their workplace or other trade unions. Employees have the right to act as elected members of trade unions.

(2) The rights of employees or persons who seek employment shall not be restricted on grounds of their membership in trade unions, on being elected representatives of trade unions or on other legal activities related to trade unions.

(3) The restriction of rights provided for in subsection (2) of this section means that due to activities related to trade unions:

1) an employee is prohibited to work;

2) an employment contract of an employee is terminated or he or she is released from service;

3) the working conditions of an employee are impaired;

4) salary or additional remuneration is reduced, additional remuneration is not paid;

5) disciplinary penalties are imposed;

6) an employee is threatened by termination of the employment contract, release from service, impairment of working conditions, imposition of punishment;

7) an employee is otherwise treated unequally.

(4) An employee whose rights are restricted in a way provided for in subsection (3) of this section has the right to demand termination of the restriction, compensation for the proprietary and non-proprietary damage caused to him or her and restoration of the former situation.

(5) An employer shall be released from liability only if he or she proves that the restriction of the rights of an employee is legal and is not related to the activities of the employee related to trade unions.

§ 20. Obligations of employers in relations with trade unions

(1) An employer is required to:

1) grant a workroom for the management board of a trade union (representative), if possible;

2) grant premises for holding trade union events at least once a month and permit members of the trade union of a company, agency or other organisation and also other persons invited by trade unions to participate in these events. An employer shall be notified in advance of the participation of persons who are invited outside of the company, agency or other organisation by the trade union;

3) allow members of a trade union at least five days free from work in order for them to participate in training organised by the trade union or in the work of trade union bodies on the basis of written invitations submitted by the trade union provided that it does not significantly hinder the economic activities of the employer. On the days free from work granted pursuant to this clause, the employee shall continue to receive his or her average wages for two days a year;

4) at the request of an elected representative of a trade union, commence bargaining for entry into or amendment of collective agreements and other contracts pertaining to employment, service or social affairs;

5) permit members elected by a trade union to examine freely the organisation of work and the working conditions in the company, agency or other organisation where members of the trade union are employed. To permit an elected member to submit opinions and proposals in the issues concerning the representation of employees;

6) perform other duties arising from law or collective agreements in respect of trade unions.

(2) The duties listed in subsection (1) of this section may be extended by a collective agreement or other contract entered into between the parties to the contract.

§ 21. Obligations of elected members of trade unions in relations with employers

(1) An elected member of a trade union is required to:

1) notify the employer in writing of foundation of a trade union in the company, agency or other organisation not later than within one month after the foundation meeting of the trade union takes place;

2) notify the employer in writing of the given names and surnames, positions and terms of authority of the representative and the members of the management board of the trade union;

3) ensure compliance with the duty to refrain from striking at the time established by law and the collective agreement;

4) ensure the performance of collective agreements in respect of obligations which rest with the trade union;

5) if necessary, mediate between different parties in informing and consulting;

6) maintain business, production and professional secrets which become known to him or her during informing or consulting;

7) co-operate with the working environment representative or working environment council in organisation of the activities related to occupational health and safety;

8) perform other duties arising from law or collective agreements in respect of the employer.

(2) The duties listed in subsection (1) of this section may be extended by a collective agreement or other contract entered into between the parties to the contract.

§ 22. Participation of elected members of trade unions in informing and consulting

(1) An employer shall inform the elected members of a trade union in a timely manner of the following:

1) the basic figures of the financial year, expenses incurred on labour force and significant investments of the company, agency or other organisation;

2) changes in the basic objectives of the work organisation, production, technology or activities of the company, agency or organisation; fixed-term and part-time employment contracts of the company, agency or organisation;

3) merger, division, transformation or dissolution of the company, agency or other organisation, upon transfer of the enterprise or an organisationally independent part thereof, of changes in the structure or form of administration, of reasons and consequences of such transfer for the employees, and of devised methods;

4) other issues pertaining to employees and their work.

(2) Before making a corresponding decision, an employer shall consult the elected representatives of trade unions in advance in the following cases:

1) upon termination of employment contracts with employees for economic reasons; in the event of collective redundancy, on the reasons for redundancy, on identification of employees to be made redundant, on resolution of issues related to redundancy, on mitigating the consequences pursuant to the provisions of labour laws;

2) upon changing or establishment of working time and work regimes, wage conditions, bases for payment of wages, holiday schedule, internal work procedure rules and other working conditions which concerns a considerable number of employees;

3) in issues relating to the in-service training and re-training, qualifications, occupational health and safety of employees;

4) in other issues agreed between the parties or provided for in Acts.

(3) The elected members of trade unions are required to forward the received information to employees.

(4) A trade union has the right to forward its opinion to an employer within at least ten days unless a longer period is agreed upon. During the specified time the employer does not have the right to make a decision on the given issue concerning the provisions of subsection (2) of this section.

(5) Employers and trade unions shall agree upon the procedure for and frequency of informing and consulting.

§ 23. Protection of rights of trade unions and their elected members upon merger, division and transformation of agencies, organisations and companies, or upon transfer of enterprises or parts thereof

The rights and obligations of trade unions and their elected representatives do not change in respect of employers upon transfer of the rights and obligations of the employers.

§ 24. Competence of trade unions upon exercise of supervision over compliance with labour laws and performance of contracts

(1) If an employer violates labour laws or laws regulating public service, an employment contract or collective agreement or other contracts concerning the interests of the members of a trade union, the trade union has the right of recourse to the Labour Inspectorate and other supervisory agencies. A supervisory agency is required to reply to a written appeal not later than within two weeks.

(2) If an employer or a representative of an employer does not comply with law or fails to perform or violates a contract, the trade union a member of which the employee is has the right to demand that the employer comply with law or perform the contract or terminate the violation at the corresponding request of the employee. At the corresponding request of a member of the trade union, the verification of employment contracts and collective agreements, documents concerning working conditions, working and rest time and work regimes, wage conditions, bases for payment of wages, occupational safety, social insurance payments or making of payments falls within the competence of the trade union.

Chapter 6

Procedure for Resolution of Disputes