Annex 2.A1

To compare the rigidity of employment protection regulation across countries and over time, the OECD developed a method for calculating employment protection strictness for 21 basic items on a scale from 0 to 6, with 0 representing total flexibility and 6 the highest possible rigidity (Venn, 2009). Each score is weighted in order to obtain aggregate indices for three main areas: 1) employment protection for regular workers against individual dismissal 2) regulation of temporary forms of employment and 3) additional requirements for collective dismissals. Based on these three indices, an overall score can be calculated representing the rigidity of a country’s employment protection as a whole. Table 2.A1.1 contains a description of the employment protection scores for Estonia based on the 2008 Employment Contracts Act that entered into force on 1 July 2009.

OECD Reviews of Labour Market and Social Policies: Estonia 2010

Annex 2.A1

Employment protection in Estonia