Work capability reform
How does the work capacity reform affect employers?
There are 1.3 million people in Estonia, of whom more than 100 000 are people with reduced work capacity. Around 50 000 people in Estonia are not working, but half of them would like to. On the other hand, employers are struggling to find suitable labour. Often employers do not even bother to include people with reduced work capacity in the labour market. This has not been the case in Estonia. There is a widespread myth that people with disabilities cannot and do not work.
One of the aims of the work capability reform is to change outdated attitudes and increase the labour market participation of people with reduced work capacity.
Both jobseekers and employers will benefit from the work capability reform because:
- a person with a reduced work capacity becomes more valuable to society, can be of benefit to the organisation and society, and can earn income;
- the employer gets the employee it needs, the work done, social recognition and increased brand value.
The Work Capability Reform is a change of mindset and a shift from passive support to the principle that, above all, everyone should have the opportunity to be actively involved in work and society according to their abilities.
The main aim of the changes is to support people on disability pensions and other people with reduced work capacity to lead full lives by helping them to find and stay in work. A general introduction to the work capability reform can be found on the website of the Ministry of Social Affairs, where you will also find information for employers.
The work capability reform affects many in society, but especially people with reduced work capacity, for whom the current system will change completely. The transition from the old to the new system will be phased in gradually until the end of 2021. For employers, it is an opportunity to alleviate labour shortages and to gradually integrate more and more people with reduced working capacity into their activities.
Those who have already included people with reduced work capacity in their working lives and those who plan to do so are networked by an employers’ association.
The project
“Activities in support of the Work Capability System” is funded by the European Social Fund.
The work will be carried out by the Confederation of Estonian Employers within the framework of the work
“Organisation of employers’ networking work in 2017-2021 on the topic of hiring people with reduced work capacity
“.
What is the difference between the terms person with reduced work capacity, person with special needs and person with a disability?
A person with reduced capacity for work is partially incapacitated(partial incapacity) or unable to work(incapacity to work), taking into account his or her state of health and the resulting restrictions on activity and participation, their prognosis and expected duration.
Disability is always linked to special needs, but special needs do not necessarily mean disability. The terms disability and special need could be used together. The definition of disability is provided by the Social Welfare Act. Disabilities are divided into: mobility, visual, hearing, intellectual, speech, chalk and other disabilities, which are the result of a medical condition that can vary in severity: moderate, severe or profound.
Employers’ association
In order to get an overview of the experiences of Estonian companies and best practices in the inclusion of people with reduced work capacity, we invite all employers to join the employers’ association. The Employers’ Coalition brings together companies that are continuously working towards greater inclusion. It meets on a regular basis to share experiences and build knowledge. You can read more about the Employers’ Association here.
The Estonian Unemployment Insurance Fund (Unemployment Insurance Fund) contributes to the greater inclusion of people with reduced work capacity in the workplace through the services it offers. A brief overview of the services that help employers:
We offer your company the opportunity to book a free training or counselling session with the Public Employment Service to gain knowledge and practical experience that can be useful for recruiting, organising and supporting people with disabilities or long-term illnesses. Our team can advise employers who already employ people with health problems, as well as those who have no experience. We will agree the content of the training or consultancy meeting based on your company’s expectations. We cover both physical and mental health and different disability-related topics, involving other specialists where necessary. We organise lectures, workshops and practicals (e.g. job interview with a visually or hearing impaired candidate, workplace accessibility assessment, different communication situations, simulations) of a duration that suits you. If you wish, we can put you in touch with other employers or people with special needs who can share their experience with you.
You can find a sample selection of topics HERE.
Salary support
The wage subsidy is paid for up to 12 months. In the case of a fixed-term contract of at least six months’ duration, the allowance is paid for half of the duration of the contract. The amount of the allowance is 50% of the wage costs. The maximum amount of the allowance is the applicable minimum wage.
The Unemployment Insurance Fund’s website has answers to questions on how, when and who can apply for wage subsidies.
Reimbursement of the minimum rate of social tax
A person with reduced capacity for work is a worker who has been assessed as partially or totally incapable of work or at least 40% permanently disabled. His/her employer can apply to the unemployment fund for a social tax credit.
Support for making the working environment accessible and usable
If a person who cannot do their job in the workplace because of a disability or reduced capacity for work is working for you or is going to work for you, the Unemployment Fund will help to make the workplace accessible and usable. It is also possible to adapt a workplace at home.
The employer can be reimbursed 50-100% of the cost of adapting the workplace of a person with reduced work capacity. The cost of the adaptation is reimbursed to the employer on the basis of the reasonableness of the cost of removing the obstacle to work and if the worker’s employment is of indefinite duration or for a minimum of two years, regardless of the type of work.
Adapting the workplace can help people with disabilities to integrate more quickly into the company and work more productively. Adapting the workplace is often easy and, with the support of the unemployment insurance fund, affordable. Here are some suggestions for adapting your workplace:
- Recognise the need for adaptation and situations where productivity can be improved by adapting working conditions. Also, encourage your employees to talk to you about the working conditions that would help them to do their job better and more effectively.
- Respond quickly. If the worker needs an adjustment, do it quickly. With accommodations, the employee with special needs contributes more effectively to the company and generates more revenue. Procrastinating on accommodations reduces the employee’s motivation and, as a manager, you lose valuable time and revenue.
- Consult your employee. Discuss with the worker the problems he or she has in performing his or her job, which of these are due to his or her disability and what adjustments he or she needs. If necessary, involve a representative of the worker, such as a shop steward or a work environment officer. You may want to suggest that the worker consults his or her doctor, who can help to find the most appropriate workplace accommodation.
- Ask the experts for advice. If you can’t find a suitable adaptation together with the company’s employees and specialists, including the occupational environment specialist, the occupational environment officer or the occupational health physician, ask the experts for advice. You can find out more about adaptations for different situations on the internet (in English). Advice can be obtained from employers’ association companies with practical experience of working with people with disabilities. The Unemployment Insurance Fund (Unempkassa) also provides advice to employers. They are experts in this field and can help you find the right solution.
- Choose the most effective and efficient adjustments. To find the right adjustments, analyse all the working conditions of the worker, including job tasks, work organisation and working environment. A holistic overview will help identify obstacles that can be addressed to help the employee work more effectively. Together with the employee, choose the adjustment that is most effective and least costly.
- Costs of adaptation. In general, adjustments are not costly. However, in individual cases, the adjustment may entail disproportionate costs that the employer cannot bear. When choosing a reasonable adjustment, consider whether the adjustment is effective and practical to implement, what the costs are, what the organisation’s resources are, what external support is available. When assessing the costs, bear in mind that the state provides services and benefits for the disabled worker, and in some cases reimburses the cost of adaptations to work premises and equipment.
- Keep the employee informed of progress. If it will take some time to implement the adjustment, inform the employee when implementation can be expected. This will show the employee that you care about him or her, maintain motivation and build trust.
- Monitor the situation. When adjustments are made, monitor with the employee to see how it helps the employee to work more effectively. If you see that the adjustment is not effective, discuss the situation again with the employee and, if necessary, with specialists.
- Communicate openly and clearly. Understandable and clear communication between the employer and the employee is necessary in employment relations in general and in the adjustment of working conditions in particular. Put important agreements in writing to prevent misunderstandings and miscommunication, and to make more sure you understand expectations and opportunities in the same way.
- Inform employees and their representatives. Explain good practice on adjustments to all employees. This includes explaining to employees that providing working conditions that are suitable for people with disabilities is not about giving preferential treatment, but about creating a level playing field.
2017. The Employers’ Association (Tööandjate Ühisus ), established in 2007, brings together Estonian companies that want to contribute to the inclusion of people with reduced work capacity. Together, they seek solutions to the problems of the working environment and act as guides to greater inclusion. The Employers’ Coalition has been set up in cooperation between the Estonian Employers’ Confederation and the Estonian Personnel Management Association (PARE) to highlight companies that have pledged to treat people with reduced work capacity equally with all other job applicants and employees.
Today, members of the community meet regularly to share experiences and concerns and to seek solutions. In addition, they visit companies to see the solutions they have put in place to support the work and greater inclusion of people with disabilities.
Employers who are members of the Employers’ Association stand up for:
- contribute to the objective of the work capacity reform, which is to enable people with reduced work capacity to be active in society and to find a place in the labour market;
- raise awareness among employers by sharing their experience and practices in employing people with disabilities;
- help doubters overcome prejudices about employing people with reduced work capacity;
- encourage people with reduced work capacity to apply for jobs and employers to make recruitment decisions;
- support one-to-one testing in situations where there are no clear answers and help find the best solutions;
- provide work placements and internships for people with reduced work capacity to practice cooperation and alleviate the problem of finding a traineeship for students with special needs;
- find and develop practical solutions to help people with reduced work capacity, older people, parents with young children, etc. to cope in the workplace;
- Recognise employers who have developed and successfully implemented innovative and useful solutions for the integration of people with reduced work capacity into working life;
- talk about problems, take part in discussions, lobby together to make things better.
- The members of the association assure us that when applying for a job and working for us, people with reduced working capacity can be sure that they will be treated equally. As employers, we make this pledge.
Employers who are members of the Coalition are inviting organisations that see the opportunity to contribute to society as a way to increase the success of their business to join. Greater inclusion of people with reduced working capacity will help to alleviate job insecurity. Companies that include people with disabilities who have the necessary skills, or the willingness and ability to acquire them, also contribute to the branding of their company as an employer. A diverse workplace, where people with fewer skills are valued equally, as well as older and younger workers, migrant workers and parents of young children, is the preferred work environment for talent with high social responsibility.