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The Estonian commercial law is very flexible regarding the payment of dividends. The law does set several conditions on paying dividends (e.g. the submitted annual report showing the profit), but otherwise it is the decision of the shareholders of how and when they want to distribute profit.
This means that the profit can be distributed in instalments and does not need to be decided when approving the annual report. The shareholders can decide until the next submission of the annual report. The resolution of shareholders regarding dividend payments can be kept as an internal document (and not submitted to the register). The shareholders can also decide not to make any dividend payments at all and use the money for future investments instead.
In Estonia, the employment contracts are regarded as individual legal relationships. This means, that unlike in some other countries, there are no national collective agreements in Estonia which largely determine the contents of the employment agreement.
The Employment Contracts Act establishes the minimum requirements of an employment relationship and the conditions that need to be agreed upon in the employment contract. The parties have the freedom to agree or disagree on many conditions (such as job title, job duties, salary etc).
In conclusion, the Estonian law presumes that an employment contract is based on the needs of both parties.
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