The bill was initiated by the Riigikogu Anti-Corruption Select Committee and is intended to reduce risks associated with the “revolving door” effect, whereby specialised knowledge, professional connections or influence acquired in the performance of public functions may affect a person’s decisions and actions after they move to the private sector.*
The Public Service Act (Avaliku teenistuse seadus) currently prohibits a former official, for a period of one year, from becoming a person connected with a private organisation over which they exercised direct or continuous supervision during their final year in public service.
The new bill is intended to cover other situations in which no formal supervision was exercised but the official made decisions concerning procurement, financing or public policy development, or otherwise exercised significant influence over the organisation’s activities.
Under the bill, for a period of up to one year after leaving office, an official may be prohibited from taking up employment with or providing services to an organisation whose activities they significantly influenced while performing public functions during the preceding year. The restriction would also cover becoming a person connected with such an organisation, including through an ownership interest or participation in its management or supervisory bodies.
The prohibition would not apply automatically to all officials. State and local government authorities, legal persons governed by public law, foundations established by them and public undertakings would be required to determine which positions should be subject to a cooling-off period and the duration of the relevant restriction. The maximum period would be one year.
The amendments may also apply to persons performing public functions under an employment contract, a civil-law contract or another type of agreement who are therefore regarded as officials under anti-corruption legislation.
The bill provides for the amendments to enter into force on 1 March 2027. The transitional period is intended to give institutions time to identify positions involving heightened risks and establish the restrictions applicable to them.
However, the Estonian Government has not yet supported the bill in its current form. According to the Ministry of Justice and Digital Affairs, its provisions are insufficiently clear, may be disproportionate and may increase the administrative burden. In particular, the restriction could cover cases in which an official’s contacts with an organisation were minor or purely formal.
The Government also noted that the bill does not make clear when a cooling-off period of less than one year should apply, whether exceptions may be permitted or whether an official should receive compensation for restrictions on their employment opportunities. In the Government’s view, allowing institutions to determine the categories of officials covered and the duration of the prohibition independently could result in inconsistent practices.
The Government’s negative opinion does not bring work on the initiative to an end: the bill remains under consideration by the Constitutional Committee of the Riigikogu.
*One of the grounds for drafting the bill was the Estonian Internal Security Service’s findings concerning corruption risks in the defence and energy sectors. The agency highlighted situations in which officials involved in procurement and the allocation of substantial amounts of public funds subsequently take up employment with companies operating in the relevant sector. However, the bill’s initiators proposed extending the new rules to all sectors rather than limiting them to defence and energy.
