Estonian Parliament Initiates Bill to Regulate High-Ranking Officials Moving to Private Sector

The Riigikogu Anti-Corruption Select Committee has initiated a bill aimed at regulating the transition of high-ranking officials to the private sector. The proposed legislation would impose a cooling-off period of up to one year, during which senior public officials would be prohibited from taking jobs with companies operating in sectors they previously oversaw.

The bill seeks to identify and monitor officials for whom such restrictions are necessary due to potential conflicts of interest. It aims to highlight the risks associated with officials moving to the private sector. Under the Anti-Corruption Act, the new rules would allow imposing a time limit of up to one year before an individual can start working for an employer in a related sector.

"The measure set out in the bill is proportionate because the primary aim is to identify risks arising from the specific nature of a position in order to prevent conflicts of interest stemming from a person's expertise and, in some cases, their access to internal institutional information as well as, for example, state secrets, classified foreign information or other sensitive information," the bill states.

The bill also refers to the annual review by the Internal Security Service (ISS), which highlighted the revolving door effect, particularly in the national defense and energy sectors. "The aim of the bill is not to restrict officials from moving to the private sector or vice versa, but to mitigate the risks of potential conflicts of interest," it adds.

Currently, the bill does not mention whether it would be accompanied by a golden handshake, where the state would compensate officials during the employment restriction period.

The Anti-Corruption Select Committee decided to initiate the bill on June 15 and submitted it to the Riigikogu on Thursday, the final sitting of the spring session. The law is set to enter into force on March 1, 2027, allowing institutions sufficient time to prepare for the transition.