Two Legislative Wins for Greater Flexibility in Labor Law
The Estonian Chamber of Commerce and Industry (ECCI) informed the Parliament's Legal Affairs Committee that it supports an amendment to the Employment Contracts Act, which allows employers and employees to enter into agreements on flexible working hours. Additionally, the Chamber welcomed a change whereby the weekly rest period will now also include the daily rest time.
Flexible Working Time Agreements Become Possible
Over the years, the Chamber has repeatedly proposed amendments to the Employment Contracts Act to enable more flexible agreements on working hours between employers and employees. Under the current law, working hours must be agreed upon as a fixed number—for example, 20 hours per week. The law does not permit agreements within a range, such as 20–30 hours per week.
There is a need for greater flexibility from both employers—particularly in situations where workload and labor demand fluctuate—and employees, such as students, parents, or caregivers, who also increasingly desire flexible schedules.
A draft law amending the Employment Contracts Act and other legislation has now reached the Legal Affairs Committee. Among other things, it allows employers and employees to agree on flexible working hours, including the possibility of working additional hours.
The Chamber informed the Legal Affairs Committee that it supports the inclusion of flexible working hour agreements in the Employment Contracts Act. While the Chamber’s preference is for even greater flexibility in these agreements, it acknowledges that the current draft represents a compromise between various stakeholders' expectations and suggestions. Therefore, the Chamber supports the proposed solution as a reasonable compromise.
Weekly Rest Time Returns to Previous Practice
Since the adoption of the Employment Contracts Act in Estonia, the weekly rest period (including daily rest time) was 48 hours, or 36 hours for shift workers. However, a 2023 decision by the European Court of Justice changed this interpretation, requiring a total of 59 hours of rest for regular employees and 47 hours for shift workers.
The Chamber has repeatedly proposed restoring the previous national standard. Its proposal has been considered in the current draft, which includes a principle that the weekly rest period incorporates the daily rest period.
As a result, the long-standing practice will be reinstated, requiring employers to ensure a minimum of 48 consecutive hours of rest per week for regular workers and 36 hours for shift workers.
Effective Date Still Unknown
The planned amendments to the Employment Contracts Act will enter into force according to the general procedure—on the tenth day after publication in the State Gazette. Before that, the draft must be adopted by Parliament and promulgated by the President. Therefore, the exact effective date is currently unknown.
The Chamber has urged Parliament to proceed with the bill as quickly as possible to implement the changes soon.