Employers debunk myths and lies about flexible working

In a letter sent to the Legal Affairs Committee of the Riigikogu, major Estonian business federations support the planned amendments to the Employment Contracts Act to make working time more flexible. The unions also point out that there are a number of lies and myths circulating about the changes.

Amendments to the Employment Contracts Act, which allow employers and employees to agree on working hours in a more flexible way, have been submitted to the Legal Affairs Committee of the Riigikogu. The Estonian Employers’ Confederation, the Estonian Chamber of Commerce and Industry and 10 local business associations lead the way in their letter of support. draw attention to the necessity of these changes in the Estonian labour market and refute the myths, lies and misconceptions that are spread about making labour law more flexible.

“Allowing more flexible working time under the Employment Contracts Act is the best news in industrial relations in the last 10 years. Employers need it, but employees are asking for it above all,” explains Ain Käpp, member of the council of the Estonian Employers’ Confederation and head of the labour market working group. “The changes are not about full-time workers, but about those workers and employers who need more flexibility in their working hours, for example because of seasonality, studies, health or family reasons.”

Employment contract law does not currently allow for such flexibility, and therefore contracts in the form of obligations such as agency or employment contracts have been used. However, unlike an employment contract, these do not provide the employee with a number of guarantees, such as a limit on working and rest time, the right to annual leave, a minimum wage, the employer’s guarantee of safety at work or guarantees on termination of the contract.

“Therefore, the modernisation of the Employment Contracts Act will increase the security of part-time workers, as they will also benefit from these guarantees. Instead of scaring people with lies, it is worth raising their awareness, explaining their options and rights, so that they can be empowered in their employment relations if necessary,” emphasises Käpp.

Mait Palts, Director General of the Estonian Chamber of Commerce and Industry, says that more than 200 years have passed since the abolition of serfdom, and even today it is not reasonable to restrict the right to self-determination. “As a society, we value more and more the freedom to decide for ourselves how we work and what form of work suits us best. The amendments to the Employment Contracts Act are a clear step in the direction of modernising employment relations and enabling people and companies to better meet the needs of today’s world of work,” said Palts, adding that the creation of the possibility to conclude flexible working time agreements does not entail an increased risk for the employee, as the draft provides for the conditions for concluding flexible working time agreements.

However, there are a number of myths and misconceptions circulating in the public debate about the planned changes.

– For example, it has been argued that the worker becomes the weaker party to the contract, without security or protection. On the contrary. The planned changes are about people and employers wanting more flexibility in agreeing working time. Some of them are already doing this today, so there is no need to replace someone’s workload. On the other hand, the future use of part-time contracts instead of contracts of obligation will improve the security of part-time workers by extending social guarantees.

– It has also been claimed that overtime pay will disappear. It will not disappear because the article regulating it will remain in force, i.e. work in excess of the agreed time is overtime.

– It is wrong to claim that paying a young person or a probationer the minimum wage is unequal. For example, in the service sector, young people are offered a first work experience where training is provided by the employer. As they have no experience, the pay reflects their performance, but as experience and contribution increase, so does their income.

– Following the publication of the innovations, there have been further allegations, undermining public confidence, that social partners were excluded from the process. This is not true. The social partners have been discussing the issue of greater flexibility in working time for years. Interested parties have also been involved in the process and have been able to provide feedback.

“It must be taken into account that the draft is a compromise, because employers and employees, for example, see the need for more flexible labour law. The fact that the result does not meet 100% of the wishes does not mean that there was no involvement,” Ain Käpp notes.

The letter of support was joined by the Estonian Employers’ Confederation, the Estonian Chamber of Commerce and Industry, the Estonian Merchants’ Association, the Estonian Restaurant and Hotel Association, the Estonian Personnel Management Association PARE, the Estonian Security Industry Association, the Estonian Infrastructure Construction Association, the Estonian Information Technology and Telecommunications Association, the Estonian Shipowners’ Association, the Estonian Hospitals Association, the Estonian Engineering Industry Association and the Estonian Construction Industry Association.

Read the full grant letter here (downloadable Word file).