Employers support more flexible working arrangements

The Confederation of Finnish Employers supports the state’s plans to make labour law more flexible, as both employers and employees expect and need this. The changes will also boost part-time workers’ confidence and help attract new people to the labour market.

The Government approved the amendments to the Employment Contracts Act, which allow employees and employers to conclude flexible working time agreements, and sent them to the Riigikogu for discussion.

“The labour market is in a constant state of flux and therefore new forms of work, the needs and expectations of employees and employers must be taken into account,” explained Ain Käpp, head of the Estonian Employers’ Confederation’s labour market working group. “Traditional ways of working will remain, but there will be more flexibility in terms of both working hours and location. Therefore, labour law regulations also need to offer flexibility.”

Four reasons why flexibility in labour law is necessary.

1. It is needed by both employers and employees.

There are now several generations of people in the labour market, from grandparents to grandchildren, all with different expectations of work and careers. They want to work fewer and shorter hours, on a project basis and for several companies/organisations, part-time, or even if the company has an application to offer on a short-term basis.

As Estonia faces a growing shortage of skilled workers, employers also want to respond with flexible working conditions to attract and retain people. Labour law should allow this.

2. Workers’ confidence and guarantees will improve.

The security and guarantees for part-time workers will be strengthened, as they will be subject to limits on working time and rest periods, the right to annual leave, minimum wages, safety at work guarantees from the employer or guarantees on termination of contract.

Until now, flexible working time has been agreed by means of contractual agreements such as employment contracts or craft contracts, but these deprive people of these benefits.

3. We trust our employees and employers.

Change does not impose anything, but it gives the opportunity for more flexibility for those who want and need it.

A contract has two parties who are well placed to defend their interests and negotiate the terms. If they cannot agree on terms, there is no agreement.

4. A change in the labour market for more people.

More flexible labour law will help to include those who are unwilling or unable to work full time in the labour market. Whether for health, family or learning reasons. Or the company has a job to offer on a temporary-exceptional basis.

The lack of skilled workers is a brake on the development of Estonian businesses. This means that fewer and fewer people have to support more and more people – paying pensions, salaries for doctors, teachers, people defending the state, etc., out of their wages or taxes collected from business income.

Therefore, any step that helps to bring more people into the labour market is welcome.