Estonia Goodwill Agreement Tender

Today the Ministry of Social Affairs signed a goodwill agreement with the social partners to pilot the use of variable hour contracts in the retail sector. The conclusion of variable-hour contracts should lead to a reduction in the conclusion of debt agreements in a sector that has so far been used to increase workers working time flexibility.In agreeing the variable hours pilot the parties have pursued the goal that labor law would provide adequate protection and a safe working environment for employees but at the same time be flexible enough to maintain the competitiveness of employers.Trade organizations have noted the common concern in the sector that it is often necessary to change work schedules due to employee preferences or to temporarily increase workload due to changes in workloads. This in turn sometimes necessitates the conclusion of contracts under the law of obligations in the event of an increase in the temporary workload. However with variable hour arrangements a flexible working period the so-called variable hours is also possible with the employee for the minimum workload fixed as agreed. Such an agreement will allow employers to involve part-time and flexibly in the workforce thus providing employment to more people and providing them with greater protection under an employment contract than under a contract under the law of obligations. However both parties to the employment relationship must agree to this agreement emphasized Minister of Health and Labor Tanel Kiik.As the needs of employers and employees differ from sector to sector it is important to reach agreements in each sector. The negotiations in the trade were long but we still believe that the best way to bring flexibility in labor relations is at the sector level and we invite other areas to start talks as well said Peep Peterson Chairman of the Confederation of Trade Unions .It has been discussed for a long time in the trade sector that many employees expect more flexible forms of work from their employers. The desire for a variable load is common in all age groups. It can also be said that the trend of wanting to do work in addition to other activities is growing even more over time among both young people and the elderly. Whether the reasons are another job a fluctuating workload at school time-consuming hobbies busy in the backyard or caring for grandchildren. On the other hand there is a lot of seasonal fluctuation in trade for example in relation to campaigns or holiday periods. In our opinion the piloted solution makes it possible to reconcile the needs and expectations of employees and trade companies by reducing excessive administrative burdens. In this way workers are guaranteed a suitable minimum workload and an easy opportunity for the employer to provide additional working hours if necessary which the employee decides to accept. If the pilot project justifies itself it could become a new norm in all sectors and for people who simply want more flexibility. It is also not insignificant that in our opinion such an approach allows people who for some reason are not suitable for entering the labor market for some reason said the head of the Estonian Traders Union Nele Peil.Variable hour agreements can be concluded with employees with valid employment contracts only on the basis of a written application of the employee which means that the employer cannot unilaterally change the current employment contracts explained Ulla Saar Head of the Employment and Pension Policy Department of the Ministry of Social Affairs .The employment contract bilaterally fixes a minimum workload which may not be less than 0.3 full-time or 12 hours per seven-day period and also agrees on possible additional variable hours up to 0.2 full-time or 8 hours per seven-day period.The employee has the right to refuse hours exceeding the fixed minimum workload. This means that any variable hours that the employer can offer under the new agreement are voluntary and can be agreed separately. The employee must acknowledge receipt of the variable hours offered in a form that can be reproduced in writing.The employer must offer off-schedule variable lessons at least 24 hours in advance. If the employee works overtime according to the agreement the overtime is compensated. The maximum length of the aggregated accounting period remains the same as in the Employment Contracts Act today maximum 4 months.Variable hourly contracts can only be concluded with employees whose salary is at least 1.2 times the minimum wage the minimum wage in 2021 is 584 EUR thus in 2021 it is 1.2 times the gross wage 700The agreement was signed by the Estonian Trade Union of Service and Trade Workers the Estonian Trade Union Confederation the Estonian Confederation of Trade Unions the Estonian Confederation of Employers and the Ministry of Social Affairs on behalf of the state.