Response to ETUC Letter Regarding Social Dialogue and Labour Law Amendments in Estonia

Suur-Ameerika 1 / 10122 Tallinn / ESTONIA

Phone: +372 625 6342 / Fax: +372 631 3660 / E-mail: [email protected] / http://www.mkm.ee

Esther Lynch

General Secretary of the European

Trade Union Confederation

Your Ref: 03.06.2025 No 25-01089 Our Ref: 03.07.2025 No 11-2/2142-2

Response to ETUC Letter Regarding Social

Dialogue and Labour Law Amendments in

Estonia

Dear Ms Lynch, Thank you for your letter regarding the proposed amendments to the Estonian Employment

Contracts Act. We highly value the role of the European Trade Union Confederation in

safeguarding social dialogue and workers' rights across Europe, and we appreciate your

engagement with developments in Estonia.

Please kindly note that while your letter was addressed to the Prime Minister of the Republic of

Estonia, Mr. Kristen Michal, he has forwarded it to the Ministry of Economic Affairs and

Communications for reply, as the matters raised fall under the competence of our ministry. We are

pleased to provide clarification and context regarding the proposed amendments to the

Employment Contracts Act and the broader objectives behind them.

Background and Purpose of Amendments

Estonia is currently facing a systemic challenge in the form of widespread use of independent

contracting arrangements in place of regular employment. Many workers - students, parents of

young children, and retirees are entering into these contracts due to their need for flexible working

arrangements, yet as a result, they are deprived of essential protections such as minimum wage

guarantees, paid leave, redundancy benefits, and limits on working hours.

According to employers, a major reason for this status quo lies in the rigidity of the current

Employment Contracts Act in regulating working time. The proposed amendments aim to address

this issue by offering more flexibility within the standard employment framework, thereby

extending social protection to more people. The primary objective is to reduce precarious work,

not to encourage it.

Social Dialogue and Negotiation Process

Planning for the current legislative amendments began in 2021, and trade unions have been

thoroughly involved throughout this process. Since their inception, the proposed changes have

been discussed in numerous tripartite meetings, with both employer and employee representatives

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present. The current legislative proposal is the result of compromise - an attempt to reconcile

differing interests - and, as such, it is understandable that no party is entirely satisfied. However,

this is a reflection of constructive social dialogue, not its absence.

We therefore reject the assertion that social dialogue has been bypassed. Furthermore, the bill is

now undergoing parliamentary review, and trade union representatives are again involved in the

discussions, as was the case in two previous public discussion rounds.

Clarifications on Specific Concerns

 Flexible Contracts and Collective Bargaining: The reforms do not aim to undermine

collective agreements but to make flexible employment possible within the scope of regular

employment contracts. This aims to reduce dependency on freelance-type contracts, which

currently lack collective protection altogether.

 Working Hours Guarantees: It is important to stress that employment contracts are

entered into voluntarily by both parties. It is not credible that a person seeking full-time

work would accept a contract offering only ten hours a week unless that arrangement suited

their needs. Moreover, safeguards are included in the draft act to prevent abuses or one-

sided agreements.

 Part-time Work and Overtime: The right of part-time employees to receive extra

compensation for additional hours remains fully intact. If they work beyond the agreed

hours, those hours will be remunerated accordingly.

 Exclusion of Minors and New Employees: We recognize the concerns raised regarding

the provision excluding minors and new employees from hourly pay requirements. This

issue is being addressed, and the provision will be removed from the act. The initial

intention was to prevent unintended consequences that might reduce access to proposed

flexible contracts for certain groups.

 Employee Autonomy and Scheduling: It is not realistic to assume that workers would

agree to rigid schedules 12 months in advance if in reality they need flexibility, and such

practices are not encouraged by the proposed amendments. In fact, this type of agreement

is already legally possible under the current legislation. The proposed law does not mandate

it.

Ministerial Remarks and Estonia’s Commitments

With regard to the relevant statements attributed to the Minister for Economic Affairs and Industry,

we would note that these reflect his perspective on the evolving nature of work and industrial

relations. They should not be construed as a shift in Estonia’s legal obligations or international

commitments. The Estonian government remains fully committed to the principles enshrined in

ILO conventions, the European Pillar of Social Rights, and the European Union’s social acquis.

Conclusion

We sincerely hope this clarifies the government’s intentions and the broader policy context.

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Estonia continues to believe in the importance of strong social dialogue and the development of

fair labour standards. The ongoing parliamentary process offers further opportunities for

constructive input, and we remain open to dialogue with all stakeholders, including our valued

partners at EAKL and ETUC.

Thank you again sincerely for your letter and for your continued advocacy on behalf of workers

across Europe.

With best regards, (signed digitally)

Ulla Saar

Deputy Secretary General for Labour and Equality Policies

Johann Vootele Mäevere

[email protected]