Just a few hours after the possibility to conclude a flexible working time agreement was introduced into the Employment Contracts Act, the perception began to spread that this is the worst legislative amendment in history. Reportedly, employers will exploit this opportunity, employees’ working hours will become unstable, incomes will decrease, and, among other things, working overtime will no longer be possible, etc.
Contrary to popular belief, the flexible working time agreement actually organizes the existing labour market. Currently, various service contracts have been concluded regarding flexible working time, to which the Employment Contracts Act does not apply. As a result, employees have been left without the corresponding social guarantees. Why were such contracts concluded? Because a person wishing to work wanted to do so irregularly and as much as possible, and to be paid according to the work performed. The employing company offering the work was able to provide such irregular work. Both parties to the contract understood that the Employment Contracts Act does not allow for such flexibility.
A flexible working time agreement does not replace a full-time employment contract but creates a new opportunity
The flexible working time agreement is an addition to the Employment Contracts Act. It is a new supplementary option. Instead of a service contract, the employee and employer can conclude an employment contract with flexible working hours. This is more favourable for the employee, as all rights and obligations arising from the Employment Contracts Act apply to the employee.
According to the flexible working time agreement, the agreed working hours must be at least 10 hours within a seven-day period. The agreed working hours and additional hours must not exceed full-time, i.e., 40 hours per week. Thus, the employee can be guaranteed to work 10 hours per week, plus additional hours up to 30 hours per week.
A flexible working time agreement can be concluded with an employee whose hourly wage is at least 1.2 times the minimum hourly wage established by the Government of the Republic. By concluding such an agreement, the employee can count on remuneration for 10 hours per week, plus additional pay for up to 30 hours per week, provided the employer has additional hours to offer and the employee agrees to work them. The employee has the right to refuse to work additional hours.
Whose interests does the flexible working time agreement serve?
Both parties benefit from the flexible working time agreement. Employees who, due to their life circumstances, have wanted to work but have not been able to commit to fixed weekly or monthly working hours have so far concluded either a part-time employment contract or a service contract. A part-time employment contract is not always a solution. An employee who wants a flexible working relationship cannot always foresee how much free time they will have to work per week or per month. Yes, precisely free time, because for an employee seeking flexible working hours, this way of working is not usually their main job or activity, nor their primary source of income. Typically, such work is done by a student alongside their studies or a pensioner on an old-age pension.
For whom is the flexible working time agreement definitely not suitable?
The flexible working time agreement is not suitable and is not intended for those employees who wish to work with a fixed weekly or monthly working time and a monthly salary that does not change over time. It should be noted that the amendments to the Employment Contracts Act do not change the existing procedure or possibilities for concluding an employment contract but add an additional, previously missing option.
First, it is an agreement, not a unilateral order from the employer. Second, the employee or employer must make a corresponding proposal to the other party. Third, both parties must agree to the arrangement.
Typically, before starting work, the employee reviews the job offer, including the proposed working time norm (part-time or full-time) and salary. If the employee agrees with the offer, the parties conclude an employment contract. If the employee does not agree, they are not obliged to conclude the employment contract.
Fourth, the flexible working time agreement is suitable for those who do not wish to work 40 hours per week every week or receive a fixed monthly salary. Fifth, such an agreement is suitable for those who want to work part-time, which provides them with a suitable income that may depend on the number of additional hours worked.
Sixth, by its nature, the flexible working time agreement is not intended as a main job or primary source of income. Seventh, the flexible working time agreement gives the employer the opportunity to offer flexible working hours to those who want them.
We are 8 years behind our neighbours
Since 2017, it has been possible in Lithuania to conclude so-called “zero-hour contracts.” Such an employment contract allows employers to hire employees without the obligation to offer them a previously agreed minimum working time. Employees work only at the employer’s request and are paid only for the actual hours worked. The minimum number of working hours is eight hours per month. Employees are paid for these hours even if they have actually worked less. This is a contract that the parties voluntarily conclude, being aware of its consequences.
In summary, the flexible working time agreement does not change the existing valid employment contract. Such an agreement requires the consent of both the employee and the employer. It is not a unilateral decision.
Published in Estonian on ERR on 27 November 2025
