On 19 November 2025, the Estonian Parliament adopted important amendments to the Employment Contracts Act, introducing a Flexible Working Time Agreement and updating several rules related to part-time work, additional hours, overtime, and working time for minors.
According to the legislator, these amendments aim to reduce the widespread use of civil-law contracts (service or mandate agreements), which do not provide employees with sufficient social protection or employment guarantees.
The changes affect employers, part-time employees, minors, and HR processes. Below is a detailed and structured explanation of all amendments.
1. What Is the Flexible Working Time Agreement?
The new Flexible Working Time Agreement (§ 433 of the Employment Contracts Act) allows the employer and employee to agree that the employee’s workload is divided into:
- agreed working hours (regular hours), and
- additional hours, which the employee may choose to work voluntarily.
This enables part-time employees to work additional hours up to full-time without switching to civil-law contracts that lack rules on working time, rest, minimum wage, paid leave and termination procedures.
2. Mandatory Content of the Agreement (TLS § 433)
The agreement must be in writing and must include:
- number of agreed working hours
- number of additional hours
- minimum notice period for additional hours
- information regarding the employer’s accounting period and rules for distinguishing agreed, additional and overtime hours
If any of these elements are missing, the agreement is invalid.
3. Minimum Pay and Workload Requirements
A Flexible Working Time Agreement may be concluded only with employees who:
- receive at least 1.2 × the statutory minimum hourly wage,
- have at least 10 agreed hours per week,
- do not exceed full-time hours when agreed hours and additional hours are combined.
The law clarifies that minors must also receive a 1.2× minimum hourly wage.
The arrangement allows flexibility up to 30 hours per week.
4. Employee’s Right to Refuse Additional Hours
Additional hours are never mandatory.
The employee may refuse them at any time.
If the employee agrees to work additional hours, each acceptance must be confirmed separately in a reproducible written form (e-mail, message, digital confirmation).
5. Accounting Period and Employer’s Scheduling Duties
If the employer uses summarised working time, they must:
- record agreed working hours and additional hours separately in the schedule
- ensure they are clearly distinguishable
- at the end of the accounting period, provide the employee with a clear work schedule, which separates:
- agreed working hours
- additional hours
- overtime hours
This requirement aims to avoid disputes over payment for additional or overtime hours.
6. Protection Against Reducing Full-Time Hours for Cost Savings
To prevent employers from converting former full-time employees into flexible-hour arrangements purely to reduce costs, the law includes a protective mechanism.
If during the last six months, the employee has worked:
- more than the agreed hours in at least four months,
the employee has the right to request an increase of agreed working hours.
If the parties cannot reach an agreement, the new agreed working hours become:
➡️ the employee’s 6-month average weekly working time.
This ensures that additional hours cannot be used systematically to reduce labour costs.
7. Updated Rules for Minors’ Working Time
The Parliament also updated several provisions regarding minors’ work:
For school-attending minors:
- up to 2 hours of work on school days
- 5–8 hours on non-school days (depending on age)
For children aged 7–12 during school holidays:
- up to 6 hours per day
- up to 30 hours in any 7-day period
(previously: 3 hours/day and 15 hours/week)
Full-time work for 15–17-year-olds
Basic school graduates aged 15–17 may work full-time if they wish and if their legal guardian consents.
Leadlex – Your Partner in Employment Law and HR Compliance
Flexible Working Time Agreements can provide significant benefits to both employers and employees — but only if drafted and implemented correctly. Incorrect or incomplete agreements may be invalid or lead to disputes regarding additional hours, overtime, or compensation.
- drafting compliant flexible working time agreements
- updating employment contracts
- advising on working time rules for minors
- preparing internal policies and HR procedures
- preventing labour disputes and ensuring full compliance
Contact Leadlex — we help ensure your organisation’s working time arrangements are clear, lawful and risk-free.
FAQ – Frequently Asked Questions About the 2025 Amendments
Is a Flexible Working Time Agreement mandatory?
No. It is voluntary and can only be concluded if both parties agree in writing.
Can the employee refuse additional hours?
Yes. Additional hours are always optional and require written confirmation each time.
How is the minimum pay calculated?
The hourly wage must be at least 1.2 × the statutory minimum hourly rate, including for minors.
How are overtime hours calculated?
If the employee exceeds both agreed hours and additional hours, standard overtime rules under § 44 apply.
Can an employer move a full-time worker to flexible hours to cut costs?
No. The law prevents this. If the employee consistently works more than agreed hours, they may require an increase in their agreed working time.
What changes affect minors’ working hours?
School-day work limits, extended holiday work hours, and the option for 15–17-year-old graduates to work full-time with guardian consent.
