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The Employment Contract Act is Renewed

The Employment Contract Act is Renewed

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Recent amendments to the Employment Contracts Act modernized the organization of working time and on-call time. The category of an employee with independent decision-making capacity has been added.

These are employees earning at least the average gross salary in Estonia, who, based on the nature of their work, shall not work at certain times of the day and who can choose their working hours. An employee with independent decision-making capacity is not subject to the regulation of working time organization, the rules of on-call time, the limitation of night work, or the limitations of daily and weekly rest time. Also, the compensation procedure for work done at night and on public holidays does not apply to them. However, the rules regarding the duration of working hours also apply to such an employee, i.e. a full-time or part-time agreement, and overtime regulation applies. In order to become an employee with independent decision-making capacity, the parties must enter into a written agreement in the employment contract or its annexe. The parties may cancel the agreement at any time with 14 calendar days' notice.
The amendment to the on-call time regulation concerns employees whose duties ensure the continued functioning of information and communication technology services, infrastructure, and information security. While the possibility of using daily and weekly rest time must usually also be guaranteed for on-call time, in the case of the above-mentioned employees, the parties can agree not to apply the rest time limitations.

By Kristi Sild, Partner, Lextal

LEXTAL Legal at a Glance

LEXTAL Legal Group – one of the ten largest law firms in the Baltics operating with a team of over 80 lawyers. LEXTAL Legal is a united group of law firms that includes LEXTAL in Estonia, ILAW LEXTAL in Lithuania and RER LEXTAL in Latvia.

The coverage of all three Baltic States gives additional value to our clients acting in three jurisdictions and enables us to manage complex legal projects and other matters in one hand.

  • In Estonia, LEXTAL has been a top law firm for over 10 years (6th for turnover and 4th for profit). LEXTAL Estonia’s core areas of expertise include: financial sector compliance, corporate and commercial, insurance, M&A, tax and regulatory, public procurements, dispute resolution, AI/IT and new tech (crypto).
  • In Lithuania, ILAW LEXTAL team consists of more than 35 lawyers to offer consultations and services to customers on corporate law, real estate law, mergers and acquisitions (M&A), tax law, personal data protection, intellectual property, labour law, public procurement, unfair competition and other areas of business law.
  • The core of the Law Firm RER LEXTAL in Latvia is formed by the lawyers Armands Rasa and Jānis Ešenvalds. Established in 2010, Law Firm RER LEXTAL specializing in the provision of legal assistance in legal proceedings and various business-related matters.

We focus on the results, we are full of passion, power and curiosity, our team has significant international experience in all practice areas in Baltics. You can trust us.

Firm's website: https://lextal.legal/