The Role of Collective Agreements in Regulation of Work Conditions in View of the Effects of Estonian Labour-law Reform

• Author: Kadi Pärnits
• Position: Lecturer Estonian Entrepreneurial University of Applied Sciences
• Pages: 88-98

88 JURIDICA INTERNATIONAL XIX/2012

Kadi Pärnits

Lecturer

Estonian Entrepreneurial University of Applied Sciences

The Role of Collective

Agreements in Regulation

of Work Conditions in View

of the Effects of Estonian

Labour-law Reform

1. Introduction

The new Employment Contracts Act*1 (ECA) has been in force in Estonia for two and a half years. One of the

key motivations for its adoption was to increase labour-market fl exicurity. As outlined in the Explanatory

Statement of the Draft of the Employment Contracts Act*2, modernisation of labour laws was considered

a key element for bringing greater fl exibility to the labour market. From the standpoint of employee secu-

rity, it was concluded that, in addition to the new aspects of regulation under the new ECA (e.g., amended

regulation of proprietary liability)*3, there was also a need for addressing security elements that lie outside

the regulation of employment contracts, such as unemployment benefi ts, increases in unemployment insur-

ance compensation, expansion of the range of people eligible for benefi ts, and establishment of schemes

facilitating access to lifelong learning.*4

Although one component of the European Commission policy on the common principles of fl exicu-

rity*5 is to provide for fl exible and reliable contract terms through labour laws, collective agreements, and

the work organisation, the role of collective agreements was not prominent in the drafting of the ECA. At

the same time, in the implementation of all elements of fl exibility (institutional, working time, wage, and

1 Töölepingu seadus. – RT I 2009, 5, 35; RT I, 25.5.2012, 26 (in Estonian). English text available via http://www.legaltext.

ee/ (most recently accessed on 10.4.2012).

2 Seletuskiri töölepingu seaduse juurde. Available via http://www.riigikogu.ee/ (most recently accessed on 10.4.2012) (in

Estonian).

3 Eesti Vabariigi töölepingu seadus (Republic of Estonia Employment Contracts Act). – RT 1992, 15/16, 241; 2007, 44, 316 (in

Estonian). English text available via http://www.legaltext.ee/ (most recently accessed on 10.4.2012).

4 Seletuskiri töölepingu seaduse juurde (see Note 2).

5 Communication of the Commission on the common principles of fl exicurity. Brussels: European Commission 2007. Avail-

able at http://eur-lex.europa.eulexUriServ/LexuriServ.do?uri=CELEX:52007DCO359:EN:NOT (most recently accessed on

10.4.2012).