The bill on the contract of employment, prepared by the government early this year (see our dispatch No. 080026) is still causing a stir. The text - currently on a second reading in Parliament - is aimed at bringing flexibility to labor law but was faced with opposition from the trade unions and the moderate party, who say it is too liberal. (Ref. 080852)
First conceived to express flexicurity in an Estonian way, the bill on the labor contract is aimed at bringing more flexibility to the labor market, by introducing more security for workers. Regarding flexibility, the texts plans to introduce more flexible working time arrangements and to reduce costs related to the end of the employment relationship, notably by decreasing redundancy compensation. Regarding “security”, the bill limits employers’ possibility to terminate short-term contracts and
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