What does the law say about zero-hour contracts and the rights of on-call workers?
3.5.2023 | Law
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Question
Is it possible to conclude employment contracts in which the working hours are agreed to be between 0 and 37.5 hours per week?
Answer
The amendments to the Employment Contracts Act and Working Time Act that entered into force on 1 August 2022 regulate variable working hours in more detail than before in order to ensure the protection of employees. The provision on variable working hours means a working time arrangement in which the employee’s working hours during a specific period vary between the minimum and maximum amount specified in the employment contract (“zero-hour contract”), or a working time arrangement in which the employee undertakes to work for the employer separately when called to work (“on-call workers”).
Variable working hours can be agreed at the employer's initiative only if the need for labour genuinely varies. If the employer is aware that the need for work is, for example, 20–25 hours a week, the working hours may not be agreed to be only 10–25 hours. The employer must proactively review the number of hours worked and the need for labour every 12 months. If the review indicates that the minimum working hours agreed in the employment contract could be defined as higher, the working time clause shall be amended to reflect the result of the review. The first review of employment relationships in force at the time of entry into force of the legislation must be carried out by 1 August 2023.
The employer may order the agreed minimum number of hours to be worked, and the employee must agree to work this number of hours. The employer may not unilaterally order working hours that exceed the minimum number of hours; instead, the employee must give their consent to it. An employee working varying hours may give their consent for each time separately or for a short period at a time, whether it concerns the entry of a shift in the work schedule or the commissioning of additional work. In principle, consent is required even if the employee has undertaken to do additional work in their employment contract. In addition, the Employment Contracts Act includes special provisions concerning employees who work variable hours, which are related to sick pay and the determination of pay during the period of notice.
Tips and answers from our employment lawyer are from Tradenomi magazine 1/2023 (available only in Finnish).
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