Conference on policy repsonses to new forms of work Zero hour contracts Conference on policy repsonses to new forms of work

Background Before this summer there was no specific legislation on zero hour contracts/on demand contracts. According Working Hours Act regular working hours shall not exceed eight hours a day or 40 hours a week. Regular hours does not include additional work or overtime. Usually it’s agreed about fixed working time, for example (40h/week, 15h/week etc.) Working time might also be set as variable. For example 0-40 hours/week On demand –clause is also possible. Work is done in the basis of employer’s separate request. In fact, it’s a same as 0-40h/week –clause. Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019

Drawbacks when using zero hours/on demand contracts Difficulty to anticipate forthcoming work shifts and plan private life. Difficulty to anticipate future income level. What is in reality workers right to pay during illness? Does the employee have a right to pay during the notice period, if work is not offered? Employer’s possible intent to avoid restrictions set to protect employees. The balance between employer’s and employee’s rights and duties. Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019

Variable need for work force Overtime Outsourcing Entrepreneurs own work Standby time Zero hour contract Temporary agency work Average amount of hours Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019

Acceptable field for variable working time New rules came into force at June 2018. Zero hours contracts and on demand work  legal definition: variable working time It’s not possible to agree on variable working time if employer’s purpose is in reality to offer fixed working hours. Employer’s need for work force must be also variable. Employer should estimate, would it be possible to use fixed working time instead of variable working time. Lower limit in the variable working time must reflect reality. for example 10-40h/week If the employer’s need for work force changes so that the clause on variable working time would not be possible anymore, the employer and the employee should negotiate on the working time clause, if the employee asks for negotiations. Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019

Pay during illness Employees who are prevented from performing their work by an illness or accident are entitled to pay during illness. If the employee works only when required by the employer, how would employee’s right to pay during illness be determined. When variable working time has been agreed, the employee has a right to pay during illness: If the work shift has been marked to the work schedule If the work shift has been agreed otherwise If it’s otherwise clear according circumstances that the employee would have been at work if he/she would have been able to work. Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019

Pay during notice period The purpose of notice period is to give time to other party so that he/she would be able to prepare to the consequences of termination of employment contract. This purpose does not fulfil if the employer does not offer work during the notice period normally (“business as usual”). There is a reference period of 12 previous weeks calculated from the day when the employee worked the last time. If the employer offers work less than he offered to the employee during the reference period, employer must compensate employee’s lost. Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019

The balance between employer’s and employee’s rights and duties Working time clause binds both party same way. For example 10-40h/week. The employee is obliged to work for employer 10 hours/week. The employer is obliged to offer work to employee 10 hours/week. If the employer would like to offer work exceeding the minimum hours set in the working hours clause, he needs to agree it with the employee. The employee has a possibility to decline. Employer's obligation to offer work to a part-time employee If the employer requires more employees for duties suitable for employees who are already doing part-time work for the employer, the employer shall offer such employment to these part-time employees. This is not new provision but concerns also to zero hour contracts etc. Työ- ja elinkeinoministeriö • www.tem.fi 16.1.2019