Summary

Working under a zero-hour contract constitutes casual work. Working under a zero-hour contract is a flexible way of work, with neither the employer nor the employee specifying the number of hours worked during the employment relationship. The employer is not obliged, under the contract, to provide the employee with work, and will offer work to the employee, as required. As a rule, the employer is only obliged to pay for the hours worked by the employee. Depending on the applicable law and the parties’ agreement, acceptance of the work offered is either mandatory or voluntary.

Entry into a zero-hour contract is not allowed by the Estonian Employment Contracts Act. Therefore, the parties can only conclude a contract under the law of obligations, and the protections afforded by the Employment Contracts Act do not extend to the person working under a zero-hour contract.

Above all, this article discusses the question of how to regulate the zero-hour contract within the context of Estonian labour law so as to strike a fair balance between the interests of the parties of the employment relationship. For this purpose, the insufficiency of the existing regulation is addressed in order to draw attention to the problems inherent in Estonian law. Specific recommendations for regulating the zero-hour contract are provided thereafter. The recommendations are based on an analysis of Italian, Dutch, Irish and UK law, which have provided a comprehensive set of rules for regulating the zero-hour contract. The draft Labour Code of Lithuania has been analysed, as well.