Hire in Norway

An employment contract has the option to incorporate a trial period, lasting a maximum of six months, which should be clearly defined within the contract terms. During this trial period, the threshold for a lawful dismissal with a notice period, attributed to circumstances related to the employee, is somewhat lower. This dismissal may be based on grounds such as the employee’s unsuitability for the work or a lack of proficiency or reliability.

Within the trial period, the notice period should be no less than 14 days. If the employee is absent during parts of the trial period, and this absence is unrelated to the employer, an extension of the trial period is permissible, provided this allowance is outlined in a clause within the written employment contract. Additionally, the employee must be provided with written notification of the extension before the trial period concludes.

In essence, the standard working hours should not exceed nine hours within a twenty-four hour period or forty hours within a seven-day period. Exceptions exist for specific groups, such as shift workers, whose weekly working hours may be fewer. An agreement between the employer and employee can establish the maximum working hours as an average over a maximum of 52 weeks, with limitations set at 10 ordinary hours per 24 hours and 48 ordinary hours per seven days. Alternative arrangements may be negotiated through a collective pay agreement between the employer and employees’ elected representatives.

The Working Environment Act (WEA) grants employees the right to flexible working hours, provided it does not cause substantial inconvenience to the employer. However, these regulations do not apply to employees in senior or particularly independent positions.

Starting at the age of 62, employees have the option of reduced working hours, granted that such reduction doesn’t cause significant disruption to the business. Similarly, this provision applies if an employee seeks reduced working hours for reasons related to health, social concerns, or serious welfare considerations.

Overtime work and additional hours must not form a regular practice and should be reserved for exceptional circumstances. Compensation for overtime should be provided, with a minimum supplementary payment of 40% extra per hour.

Overtime is allowable only in situations of exceptional and time-limited necessity. The maximum limits for overtime are set at 10 hours in a seven-day period, 25 hours in four consecutive weeks, and 200 hours within 52 weeks. Generally, the total working hours should not exceed 13 hours in a 24-hour period and 48 hours in a seven-day period. Any extension beyond these limits requires mutual agreement between the employer and the employees’ elected representatives in organizations bound by a collective pay agreement. Notably, these regulations do not apply to employees in leadership roles or those in particularly independent positions.

Reasons for termination include:

• Dismissal for Business-related Reasons:**
  – Termination of an employee due to business-related factors.
• Dismissal for Reasons Specific to the Individual Employee:**
  – Termination based on factors unique to the individual employee.

Collective Dismissal Based on Objective Grounds:**
– Dismissals arising from economic, technical, organizational, or productivity reasons are considered collective if at least 10 employees are given notice within a 30-day period.
– Other non-individual reasons for termination can be considered with a minimum of five affected employees.

• Resignation by the Employee:**
  – Voluntary termination initiated by the employee.
• Expiration of Employee Contract Term or Job Specifics:**
  – Termination due to the natural conclusion of an employment contract or a specific job role.
• Employer’s Death, Retirement, or Permanent Illness:**
  – Termination due to the employer’s death, retirement, or permanent illness.
• **Collective Dismissals:**
• Collective terminations involve at least 10 employees within a 30-day period for specified reasons.
• Strict procedures, including employee meetings, information sharing with representatives, and notification to NAV, must be followed.
• The employer defines the selection group, specifies criteria, and holds individual meetings after informing employees of the collective dismissal.
• Individual Dismissals:**
• Employees may be terminated with notice (discharge) or without notice (dismissal) based on grounds specified by the Working Environment Act (WEA).
• Dismissal without notice is reserved for severe breaches like gross misconduct.
• The WEA outlines a procedure before informing the employee.
• Notice can only be given based on objective grounds, which can be subjective personal reasons or objective reasons not related to the individual.
• Alternatives to discharge must be explored before the decision is made.
• Special protections against dismissal apply to certain categories, including pregnant women, those on maternity leave, and workers with family responsibilities.

Note: The content has been revised to enhance clarity and conciseness.

During the trial period, the notice period is set at 14 days, although the employment contract or collective agreements may extend this duration. The commencement of the notice period given during the trial period is counted from the date when the employee receives the notice.

For employees hired on a permanent basis, the minimum notice period is one month, starting from the first day of the month following the date when the employee has received the termination notice in writing.

*Should an employee decide to resign, the notice period is capped at three months.

An arrangement for a shorter notice period can only be negotiated between an employer and elected representatives if the enterprise is obligated by a collective agreement.

Norway does not stipulate statutory rights to severance pay. Nevertheless, employees are entitled to their regular salary and additional contractual benefits during the notice period as specified in the employment agreement. In some instances, employers, bound by various collective agreements, may be obliged to provide severance pay.

Furthermore, employers not governed by any collective agreement have the option to offer a severance package, which may include severance pay, educational benefits, release from work duties, etc. Typically, severance payments under such agreements are determined based on factors like seniority, age, social considerations, and other relevant aspects, ranging from one to 24 months of salary. Access to these benefits usually requires the employee to enter into a termination agreement, wherein the employee waives the right to pursue legal action under the Working Environment Act (WEA). This agreement may be outlined before the employee receives notice, or the parties may reach an agreement after notice is given.

Non-Compete Clauses:

To safeguard specific and legitimate employer interests against competition, a non-compete clause may be implemented for a duration not exceeding one year after employment termination.

For validity, the non-compete clause must be in written form and cannot be invoked post-dismissal unless the dismissal is objectively justified or reasonable.

Upon a written request from the employee, the employer must furnish, within four weeks, a written statement specifying if, and to what extent, the non-compete clause will be enforced, along with stating the particular need for protection against competition. If the employee resigns without a binding employer’s statement, the resignation is treated as a written inquiry. In case of notice by the employer without an existing binding statement, it must be provided alongside the dismissal notice.

When invoked, the employer must compensate the employee at a rate equivalent to 100% of the salary up to eight times the National Insurance basic amount. Beyond this threshold, a minimum of 70% of the salary exceeding eight times the National Insurance basic amount must be paid. Compensation is calculated based on the previous twelve months’ salary before the notice or dismissal date and may be capped at twelve times the National Insurance basic amount. Deductions (up to 50%) may apply for salary or income received during the non-compete period.

Customer Non-Solicit Clauses:

Customer non-solicitation clauses are applicable only to customers the employee had responsibility for and interacted with in the preceding 12 months. The clause, in written form, may be enforced for a maximum of one year post-employment termination.

Upon the employee’s written request, the employer must provide, within four weeks, a written statement specifying the extent to which a non-solicitation clause will be invoked, including precise details of affected customers. Failure to meet this requirement renders the non-solicitation of customers’ clause void.

Employee Non-Solicit Clauses:

Generally, employers are prohibited from entering into employee non-solicit agreements. An exception applies to negotiations and completion of transfer of undertakings, where such agreements can be entered into for a maximum period of six months.

Every duration dedicated to the employer’s service should be documented as working hours. The employer is obligated to institute a systematic process for logging working hours, and employees must be acquainted with this procedure. Clarity and comprehensibility are crucial in the recording of employees’ working hours. Generally, the commencement and conclusion times of each day or shift must be documented.

The primary labor unions in Norway include the LO (Norwegian Federation of Trade Unions) representing employees and the NHO (Confederation of Norwegian Business and Industry) representing employers. Both entities function as umbrella organizations comprising various smaller unions. LO-affiliated unions encompass both blue and white-collar workers, spanning the private and public sectors. These unions actively participate in political and legal matters, playing influential roles in Norwegian community and social spheres.

Trade unions’ prerogatives are outlined in the Labor Disputes Act, affording them the right to engage in collective agreements with employer organizations. The Main Agreement, serving as a foundational framework, establishes general rights and fundamental regulations for workplaces. Typically, this agreement forms the basis for many collective bargaining agreements, renegotiated every two years by affiliated organizations.

Legal disputes regarding the validity of collective bargaining agreements and issues stemming from these agreements are adjudicated by a dedicated labor court. At each enterprise where the demand arises, employees designated to represent organized employees are elected through a democratic process.

In Norway, the predominant employment arrangement is permanent, with temporary employment only permitted under specific circumstances, such as covering temporary absences or justifying fixed-term contracts based on the nature of the work. Failure to meet these specific circumstances automatically classifies the employee as permanently employed. Additionally, employees on fixed-term contracts for over four consecutive years in the same company are automatically considered permanently employed.

Regardless of the employment type, employees with fixed-term contracts have the right to be free from discrimination based on their status.

General temporary employment is feasible under certain conditions, allowing temporary employment without the need for justification by the employer. However, such temporary engagements may not extend beyond 12 months. Following this period, the employment contract may be terminated, the employee may transition to permanent employment, or be engaged under another fixed-term contract, subject to the specified circumstances. If a new position is not offered, the employer cannot hire a new temporary employee for the same type of work on a general basis.

Temporary employment engagements are capped at 15% of the total workforce, but a company is always allowed to have at least one employee on such an engagement. As with fixed-term contracts, temporary employees, in all cases, have the right to be free from discrimination based on their status.

The salary statement, known as a ‘lønnsslipp,’ must display the gross salary, tax amounts, and any other deductions from the gross salary, along with the net amount (‘netto’). Additionally, it should outline the calculation basis for holiday pay.

The Annual Holiday Act specifies that employees are entitled to 25 days of paid leave annually, equivalent to four full weeks and one day, considering Saturdays as working days. Many collective agreements extend this entitlement, making five weeks of leave the common practice in Norway, especially for white-collar workers. Upon reaching the age of 60, employees gain an extra six working days of leave.

The holiday year runs from January 1st to December 31st, with a general rule allowing employees three consecutive weeks of leave between June 1st and September 30th.

Holiday pay, as mandated by the Annual Holiday Act, is 10.2% of the previous year’s annual wages. This percentage increases to 12% if an employee is entitled to five weeks of leave through an agreement. For those over 60 with an extra week, the holiday pay is either 12.5% or 14.3%, depending on whether they have five or six weeks of leave.

Calculation of holiday pay is based on the previous year’s salary and is typically paid on the last regular payday before the holiday or during a specified month. It is not permitted for employers to include holiday pay in regular wages unless specified in collective agreements.

Regarding carry-over rules, employers are responsible for ensuring employees utilize their holiday entitlement within the current holiday year. However, an agreement between the employer and employee can permit carrying forward up to 12 days (two weeks) to the next holiday year, with contractual entitlements governed by collective agreements or contracts.

Eligibility for annual leave varies by location, and workers may carry over their annual leave; however, the accumulation of earned leave is typically capped at a maximum of 45 days.

If an employment contract expires before a worker can take their annual leave, compensation for the leave is calculated proportionately based on the number of months worked and the number of working hours per week.

If an employee falls ill, they are required to promptly inform the employer of their condition. Typically, the employer covers compensation for the initial 16 days of the employee’s sick leave, given that the employee has completed a qualifying period of at least four weeks. Sick pay is applicable for a duration of one year. Following the employer’s initial responsibility period, the National Insurance Scheme takes over payment. However, there is a limit on the amount of sick pay provided by the Social Security, allowing the employee to receive 100% of their regular salary, up to approximately NOK 561,804 per year.

Norwegian law does not mandate paid bereavement leave. The entitlement to such leave, along with whether it is granted with or without pay, is typically outlined in agreements like collective agreements, employment contracts, or internal company policies. Generally, in the absence of a specific agreement, many companies provide at least two days of paid bereavement leave in the case of the death of a close family member.

Leave entitlements for caregivers in Norway are as follows:

**Children:**
If an employee’s child is ill, they have the right to a maximum of 10 days’ leave per calendar year. This increases to 15 days if the employee is caring for two or more children.
Sole caregivers of a sick child are entitled to double the standard leave period.
In cases of chronic or long-term illness or disability of the child, with an increased risk of the employee being absent, a maximum of 20 days’ leave per calendar year is granted. Sole caregivers can take double this period.

**Close Relatives:**
– Employees caring for a close relative with a terminal illness are entitled to 60 days’ leave of absence.

**Parents, Spouse, Cohabitant, or Registered Partner:**
Employees can take up to ten days of leave per calendar year to provide necessary care to a parent, spouse, cohabitant, or registered partner.

Family Leave in Norway: Pregnancy, Maternity, and Parental Leave

Pregnancy Leave:
A pregnant employee is entitled to a voluntary leave of up to twelve weeks during pregnancy.
Sickness absence during pregnancy is treated separately as sickness leave and does not deduct from the pregnancy leave.
This right is part of the statutory maternity benefits outlined in the National Insurance Acts.

Maternity Leave:
Following childbirth, the mother must take a leave of at least six weeks, except when a medical certificate recommends an earlier return to work.

Parental Leave:

Parents have a combined entitlement to a total of 12 months of leave, inclusive of pregnancy and maternity leave.
This leave commences immediately after the mother’s pregnancy and maternity leave.
Both parents are allocated 10 weeks each, with the mother’s mandatory six weeks included in her share.
The remaining period can be flexibly divided between the parents.
Additionally, the father has the right to two weeks of unpaid leave connected to the birth.
Social Security provides compensation for lost wages during the first year of leave for employed parents.
Some employment contracts may offer full payment during this period.
Each parent also has the right to 12 months of unpaid leave for each birth.
These leave provisions extend to situations of adoption.

There are ten public holidays annually, designated as non-working days.