NORWAY Law and Practice Contributed by: Harald Sætermo, LexOslo
4.2 Characteristics of Employment Contracts Norwegian law requires a written employment con - tract in all employment relationships, regardless of duration or scope. However, under general contract law principles, verbal agreements are generally bind - ing. The requirement is therefore that the agreed terms of employment must be documented in writing. As a general rule, employment is permanent. Per - manent employment means that the employment is ongoing and time-unlimited, that the statutory rules on termination apply, and that the employee has pre - dictability as to work in the form of a genuine scope of employment. Part-time employment is permitted. Fixed-term employment contracts are subject to stricter conditions and may only be used where statu - tory requirements are met. The written employment contract must include infor - mation on matters of material importance to the employment relationship, including the identity of the parties, place of work, position or work description, start date, salary, working time, breaks, holiday and holiday pay, notice periods, any probationary period, any applicable collective agreements, and, for fixed- term employment, the expected duration and legal basis for the fixed-term arrangement. Additional infor - mation requirements apply where relevant, including in relation to variable working hours, overtime arrange - ments, training rights, employer-paid social security benefits and agency work. Several of these requirements may be satisfied by reference to applicable legislation, regulations or col - As a general rule, normal working hours must not exceed nine hours in a 24-hour period and 40 hours in a seven-day period. Specific rules apply to shift work, on-call duties and work of a passive nature. Working time may be calculated on an average basis over a period of up to 52 weeks, subject to statutory limits and procedural requirements. In such cases, working hours may be higher in certain periods, pro - vided the statutory average limits are observed. lective agreements. 4.3 Working Time
Overtime requires a specific and time-limited need. Work exceeding the statutory limits on normal working hours qualifies as overtime. Overtime must be com - pensated by a salary supplement of at least 40% in addition to the employee’s ordinary pay. The parties may agree in writing that overtime hours are compen - sated by time off, but the statutory overtime supple - ment must generally be paid. There is currently legal uncertainty regarding over - time compensation for part-time employees. Under Norwegian law, part-time workers are generally not entitled to overtime pay until they exceed the statutory threshold applicable to full-time employees. However, two judgments from the Court of Justice of the Euro - pean Union indicate that this may constitute unequal treatment. Similar reasoning has been adopted in two non-final district court judgments. The Norwegian government has therefore appoint - ed a working group to assess potential legislative amendments aimed at preventing differential treat - ment between full-time and part-time employees. The group is expected to submit its recommenda - tions by September 2026, and legislative clarification or amendments may follow. Collective agreements and individual agreements may provide for alternative working time arrange - ments, provided they comply with mandatory statu - tory requirements and are not to the detriment of the employee. 4.4 Termination of Employment Contracts Norway is not an employment-at-will jurisdiction. Ter - mination of employment is regulated by the Working Environment Act, which sets a high threshold for an employer’s right to dismiss an employee. Any dismiss - al must be objectively justified on the basis of circum - stances relating to the undertaking, the employer or the employee. The requirement of objective justifica - tion has been developed through case law, and the courts have full jurisdiction to review both the factual and legal basis for dismissal. Before any decision is made, the employer must nor - mally hold a consultation meeting with the employee. A concrete assessment must be carried out, balanc -
792 CHAMBERS.COM
Powered by FlippingBook