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employment law overview norway 2019-2020Storeng, Beck & Due Lund (SBDL) / Proud Member of L&E GLOBAL

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table of contents.

i. General overview 01II. PRE-EMPLOYMENT CONSIDERATIONS 04III. EMPLOYMENT CONTRACTS 06IV. wORkINg CONDITIONS 08V. ANTI-DISCRIMINATION LAwS 11VI. SOCIAL MEDIA AND DATA PRIVACY 14VII. AuThORISATIONS fOR fOREIgN EMPLOYEES 15 VIII. TERMINATION Of EMPLOYMENT CONTRACTS 16IX. RESTRICTIVE COVENANTS 19X. TRANSfER Of uNDERTAkINgS 22XI. TRADE uNIONS AND EMPLOYERS ASSOCIATIONS 23XII. EMPLOYEE BENEfITS 26


i. general overview

2. Key Points•TheWorkingEnvironmentActismandatory,andtheemployeemaynot,inadvance,renouncehisorherrightsasprovidedbythelaw.

•Collective agreements are quite common, andan employer/confederation for enterprises anda trade unionmay, where specifically stated intheWEA, enter into collective agreements thatdeviatefromprovisionsintheWEA.

•The main rule is that an employment shall beindefinite/fixed. The opportunity to enter intotemporaryemploymentcontracts is limitedandratherstrictlyregulated.

•The employer may only terminate theemploymentcontractifitisobjectivelyjustified.Theemployerhastheburdenofproofregardingthegroundsfortermination.

•Thereisnostatutoryrighttoseverancepayuponterminatinganemploymentcontract.Severancepay is however quite common, and must beassessedonacase-by-casebasis.

3. legal frameworK•TheConstitutionof1814•TheWorkingEnvironmentActof2005•TheStateEmployeeActof2017

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•TheNationalHolidayActof1988•TheNationalInsuranceActof1997•ThePersonalDataActof2018•TheGenderEqualityandanti-discriminationActof2017

•TheIndustrialDisputesActof2012•TheActofConclusionofAgreementsof1918•Case law,especiallythe judicialdecisionsoftheSupremeCourt

•Collectiveagreements•Individualemploymentcontracts

4. new DeveloPments

A. NEw DEVELOPMENTS IN LEgISLATION

In 2017, the regulations onworking hours werechanged, in terms of reduced restrictions onevening work and a somewhat extended accessto except workers from the working hoursregulationsdue to thenatureof theirpositionasexecutives or independents. Also, the regulationsregardingwhistle-blowingwerechanged.Themostimportantchangeswerethatalmostallemployersarenowrequiredtohavewrittenpoliciesregardingwhistle-blowing.Itwasmadeclearthatemployees

1. introDuctionNorwegian labour law generally refers to the rules and regulations governing individual and collectiverelationshipsbetweenemployers andemployees.Norwegianemployment law isquiteemployee-friendlycomparedtotheUSAandmanyEuropeancountries.EmployersmustcomplywiththerequirementsoftheWorking Environment Act (WEA),which is themain employment legislation. TheWEA regulatesmatterssuchasemployment,whistle-blowing,requirementsforworkenvironment,workinghours,rightstoleave,protectionagainstdiscrimination,terminationofemployment,rightsofemployeesincaseofatransferbyundertakingandrulesregardingdisputesconcerningterminationofemployment.Itisnotpossibletowaivetherulesbyagreement inadvance,tothedetrimentoftheemployee.TheWEAappliestoallemployeesincludingemployees in leadingpositionsandmanagerialpositions.Toagreatextent, theWEAcannotbedeviatedfromforemployeesworkinginNorwayforforeignemployers.Self-employedworkersarenotsubjecttotheWEA.


employment law overview2019-2020 / norway

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are entitled to report to public authorities,anonymously,ofcensurableconditions.

In2018,anewpensionschemeinthepublicsectorwas introduced.Thenewpensionschemeforthepublic sector is adjusted toamodelmore similartomostpensionschemesintheNorwegianprivatesector. The pension scheme in the Norwegianprivate sector is usually a defined contributionscheme, where the employer pays a certainpercentageof theemployee’s salary toapensionfund.ThecurrentpensionschemeintheNorwegianpublicsectorisadefinedbenefitpensionscheme,whichgivestheemployeeapensionequivalenttoacertainpercentageoftheirsalary.Thegovernment’saim is toensureemployees inthepublicsectorapensionschemethatismoresustainable,andthatencourages employees to work for more years.Thenewpensionschemeforthepublicsectorstillaccommodatesthosewhohavetoretireearly.Thenew pension scheme also aims tomake it easierforemployeesinthepublicsectortoswitchtotheprivatesector,withoutitnegativelyaffectingtheirfuture pension entitlements. The scheme will beset into effect from2020, andwill only apply foremployeeswhoarebornafter1963.

From January 1st 2018, a new Act on GenderEquality and Anti-Discrimination came into effectin Norway. The definition of sexual harassmentis now tobebaseduponmoreobjective criteria,and employers are more restricted as to whichinformationtheymaygatherfromjobseekers.TheActapplies toallareasofsociety.Employersmaynotask jobapplicantsaboutpregnancy,adoptionandplans tohavechildren,ethnicity, religionandbeliefs, disabilities, sexual orientation, genderidentityandgenderexpression.TheActalsoopensupforahigherdegreeofspecialtreatmentofmenforthepurposeofgenderequality.

AsforrestoftheEU/EEA,Norwayhasimplementedthe GDPR (General Data Protection Regulation),whichhas involved several changes inNorwegianlabour law-legislation. It is now more clearlydefined as towhen the employermay save dataabouttheemployeesinconnectionwithprocessessuchasrecruitment,andalsoaftertheemploymentrelationship has ended. The employee’s right tohave informationabouthisorherregistereddataand the right to have this deleted or corrected,hasalsobeenclarified.Employersmustbeaware

that not complying with the GDPRmay result insignificantfinesfromtheauthorities.

OnJanuary1st2019,anewregulationonprohibitionofso-called“zero-hour”contractsandrestrictionson the hiring of workers in the constructionindustry, will come into effect. Firstly, there willbe a new and clear definition of the content ofpermanent employment. The definition requires,among others, that the employee is secured acertain predictability in his/her employment (e.g.a defined percentage of employment). Thus,a zero-hour contract, meaning a contract withno guarantee of work, will not comply with theproposed change. Secondly, the new regulationwill involve new requirements regarding writtencontracts,concerningpredictabilitywithregardstowhentheworkshallbeperformed.Thirdly, therewill beanew regulation regarding the legalbasisfor temporary employment in temporary-workagencieswhenhiringoutemployeestotemporarypositionsinthehiringcompany.Therewillberulesoftransitionforsuchcontractsthatalreadyexist.

B. NEw DEVELOPMENTS IN CASE law

There has recently been a large amount of newcase law in the employment-law area from theNorwegian Supreme Court. The most interestingcasesarereferredtohere:

TheSupremeCourtrecentlydecidedthattravelingallowance constitutes “salary and cost coverage”,and ispartof thebasicworkingandemploymentconditions of a temporary agency worker due totheprincipleofequaltreatment.Atemporarystaffrecruitment agency hired a person towork for acompany. Some days the company’s employeeshad to travel to a location, different than theirordinary place of work. As a compensation fortravellingtimetotheotherlocation,thecompanygave their permanent employees travellingallowance.Theemployeefromthetemporarystaff-recruitingagencydidnot receive suchallowance.TheNorwegianSupremeCourtconcludedthatthiswasabreachof theprincipleofequal treatment,as the salary allowance was to be considered as“salaryandcostcoverage”.

In another ruling from the Supreme Court, adismissalofapregnantemployeewasruledvoid,




becausetheemployerhadfailedtomakeithighlyprobablethatthedismissalwasbasedongroundsother than the pregnancy. Norwegian law, whichhere is based on EU-law, prohibits dismissal ofpregnantemployeesongroundsofthepregnancy.Further, pregnancy shall be deemed to be thereason for thedismissal of apregnantemployee,unless other grounds are shown to be highlyprobable.Theburdenofproofliesontheemployer.TheNorwegianSupremeCourt’sviewwasthatthecompany`sneed forworkforce reductionwasnotproven to be highly probable, and the dismissalwasvoid.Therulingshowshowimportantitisforemployerstobeabletodocumenttheassessmentsthathavebeenmadepriortothedismissal.

For sometimenow, it has beenunclearwhetheran employee’s travel time should be consideringas working time. In a recent ruling from theNorwegian Supreme Court, a police officer’straveltimewasconsideredworkingtime.Apoliceofficerwhohad traveled todifferentassignmentsconsidered his travel time as working hours anddemandedovertimepayment fromtheemployer.Thecaseconcernedtheinterpretationofthenotion“working time” within the meaning of Article 2of The EU Directive on working time (2003/88/EC).TheEFTACourtansweredquestionsfromtheNorwegianSupremeCourt.TheEFTACourtnotedthat the concept of “working time” consists ofthree conditions, namely the employeemust be:1) carrying out his activity or duties; (2) at theemployer’s disposal; and (3) working or at work.In their judgement, the EFTA Court consideredthe travel time asworking time according to thedirective, based on an individual assessment ofthecase.TheNorwegianCourtfollowedtheEFTAcourt’sjudgement,butdidnotgranttheemployeeovertime payment for most of the assignments,based on an interpretation of the applicablecollectiveagreement.

In a recent ruling, a redundancy of an employeewas ruled void, because the employer had notoffered the employee a suitable vacant positionin another part of the company. According toNorwegianlaw,aterminationofemploymentduetocurtailedoperationsorrationalisationmeasuresis not objectively justified if the employer hasother suitable work in the company to offer theemployee. The employee won the case againsthis previous employer, concerning whether theredundancywasunjustandshouldbe ruledvoid.

Inthiscase,theemployerhaddownsisedonepartof thecompany,andat thesametimehirednewemployees in another part of the company. TheSupreme Court stated that when a company isdownsisinginonepartofthecompany,thedutytooffertheemployeesothersuitableworkconcernstheentirecompany.TheSupremeCourtstatedthattheemployershouldhaveconsideredwhethertheemployeewassuitableforthenewvacantpositionsintheotherpartofthecompany,andifso,shouldhaveofferedhimsuchposition,beforeterminatingtheemployment.Thisrulingmeansthatemployerswhoareup-sisingonepartofthecompanyatthesame time as they are downsising another part,needtoalignthetwoprocesses.

ii. PRE-EMPLOYMENT consiDerations 1. Does a foreign emPloyer neeD to establish or worK through a local entity to hire an emPloyee?When a Foreign Employer wants to hire anemployee in Norway, there is no requirement toestablish or work through a local legal entity inNorway.However, all foreignenterprises thatwilloperatebusinessactivitiesinNorwayarerequiredtoregisterwiththeNorwegianRegisterofBusinessEnterprises (Foretaksregisteret). An enterprise isconsidereda foreignenterprise inNorwegian lawif the company does not have its main office inNorwayor on theNorwegian continent. Businessoperations are operations where the enterpriseintendstoprofitfromacertainscopeandduration.If the business has a turnover of a minimum ofNOK 50,000 (equal to approx. EUR 5155) withina12monthperiod,andtheactivity isrunningformore than 90 days, the enterprise is consideredto preform business activities, and thus have anobligationtoregister.

Also, theemployerhas to registerwith theValueAddedTaxRegister,TheWelfareauthorities’(NAV)AA register, Statistics Norway and the CorporateTaxationDataRegister.Dependingon the typeofbusinessandwhethertheemployerwillestablishalegalentityinNorway,thecompanymayalsohavetoregisterinotherpublicregistersinNorway.

To register a foreign enterprise in Norway, theenterpriseneedstocompletetheform“Coordinatedregisternotification” (Samordnet registermelding)andsendtheformintotheNorwegianRegisterofBusinessEnterprises(Foretaksregisteret).Theformcanbedownloadedonlineat:https://www.brreg.

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no/business/other-types-of-entities/norwegian-registered-foreign-business/form-and-guide-for-the-registration-of-an-nuf/

2. limitations on bacKgrounD checKsBackground checks may include verification ofinformation given by the candidate, or morethorough investigations for mapping personalcharacteristics. It is common to check education,professional experience, business interests,credit, identity,addressandreferences,aswellasperforming amedia search. It is less common tocheck work permits, “CV-holes”, alcohol or drugissues, salary, medical history, and the reasonfor termination of the former employment. Theemployer usually has an extensive right to verifytheinformationgivenbythecandidate.

As a general rule, the employer has a right tohire whomever he wants, based on self-chosencriteria (limited by the principle of impartiality).The legislation does not directly regulate theemployer’s right to perform a background check.However, the legislation provides restrictions indifferentrulesandregulationsregardingobtaininginformationontheappointmentofemployees.Thesame restrictions arealso applicable toexecutingbackgroundchecks.

AccordingtotheWorkingEnvironmentActSection13-4,theemployermustnot,whenadvertisingfornew employees or in any othermanner, requestapplicants to provide information concerningtheirviewsonpoliticalissuesorwhethertheyaremembersof tradeunions.Normay theemployerobtain such information through backgroundchecks.




Furthermore, the employer may not gatherinformation as referred to in section 30 of theEqualityandAnti-DiscriminationAct,withregardsto family life, religious point of view, ethnicity,functionaldisability,andsexualorientation(unlesssuch information is of fundamental importancefor the performance of thework required in theposition).

In spite of the prohibitions laid down above,information regarding ethnicity, religious point ofview,functionaldisabilityandpersonalcohabitationarrangements,maybegatheredifsuchinformationisoffundamentalimportancefortheperformanceoftheworkrequiredintheposition.

Theemployermaygatherinformationregardingthecandidate’spersonalcohabitationarrangementsorreligiousviews(thislineofinquirymustbestatedwhenadvertisingthevacancy),iftheestablishmenthasamainobjectivetopromotespecificreligiousorfundamentalvalues,andtheemployee’spositionwillbeofimportancetoaccomplishsuchobjective.Inadditiontotheselimitations,theemployermustcomplywiththerelevantpersonaldataregulationswhencarryingoutbackgroundchecks,inparticular,theuseofsocialmedia.Theemployermayhavealegalbasistoreviewpublicly-availableinformationaboutacandidateonsocialmedia, inordertobeabletoassessspecificrisksregardingthecandidateforaparticularfunction,butonlyifitisnecessaryforthejobandthecandidateiscorrectlyinformed(forexample,inthetextofthejobadvert).

3. restrictions on aPPlication/interview QuestionsInordertofindtherightcandidateforthevacantposition, the employer needs information aboutthe applicants. Furthermore, the employer mayneed documentation to verify the informationthat the candidate offers. In order to protectthe candidates as the weaker party in the hiringprocess, restrictions apply regarding the actualinformation the employer may ask for from theemployee. The restrictions are found in differentrulesandregulations.

The employer cannot ask for certificate of goodconduct.Theonlyexceptionisifthelawregulatingthatparticularpositionorprofessionrequiresthatthe candidate has a certificate of good conduct.Furthermore, information about whether or notthecandidatehasacleanrecord isconsideredassensitivepersonaldata.Theprocessingofsuchdataisstrictlyregulatedbylaw,andtheNorwegianDataProtectionAuthorityhasstatedthattheemployercannotacquiresuchinformation.

Theemployercanonlyobtainacreditreportofthecandidate,ifthevacantpositionishigh-rankingandentails great economic responsibility. In addition,creditreportsmayonlybeobtainedforcandidatesselected in the final rounds of the recruitmentprocess.

The employer may only ask for informationregardingthecandidate’shealthtotheextentthatthe tasks involvedwith the position have specialhealth requirements. Forexample, theemployermayaskifthecandidatecancompleteheavyliftsifthisisarelevanttaskinthejob,andtheemployermayaskifthecandidatesuffersfromanyillnessesthat would be particularly incompatible with theposition at hand. It is however prohibited to askgeneralquestionsabouttheriskforfuturehealthproblems. The employer may not obtain thisinformation fromotherseither.Medical checkupsof any kind can only be obtainedwhen providedby statutes or regulations, for posts involvingparticularlyhighrisksorwhentheemployerfindsitnecessaryinordertoprotecttheemployee’slifeorhealth.

Whentheemployerconductsaninterviewwiththecandidate,theemployercannotaskforinformationconcerning sexual orientation, their views onpolitical issues or whether they are members oftradeunions.


iii. emPloyment contracts1. minimum reQuirementsThe Working Environment Act requires theemployment contract to be in writing and mustcontain,ataminimum,certainelementspertinenttotheemployment:

•Identificationofthepartiestotheemployment.•Theplaceofwork.•Adescriptionoftheworkortheemployee’stitle,postorcategory.

•Dateofcommencement.•Estimate of the employment duration fortemporarycontracts.

•Thebasisfortemporarystatusmustappearfromthetemporaryworkcontract.

•Workhours.•Trialperiod(ifany).•Totalnumberofvacationdaysandvacationpay

rate.•Noticeperiods.•Thewageandwagepaymentproceduresaswellas other supplements and remunerations notincludedinthepay,ifany.

•Thedurationanddispositionoftheagreeddailyandweeklyhours.

•Lengthofbreaks.•Arrangementsregardingworkingtime.•Applicablecollectiveagreement.

2. FixEd-TERM/OPEN-enDeD contractsThemain rule isfixedemployment. Ifaperson isemployed temporarily, certain requirements inthe Working Environment Act must be met, forinstancethattheemployeeshallworkforsomeonewho is temporarily absent or that the nature oftheworkjustifiestheuseofafixedtermcontract.

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Iftherequirementsarenotmet,theconsequenceis that the employee is considered permanentlyemployed. The same rule applies for employeeswhohaveafixedtermcontractformorethanfourconsecutiveyearsinthesamecompany.

Inaddition,temporaryemployment onageneralbasis is possible under certain conditions. Thismeans that the worker is temporarily employedwithouttheemployerhavingtojustifytheneedfortemporary employment. This type of temporaryengagement may not exceed 12 months. After12 months, the employment contract may beterminated, or the employee may be employedpermanently or in one of the temporaryengagementsdescribedabove. If theemployee isnot offered a newposition, the employer cannothireanewpersontemporarilyonageneralbasistoperformthesametypeofwork.

Temporary employment engagements shall notexceed15%of the total numberof employees intheundertaking,ofcourseitisalwayspermissibleto enter into such engagementwith at least oneemployeeinthecompany.

3. trial PerioDAn employment contract may include a “trialperiod”foramaximumofsixmonths.Tobevalid,the trial periodmust be regulated in thewrittenemploymentcontract.Duringthetrialperiod,thethresholdforalegaldismissalwithanoticeperioddue to circumstances related to the employee isconsideredtobesomewhatlower.Thenoticeperiodwithinthetrialperiodcannotbeshorterthanis14days,andrunsfromdaytoday.Thetrialperiodmaybeextendediftheemployeeisabsentduringpartsofthetrialperiod,andsuchabsenceisnotcausedby the employer, provided that the employeehas been informed of this extension possibilityinwriting at thetimeof his appointment. This is




normallydonebyincludingaclauseinthewrittenemployment contract. Also, the employee mustreceivewritteninformationabouttheprolongationpriortotheexpirationofthetrialperiod.

4. notice PerioDDuring the trial period, the notice period is only14 days. The employment contract may provideforashorteroralongernoticeperiod.Thenoticeperiodmayalsobeagreeduponthroughcollectiveagreements. Notice of termination given duringthe trialperiod runs fromthedate theemployeereceivedthenotice.

Notice of termination given to the employeeshiredonapermanentbasismustbeminimumonemonth and starts on the first day of the monthfollowingthedatetheemployeehasreceivedthenotice in writing. For employees who have beenemployed for at least five consecutive yearswiththe same employer when termination is given,amutualperiodofnoticeofat least twomonthsapplies. Ifanemployeehasbeenemployedforatleasttenconsecutiveyearswiththesameemployerwhenterminated,themutualperiodofnoticeisatleastthreemonths.Itiscommonforemploymentcontractstohaveamutualnoticeperiodofthreemonths.

If an employment contract is terminated after atleast ten years of continuous employment withthesameemployer,thenoticeperiodisprolongedto at least fourmonths if it takes place after theemployeehasreached50yearsofage,atleastfivemonthsaftertheageof55,andatleastsixmonthsaftertheageof60.


iv. worKing conDitions 1. minimum worKing conDitionsEmployers and employees are free to negotiatethe terms and conditions of their employmentrelationship. However, TheWorking EnvironmentAct laysdowntheminimumrequirementsfortheworkenvironment,theworkplace,workinghours,employment contracts, employment protection,dismissal,redundancyandsummarydismissal.

2. salaryThere are no statutory regulations concerningminimum wages. However, wage levels andminimumwagesaregenerallylaiddownincollectivebargainingagreements.Iftheemploymentcontractis part of a collective bargaining agreement, itsregulationsapplytomattersofsalaryaswellastoworkandrecruitmentconditions.Forsomespecificsectors, the salaries laid down in the collectiveagreementsalsoapplytoemployers inthesectorwithoutthecollectiveagreement.Examplesofsuchsectorsareconstruction,cleaning,shipbuildingandseafood production. The collective agreementsare only generally applicable in relation to payandworkingconditions.Theobjectiveofgenerallyapplicableagreementsistopreventlowerpayandworking conditions for foreignworkers, than thatwhichisotherwisecommoninNorway.

3. maximum worKing weeKIn general, themaximum normal working hoursshall not exceed nine hours in twenty-four hoursandfortyhours insevendays.Forcertaingroups,such as shift workers, the normal working hoursshall be less. Upon agreement between the

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employerandtheemployee,themaximumnormalworking hours can be calculated as an averageover a maximum of fifty-two weeks, but with alimit of ten ordinary hours of work per twenty-four hours, and forty-eight hours per sevendays.Other arrangements can also be made throughagreements between the employer and theemployees’electedrepresentativesinundertakingsboundbyacollectivepayagreementorbyconsentfromtheLabourInspectionAuthority.TheWorkingEnvironment Act also gives employees the righttoflexibleworkinghours insofar as this doesnotcauseconsiderableinconveniencetotheemployer.The above mentioned rules shall not apply toemployees in leading positions or employees inparticularindependentpositions.

Fromtheageof62years,employeesareentitledtoreducedworkingtime if the reduction inworkinghours can be completed without significantinconvenience to the business. Furthermore,the same applies if an employee claims reducedworking time for health, social or other weightywelfare reasons. The age limit for termination ofemploymentbecauseofageis72years.However,anemployermaychoosetohaveanin-houseagelimitof70yearsiftheagelimitismadeknowntothe employees, is practiced consistently and theemployeehasasatisfactoryoccupationalpension.Theemployermustdiscussin-houseagelimitswiththeemployee-representatives.

4. overtimeOvertime is only permitted when there is anexceptionalandtime-limitedneedforit.Overtimecannot exceed 10 hours in 7 days, 25 hours in 4consecutiveweeks,and200hoursduringaperiodof52weeks.Uponagreementbetweentheemployerand the employees’ elected representatives inundertakingsboundbyacollectivepayagreement,or by consent from the Labour Inspection



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Authority, this limitmaybe extended. As a rule,thetotalworkinghoursshallnotexceed13hoursin24hoursand48hoursin7days.Uponagreementbetween the employer and the employees’elected representatives inundertakingsboundbya collective pay agreement, the limit of 24 hoursmay be extended to 16 hours in 24 hours. Thelimit of 7 days may be calculated as an averageover amaximumof 8weeks. For overtimework,theemployeeshallreceiveextrapayinadditiontowhat he receives for corresponding work duringordinaryworkinghours.Theextrapayshallbeatleast 40 percent more than what the employeemakes during a regular working hour. The abovementioned rules shall not apply to employeesin leading positions or employees in particularindependentpositions.

5. health anD safety in the worKPlace The working environment in the undertakingshall be fully satisfactorywhen the factors in theworking environment that may influence theemployees’physicalandmentalhealthandwelfareareevaluatedbothseparatelyandasawhole.Thestandardofsafety,healthandworkingenvironmentshall be continuously developed and improved inaccordancewithdevelopmentsinsociety.Thelawrequires that, when planning and arranging theworkintheworkplace,emphasisshallbeplacedonpreventinginjuriesanddiseases.Theorganisation,arrangement and management of work, workinghours, compensation systems, including use ofperformance-relatedpay,technology,etc.,shallbearrangedinsuchawaythattheemployeesarenotexposedtoadversephysicalormentalrestrain,andthatdueregardispaidtosafetyconsiderations.

A. EMPLOYER’S OBLIgATION TO PROVIDE A hEALThY AND SAfE wORkPLACE

Inordertosafeguardtheemployees’health,workingenvironmentandsafety,theemployershallensurethat systematic health, environment and safetyworkisperformedatalllevelsoftheundertaking.This shall be carried out in cooperationwith theemployees and their elected representatives. In

orderfortheemployertomaintainahealthyandsafeworkplace,thereareseveralrequirementsforboth the physical working environment and thepsychosocialworkingenvironment

With regard to thephysicalworkingenvironmentfactors, such as factors related to buildings andequipment,indoorclimate,lighting,noise,radiationandthelike,shallbefullysatisfactorywithregardtotheemployees’health,environment,safetyandwelfare. The workplace shall, among others, beequippedandarranged insuchawayas toavoidadversephysicalstrainontheemployees.

When it comes to the psychosocial workingenvironment,theworkshallbearrangedinawaythatensurestheemployees’ integrityanddignity.Then employer shall make efforts to arrange theworkinawaythatenablestheemployeestohavecontactandcommunicationwithotheremployeesof the undertaking. The employer shall ensurethattheemployeesarenotsubjecttoharassmentor other improper conduct. Furthermore,the employer shall, as far as possible, protectthe employees against violence, threats andundesirablestrainasaresultofcontactwithotherpersons.

B. COMPLAINT PROCEDuRES

If an employee believes that the workingenvironmentisinviolationoftherequirementsasprescribed by law, the employee has the right tonotify censurable conditions at the undertaking.Seesection[x]regardingwhistleblowing.

Further, the employeemay notify theNorwegianLabour InspectionAuthorityonmatters regardingthe working environment in the workplace. TheLabour InspectionAuthorityhas, likeotherpublicauthorities,adutytokeeptheemployee’sidentityconfidential. The Labour Inspection Authoritysupervises the employer’s obligation to ensurethat the employees have the possibility to notifycensurableconditionsintheundertakingandmayreviewtheemployer’sassessmentonwhetheritisnecessarytocarryoutsuchmeasures.Insuchcases,theLabourInspectionAuthoritymayconsidertheallegationsandfollowupwithinspection,ordersorreportthecasetothepoliceifdeemednecessary.





C. PROTECTION fROM RETALIATION

The working environment in the undertakingshall be fully satisfactory and the standard ofsafety, health and working environment shallbe continuously developed and improved inaccordancewithdevelopmentsinsociety.

Whenplanningandarrangingthework,emphasisshallbeplacedonpreventinginjuriesanddiseases.The organisation, arrangement and managementofwork,workinghours,paysystems,includinguseofperformance-relatedpay,technology,etc.,shallbearrangedinsuchawaythattheemployeesarenot exposed to adverse physical ormental strainandthatdueregardispaidtosafetyconsiderations.

Theemployermustassesswhether thereareanyspecial risksassociatedwithworkingalone in theundertaking. Measures necessary for preventingand reducing any risk of working alone shall beimplemented in order to meet the statutoryrequirementsregardingafullysatisfactoryworkingenvironment.

The employees and their elected representativesshall be kept continuously informed of systemsused in planning and performing the work. Theyshall be given the training necessary to enablethemtofamiliarisethemselveswiththesesystems,andtheyshalltakepartindesigningthem.

The design of each employee’s working situationshall pay regard to professional and personaldevelopment, the individual employee’s capacityfor work, the opportunity for self-determinationand employees shall as far as possible be giventheopportunityforvariationandforawarenessoftherelationshipsbetweenindividualassignments.Furthermore, adequate information and trainingshall be provided so that employees are able toperformtheworkwhenchangesoccurthataffecthisorherworkingsituation.

Physical working environment factors such asfactorsrelatingtobuildingsandequipment,indoorclimate,lighting,noise,radiationandthelikeshallbefullysatisfactorywithregardtotheemployees’health,environment,safetyandwelfare.

Theworkplaceshallbeequippedandarranged insuchawayas toavoidadversephysical strainon

the employees. Necessary aids shall be availabletotheemployees.Arrangementsshallbemadeforvariationintheworkandtoavoidheavyliftingandmonotonousrepetitivework.Machinesandotherwork equipment shall be designed and providedwithsafetydevicessothatemployeesareprotectedagainstinjuries.

Whenhandlingchemicalsorbiologicalsubstances,the working environment shall be arranged in away that the employees are protected againstaccidents, injuries to health and excessivediscomfort. Chemicals and biological substancesshall be manufactured, packed, used and storedin such away that employees are not subject tohealthhazards.

Chemicals and biological substances that mayinvolve health hazards, shall not be used ifthey can be replaced by other substances or byanother process that is less hazardous for theemployees.Furthermore,theemployershallhavethenecessaryroutinesandequipmenttopreventor counteract injuries to health due to chemicalsor biological substances and keep a record ofhazardouschemicalsandbiologicalsubstances.

V. ANTi-diSCRiMiNATiON laws1. brief DescriPtion of ANTi-diSCRiMiNATiON lawsThe Working Environment Act sets out ruleson protection against discrimination within theworkplace. Protection against discrimination inworkinglifeis,however,notonlygovernedbytheWorkingEnvironmentAct,butalsobytheGenderEqualityandAnti-DiscriminationAct.

2. extent of Protection Theregulationsregardinganti-discriminationapplyto all aspectsof anemployment relationship andareas of society and set out protections againstbothdirectandindirectdiscrimination.

The application of exceptionswill vary from casetocase, so that the linebetween legaland illegalunequal treatment often must be drawn up inpractice.However,itcanneverthelessbesaidthatindirectdiscriminationmoreoftenwillbelegalthandirect discrimination. Positive action is a specialformofsubstantivediscrimination.Positiveactionisthereforeallowedincertaincases.

Thelawsregardingprotectionagainstdiscriminationalso include rules on shared burden of proof. Ifthe employee can present information that givesreason to believe that there has been unlawfuldiscrimination, the employer must substantiatethatdiscriminationstillhasnottakenplace.

Furthermore,thelawsregardingprotectionagainstdiscriminationalsoincluderulesapplicabletohiringprocesses. The Gender Equality Act states that avacantpositioncannotbeannouncedvacantonlyforonegenderandthattheannouncementcannotgive the impression that theemployerexpectsor

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prefersonegenderfortheposition.Thelawsalsoestablish rules that prohibit the employer fromcollectingspecificinformationabouttheapplicant.Anapplicant,whobelieveshewasdeniedapositioninviolationof theprovisionsof this chapter,mayrequire that the employer provide information inwritingabouttheeducation,experienceandotherclearly demonstrable qualifications of the personwhowashired.

TheWorkingEnvironmentActsetsoutaprohibitionagainstdirectandindirectdiscriminationongroundsofpoliticalviews,membershipinatradeunionorage. Furthermore, the Working Environment Actsets out a prohibition against direct and indirectdiscrimination of workerswhowork part-time orwhoaretemporarilyemployed.

TheGender Equality andAnti-DiscriminationActstatesthatdiscriminationongroundsofgenderisunlawfuldirectdiscrimination,thatis,actionsthattreat women and men differently because theyareofdifferentgenders.TheActstipulatesfurtherthatdiscriminationrelatedtopregnancy,childbirthor utilisation of parental leave privileges that arereservedforthemotherorfathershallbeconsideredunlawfuldirectdiscrimination.Itisthelast3weeksbeforebirthandthefirst6weeksafterbirth thatareconsideredastheparentalleaveprivilegesthatarereservedforthemother.10weeksofthetotalparental leaveperiod are reserved for the father.Otherparentalleaveentitlementsarenotcoveredby the prohibition against direct discrimination.Such parental leave must therefore be assessedaccordingtotherulesforindirectdiscriminationofwomen and men.

TheDiscriminationActrelatedtoEthnicoriginsetsoutageneralprohibitionagainstdirectandindirectdiscrimination on grounds of ethnicity, nationalorigin, descent, skin color, language, religion andspirituality.



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TheDiscriminationActrelatedtoSexualorientationsets out a general prohibition against direct andindirect discrimination on grounds of sexualorientation.

The Discrimination and Accessibility Act sets outa general prohibition against direct and indirectdiscrimination on grounds of disability. The lawprotectsnotonlyagainstdiscriminationongroundsofexistingdisability,butalsoagainstdiscriminationongroundsofpresumeddisability,formerdisabilityandpossiblefuturedisabilities.TheDiscriminationandAccessibilityActalsoposesaprotectionagainstdiscrimination on the grounds of an individual’srelationshiptoanotherpersonwithdisabilities

3. Protections against harassmentHarassment based on the grounds of gender,ethnicity, sexual orientation or handicap isconsidered as direct discrimination and thusprohibited by the anti-discrimination laws, seesection V above. Furthermore, the WorkingEnvironment Act prohibits harassment on thegrounds ofmembership in trade unions, politicalviewsorage.

Harassmentonothergrounds isalso regulated intheWorkingEnvironmentAct,whichstipulatesthatemployeesshallnotbesubjectedtoharassmentorother improper conduct. Thewordharassment isnotdefinedinlegislationorincaselaw.

The Norwegian Labour Inspection Authoritydefinesharassmentascaseswhereanemployeeissubjectedtonegativeactions,overtime,byoneormorepersons.Thiscouldforexamplebeunwantedsexualattention,leavingsomeoneout,takingawayhisorherworktasksorhurtfulteasing.TheLabourInspectionAuthorityfurthermoreassumesthatthestrengthofthepartiesinvolvedareuneven,sothatthepersonbeingharassedwillhaveamoredifficulttime defending him or herself. Thus, it is notnormallyconsideredharassmentiftwocolleaguesonanequallevelinthecompanyareinconflict,orifitisonlyasingleincident.

According to case law, employees are not oftengranted compensation on the grounds of beingharassedintheworkplacepursuanttotheWorking

Environment Act. The reason for this is thatcase law stipulates an objective norm for whatqualifies as harassment, and the individual’s ownassessmentofwhetherornotheorshehasbeenharassed is not decisive in determining whetherharassment has taken place. Furthermore, theemployeemustbeabletoprovethathehasbeenharassed,whichcanbedifficult. If thecourtfindsthat harassment has taken place, the employeemay claim compensation for economic losses.However,claimsfortortarerarelygranted,asthecourtrarelyfindsthattheemployerhasactedwithintentorculpablenegligencewhenitdidnotputanendtotheharassment.

4. emPloyer’s obligation to ProviDe reasonable accommoDations Theanti-discrimination legislationprohibitsdirectandindirectdiscriminationonthebasisofreligionordisability(seesection2above).

Employers should ask the employee what theyexpectofaccommodationtopracticetheirreligion,and be clear about which expectations may bemet.Fundamentalissuesrelatedtoreligionintheworkplaceshouldbeimplementedinthecompany’sHSE procedures. The Working Environment Actrequires employers topay individual attentionbytheorganisationandplanningofwork,butaworkerusuallycannotrefusetoperformataskbecauseoftheirreligion.

Disabledpersonsareentitledtosuitableindividualaccommodationofworkplacesandtaskstoensurethey can obtain or retain employment, access totraining and other skills development as well asperform and have the opportunity to progress intheworkonanequalbasiswithothers.Thisrightapplies, provided that it does not involve undueburden for the employer. In assessing whetherthe arrangement involves a disproportionateburden,particularemphasisisontheeffectofthedismantlingoftheaccommodation,thenecessarycostsandtheemployer’sassets.





5. remeDiesTwo independentadministrativeagenciesenforcetheanti-discriminationrules,theEqualityandAnti-discrimination Ombud and the Equality Tribunal.The Ombud makes no binding statements. TherulingsoftheEqualityTribunalareadministrativelybinding.TheTribunalmayorderhalting,correctionor other measures that are necessary to stopdiscrimination, and may order daily fines if thedeadline to comply with the decision is missed.TheTribunal’sdecisionscanbebroughtbeforethecourts.

Workers or applicants subjected to unlawfuldiscrimination may be entitled to compensationfor both economic and non-economic loss. TheOmbud and the Tribunal may comment on anyclaims,butcannotordertheemployertopaysuchcompensation. Either this must be a voluntaryarrangement,ortheemployeemusttakeactionintheordinarycourts.

Provisions in collective agreements, employmentagreements, regulations, statutes, etc. that arein breach with the anti-discrimination rules intheWorkingEnvironmentAct canbevoided.Theotheranti-discrimination lawsdonot containanyequivalentprovision.Suchaclaimmustthereforebesubmittedtotheordinarycourts.

Violation of anti-discrimination policies can alsoresultincriminalsanctions.

6. other reQuirements Preferential treatment is legal if it is reasonablethat itwillpromotegenderequalityorcontributeto prevent discrimination due to pregnancy andleaves related to child birth and adoption, workin the home, ethnicity, religious views or beliefs,functional disabilities, sexual orientation andgenderexpression,ageoracombinationsofthesementioned grounds. Such preferential treatmentis only legal if there is a reasonable relationshipbetween the aim of such treatment and howinvasivethepreferentialtreatmentisforthosewhothenwill be put in a less favorable position. Thepreferentialtreatmenthastoceasetoexistassoonastheaimofthetreatmenthasbeenachieved.

vi. social meDia anD Data Privacy 1. restrictions in the worKPlaceThe employer is free to restrict the employee’suse of Internet and social media, as long as therestrictionisnotagainstanyagreementsbetweenthe employee and the employer, or against anystatutesofthecompany.Inaddition,therestrictionmusthaveanobjectivelyjustifiedreason.Itisnotcommontorestricttheemployee’sInternetuseingeneral, since the Internet is necessary for mostwork.However,itisquitecommonthattheuseofsocialmediacanberestricted.

A. CAN ThE EMPLOYER MONITOR, ACCESS, REVIEw ThE EMPLOYEE’S ELECTRONIC COMMuNICATIONS?

Theemployer’srighttomonitor,accessandreviewthe employee’s electronic communications isrestricted to theemployee’se-mailaccountgivenby the employer for work related purposes, theemployee’s personal areas in the company’s datanetwork, and other electronic equipment theemployer has provided for the employee to useinhis orherwork. The restrictions apply tobothcurrent andpast employees in the company. Theemployermayonly access information from suchmentioned placeswhen it is necessary to ensurethedailymanagementorotherlegitimateinterestsof the undertaking, or when the employer has ajustifiedreasontosuspecttheemployee’smisuseof his or herwork e-mail account, or otherworkrelated electronic equipment, which constitutesa severe breach of the employee’s duties in theemployment relationship, or that may constitutea reason fordismissalof theemployeewithoutanoticeperiod,orterminationwithanoticeperiod.The employer may not monitor the employee’suse of electronic equipment, hereby the Internet

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use,unlesstheaimofsuchmonitoringistoeitheradministratetheundertaking’scomputernetwork,ortolookfor,orinvestigate,securityissuesinthenetwork.

2. emPloyee’s use of social meDia to DisParage the emPloyer or Divulge confiDential informationWhether the employee is free to disparage theemployerinsocialmediaisaquestionofwhetheror not his/her claims fall under freedom ofspeech.ThefreedomofspeechisregulatedintheNorwegian constitution. The freedom of speechgives the right to communicate anything that isnot prohibited by any other laws – such as theemployee’sobligation tobe loyal tohisemployerand not say or do anything that is untrue orwillharmtheemployerinanunfairway.Theemployeeis, in general, free to use social media outsideworking hours as he or she pleases, and theemployer cannot set any restrictions as such.Ontheotherhand, theemployee isobligatednot torevealanyconfidentialinformationthatbelongstothecompany,andthisincludesusingsocialmediatorevealthiskindofinformation.Therevelationofconfidentialinformationmightconstituteabreachof contract thatmay result in termination of theemployment. If the breach of confidentiality hascaused a financial loss, it may carry liability fordamages.Unauthorisedrevelationoftradesecretsisalsoalegaloffence.



vii. authorisations for foreign emPloyees reQuirement for foreign emPloyees to worK Foreign employees from outside the EEA/EFTAarea, including self-employed individuals, musthold a residence permit, whichmay be obtainedat the Foreign ServiceMission or the NorwegianDirectorateofImmigration,thatentailstherighttoworkinNorway.Therearedifferenttypesofpermitsdependingonwhethersomeoneisaskilledworker,an unskilled worker (such as seasonal workers

andseafarersaboardforeignships),aspecialist,astudent,aresearcher,etc.AresidencepermitmaybeobtainedattheForeignServiceMissionortheNorwegianDirectorateofImmigration.

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viii. termination of emPloyment contracts 1. grounDs for termination Grounds for termination include i) Dismissal ofan employee due to business related reasons; ii)Dismissal of an employee due to reasons relatedtotheindividualemployee;iii)Collectivedismissalbasedonobjectivegrounds;iv)Resignationbytheemployee;v)Expirationofthecontracttermorendofthespecificjob;vi)Employer’sdeath,retirementorpermanentillness.

2. collective DismissalsTerminations based on economic, technical,organisationalorproductivitygroundsaredeemedcollectivewhenat least10employeeshavebeengivennoticeofdismissalwithinaperiodof30days.Otherformsofterminationthatarenotwarrantedbyreasonsrelatedtotheindividualemployeeshallbe included in the calculation, provided that atleast5employeesaremaderedundant.

Whenanemployerconsidersdismissinganumberof employees at the same time, the employermustfollowastrictprocedure;themostimportantregulationsarefoundintheWorkingEnvironmentAct. The employer must hold informationand discussion meetings with the employees’representatives and inform NAV (The NorwegianLabourandWelfareAdministration)aboutthemassredundancy.Theemployermustdefinetheselectiongroupandcriteriafortheselectionofemployees,which may receive notice of termination. Afterthe employees are informed, individualmeetingsmust be held with the employees whomight bedismissed.

3. inDiviDual DismissalsThe Working Environment Act provides that adismissal must be objectively justified due tocircumstances relating to the operation of thebusiness, the employer or the employee. Thisappliestobothindividualandcollectivedismissals.

Norwegianemploymentlegislationdoesnotspecifyorindicatebywayofexamplewhatkindofconductonthepartoftheemployeeissufficienttojustifydismissal.Thismustbedeterminedonthebasisofa considerationofallof thecircumstancesof thecase. An employer can assert different reasonsfordismissalsbasedon theemployee’sbreachofcontractual terms and conditions, such as poorperformance, misconduct, lack of attendance towork,lackofdiscipline,insubordination,etc.

In individual dismissals based on the conduct ofthe employee, there is no statutory obligation togiveawrittenwarningortoconsiderothersuitableavailable work for the employee, but these arecircumstancesthatareoftentakenintoaccountinconsideringwhetherthedismissalwasjustified.

Beforemakingadecisionregardingdismissalwithnotice,theemployershalldiscussthematterwiththeemployeeandanelectedrepresentativeoftheemployee, unless the employeehimself doesnotdesirethis.

Thenoticeofterminationitselfneedstobeinwritingandshallfulfillcertainminimumrequirements.

Incaseofseverebreachofobligation,eitherpartycan also terminate the employment for causewith immediateeffectwithoutobservinganoticeperiod. Among the valid reasons for immediateterminationarecrimesagainsttheemployer.



A. IS SEVERANCE PAY REquIRED?

There is no statutory right to severance pay inNorway. The only payment that the employee isentitledtoisordinarysalarypaymentandadditionalcontractual benefits during the period of noticein accordance with the terms of employment.Many undertakings are immediately bound bydifferentcollectiveagreementstoofferemployeesseverancepay.Inaddition,employerswhoarenotboundbyanycollectiveagreementmaychoosetooffersomekindofseverancepackageincluding,forinstance,job-training,education,releasefromthedutytowork,severancepay,etc.Therighttosuchbenefitsisnormallyconditionalupontheemployeeenteringintoaterminationagreementwherebytheemployee, inter alia,waives the right to institutelegal proceedings pursuant to the EmploymentAct.Terminationagreementsmaybeenteredintobeforetheemployeereceivesnotice,orthepartiesmayreachanagreementafternoticeisgiven.

4. seParation agreements

A. IS A SEPARATION AgREEMENT REquIRED OR CONSIDERED BEST PRACTICE?

It is not required for the parties to enter into asettlement agreement. To obtain clarity betweenthepartiesitis,however,consideredbestpractice.

B. whAT ARE ThE STANDARD PROVISIONS Of A SEPARATION AgREEMENT?

Twokeypointsinastandardsettlementagreementareprovisionsonterminationdateandonpaymentsfrom the employer. The latter includes provisionsonsalaryduringtheperiodofnotice,anyseverancepay or damages the parties agree on, holidaypay, pensions, and any financial contributionsfor outplacement or coverage of legal assistance.Furthermore, a settlement agreement shouldincludeprovisionsontheemployer’sdutytodeletethe employees e-mail account and any personal

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datastoredwiththeemployer,andtheemployee’sduty to return assets belonging to the employer.Finally,asettlementagreementshouldprovideforanyconfidentiality clausesor competitionclausescommontotherelevantindustry.

C. DOES ThE AgE Of ThE EMPLOYEE MAkE A DIffERENCE?

No,thereisnoformaldifferencebetweenenteringintoasettlementagreementwitheitherayoungoroldemployee.Theemployee’sagemayhoweverbeafactorindetermininganyseverancepay,damagesetc.Inaddition,agemaycallforalongerperiodofnotice,seeabovesectionIII.4.

D. ARE ThERE ADDITIONAL PROVISIONS TO CONSIDER?

When framing a settlement agreement, thepartiesshouldkeepinmindtheconsequencestheagreement might have on the employee’s futurerightstosocialbenefitsandpensions.

5. remeDies for emPloyee seeKing to challenge wrongful terminationAnemployee isentitled toanegotiationmeetingwith the employer, but only if the employeehas been notified within two weeks after thedismissal. The employee can accept or challengethe terminationdecisionwithineightweeks fromtheconclusionofnegotiations,or ifanegotiationmeetingwasnotheld,withineightweeksfromthedatewhennoticeofdismissalwasreceived.Iftheemployeechallengesthenoticeoftermination,theemployeewill be entitled to remain inhis or herpositionuntilacourthassettledthecase,providedthat the employee has finished his or her trialperiod.This,inworst-casescenario,maytaketwoto three years. During this period, the employeehastherighttokeepworkingasusualandtokeepreceivingasalaryasusual.




6. whistleblower laws The Working Environment Act regulates theemployee’s right to notify the employer, publicauthorities,themediaorothersinwhistleblowingcases. According to Section 2-A (1) an employeehas a right to notify of censurable conditions atthe employer’s undertaking. The same applies toworkershiredfromtemporary-workagencies.Theemployeeshallproceedresponsiblywhenmakingsuch notification, notwithstanding the right tonotifyinaccordancewiththedutytonotifyortheundertaking’s routines for notification. The sameapplies to notification to supervisory authoritiesor other public authorities. Retaliation against anemployeewhonotifies pursuant to section 2A-1is prohibited. The sameapplies forworkershiredfrom temporary-work agencies. The prohibitionapplies for both employers and hirers. Anyonewhohasbeensubjecttounlawfulretaliationmayclaimcompensationwithoutregardtothefaultoftheemployerorhirer. It is recommended for theemployee to seek counselling before notifyingof censurable conditions. The Norwegian LabourInspectionAuthority,anemployeerepresentative,oralawyermayconsultinsuchmatters.


ix. restrictive covenants 1. Definition of restrictive covenantsRestrictive covenants are agreements restrictingcompetition in employment relationships. TheWorking Environment Act differs between threedifferenttypesofrestrictivecovenants.

2. tyPes of restrictive covenants

A. NON-COMPETE CLAuSES

A non-compete clause is an agreement betweenthe employer and the employee limiting theemployee’s freedomto takeupapostatanotheremployerortocommence,operateorparticipateinotherundertakingsfollowingterminationoftheemployment.

B. NON-SOLICITATION Of CuSTOMERS

Non-solicitation of customers’ clause’ is anagreement between the employer and theemployee limiting the employee’s freedom tocontact the employer’s customers followingterminationoftheemployment.

C. NON-SOLICITATION Of EMPLOYEES

Non-solicitation of employees’ clause’ is anagreement between the employer and otherundertakingspreventingorlimitingtheemployee’spossibilityoftakingupanappointmentinanotherundertaking.

3. enforcement of restrictive COVENANTS—PROCESS anD remeDies

A. NON-COMPETE CLAuSE

Anon-competeclausemayonlybeinvokedasfarasisnecessaryinordertosafeguardtheemployer’sparticularneedforprotectionagainstcompetition.The clause may not in any event be invoked forlonger than one year from termination of theemployment. Inordertobevalid,anon-competeclausemustbeenteredintoinwriting.

Theemployermaynotinvokeanon-competeclauseafter dismissal, unless the dismissal is objectivelyjustifiedon thebasisof circumstances relating tothe employee. The same applies if the employerhas given the employee reasonable grounds toterminate the employment. The employer mayterminateanon-competeclause inwritingatanytimeduringtheemployment.

Onwrittenenquirybytheemployee,theemployershallwithinfourweeksprovideawrittenstatementregarding whether and to what extent a non-competeclausewillbeinvoked.Insuchcases,theemployer’s particular need for protection againstcompetitionshallbeinthestatement.

Iftheemployeeresignsandnobindingstatementexists,theresignationshallhavethesameeffectasawrittenenquirypursuant to thefirstparagraph.If the employer gives the employee notice ofdismissal and no binding statement exists, astatement shall be provided at the sametime asthedismissal.Iftheemployersummarilydismissesthe employee and no binding statement exists, a




statementshallbeprovidedwithinoneweekofthesummarydismissal.

Ifanon-competeclause is invoked, theemployershall pay the employee compensation equivalentto 100 per cent of the employee’s salary up toeighttimes theNational Insurancebasic amount,and thereafter aminimum of 70 per cent of theemployee’s salary in excess of eight times theNationalInsurancebasicamount.Thecompensationshall be calculated on the basis of salary earnedduring the twelve months immediately prior tothe date of notice or summary dismissal. ThecompensationmaybelimitedtotwelvetimestheNationalInsurancebasicamount.

Deductions equal to a maximum of half thecompensationmaybemadeinrespecttosalaryorincomereceivedorearnedbytheemployeeduringtheperiodthenon-competeclauseisineffect.Theemployer may require the employee to provideinformationonsalaryorincomefromemploymentduringtheperiod.Iftheemployeefailstocomplywiththisrequirement,theemployermaywithholdcompensationuntiltheinformationisprovided.

B. NON-SOLICITATION Of CuSTOMERS’ CLAuSE

A non-solicitation of customers’ clause may onlyapplytocustomerswithwhomtheemployeehashadcontactorforwhomhehasbeenresponsibleduringtheyearimmediatelypriortothestatementas referred to in the third paragraph. The clausemay not in any event be invokedmore than oneyearfromterminationoftheemployment.

A non-solicitation of customers’ clause must beentered into writing and may not be invokedunless thedismissal isobjectively justifiedon thebasis of circumstances relating to the employee.Theemployermayterminateanon-solicitationofcustomers’clauseinwritingatanytimeduringtheemployment.

On a written enquiry from the employee, theemployershallwithinfourweeksprovideawrittenstatementconcerningwhetherandtowhatextenta non-solicitation of customers’ clause will beinvoked. The statement shall in such case specifywhichcustomersthenon-solicitationofcustomers’clauseappliesto.Thenon-solicitationofcustomers’

clausebecomesvoidiftherequirementregardingastatementisnotmet.

C. NON-SOLICITATION Of EMPLOYEES’ CLAuSES

Theemployermaynotenterintoanon-solicitationof employees’ clause. A non-solicitation ofemployees’ clause may nevertheless be enteredintoinconnectionwithnegotiationsontransferofundertakings,andinvokedduringthenegotiationsand for up to six months after completion ofthe negotiations if they do not succeed. A non-solicitation of employees’ clause may also beentered into from the date of transfer of theundertakingsandinvokedforuptosixmonthsiftheemployerhasinformedalltheaffectedemployeesinwriting.

4. use anD limitations of garDen leave Garden leave describes the practice whereby anemployee leavinga job is instructed to stayawayfromworkduringthenoticeperiod.Ifanemployeehasresigned,orotherwisehadtheiremploymentterminated,aperiodofatleastonemonth’snoticeshallbeapplicabletoeitherparty,unlessotherwiseagreed to inwriting, or laid down in a collectivepayagreement.Thismeansthattheemployeehasarighttoremain inhispositionduringthenoticeperiod. Note that the notice period is calculatedfrom the 1st in the upcoming month after thedate of the termination. An exception from thisrule applies if the employment relationship isterminatedwhentheemployeeisonaprobationaryperiod.Ifso,thenoticeperiodmayonlybe14days,counting from the day of the termination. Theemployerandtheemployeemayagreetodisregardtheperiodofnotice.More challenging, are caseswheretheemployerunilaterallywishestodeprivethe employee of his right to work during thisperiod.IftherighttoremaininthepositionistobelimitedbytheuseofGardenLeave,theemployerhas tohave “particularlyweighty reasons”,whichdependsonanoverall evaluationof the interestsoftheparties;ofparticularimportanceiswhetherthe employee’s right to remain in the positionmayresultinconsiderabledamage.Theemployeeis nonetheless entitled to the same pay and




contractualbenefitsduringtheGardenLeave.Theemployer cannot legally predetermine the use ofGardenLeave.TheuseofGardenLeavehastobedeterminedinconnectionwiththesituationatthetimeoftheterminationoftheemployment.

x. transfer of unDertaKings TheWorkingEnvironmentActChapter16providesrights for the employees in case of a transfer ofundertaking.AccordingtotheWorkingEnvironmentAct Article 16-1, a condition for these rights tobe applicable is that theundertakingmust be an“autonomousentity,whichretainsitsidentityafterthetransfer”.ThetermismeanttoimplementthedefinitionoftransferinCouncilDirective2001/23/ECArticle1No.1litrabandshallbeinterpretedinaccordancewithrelevantcaselawfromtheCourtofJusticeoftheEuropeanUnion.

1. emPloyees’ rights in case of a transfer of unDertaKingTherightsandobligationsoftheformeremployerensuing from the contract of employment oremployment relationships in forceon thedateoftransfershallbetransferredtothenewemployer.

Thenewemployerisalsoboundbyanycollectivepayagreementthatwasbindingupontheformeremployer.Thisdoesnotapplyifthenewemployer,within3weeksafterthedateoftransfer,declaresinwritingtothetradeunionthatthenewemployerdoes not wish to be bound. The transferredemployees have, however, the right to retain theindividual working conditions that follow from acollectivepayagreementthatwasbindingupontheformeremployer.Thisshallapplyuntilthecollectivepayagreementexpiresoruntilanewcollectivepayagreement is concluded that is binding upon thenewemployerandthetransferredemployees.

The employees’ right to earn further entitlementto retirement pension, survivor’s pension anddisability pension in accordancewith a collectiveservice pension scheme shall also be transferredto the new employer. The new employer may,

however,decidetomakeexistingpensionschemesapplicabletothetransferredemployees.

An employee may oppose the transfer of theemployment to the new employer. An employeewho objects to the employment transfer mustnotifytheformeremployerofthiswithinthetimelimit specified in the information given to theemployees (see below). The period may not beshorterthan14daysaftertheinformationisgiven.

Employees who have been employed for a totalof 12 months over the last 2 years before thedateoftransfer,andwhoobjecttothetransferofemployment, have the right to new employmentwiththepreviousemployerforoneyearfromthedateoftransfer,unlesstheemployeeisnotqualifiedfor the position. The right to new employmentlapsesiftheemployeehasnotacceptedanofferofemployment ina suitablepositionwithin14daysafterreceivingtheoffer.

2. reQuirements for PreDecessor anD successor PartiesThepreviousemployerandthenewemployerareobligedtodiscuss thetransferof theundertakingwith the employees’ elected representatives asearly as possible. This information shall includereasonsforthetransfer,dateorproposeddateofthetransfer,thelegal,economicandsocialimplicationsfor the employees, changes in circumstancesrelating to collective pay agreements, measuresplanned in relation to the employees, rights ofreservationandpreferenceand thetime limit forexercisingsuchrights.Thesameinformationshallalsobegiventotheaffectedemployeesasearlyaspossible.Mostcollectiveagreementsalsocontainregulationsinregardtoinformationanddiscussion.



xi. traDe unions anD emPloyers associations 1. brief DescriPtion of emPloyees’ anD emPloyers’ associations Thebasic legalframeworkofcollectivebargainingandcollectivedisputeresolutionissetoutinlabourdisputelegislation,whichconsistsessentiallyofthe1927LabourDisputesActandthe1958PSLDA.Thislegislation is based on the principle of freedomof collective bargaining and contains no specificlimitationsonthescopeofbargainingissues.

Aunion, according to the LabourDisputesAct, isdefinedas“anyassociationsofworkersorworkers’associationswhentheassociationhasthepurposeand interests of promoting workers’ interests totheiremployers.”Thereisnorequirementthattheunionhaveitsownstatutes,aboard,etc.Aunionis,however,oftenamemberofalargerassociationorconfederation.

The two main unions are the LO (NorwegianFederation of Trade Unions), representingemployees, and the NHO (Confederation ofNorwegian Business and Industry), representingemployers.Bothunionsareumbrellaorganisationsand consist of a number of smaller unions. TheaffiliatedunionstoLOareoftenverticallyorganised,includingbothblueandwhitecollarworkers,andcover both the private and the public sectors.They are actively involved in both political andjudicialissuesandhavebecomepowerfulactorsinNorwegiancommunityandsociallife.

2. rights anD imPortance of traDe unionsTrade unions’ rights are regulated in the LaborDisputesAct.Generally, tradeunionshavearightto enter into collective agreements. Collectivebargaining agreements between employees andemployers organisations are usually negotiatedevery other year. LO and NHO are involved inmost of the collective bargaining agreementsentered into in Norway and have developed theso-calledMainAgreement.TheMainAgreementisaframeworkagreementthatcontainsthegeneralrightsandbasic rules in theworkplace.TheMainAgreement is incorporated into the first part ofall collective bargaining agreements entered intoby affiliated organisations. The Main Agreementobliges the parties to maintain industrial peacefor the duration of the collective bargainingagreement, known as “the peace period”. Thismeansthatmeasuressuchasstrikesandlockouts,etc.,maynotbeemployedduringlabourconflictsuntil the collective bargaining agreement hasexpired.Suchactionshallonlybeperformedduringthenegotiations.

Disputesaboutthevalidityorcontentofcollectivebargainingagreementsanddisputesarisingoutofthecollectivebargainingagreementsareheardbyaseparatetribunal,theLabourCourt.



3. tyPes of rePresentationEmployee representatives to represent theorganised employees shall be elected at everyenterprisewheretheenterpriseortheemployeessodemand.Atenterpriseswithup to twenty-fiveemployees,twoemployeerepresentativesmaybeelected.

A. NuMBER Of REPRESENTATIVES

The number of employee representatives atenterprises having over twenty-five employeesshallbeasfollows:

B. APPOINTMENT Of REPRESENTATIVES

Employee representatives shall be appointedfrom among workers of recognised ability, withexperienceand insight intoworkingconditionsattheenterprise.Wheneverpossible,theyshallhaveworked at the enterprise or in the company as awholeforthelast2years.

Employeeswhoactastheemployer’srepresentativeto a large extent, for instance employees in suchpositionsofparticulartrustasmanagerorpersonalsecretary to the management, or who representthe employer in negotiations or decisionsconcerning wage and employment conditionsforsubordinatepersonnel,maynotbeelectedasemployee representatives. Elections are for onecalendar year. The chairperson, vice-chairpersonandsecretarymaybeelectedfor2years.

4. tasKs anD obligations of rePresentativesEmployee representatives shall be recognisedas the representatives and spokespersons of theorganisedemployees.

Employee representatives have the right tocomment on matters that concern the entireworkforce or groups of employees in so far asthis isnotprecludedbyacollectiveagreement. Itis a precondition that whenever they consider itnecessarytheshopstewardswillsubmitquestionsto their fellowworkersbefore reachingdecisions.The enterprise is entitled to an answer withoutunduedelay.

Employeerepresentativeshavetherighttodealwithandtotrytosettleamicablyanygrievanceindividualemployeesmayhaveagainsttheenterpriseortheenterprisemayhaveagainstindividualemployees.Whenemployeerepresentativeshaveamattertodiscuss, they shall address themselves directly totheemployeror theemployer’s representativeattheplaceofwork.

They are also entitled to receive informationanddiscuss with the management of the enterprisematters relating to the financial position of theenterprise,itsproductionanditsdevelopment–mattersimmediatelyrelatedtotheworkplaceandeveryday operations – generalwage andworkingconditions at the enterprise, concerning mattersof reorganisation of operations and concerningmattersofcompanylaw,etc.

5. emPloyees’ rePresentation in managementThe Norwegian Constitution gives employeesthe right to participate in the management ofthe workplace. Both the Private Limited Liability





Companies Act of 1997 and the Public LimitedCompanies Act of 1997 entitle employees torepresentationontheboardofdirectors.Amajorityof the employees may demand one member ofthecompanyboardaswellasoneobserveralongwith a deputy representative if a company hasmorethanthirtyemployeesandtheydon’thaveacorporateassemble. If a companyhasmore thanfiftyemployeesandtheydonothaveacorporateassembly,amajorityoftheemployeesmaydemandthatuptoone-thirdandatleasttwoofthecompanyboard members are employees’ representativesalongwiththeirdeputyrepresentatives.

6. other tyPes of emPloyee rePresentative boDies Safety representatives shall be elected at allundertakingssubjecttotheWorkingEnvironmentAct.Atundertakingswithlessthantenemployees,theemployees and theemployermayagree to adifferentarrangement. Ifso,thearrangementhasto be in writing. Such arrangement may involveagreeing that the undertaking shall not have asafetyrepresentative.

Furthermore, undertakings that regularly employat least 50 employees, shall have a workingenvironment committee, wherein the employer,theemployeesandtheoccupationalhealthservicearerepresented.Workingenvironmentcommitteesshallalsobeformedinundertakingswithbetween20and50employeeswhensorequiredbyanyofthepartiesattheundertaking.

The working environment committee shallmake efforts to establish a fully satisfactoryworking environment in the undertaking. Thecommittee shall participate in planning safetyand environmental work and shall follow up onquestionsrelatingtothesafety,healthandwelfareoftheemployees.

xii. emPloyee benefits 1. social securityThe legal framework for social security is derivedprimarily from the National Insurance Act of1997. Persons who work or are residents inNorwayare, as a rule, obliged tobemembersofand to pay contributions to the Social SecurityScheme. Employers have to pay social securitycontributions on wages and other remunerationthattheemployershavetoreport.Theobligationto pay employer’s social security contributionsdoesnotfollowthemembershipoftheemployeeandcanapplyeveniftheemployerisnotengagedinactivity inNorwayandeven if theemployee isnot liabletopaytaxes inNorway.Theemployer’ssocial security contributions are stipulatedas a percentage of the reported amount. Thecontributionsaredifferentiated,withratesthatvarybetweendifferentgeographicalzones.Employees’social security contributions are stipulated as apercentageofpersonalincome.

2. healthcare anD insurancesThe National Insurance Scheme covers a rangeof benefits including sick pay, work assessmentallowance, disability pension, unemploymentbenefits, retirement pensions, survivor’s pension,occupationalinjurybenefits,healthcareallowance,benefits to single parents and benefits duringpregnancy,birth,adoptionandparentalleave.

3. reQuireD leave

A. hOLIDAYS AND ANNuAL LEAVE

Minimumholidayrightsforemployeesareoutlinedin the Holiday Act, which grants an employeea minimum right of 25 working days of holidayleaveper year. The term“workingdays” includesSaturdays. Employees over 60 years of age areentitledtoanadditional6workingdaysofholiday

leave. The holiday year runs from 1 January to31 December. Many collective agreements grantextended holiday rights. Five weeks of holiday isnowquitecommoninNorway.

As a general rule, an employee is entitled to 18consecutiveworking days of holiday leave duringtheperiod1Juneand30September.Anemployeeisalsoentitledtotaketheremainingsevenworkingdaysofholidayleavetogether.

Holidaypayisearnedtheyearbeforeitispaid(theholiday year). Holiday pay is 10,2 percent of thewagespaidduringtheearningyear.Theamountisnormally12percent if anemployee isentitled tofiveweeks’holidayunderanindividualorcollectiveagreement. For employees over 60 years of agewhoareentitledtoanadditionalweek,theholidaypay is either 12,5 or 14,3 percent, depending onwhether the employee is entitled to five or sixweeksofholiday.

In addition, there are10 (ten) public nonworkingdaysperyear.

B. MATERNITY / PATERNITY LEAVE

Maternityleave, includingcompensation, lastsforamaximumof59weeks.3weeksbeforethebirthandthefirst6weeksafterbirtharereservedforthemother,andarecompulsory.15weeksarereservedfor the father. If the father does not utilise thefather’squota,thebenefitperiodwillbeshortenedaccordingly as the quotamay not be transferredto the mother. The remaining period may besharedbytheparentsinanywaytheyseefit.Theemployeeshavetherighttocompensationduringmaternity andpaternity leave. The compensationiseither80percentof thesalary for59weeksor100 percent for 49 weeks. Compensation duringthis period is covered by the National InsuranceScheme and covers the loss of incomewithin anindexmaximumlimit6timesthebaseamount(G),(1GiscurrentlyNOK96883),butmanypublicandprivate sector employersmake up any differencebetween their employees’ actual salary and the



statuaryentitlement.Inaddition,parentshavetheright to takea leaveof absence for anadditionalyearwithoutcompensation.

C. SICkNESS LEAVE

The employment contract, in principle, is aboutcreating mutual obligations. However, when anemployee has a right to leave due to sickness,he also has a right to sick pay (the salary is fullycompensated),whichiscustomarilysplitbetweentheemployerandtheNationalInsuranceScheme.

The responsibility of issuing the sick pay iscustomarily split between the employer and theNational Insurance Scheme (NAV). The employeris normally responsible for the payment ofthe compensation for the first 16 days of theemployee’ssicknessleave,providedtheemployeehas been employed at least four weeks (thequalifyingperiod).Followingtheemployer’speriodofresponsibility,theNationalInsuranceSchemeisresponsibleforthepayment.

Theemployee’srighttosickpayisconditionedbydocumentation.Provided theemployeehasbeenemployedforaperiodofat leasttwomonths,hehas a right to self-certification of sickness for alimited period. The certificationmay cover up tothreecalendardaysatatime,andmayusuallybeuseduptofourtimesayear.Amedicalcertificateis required if the employeehas not obtained therighttoself-certification,ifthesicknessleavelastsbeyond the period of self-certification, or if theemployeehasmore than fourperiodsof sicknessleavein12monthswithoutmedicalcertification.

Protection against dismissal: under the WorkingEnvironmental Act Section 15-8, the employeeis protected against dismissal on the grounds ofsicknessleave,duringthefirst12monthsafterthebeginning of the period of absence due to suchreasons.

D. DISABILITY LEAVE

In principle, disability leave is not a conceptrecognisedunderthelawsofNorway.

E. ANY OThER REquIRED OR TYPICALLY PROVIDED LEAVE(S)

Pregnancy leave:apregnantemployeeisentitledtoaleaveofabsenceforuptotwelveweeksduringpregnancy.Absencebecauseofsicknessisregardedas sickness leaveand shallnotbededucted fromtheleave.Therighttopregnancyleaveiscombinedwith the right to maternity benefits pursuant totheNationalInsuranceActs.Unlikethemandatoryleave for six weeks after birth, leave duringpregnancy is voluntary and may be used at anytimeduringthepregnancy.However,accordingtothepreparatoryworks,suchleaveshallbetakenona continuous basis unless practical circumstancesmakeitnecessarytosplittheleaveperiod.

leave of absence to care for a child:inconnectionwith childbirth, the father or co-mother of thechild, is entitled to two weeks’ leave of absencein order to assist the mother. If the parents donot live together, the right to leave of absencemay be exercised by another person who assiststhe parent. Adoptive parents and foster parentsshall be entitled to twoweeks’ leave of absencewhentakingoverresponsibilityforthecareofthechild.However, thiswillnotapplywhenadoptingstepchildrenorwhenthechildisover15yearsofage.

maternity leave: after giving birth, the mothershallhavea leaveofabsenceforat least thefirstsixweeks,unlesssheproducesamedicalcertificatestatingitisbetterforhertoresumework.

Parental leave: parents have the right to a totalleaveof12months,includingtherighttopregnancyleaveandtherighttomaternityleave.Inaddition,eachparenthastherightto12monthsofleaveforeachbirth. The leavemust be taken immediatelyafter the parent’s pregnancy leave andmaternityleave.

4. Pensions: manDatory anD tyPically ProviDeD Retirementpensionsaredividedintothreelevels:

level 1: Retirement pensions from the NationalInsurance Scheme ensure an income in old age.Drawingfromaretirementpensioncanbeginthe





monthafterapersonturns62,aslongassufficientpension rights have been accumulated. A personwho is retired can work as much as he or shewantswithout theirpensionbeing reduced.Theyaccumulate rights to a retirement pension whentheyworkorotherwisehaveapensionableincomebeforeturning75.Thepensionrightsareadjustedin accordancewith thegeneral lifeexpectancyofthe population. Level 2: Employers must providemandatory occupational pensions in addition toretirementpensions.Therefore,atleast2percentofanemployee’sgrossincomeispaidintopensionfunds. Level 3: Private savings, irrespective ofemploymentandtheNorwegianpensionscheme.

Anne-LiseRolland,PartnerStoreng, Beck & Due Lund (SBDL)[email protected]+4740855777

mailto:anne-lise.rolland%40sbdl.no%20?subject=

Storeng,Beck&DueLund(SBDL)isacommerciallawfirmbasedinOslo,Norway,focusingonemploymentand labor law. The Legal 500 and Chambers andPartners recommend thefirmand its lawyers. SBDLrepresents national and international businesses,employers,laborunions,governmentalorganisations,municipalities as well as individuals, which meansthattheirlawyerspossessauniqueunderstandingofemploymentlaw.

As employment law experts, SBDL has considerableexperience in negotiations, mediation andproceedingsbeforethecourtsforbothemployeesandemployers.Theycanthereforeoffervaluableinsightinnegotiationsbeneficialtobothsides.Theirlegalexpertsprovidelegaladviceonallaspectsoftheplanningandimplementationofworkforcereductions,outsourcingand matters related to business acquisitions. Theyassistemployersinlegalissuesrelatingtocompetitionclauses and drafting of compensation agreements,including option agreements and employmentcontracts.

This memorandum has been provided by:

AdvokatfirmanCederquistKBHovslagargatan3P.O.Box1670SE-11196StockholmSwedenP+46852206500www.cederquist.se

STORENG, BECK & dUE LUNd (SBdL) l&e GloBal norway



CONTACT uSFormoreinformationaboutL&EGlobal,oraninitialconsultation, please contact one of our memberfirmsorourcorporateoffice.We look forward tospeakingwithyou.

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http://www.cederquist.se


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