Hiring guide in Norway

What should I know about hiring in Norway?

Legal framework

Norwegian employment law strongly protects workers, emphasising fair labour practices through collective agreements and strict employer regulations. The main law, the Working Environment Act, governs most jobs and prioritises permanent employment contracts and minimum wage protection in some sectors. This law covers working hours, holidays, overtime, and pay, with compliance monitored by the Norwegian Labour Inspection Authority. 

Job dismissal requires a high threshold ensuring job security. Although collective agreements are voluntary, many employers follow them. Other laws like the Personal Data Act and the National Insurance Act offer further protections. Norway also aligns with EU labour standards to support fair employment practices.

Types of employment contracts

In Norway, most employees have permanent contracts, ensuring job security. Temporary contracts are allowed only in specific cases, such as covering for someone temporarily, performing short-term tasks, or working as a trainee. Temporary roles can last up to 12 months. Part-time employees have priority for more hours and new roles, supporting their career growth. There are no restrictions on hiring for full-time or part-time roles, offering flexibility in employment.

Content of an employment contract

Employers must create written employment contracts in line with the Working Environment Act, Section 4-6. These contracts need to include key details to ensure clarity and legal compliance. 

These contracts should clearly outline key details, including the names and addresses of both parties, job description, start date, holiday entitlements, notice periods, pay and benefits, and working hours. Contracts should also specify any relevant collective agreements, identifying the involved parties if external.

These requirements help make Norwegian employment contracts clear, transparent, and legally binding, setting clear expectations for both employer and employee.

 Download a free employment contract in Norway through Native Teams.

Oral, written or electronic employment contracts

It is a common norm that all employees in Norway must receive a detailed written employment contract, regardless of whether the position is temporary or permanent or even if it only lasts a day. Employers are responsible for providing this contract, which outlines key terms such as salary, payment dates, working hours, holiday pay, and job duration.

Thanks to the Electronic Signatures Act, these contracts can now be signed electronically, giving them the same legal standing as written ones and making the process simpler and more flexible.

Probationary period

It is common for employment contracts in Norway to include a probation period to assess an employee’s suitability, skills, and dependability. It is easier for either party to end the employment with shorter notice during this time. The employment contract must outline the probation period, and the employee must consent to it.

This period lasts for six months in both public and private sectors and can be extended. Still, this extension must be agreed upon in the contract and formally communicated to the employee before the probation period ends. 

Employers are responsible for providing guidance, follow-up, and evaluation, with managers held to a higher standard. However, dismissal cannot be based solely on poor adaptation if it results from negligence.

Working hours

In Norway, the Working Environment Act sets standard working hours at 9 hours per day and 40 hours per week, with reduced limits of 38 or 36 hours for shift, night, or Sunday work. Employers are required to record employees’ working hours. If employees work more than five and a half hours a day, they must be given at least one break, and if they work over two hours beyond their regular hours, they are entitled to an extra half-hour break. 

The Act also ensures sufficient rest time, with at least 11 hours of rest each day and 35 hours each week. While shorter rest periods may be arranged between employers and employee representatives, the total weekly rest time must not decrease.

Night work

Night work is only allowed when necessary for production or societal needs. It is defined as work done between 9 p.m. and 6 a.m. Employers must consult with employee union representatives before introducing night shifts. If a workplace has collective agreements, employers and shop stewards can agree in writing on night work for temporary, specific needs. 

While night work is no longer obligatory, the law places stricter limits on hours for employees who work more than three hours at night or face considerable strain. Those working mainly at night must be offered health checks, and any departures from usual hours must be clearly justified and assessed.

Types of leaves and breaks

Labour regulations require employers to provide sufficient rest and protect employees from excessive working hours, promoting a healthier work-life balance. 

Every employee is entitled to at least 11 hours of uninterrupted rest within a 24-hour period, although this can be adjusted for road transport workers under specific driving and rest regulations. If an employee works more than 5.5 hours, they must have a break, and if they work 8 hours, the break should be at least 30 minutes. 

Employees also have the right to at least 36 hours of uninterrupted weekly rest within a seven-day period, ideally including a Sunday or public holiday. If an employee works on these days, their rest period should be scheduled for the following Sunday or holiday.

Annual leave

All employees are entitled to 25 working days of holiday annually, calculated across the week, excluding weekends and public holidays. Employees must take their entire holiday but cannot choose their dates freely; they need at least two months prior approval from their employer.

The employer has the final say if there’s disagreement on holiday dates. Employees are entitled to three weeks of uninterrupted holiday during the main holiday season, from 1 June to 30 September.

Employees who fall ill during their holiday can request replacement holiday days promptly. If they are sick just before their holiday starts, they can ask to reschedule their holiday for later in the year.

Public holidays

Employees typically have public holidays off, though some sectors require work these days, with compensation similar to that on Sundays. 

The public holidays include New Year’s Day on 1 January, Palm Sunday on 24 March, Maundy Thursday on 28 March, Good Friday on 29 March, Easter Sunday on 31 March, Easter Monday on 1 April, Labour Day on 1 May, Ascension Day on 9 May, Constitution Day on 17 May, Pentecost Sunday on 19 May, Pentecost Monday on 20 May, Christmas Day on 25 December, and Boxing Day on 26 December.

Salary

​​Norway does not have a national minimum wage. Still, certain industries like construction, maritime construction, agriculture, horticulture, cleaning, fish processing, electrical work, transport, and hospitality have set specific minimum rates. Employees with residence permits must be paid and given working conditions according to the terms of their permits.

Wages are generally agreed upon monthly, and employers must provide a payslip. If an employer underpays or fails to pay wages, the employee should ask the employer for an explanation. 

The claim process depends on the employer’s reason for non-payment. If wages are not paid on time, employees should send a claim letter to their employer by registered mail, giving them one week to pay.

To calculate the salary and taxes in Norway, click here.

Sick leave

In Norway, unwell employees can take sick leave. A doctor’s note is needed for serious illness, with part-time leave considered first if possible. How much an employee can work depends on their health condition and any adjustments their workplace can make. Support may come from a doctor, a union representative, or the Norwegian Labour and Welfare Administration (NAV).

After two months of employment, employees can self-certify their illness for up to three days, up to four times a year. If only a half-day absence is needed, partial sick leave or paid leave may apply. Companies in the Inclusive Working Life (IA) program allow up to 8 days of self-certified leave, with a maximum of 24 days per year.

Parental leave

In Norway, parents are entitled to 12 months of parental leave for the birth of a child, including 12 weeks during pregnancy and 6 weeks of leave for mothers after birth. Each parent can also take an additional year of leave immediately following the initial year. 

The Working Environment Act governs the right to leave but doesn’t determine the payment of benefits, which NAV manages.

Parents can choose partial leave, allowing them to work part-time while still receiving parental benefits, which extends the leave period without reducing the overall benefit amount. This flexibility can continue for up to three years. Self-employed individuals and freelancers are also eligible for parental benefits, although the application process differs slightly.

Paternity and maternity leave

In Norway, parents have flexible parental leave options with designated time for both mothers and fathers. Mothers receive 15 weeks, including 3 weeks before the due date and 6 weeks right after birth. 

If a mother cannot care for the child due to illness, the father may apply to take this leave instead. Fathers also have a 15-week quota, which they must use themselves, or it will be forfeited, though mothers can apply to use it if the father is unwell. 

Additionally, there is shared leave time, which can be 16 or 26 weeks, depending on whether parents choose 80% or 100% pay. During this shared period, if the father is taking leave, the mother must be working.

Methods of employment termination

​​Under Norwegian law, employees cannot be dismissed without “just cause,” which could be due to either the company’s needs or the employee’s actions. Dismissals may be deemed justified if a company needs to downsize or restructure for long-term efficiency. 

For terminations based on the employee’s actions, there must be a clear breach of duties, with the employer required to provide documented, valid reasons. 

The dismissal notice must be in writing and inform the employee of their rights, including the right to challenge the dismissal, request a meeting with the employer, continue in their role until a final decision, seek compensation, and understand the deadlines for raising claims or taking the matter to court.

Ordinary dismissal by the employer

In Norway, ending employment is a legal process requiring either the employer or employee to give written notice. Standard rules apply to both, except for fixed-term roles like temporary positions. The Civil Service Act (lovdata.no) specifies special rules for government workers. Employers unsure about valid reasons for termination should seek legal advice or consult their employers’ association.

Dismissal with notice must have a justified reason, such as a serious breach of contract, necessary downsizing, or reorganisation. Special protections exist: illness is not grounds for dismissal within the first year of sick leave. After a year, the usual rules apply. 

Dismissal during the first year of sick leave or when an employee is pregnant or on parental leave may be allowed for valid reasons.

Notice period and challenging the dismissal 

The notice period for employees depends on their age and years of service. Employees with less than 5 years of service have a 1-month notice period; those over 5 years have 2 months. For employees over 10 years, the notice period is 3 months if under 50, 4 months if aged 50 to 54, 5 months if 55 to 59, and 6 months if over 60. Temporary employees who leave before their contract ends are also subject to these periods.

If an employee resigns, the notice period must be three months, and any extensions must be agreed in writing.

Employees who feel their dismissal is unfair can request a meeting with their employer within two weeks. If a dismissal violates sections 15.6 to 15.10 of the Working Environment Act, courts may invalidate it, as stated in section 15.12.

Rights and obligations of unemployed persons 

In Norway, some benefits are available to unemployed residents, regardless of their previous earnings, as long as they meet certain conditions. To qualify, a person must have had their position cut by at least 50% and have earned a minimum of NOK 76,013 in the last 12 months or NOK 228,040 over the past 36 months.

These benefits do not apply during salary or notice periods; any severance pay is treated as income. If the employer goes bankrupt, people can receive benefits in advance while waiting for government support.

Those who resign have an 18-week waiting period before benefits start. If someone is dismissed, they must provide proof from their employer confirming the end of employment.

Severance pay

In Norway, a severance agreement is a voluntary contract between an employer and employee to end employment on agreed terms. It typically includes compensation, such as severance pay or salary without duties, and is legally binding, with remedies available if either side breaches it.

Employees may sometimes withdraw their acceptance, potentially challenging the agreement’s validity. Both sides may negotiate for favourable terms, depending on their positions.

The severance package depends on factors like employer errors, dismissal reasons, and the employer-employee relationship. Agreements often cover termination dates, duties, pay, legal costs, holidays, asset returns, references, confidentiality, and possible non-compete clauses.

Prohibition of competition

A non-compete clause in a job contract limits an employee’s ability to work for competing companies after leaving. These clauses protect a company’s confidential information, like trade secrets, from being used by competitors. 

In Norway, the Working Environment Act requires employers to justify such restrictions based on the employee’s role and tenure, not their future plans. If an employee leaves due to company downsizing or a breach of contract by the employer, the clause cannot be enforced. 

Employees can request a written explanation for the clause, which the employer must provide within four weeks; otherwise, the clause becomes void. If the employee resigns without receiving an explanation, it should be included in the termination notice with clear justification.

Remote working policy

The Home Office Regulation, introduced in 2022, sets guidelines for employees working from home, a trend that grew rapidly during the pandemic. It applies specifically to permanent home office arrangements, not to temporary or occasional remote work. 

For compliance, it’s important for employers and employees to clearly define if the work setup is permanent. The regulation outlines the responsibilities for creating a safe and healthy work environment, covering both physical and mental health aspects, and requires that employees’ home workplaces are included in the company’s internal control system.

Responsibilities within a remote work arrangement

The general rules of the Working Environment Act apply to working from home, so there are no specific regulations for remote work. 

Employers should ensure employees are trained to work from home, including using equipment and managing time effectively. The employer and the employee must have a written agreement outlining the terms for working remotely. 

The employer is also responsible for ensuring a safe work environment at the main workplace and home office, following health and safety regulations. There is no automatic right for employees to be reimbursed for home office equipment, but if both agree, the employer may cover necessary costs.

Health and safety at home 

Employers in Norway are responsible for ensuring a safe and healthy work environment for all employees, including those working from home. This duty includes both physical and mental well-being, and employers must keep working conditions appropriate and check in with employees regularly. 

Safety representatives can carry out inspections without needing special agreements. Employees with home office arrangements are also expected to help maintain a safe work environment.

Intellectual property rights

In Norway, employees generally have rights to their inventions, but employers can claim these rights if the invention is linked to the employee’s job. Employees must notify their employer in writing about any inventions, and the employer has four months to respond if they want to claim ownership.

An employer’s rights depend on the connection between the invention and the employee’s work. These connections include inventions funded by the employer, those made with a preference for employer rights, and inventions created outside of work.

Copyright transfer is governed by the Copyright Act, customary laws, and agreements. For example, computer programs typically belong to the employer unless agreed otherwise, and the author doesn’t retain publication rights.

Employee data privacy

On July 20, 2018, the GDPR was introduced in Norway as part of the EEA agreement, outlining clear rules for processing personal data, ensuring accountability, and safeguarding individual rights. 

The Norwegian Data Protection Authority is responsible for overseeing compliance with these rules. Alongside this, the Norwegian Personal Data Act, which aligns with the GDPR, provides the legal basis for processing personal data. 

Specifically, Section 6 of the Act focuses on handling sensitive data, allowing it to be processed for purposes related to employment law rights and obligations.

What are the advantages of hiring employees from Norway vs other countries?

Hiring employees from Norway offers several advantages over other countries. Norwegian employees tend to have a high level of education and are well-versed in English, making communication easier in international business environments. 

Norway has a strong work ethic, and employees often demonstrate high levels of professionalism and efficiency. The country’s labour laws ensure good working conditions, fair wages, and a strong emphasis on work-life balance, which can contribute to greater job satisfaction and retention rates. 

Additionally, Norway’s well-developed infrastructure and advanced technology contribute to a productive work environment. The Norwegian workforce is also known for its innovation, especially in fields like technology, energy, and sustainability, making it a great choice for companies looking to tap into these sectors. 

Finally, the country’s focus on gender equality and diversity can bring a wider range of perspectives to the workplace, enhancing creativity and problem-solving.

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• Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
• Local support: We can assist you in understanding and complying with the relevant local laws.