What should an employment contract in Norway include?
Listed below are the key elements of employment contracts in accordance with labor laws in Norway:
- Complete personal information of both parties, including names, addresses, and contact details.
- An in-depth description of the job role, including duties, responsibilities, and entitlements.
- Precise detailing of compensation elements, including salaries or wages and associated benefits.
- Specification of the employee’s work schedule, including working days and hours.
- Guidelines regarding contract termination, including notice periods and applicable severance provisions.
- Confidentiality and non-disclosure clauses aimed at safeguarding the employer’s interest.
It’s vital for both parties to diligently assess, comprehend, and mutually agree on the contractual terms before signing the employment contract.
What types of employment contracts exist in Norway?
The following are the most common categories of employment contracts in Norway:
1. Employee contracts
Norwegian labor law recognizes 2 major types of employee contracts:
- Open-ended employment contracts: Open-ended employment contracts are commonly referred to as permanent or indefinite employment contracts. These agreements remain in force until terminated by either party, following the termination policy within the contracts. Except for termination policies, open-ended contracts should specify key employment terms, including salaries, working hours, benefits, obligations and rights, and other similar elements.
- Fixed-term employment contracts: In contrast to open-ended contracts, fixed-term employment contracts must define a clear start and end date of the employment being effective. Fixed-term contracts in Norway can not last longer than 12 months if the employer doesn’t justify the decision to hire temporarily.
2. Temporary employment contracts
Temporary employment contracts are typically used to fulfill temporary workforce demand or for the purpose of a specific project or task. Temporary employment contracts must clearly specify the start and end dates of the employment and can be terminated before expiration by providing a reasonable explanation for the termination.
3. Freelance contracts
Freelance contracts are concluded between freelancers or independent contractors and companies or clients using the services of the other party. Freelancers are not classified as regular employees, but they offer their expertise independently and receive remuneration for the provided services.
How to hire employees in Norway?
Before starting a global expansion in Norway, employers are required to open a legal entity, obtain a tax identification number and have a local bank account to hire employees.
Besides legal obligations prior to hiring, employers also have the responsibility to abide by labor laws regarding minimum wages, benefits, working hours, and other important conditions.
To avoid difficulties in staying compliant while hiring, employers are recommended to collaborate with a global expansion company like Native Teams. Through our Employer of Record solutions, you can have your payroll, taxes, and HR administration taken care of, all while completely adhering to local employment laws.