A NORWEGIAN LABOR LAW GUIDE FOR EMPLOYERS IN NORWAY

In Norway, hiring through staffing companies is only allowed under specific circumstances. Additionally, in the broader Oslo region (Oslo, Akershus, Østfold, and Vestfold), construction companies are prohibited from using staffing agencies.

In Norway, hiring from businesses that are not primarily staffing agencies is permitted under specific conditions:

• The hired employee has a permanent position with the lessor.

• The work falls within the same professional domain as the hiring company.

• The hired workforce does not exceed 50% of the hiring company's permanent staff.

• Employee representatives are consulted before hiring.

When employing foreign workers in Norway, you must make sure they have a valid work permit.

The requirements depends on the individual's country of origin. 

Also note that regardless of origin, all foreign nationals planning to work on the Norwegian mainland must undergo and ID check upon arrival to verify the person's identity. 

When employing workers in Norway, you must choose between permanent or temporary employment. 

• Permanent employment is the standard practice in Norway, where an employment contract runs indefinitely.
• Temporary employment can be used for  defined periods, but must fall under one of the following categories:

Also read: The rules for temporary employment in Norway

In Norway, working hours is defined as the time when the employee makes themselves available to the employer. The employer and employee must agree to these hours, explicitly stated in the employment contract.

Also read: The rules for working hours and overtime in Norway

It’s important to note that working hour regulations in Norway are strict. However, you can arrange for an average calculation of working hours through an individual agreement, collective agreements, or approval from the Norwegian Labor Inspection Authority, as long as you meet the required conditions. 

Also read: How to arrange working hours with a fixed average

In Norway, when an employee falls ill, the employer is responsible for covering their salary for the first 16 days. If the illness lasts longer, the Norwegian Labour and Welfare Administration (NAV) usually takes over sick pay coverage.

However, employees holding an A1 certificate are an exception to this rule. They are not covered by the Norwegian Social Security System and are therefore not entitled to sick pay under Norwegian law. Instead, they receive sick pay according to the regulations of their home country.

Also read: Sick pay regulations for employers in Norway

In Norway, employers are legally required to provide occupational injury insurance for their employees. This insurance covers work-related injuries and illnesses, ensuring compensation for medical expenses, lost income, and potential disability benefits. The coverage must comply with the Occupational Injury Insurance Act and applies to all employees, regardless of job type or contract length. Employers must arrange this insurance through an approved provider, and failure to do so can result in fines and liability for compensation costs.

Norwegian employers are required to pay National Insurance contributions (arbeidsgiveravgift) on employee salaries and benefits. The contribution rate varies by municipality, typically ranging from 0% to 14.1%, depending on the employer’s location. These payments help fund Norway’s social security system, covering pensions, healthcare, and other welfare benefits.

Employers must calculate and report these contributions through the A-melding (A-report) each month, with payments due by the 15th of the following month. Failure to comply may result in penalties and interest charges.

Also read: Employer's National Insurance contribution in Norway

Employers must deduct taxes from employee salaries based on the tax card information provided by the Norwegian Tax Administration. The withholding tax rate varies between 17.1% and 50%, depending on the tax card details. Employers can access employees' tax cards through Altinn.

If an employee does not complete the required ID check, they will not receive a tax card. In such cases, employers must withhold tax at the maximum rate of 50%.

When submitting withholding tax payments, employers should total the reported amounts from the A-melding (A-report) covering the relevant two-month period. After electronic submission, a KID number will be provided for payment. Withholding tax payments must be sent to the Norwegian Tax Administration.

In Norway, all workers in the construction, building, and cleaning industries—both Norwegian and foreign—must have a valid HSE (Health, Safety, and Environment) card. This identity card contains details about the employee and their employer.

Employers are responsible for ensuring that all workers who require an HSE card have a valid one throughout their employment. Employees cannot start work until they either have a valid HSE card or can provide proof that an application has been submitted.

Also read: What is an HSE card? 

In Norway, employers are required to submit an A-melding (A-report) each month to the Norwegian Tax Administration. This report includes details about employees' salaries, tax deductions, social security contributions, and employment status. The deadline for submission is the 5th of each month, covering the previous month's payroll. Accurate and timely reporting is essential to ensure compliance with tax and social security regulations.

Failure to submit or incorrect reporting can result in penalties. The A-melding system simplifies reporting by consolidating multiple obligations into a single digital submission.

Also read: What you need to know abut the Norwegian A-report

Employers in Norway must ensure a safe and healthy working environment (HSE) by addressing both physical and psychological risks. Work tasks should be organized to prevent injuries and illnesses, and employees must receive proper training and be involved in safety planning. Employers must also protect workers from harassment, violence, and unsafe conditions, ensuring workplaces meet health and safety standards.

In Norway, the termination of employment is subject to strict regulations under the Norwegian Working Environment Act, and employers must follow specific processes to ensure compliance. This includes temporary layoffs, redundancy, dismissal without notice and termination of employment for other reasons, such as business closures or employee performance issues.

Magnus Legal is a full-service Norwegian law firm specializing in assisting foreign companies operating in Norway. Labor law is one of our key areas of expertise, and our team of experienced labor law attorneys provides comprehensive support to businesses on all employment matters, from hiring to termination.