Amendments to the Norwegian Working Environment Act entered into force

1 July 2024 4 min read

At a glance

New legislation implementing the EU directive on transparent and predictable working conditions has resulted in additional requirements for employment contracts.
The amendments to the Working Environment Act (Act) entered into force on 1 July 2024. The amendments include changes to the procedures for terminating employment, the right to holiday pay, and the description of the daily and weekly working hours.
For employment relationships that exceed one month, the deadline for providing a written employment contract has been reduced from one month to seven days, applicable from when the employment relationship begins.
Where the employment contract does not state that the employment is temporary, it is presumed that the employee has permanent employment status, unless it can be proven that temporary employment is more than likely.
The amendments include the right of an employee who works part-time or is temporarily employed, to request more predictable working conditions.
The probation period for temporary employment must not exceed half the duration of the employment relationship and in no case exceed six months. However, the probation period may be extended if the employee has been absent from work during the probation period.
Further, the fines that may be imposed on employers for violating certain provisions in the Act has been increased from 15G (NOK1,860,420) to 50G (NOK6,201,400) or up to 4% of the company's annual turnover.

New legislation implementing the EU directive on transparent and predictable working conditions has resulted in additional requirements for employment contracts. As of 1 July 2024, the Act states that employment contracts must, in addition to the already applicable minimum requirements, include:

procedures for terminating employment;
the right to holiday pay, the rules for determining the timing of holidays and information about paid absence other than holidays (eg parental leave, sick leave, etc);
separate specification of salary, bonuses and other remuneration not included in the salary, the method of payment and timing of payment;
description of the daily and weekly working hours if they vary, or if the work is to be performed periodically, and the basis for determining when the work is to be performed;
whether the work is to be performed at different locations or whether the employee is free to choose where the work is to be performed, if there is no fixed workplace;
arrangements for changes to shift schedules and arrangements for working overtime, including overtime pay;
for employees temporarily hired through staffing agencies, the identity of the hirer must be made known as soon as possible;
the right to skills development and training that the employer may offer;
information about the employer's social security program for employees, and the names of the institutions which the employer pays for this (eg pension and insurance providers).

For employment relationships that exceed one month, the deadline for providing a written employment contract will be reduced from one month to seven days, applicable from when the employment relationship begins.

Where the employment contract does not state that the employment is temporary, it must be presumed that the employee has permanent employment status, unless it can be proven that temporary employment is more than likely. Where the contract does not specify the scope of employment, the employee's claim about such scope must be presumed to be correct, unless a different scope is proven more than likely.

Requests for more predictable working conditions

The new legislation states that if an employee who works part-time or is temporarily employed requests a form of employment with more predictable and secure working conditions, the employer must provide a written and reasoned response within one month of the request.

The right to a written reply under this provision applies to an employee who has been employed by the organisation for more than six months and who has completed their probation period. The right does not apply where it has been less than six months since the employee's previous request under this provision.

Changes to the probation period

As of 1 July 2024, the probation period for temporary employment must not exceed half the duration of the employment relationship and in no case can it exceed six months. However, the probation period can be extended if the employee has been absent from work during the probation period. The extension, however, cannot exceed the length of the absence. Extension of the probation period also requires informing the employee in writing about the right to extend at the time of employment, and later informing that this right is exercised before the end of the probation period.

Furthermore, a new probation period cannot be agreed if the employee is to continue in the same position or in a position which is substantially similar to the position held by the employee in the same organisation. In the case of permanent employment, a new probation period may nevertheless be agreed if the employee's previous period of employment and the new probation period together do not exceed six months.

Increased fines for violations of the Working Environment Act

On 14 June 2024, the Norwegian Parliament decided to increase the upper limit for fines imposed on employees for violations of the Act in accordance with section 18-10 of the Act from 15G (NOK1,860,420) to 50G (NOK6,201,400) or up to 4% of the company's annual turnover ('G' refers to the Basic Amount in the National Insurance scheme which is adjusted yearly. As of 1 May 2024, 1G is NOK124,028). The latter is directed at businesses with high turnover. It is the higher amount that will constitute the upper limit in each individual case.

The fines may be imposed on employers as a result of ie violations of the rules regarding employees' working hours, overtime hours, unlawful use of hire-ins, etc.

The purpose of the amendment is for the fines to have sufficient effect to ensure compliance with the provisions of the Act, to strengthen employee safety, and to combat labour market crime. Further, it seeks to strengthen the deterrent effect of the use of fines and give the Norwegian Labour Inspection Authority (Arbeidstilsynet) a more effective tool in situations where serious or repeated offences are uncovered.