Comply with Norwegian employment laws and issue compliant Norwegian employment contracts using our PEO Services.
When expanding your business into a brand new market, a compliant, happy and hardworking workforce is crucial. In achieving this, it is important to set out a fair employment contract that protects both you and your employees.
Norway is a popular choice for expanding businesses thanks to its varied economy, aquaculture, tourism as well as the favourable work-life balance and its liberal social safety net. However, the process of expanding into Norway can be testing. Employers must deal with employment regulations as set out by The Norwegian Working Environment Act (Arbeidsmiljøloven). This applies to both temporary and permanent roles, and must be abided by by employers.
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A basic Norwegian contract of employment includes, but is not limited to:
- the identity of both parties
- the place of work. If there is no fixed or main place of work, there will be a contractual provision that the employee is employed at various locations
- a description of the work or the employee’s title, position or category of work
- the employment commencement date
- if the employment is of a temporary nature, its expected duration and the legal basis for the appointment
- where appropriate, provisions relating to a trial period of employment
- the employee’s right to holiday and holiday pay and the provisions concerning the agreement of holiday period - usually 4 weeks and 1 day of paid holiday.
- the notice period related to termination of employment
- the salary, any supplements and other remuneration not included in the standard salary.
- duration and timing of the daily and weekly working hours. If the work is to be carried out periodically, the contract shall specify or provide a basis for calculating when the work is to be carried out. The working day must not exceed nine hours or 40 hours per week. Overtime must be paid at an increase of 40%.
- length of breaks
- agreement concerning a special working-hour arrangement
- information concerning any collective agreements regulating the employment relationship.
While this is a mandatory list of agreements between employers and employees, there are many other optional and recommended provisions which may be incorporated into the contract. No matter how many provisions there are, employment terms must contain an abundance of information which must be correct at the time of writing.
Failing to provide the correct information, or straying from what is stated in the contract can cause employee disputes. Employee disputes can often cost your business hugely and will impact your employees' satisfaction. Read on to discover all you need to know about creating a Norway-compliant written statement of employment particulars and how our PEO services can help you achieve this.
What types of employment contracts are there in Norway?
The Working Environment Act stipulates that the employer must draft a written contract to be entered into no later than one month after the start of work. The main types of employment contracts in Norway are an indefinite permanent employment contract and a fixed-term employment contract.
An indefinite employment contract is the preferred choice in Norway, and remains in place until terminated by either party. This termination must be according to the rules set out by the Working Environment Act.
Fixed-term employment contracts have been permitted for up to 12 months without the employer having to justify certain circumstances for the time limit. If this fixed-term contract exceeds a three year period, the employee is entitled to a permanent position. Employees who are on fixed-term contracts have a preferential right to employment if vacancies appear in their former place of work within 12 months of their contract terminating.
Can I change an employment contract?
Within legal reason, contractual clauses can be changed. This must be done after the consultation of the employee on any changes related to their employment terms.
Do I need to translate an employment contract?
It is necessary that employment contracts are translated for employees into their preferred language. Though this may appear to be an obvious statement, there are a multitude of legal terms which can be misinterpreted and thus leading to misunderstandings, risks and in some cases, legal proceedings as a result. This is something to be acutely aware of when expanding on an international scale.
How do I write a Norwegian employment contract?
As we have already mentioned, there are a number of mandatory terms of employment which need to be correctly implemented into your Norwegian contract.
A Norwegian contract must comply with the regulations as set out by the Working Environment Act, including the following points:
- Employment duration
- Your salary
- Probationary period
- Terms for giving notice (during and after your probationary period)
- Working hours
- The job description (including your duties, job title and other information)
- Holiday leave
Failure to comply with the above, at a minimum, can lead to unhappy employees and possibly even legal disputes. Gaining and maintaining the knowledge relating to Norway’s employment laws is a huge responsibility, and one which could cost your business large amounts of time, money and resources.
To ensure the compliant and smooth onboarding of Norwegian employees, it is highly advised that you outsource your employment contracts to a skilled and trusted professional. Our PEO services tackle just that, helping you to always stay compliant and within the rules of the law.
Why use a PEO partner to manage Norwegian employment contracts?
Creating and issuing compliant Norwegian employment contracts is not only a complex task, but one which is also steeped in risk. If you fail to comply with Norwegian employment laws or you fail to state employment terms and benefits correctly, you are opening yourself up to employee disputes and hefty fines. Coming into trouble with these elements of expansion can halt your international expansion altogether.
In addition, it is not just employment contracts that you need to consider - businesses also need to consider payroll, tax, national insurance contributions, recruitment and work visas. That’s a very complicated web of aspects which can easily go wrong.
With the help of a PEO partner, these important and stressful considerations will be alleviated, offering you more time to focus on your Norwegian expansion knowing your employee contracts will always be compliant. At Leap29, our expert PEO team is well-equipped with the vital information on the latest employment laws and contract requirements. This means we can issue contracts on your behalf in a prompt and compliant fashion.
If you would like to know more about how our trusted PEO services in Norway can support your international business expansion, contact our friendly team today.
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