How to prepare a Norwegian Employment Contract?

April 02, 2021

A written employment contract at all times

Every employment relationship in Norway should be based on a written employment contract. The contract should be signed as soon as possible after the commencement of the employment. A written employment contract is in the interest of both the employee and the employer. There are no exceptions regarding the possibility of concluding an oral employment contract.

As soon as possible, but using common sense

One should be very well prepared to create an employment contract. In the case of incorrectly structured provisions, the employer may incur huge costs if there is a dispute with an employee. As an authorized accounting office in Norway, we always recommend consulting a law firm specializing in labor law, if the contract is to contain specific provisions.

Standard...

The standard form for an employment contract in Norway was developed by the Norwegian Labor Inspectorate and is available in several language versions, incl. English-Norwegian, Russian-Norwegian (www.arbeidstilsynet.no). Each employment contract must contain certain minimum provisions stipulated in the Norwegian Labor Code (Arbeidsmiljøloven). Guidlines can also be found on the website of the Norwegian Labor Inspectorate. But one should ask oneself if the standard contract is suitable for everyone?

... used with caution

Many employers make a mistake and do not think about the provisions of the contract. Too rigid adherence to the standard may limit the employer's right to manage (arbeidsgivers styringsrett) e.g. the workplace or the rules for granting bonuses.
On the other hand, an excessively relaxed approach to regulations, often resulting from ignorance, may lead to violations of, for example, rules related to working time, breaks or holiday benefits.

It's worth the investment

Many years of experience in the market of an authorized accounting office in Norway have taught us and our clients (sometimes painfully) how important an employment contract is. The Norwegian Labor Code differs from other countries' regulations and you should be very careful with even the simplest provisions. It is really worth talking to an accountant, and often an attorney, before incorrect provisions in the employment contract lead to unpleasant and costly lawsuits.

Graphics: https://www.freepik.com/free-vector/smiley-salesman-character-holding-contract_2764173.htm#page=1&query=employment%20contract&position=8

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