What to remember when hiring in Norway?

If you are an employer in Norway, you must follow the Norwegian Labour Code's stipulation. The same concerns employers who post their employees to Norway through a Norwegian Registered Foreign Business (NUF). Here is an overview of the most important procedures to keep in mind when hiring in Nolrway;

Every employer in Norway should enter an employment contract with their employee as soon as possible. The employment contract should include information about: the place of work, the duration of employment, working time, breaks, additional remuneration, etc.
If your employees are employed in another country and posted to Norway, you need to enter an annex for the period of posting. The Norwegian Labour Inspection Authority offers bilingual templates of employment contracts. As an authorized accounting office, we advise our clients to use the templates as they are complient with the Norwegian Labour Code's regulations. 
 

Foreign employees posted to Norway or employed in a Norwegian company are required to go to one of dedicated tax office or SUA centers in Norway in order for their identity to be checked. This procedure should be repeated every 5 years. Having their identity confirmed, the employees receive a temporary Norwegian id-number (d-numme) and a tax card. 
 

There is no general minimum wage in Norway. However, in certain industries there are minimum wages negotiated each year with the unions and employers' organizations. The industries which are covered by obligatory minimum wage in Norway are: 

The Norwegian Labour Inspection Authority provides more information on the up-to-date wages. 
 

As in other countries, the time when the employee is at the disposal of the employer is called "working time". Regular working time in Norway comprises 40 hours per week. There is a break in the 8-hour working day. The half hour spent on the lunch break is either paid for (if the employee hasd no possibility to prepare and eat food in good conditions), or unpaid (if employees have a lunch-room).

The Norwegian Working Environment Act also regulates overtime and working time calculated on the basis of a fixed average. You can read more about the Norwegian working time system here.
 

As en employer you are obliged to provide occupational health insurance for your employees. The insurance is offered by many banks and financial institutions. It might be worth checking their offer as the insurance may be also bought in a package with company's insurance. If your employees are posted from a different EU country to Norway, they might be insured in the country of origin. In that case they will be issued a confirmation of the insurance by the national social security institution, a so-called A1-form. 

All aemployees in Norway are entitled to a pension benefit. A part of it is paid by the employer to the national social security institution. However the employer is also required to establish an obligatory additional pension agreement with a financial institutionm so-called: OTP. The employer is required ot add 2% to the remuneration and transfer it to the OTP account. The additional pension scheme is mandatory for ALL employees in Norway, posted employees included. 

In Norway, all employees are entitled to 25 days of holiday per holiday year. The first year of work, the employee earns the holiday pay for the following year. This holiday pay is usuallydistributed during the main holiday period from June to September. The holiday pay costitutes a minimum 10.2% of the remuneration. The holiday pay is taxable during other months than the holiday month. That way, the employee receives slightly more money for their holiday.

Read more about the holiday pay in Norway here. 

Health and Safety regulations in Norway are abbreviated as HMS. The general attitude towards HSE rules in Norway is similar to other European countries. However, one might notice more responsibility for general safety being transferred to employees. Employees choose an HSE representative among themselves, who undergoes special training provided by the employer. The representative (verneombud) is responsible for monitoring day-to-day safety activities on-site. Additionally, each managing director (daglig leder) in a company that employs workers in Norway is obliged to complete a special preparatory course.

Author: Anna Korpalska
Graphics: freepik-staff