Apr 8, 2025

Temporary Employment in Norwegian Labor Law – Regulations, Conditions, and Practical Implications

Temporary staffing represents an alternative to permanent employment when companies need temporary labor. Unlike temporary employment, staffing is characterized by the absence of an employment relationship between the hirer and the leased employee, but rather between the lessor and the employee. This creates a tripartite relationship where the legal relationships between the parties are based on different principles:

  • The employee is employed by the lessor

  • The lessor has employer obligations towards the employee

  • The hirer is responsible for organizing and leading the work

  • The relationship between the lessor and hirer is regulated through a general contract

Norwegian law has strict limitations on temporary staffing compared to other European countries. The opportunity for staffing is mainly limited to the same situations that allow for temporary employment. This regulatory framework is subject to both public and private enforcement.

The Distinction Between Temporary Staffing and Contracting

A central distinction in Norwegian labor law is the difference between temporary staffing and contracting. This distinction is crucial because the limitations in the authorization of staffing in the Working Environment Act do not apply to contracting.

By "contracting," it is meant that a company (contractor) uses its own employees to perform an assignment for another company (client), where the employees are subject to the contractor's supervision and management. Contracting is common when companies outsource support functions like canteen operations, cleaning, and security services, or when they need specialized functions performed.

Key Factors in the Assessment

The Supreme Court has established in HR-2018-2371-A (Norwegian) that the following factors are crucial in distinguishing between staffing and contracting:

Factors indicating contracting:

  • The management of the work is with the contractor

  • The number of employees used for the assignment is irrelevant to the client

  • A fixed price is agreed for the assignment

  • The assignment is clearly defined

  • The contractor has independent responsibility for the outcome

  • The contractor uses its own materials and tools

Factors indicating staffing:

  • The client has the management of the work

  • A specific number of employees is made available to the client

  • An hourly rate or time-dependent price is set

  • The tasks are unspecified or only outlined

  • The client retains responsibility for the work performed

  • The client's materials and tools are used during the assignment

The Supreme Court has emphasized that the key factors are who has responsibility for the management and outcome of the work performed, while the other factors can capture attempts to circumvent the rules.

Two Main Forms of Staffing

The Working Environment Act distinguishes between two forms of staffing:

1. Staffing from a company that is not intended for leasing (§ 14-13)

This typically includes staffing from ordinary production companies. The aim is to allow leasing as an alternative to layoffs or dismissals due to market fluctuations or to cover a need for specific expertise with the hirer.

Conditions for lawful staffing under § 14-13:

  • The employee must be permanently employed by the leasing company

  • The leasing must occur within the fields that constitute the lessor's main occupation

  • The leasing activity cannot involve more than 50 percent of the permanently employed of the lessor

Even if the minimum conditions are met, a comprehensive assessment can still result in the company being considered to have leasing as its purpose, cf. § 14-12. In Rt. 2013 p. 1730 (YIT), the Supreme Court emphasized that both the employment in the leasing company and the leasing to the hirer were initiated and justified by the hirer's needs, and that the employee had no position in the leasing company to return to.

2. Staffing from a company intended for leasing (§ 14-12)

This includes staffing from staffing agencies and other businesses that are intended for leasing.

Limitations on the authorization for staffing under § 14-12:

  • Staffing is only permitted when the conditions for temporary employment under § 14-9, letters a to e, are met

  • This includes situations where the work is of a temporary nature, temporary replacements, internships, etc.

Extended staffing authorization through an agreement with employee representatives:

  • Companies bound by a collective agreement with a trade union with at least 10,000 members can agree on staffing regardless of the limitations in § 14-12 (1)

  • The agreement must be concluded in writing with employee representatives representing a majority of the employee category to which the staffing applies

  • The agreement must be time-limited

The Principle of Equal Treatment

A key element in the regulation of temporary staffing is the principle of equal treatment, which was introduced into Norwegian law as a result of the EU's Temporary Agency Work Directive. This principle is enshrined in the Working Environment Act § 14-12a.

Main Rules on Equal Treatment

The staffing company must ensure that leased employees receive the same wage and working conditions as they would have received with a direct hire with the hirer to perform the same work. This includes:

  • Length and placement of working hours

  • Overtime work

  • Duration and placement of breaks and rest periods

  • Night work

  • Holidays, holiday pay, days off, and compensation for such days

  • Salary and expense coverage

The concept of wages is interpreted broadly in case law. In HR-2018-1037-A (Manpower), the Supreme Court held that travel allowances were included in the wage concept, while HR-2020-2109-A (Semco) determined that company-level bonus schemes were also included.

Pension, however, falls outside the requirement for equal treatment.

Access to Common Benefits and Services

Leased employees must have the same access to common benefits and services at the hirer as the company's own employees, including canteens, company kindergartens, and fitness facilities. This applies unless there are "objective reasons" for discrimination.

Duty to Provide Information and Right to Inspect

To ensure compliance with the principle of equal treatment, several mechanisms have been introduced:

  1. The hirer's duty to provide information to the staffing company:

    • The hirer must provide the lessor with all information necessary for the lessor to fulfill the requirement for equal treatment

  2. The staffing company's duty to provide information to the employee:

    • The staffing company must, upon request, provide the employee with the information necessary to assess whether their own wage and working conditions fulfill the requirement for equal treatment

  3. The staffing company's duty to document for the hirer:

    • The staffing company must, upon request, document to the hirer which wage and working conditions have been agreed with the leased employee

  4. The hirer's duty to document for employee representatives:

    • Employee representatives at the hirer have the right to access the wages and working conditions of leased employees

Joint Responsibility for Wages, etc.

The hirer is jointly liable with the staffing company for the payment of wages, holiday pay, and any other compensation according to the principle of equal treatment. This means that:

  • The joint responsibility arises as soon as the employee’s claim is defaulted

  • Claims must be submitted within three months after the due date

  • The hirer must pay the claim within three weeks after it is presented

  • The joint responsibility does not apply in case of bankruptcy of the staffing company

Effects of Unlawful Staffing

The consequences of unlawful staffing vary depending on which staffing provision is violated:

In case of violation of § 14-12 (staffing from staffing companies)

  • The employee can claim permanent employment with the hirer

  • The employee can claim compensation

  • Exceptionally, the court may refrain from granting a ruling on permanent employment if it would be "clearly unreasonable" after a balancing assessment of the parties' interests

In case of violation of § 14-13 (staffing from production companies)

  • No direct right to permanent employment or compensation

  • If the conditions for staffing under § 14-13 are not met, the staffing is considered to be covered by § 14-12

  • Then the legality is assessed under § 14-12, and in the case of illegality, the legal consequences under § 14-14 apply

An employee who has been leased for more than three years (with a temporary position) or four years (with work of a temporary nature) has the right to permanent employment with the hirer. This does not apply to staffing based on an agreement with employee representatives under § 14-12 (2).

Practical Advice for Companies

For Hirers

  • Carefully assess the distinction between staffing and contracting Document the basis for the assessment, especially who has management and responsibility for the outcome

  • Ensure that the conditions for staffing are met In the case of staffing from production companies, check that the leasing activity does not exceed 50% of the employees with the lessor

  • Conduct necessary discussions with employee representatives In the case of staffing from production companies (§ 14-13), the hirer must conduct discussions with employee representatives before deciding on staffing

  • For long-term staffing needs Consider permanent employment to avoid the employee achieving the right to permanent employment after three/four years

  • Implement the principle of equal treatment Provide the staffing company with sufficient information about the wages and working conditions in the company

  • Be aware of joint responsibility Investigate the seriousness of the staffing company and establish routines to verify that the leasing company fulfills its obligations

For Lessors

  • Clarify the nature of the business Document whether the company is intended for leasing (§ 14-12) or not (§ 14-13)

  • In the case of leasing from a production company Ensure that the leasing occurs within the company’s main occupation and does not exceed 50% of the permanently employed

  • Ensure compliance with the principle of equal treatment Obtain sufficient information from the hirer on applicable wages and working conditions

  • Document wages and working conditions Be prepared to document these to the hirer, employee, and employee representatives

Summary

Temporary staffing is subject to strict regulations in Norwegian law, aimed at protecting the main rule of permanent employment and bilateral relationships in the workforce. The regulations distinguish between staffing from production companies and staffing agencies, with different conditions and requirements.

For staffing from agencies, the principle of equal treatment applies, which ensures that leased employees receive the same wages and working conditions as they would have with direct employment at the hirer. This principle is supported by information obligations, inspection rights, and joint responsibility.

The consequences of unlawful staffing can be significant, with the possibility of permanent employment with the hirer and liability for damages. Companies using staffing should therefore be well-acquainted with the regulations and establish routines to ensure compliance.

Sterk Law Firm

Your Partner for a Well-Functioning Workplace

Your Partner for a Well-Functioning Workplace

Your Partner for a Well-Functioning Workplace

Employment law challenges can be complex and time-consuming, whether you are a business leader or an employee. The consequences of incorrect handling can be significant, both in human and economic terms. Our lawyers have extensive experience from various aspects of working life and broad expertise in all areas of employment law. We can therefore offer precise advice and support throughout the process, allowing you to focus on your core business.

Employment law challenges can be complex and time-consuming, whether you are a business leader or an employee. The consequences of incorrect handling can be significant, both in human and economic terms. Our lawyers have extensive experience from various aspects of working life and broad expertise in all areas of employment law. We can therefore offer precise advice and support throughout the process, allowing you to focus on your core business.

Employment law challenges can be complex and time-consuming, whether you are a business leader or an employee. The consequences of incorrect handling can be significant, both in human and economic terms. Our lawyers have extensive experience from various aspects of working life and broad expertise in all areas of employment law. We can therefore offer precise advice and support throughout the process, allowing you to focus on your core business.

Advokatfirmaet Sterk
Advokatfirmaet Sterk
Advokatfirmaet Sterk

Comprehensive Employment Law Assistance

Comprehensive Employment Law Assistance

Comprehensive Employment Law Assistance

Explore

More articles

Invalidity and Compensation for Wrongful Termination of Employment in Norwegian Law

Employment Law

Apr 8, 2025

Invalidity and compensation for unjust dismissal or termination. In blog posts, emphasize that it pertains to Norwegian law.

In cases of wrongful termination or unjust dismissal, the court shall generally rule that the termination is invalid, allowing the employee to continue in or be reinstated to their position. Even if the position has been filled by another, the employee is entitled to at least an equivalent position. In exceptional cases, the court may nonetheless decide that the employment relationship should end. Additionally, the employee may claim compensation for financial losses and reparation, where the assessment is based on a broad consideration of fairness with emphasis on the parties' conditions and other relevant circumstances.

Invalidity and Compensation for Wrongful Termination of Employment in Norwegian Law

Employment Law

Apr 8, 2025

Invalidity and compensation for unjust dismissal or termination. In blog posts, emphasize that it pertains to Norwegian law.

In cases of wrongful termination or unjust dismissal, the court shall generally rule that the termination is invalid, allowing the employee to continue in or be reinstated to their position. Even if the position has been filled by another, the employee is entitled to at least an equivalent position. In exceptional cases, the court may nonetheless decide that the employment relationship should end. Additionally, the employee may claim compensation for financial losses and reparation, where the assessment is based on a broad consideration of fairness with emphasis on the parties' conditions and other relevant circumstances.

Invalidity and Compensation for Wrongful Termination of Employment in Norwegian Law

Employment Law

Apr 8, 2025

Invalidity and compensation for unjust dismissal or termination. In blog posts, emphasize that it pertains to Norwegian law.

In cases of wrongful termination or unjust dismissal, the court shall generally rule that the termination is invalid, allowing the employee to continue in or be reinstated to their position. Even if the position has been filled by another, the employee is entitled to at least an equivalent position. In exceptional cases, the court may nonetheless decide that the employment relationship should end. Additionally, the employee may claim compensation for financial losses and reparation, where the assessment is based on a broad consideration of fairness with emphasis on the parties' conditions and other relevant circumstances.

Procedural rules for disputes concerning the termination of employment: Negotiations, deadlines, and the right to remain in position

Employment Law

Apr 8, 2025

Employment Law: Disputes about Termination and Dismissal

In the event of a dispute concerning termination or dismissal, specific procedural rules apply. The employee has the right to request negotiations within two weeks, and the employer is obliged to conduct a negotiation meeting within two weeks of receiving the request. In the case of termination, the employee is entitled to remain in their position while the dispute is ongoing, but the employer can demand resignation if continuation is unreasonable. The deadline for filing a lawsuit to contest the legality of the termination is eight weeks, and six months for pure compensation claims. Formal errors in the termination result in the annulment of the lawsuit deadline.

Procedural rules for disputes concerning the termination of employment: Negotiations, deadlines, and the right to remain in position

Employment Law

Apr 8, 2025

Employment Law: Disputes about Termination and Dismissal

In the event of a dispute concerning termination or dismissal, specific procedural rules apply. The employee has the right to request negotiations within two weeks, and the employer is obliged to conduct a negotiation meeting within two weeks of receiving the request. In the case of termination, the employee is entitled to remain in their position while the dispute is ongoing, but the employer can demand resignation if continuation is unreasonable. The deadline for filing a lawsuit to contest the legality of the termination is eight weeks, and six months for pure compensation claims. Formal errors in the termination result in the annulment of the lawsuit deadline.

Procedural rules for disputes concerning the termination of employment: Negotiations, deadlines, and the right to remain in position

Employment Law

Apr 8, 2025

Employment Law: Disputes about Termination and Dismissal

In the event of a dispute concerning termination or dismissal, specific procedural rules apply. The employee has the right to request negotiations within two weeks, and the employer is obliged to conduct a negotiation meeting within two weeks of receiving the request. In the case of termination, the employee is entitled to remain in their position while the dispute is ongoing, but the employer can demand resignation if continuation is unreasonable. The deadline for filing a lawsuit to contest the legality of the termination is eight weeks, and six months for pure compensation claims. Formal errors in the termination result in the annulment of the lawsuit deadline.

The Employee's Right to Terminate the Employment Contract: Terms and Consequences

Employment Law

Apr 8, 2025

Employee's Right to Terminate the Employment Contract – Conditions, Legal Effects, and Burden of Proof

The employee's right to termination involves the ability to immediately end the employment relationship due to the employer's substantial breach. This right is not codified in the Working Environment Act but derives from general contractual principles. Typical reasons for termination include non-payment of wages, harassment, or serious violations of safety regulations. The Supreme Court in the Stryn Pharmacy case has established that the threshold is high, particularly concerning psychosocial work environment issues. In the event of rightful termination, the employee may claim compensation for financial loss.

The Employee's Right to Terminate the Employment Contract: Terms and Consequences

Employment Law

Apr 8, 2025

Employee's Right to Terminate the Employment Contract – Conditions, Legal Effects, and Burden of Proof

The employee's right to termination involves the ability to immediately end the employment relationship due to the employer's substantial breach. This right is not codified in the Working Environment Act but derives from general contractual principles. Typical reasons for termination include non-payment of wages, harassment, or serious violations of safety regulations. The Supreme Court in the Stryn Pharmacy case has established that the threshold is high, particularly concerning psychosocial work environment issues. In the event of rightful termination, the employee may claim compensation for financial loss.

The Employee's Right to Terminate the Employment Contract: Terms and Consequences

Employment Law

Apr 8, 2025

Employee's Right to Terminate the Employment Contract – Conditions, Legal Effects, and Burden of Proof

The employee's right to termination involves the ability to immediately end the employment relationship due to the employer's substantial breach. This right is not codified in the Working Environment Act but derives from general contractual principles. Typical reasons for termination include non-payment of wages, harassment, or serious violations of safety regulations. The Supreme Court in the Stryn Pharmacy case has established that the threshold is high, particularly concerning psychosocial work environment issues. In the event of rightful termination, the employee may claim compensation for financial loss.

Dismissal in Employment Relationships: Legal Conditions and Overall Assessment

Employment Law

Apr 8, 2025

Dismissal in Employment Relationships – Conditions, Process, and Case Law

Dismissal represents the employer's right to terminate the employment contract immediately in the event of gross misconduct or significant breach by the employee. The threshold is very high, and a thorough overall assessment is required, with emphasis placed on the seriousness of the act, the employee's fault, and the circumstances of the business. The dismissal must not appear as a disproportionate reaction, and case law shows that the employer's own handling of the situation often carries great weight. The procedural rules mainly correspond to the rules for termination.

Dismissal in Employment Relationships: Legal Conditions and Overall Assessment

Employment Law

Apr 8, 2025

Dismissal in Employment Relationships – Conditions, Process, and Case Law

Dismissal represents the employer's right to terminate the employment contract immediately in the event of gross misconduct or significant breach by the employee. The threshold is very high, and a thorough overall assessment is required, with emphasis placed on the seriousness of the act, the employee's fault, and the circumstances of the business. The dismissal must not appear as a disproportionate reaction, and case law shows that the employer's own handling of the situation often carries great weight. The procedural rules mainly correspond to the rules for termination.

Dismissal in Employment Relationships: Legal Conditions and Overall Assessment

Employment Law

Apr 8, 2025

Dismissal in Employment Relationships – Conditions, Process, and Case Law

Dismissal represents the employer's right to terminate the employment contract immediately in the event of gross misconduct or significant breach by the employee. The threshold is very high, and a thorough overall assessment is required, with emphasis placed on the seriousness of the act, the employee's fault, and the circumstances of the business. The dismissal must not appear as a disproportionate reaction, and case law shows that the employer's own handling of the situation often carries great weight. The procedural rules mainly correspond to the rules for termination.

Contact us

Contact Sterk Law Firm for legal assistance and advice. Our dedicated team of experienced lawyers is ready to find tailored solutions for your specific challenges.

Portrait of a man in a suit with arms crossed, in front of a graphic background – expressing professionalism and confidence
Portrait of a man in a suit with arms crossed, in front of a graphic background – expressing professionalism and confidence

By submitting this form, you agree to our privacy policy and terms of service.