Significant changes to Norwegian employment law are coming into effect on July 1, 2024, expanding the mandatory content requirements for employment contracts. These amendments to the Working Environment Act require employers to provide more comprehensive information about rights, obligations, and other employment-related factors. The changes apply immediately to all new employment contracts from July 1, and existing employees can request updated contracts within specific timeframes. This article outlines the key changes, implementation timelines, and practical considerations for employers.
Background and Purpose of the Changes
The amendments to Norway's Working Environment Act stem from the EU Working Conditions Directive (Directive 2019/1152), which Norway is obligated to implement through the EEA Agreement. This directive aims to provide workers with clearer and more predictable information about their employment terms.
These changes represent a departure from traditional Norwegian employment practices, which typically featured concise employment contracts supplemented by employee handbooks or internal guidelines. The new approach requires more information to be included directly in the employment contract, potentially blurring the distinction between contractual rights and administrative benefits subject to the employer's managerial prerogative.
New Content Requirements for Employment Contracts
Workplace Information
Employment contracts must already specify the workplace location. The new rules add that if employees can freely determine their workplace, the contract must explicitly state that work is performed at various locations or that the employee may choose their workplace. This doesn't change the framework for remote work arrangements but requires clearer documentation in the contract.
Working Hours Specifications
Several new requirements relate to working hours:
Contracts must indicate if an employee will have varying daily and weekly working hours
Information about arrangements for work beyond agreed hours, including compensation
Details about shift change procedures for employees working at different times of day
These requirements can be satisfied through references to relevant legislation or collective agreements where applicable.
Detailed Compensation Elements
While current regulations already require salary information, the amendments specify that different compensation elements must be listed separately in the contract, including:
Cash payments
Benefits in kind
Bonuses
Supplements
Other direct or indirect work-related compensation
If these elements are covered by a collective agreement, a reference to that agreement is sufficient. Otherwise, all elements must be specifically described in the contract.
Paid Leave Entitlements
The contract must now outline any entitlements to leave with full or partial pay from the employer. This includes arrangements such as:
Full salary during sick leave
Workplace exercise programs
Welfare leave with pay
According to the preparatory works, merely referencing administrative arrangements is insufficient to meet this requirement.
Competency Development
Any employee rights to competency development offered by the employer must be described in the contract. This includes both formal education and other training or continuing education. Basic training common to all positions need not be included, and a general description of the company's training and competency development policy is sufficient rather than exhaustive details.
Social Security Benefits
Employment contracts must now provide information about employer-provided social security benefits and the names of institutions receiving employer payments for these purposes. In the Norwegian context, this primarily refers to pension and insurance schemes offered by the company and their providers. Participation in the AFP early retirement scheme should be mentioned, though employers should exercise caution in how this is phrased given the individual eligibility requirements.
Employment Termination Procedures
Contracts must describe the procedures to be followed if either party wishes to terminate the employment relationship. This refers to the process rather than the grounds for termination. Practical implementation typically involves references to relevant Working Environment Act provisions, including requirements for discussions (§15-1), formal requirements (§15-4), and notice periods (§15-3).
Temporary Employment Clarifications
Contracts for temporary employment must already state this status and the legal basis for the temporary arrangement. The consequences of failing to include this information are now more severe: if the contract does not specify that employment is temporary, it will be presumed that the employee has permanent employment unless the employer can make it highly probable that temporary employment was agreed upon.
Part-Time Employment Documentation
Similar to temporary employment, new rules specify that if the contract does not indicate the position percentage or scope, the employee's claim regarding employment scope will be presumed correct unless the employer can make an alternative arrangement highly probable.
Staffing Agency Requirements
For employees of staffing agencies who will be leased to other companies, the contract must provide the name of the leasing company as soon as it is known. This information may change frequently and must be updated in writing, though this can be done through addenda rather than revising the original contract document.
Implementation Deadlines
The new requirements apply to employment contracts concluded from July 1, 2024. While existing contracts don't automatically need updating, employees can request updated contracts, and employers then have two months to supplement the agreement with the new information.
The deadline for providing employment contracts to new employees is also shortened. Contracts must now be provided within seven days after the first workday, compared to the previous one-month deadline. For employment relationships shorter than one month and for temporary staffing situations, contracts must still be provided "immediately."
The timeline for updating contracts after subsequent changes to the employment relationship is also compressed. Previously, updates were required within one month after a change took effect; now, updates must be provided no later than the day the change takes effect.
Practical Considerations for Contract Formulation
With employment contracts containing significantly more information under the new requirements, employers must be careful about how these contracts are formulated. It is crucial to clearly distinguish between:
Contractual terms that create binding obligations
Informational content provided only to meet statutory disclosure requirements
Where employers intend merely to describe current arrangements without restricting their managerial prerogative, this should be explicitly stated in the contract. Many employers may find it practical to compile descriptive information in one or more appendices to the employment contract. If the employer wishes to retain the right to modify these arrangements, the contract should explicitly state that the described arrangements can be unilaterally changed or terminated by the employer, within the framework of managerial prerogative and applicable legislation.
Conclusion
The amendments to Norway's Working Environment Act significantly expand the information that must be included in employment contracts starting July 1, 2024. These changes represent a substantial shift in Norwegian employment documentation practices. Employers must carefully review and update their contract templates to ensure compliance while maintaining clarity about which provisions constitute contractual obligations versus informational content. Thoughtful implementation of these changes will help avoid potential disputes about contractual rights and managerial prerogative.
