Employment conditions in Norway

Overview

Norway has comprehensive labor laws designed to safeguard employee rights and clarify employer obligations. Employment terms, workplace protections, and post-employment restrictions are regulated by the Working Environment Act and related legislation.

This summary explains core legal requirements on employment contracts, working time, leave, terminations, restrictive covenants, and employee protections in Norway.

Employment contracts and terms

Written employment contracts are mandatory and must outline the main terms of employment. These include job role, pay, working hours, holiday entitlement, notice periods, and provisions regarding intellectual property or restrictive covenants.

Collective agreements can supplement or override certain contractual terms when binding on an employer or workplace.

Working hours and time tracking

The standard full-time workweek in Norway is 37.5 hours, though some sectors may have different norms based on collective agreements.

• Employers must record each employee’s working hours
• Activity summaries or timesheets must be available for inspection by the Labour Inspection Authority

Detailed systems for tracking hours help ensure compliance with worktime limits and overtime regulations.

Workplace committees and safety

Organizations with 50 or more employees are required to establish a working environment committee.

• Includes representatives of both employer and employees
• Focuses on occupational health, safety, and the working environment

Companies with 20–49 employees may also need such a committee if requested by parties or if required by authorities.

Employee rights and protections

Employees in Norway benefit from strong legal protections regarding job security, workplace rights, and fair treatment.

• Automatic transfer of employees during business sales or mergers
• Protection of individual employment terms after business transfer
• Restrictions on modifying employment conditions post-transfer without employee consent
• Obligation for employers to follow dismissal laws in all cases

Paid leave and absences

Employees earn at least 25 working days (four weeks and one day) of paid annual holiday each year.

Additional leave entitlements exist for sickness, parental leave, maternity, and care responsibilities, generally governed by national legislation and industry agreements.

Non-compete and restrictive covenants

Non-compete clauses are permitted but subject to strict limitations. They are enforceable only as necessary to protect a legitimate business interest.

• May not last longer than one year after employment ends
• During the non-compete period, employees receive compensation
• Compensation is at least 100 percent of salary (up to a limit) for the first earnings band, and 70 percent for a higher salary band
• Possible deduction for income earned from other work during the non-compete

Non-solicitation clauses and loyalty obligations can also be agreed upon in the employment contract.

Intellectual property and inventions

Inventions and intellectual property created by an employee related to the employer’s business, or using company resources, generally become the property of the employer.

• Employees may be entitled to fair additional compensation
• Copyright is held by the author unless assigned to the employer in writing
• Moral rights always remain with the employee

Clear contractual terms are recommended to define ownership and compensation regarding employee inventions and works.

Business transfers

When a business is sold or merges, employees automatically transfer to the new employer. Their existing employment terms continue unless the employee agrees to changes.

• Dismissing employees ahead of transfer is prohibited
• The new employer is bound by prior collective agreements unless they formally opt out within three weeks
• Employees’ individual terms under collective agreements must be maintained until a new agreement is reached or the existing one expires

Employer obligations

Norwegian employers must comply with rules on contracts, time tracking, workplace safety, anti-discrimination, and employee protections. Authorities regularly monitor compliance, and violations are subject to penalties.

FAQs

What is the maximum duration of a non-compete clause in Norway?

In Norway, a non-compete clause may not exceed one year from the date of employment termination. The clause must be necessary to protect a specific business interest and provide mandatory compensation to the affected employee during the restriction period.

What must be included in a Norwegian employment contract?

Norwegian law requires that employment contracts specify terms such as job title, pay, working hours, holiday entitlement, notice periods, and any restrictive covenant or intellectual property provisions. Contracts must be in writing and given to the employee as soon as employment begins.

Are companies required to track employee working hours in Norway?

Yes, employers in Norway must record all working hours for each employee. Records must be kept up to date, and reports such as timesheets or activity logs must be available for review by the Norwegian Labour Inspection Authority upon request.

Do employees keep their rights if a business is sold or transferred?

Employees automatically transfer to the new employer when a business changes hands. Their employment conditions remain unchanged unless the employee agrees to modifications. Collective agreement coverage and rights generally carry over to the new employer.

What compensation do employees receive during a non-compete period?

During the non-compete period, employees are entitled to compensation. This is at least 100 percent of their salary for the lower earnings band and 70 percent for higher earnings within defined salary limits. Deductions may be made from other income earned during the restriction.