With the deepening of globalization, when enterprises expand their business in multiple countries, cross-border labor compliance has become one of the most complex and severe challenges. To help enterprises systematically address this issue, we have collaborated with top labor lawyers from over 50 major jurisdictions worldwide (all recommended by Chambers, The Legal 500, or equivalent institutions) to jointly compile a Chinese-English labor & employment compliance guide exceeding 1 million words, and we will continuously update relevant key points.

This article publishes the key points of labor & employment compliance by September 2025 in Norway. 

01 Overview of the Labor Law System

1.Legal System

In Norway, the legal system is based on Civil law.

2.Resources and Agencies

In Norway, the main statutes related to labour and employment are as follows:

• The Working Environment Act;

• The National Insurance Act;

• The Equality and Anti-Discrimination Act;

• The Holidays Act;

• The State Employee Act.

02 Employment Qualifications and Classification

1.Employment Age

The main rule in Norway is that individuals under the age of 15, or those who are subject to “compulsory education”, are not permitted to perform work covered by the WEA.

In the meaning of when the employment relationship ends, there is no statutory main rule related to this. However, an employer may end the employment relationship if the employee is above the age of 72. In addition, an employer may set an intern lower age limit, but not lower than 70 years.

2.Qualifications for Foreign Employers

Norwegian law requires that any entity wishing to establish an employment relationship in Norway must first register a legal presence within the country. This may be effected by setting up a subsidiary, branch, representative office, or through other forms of permanent establishment.

Exceptions exist for cross-border provision of services and short-term posting of workers from other EEA countries, provided certain conditions are met.

3.Classification of Employment

There are various forms of affiliation to working life in Norway. The main rule is that employees should be hired directly by the undertaking where the work is performed, and in a permanent and full-time position.

Furthermore, an individual may be engaged as an independent contractor. In such cases, an independent contractor agreement is entered into, and the individual is not considered an employer.

4.Foreign Workers

A non-EEA national must obtain a residence permit in order to work in Norway:

• The general conditions for an employee are that the individual is aged 18;

• Pay and working conditions are not inferior to those prescribed by the current collective agreement or pay scale for the industry concerned; and

• The individual is subject to a quota fixed by the Ministry, or the position cannot be filled by domestic labour or labour from the EEA or EFTA area.

There is no statutory ratio requirement between domestic and foreign workers.

03 Recruitment and Employment Contracts

1.Background Examination

Employers are generally permitted to conduct background checks only to the extent that such measures are necessary, proportionate, and relevant to the specific position in question.

2.Contract Types

In all employment relationships, a written employment contract must be entered into. The consequences of a missing or incomplete employment contract are not that the contract is considered invalid.

However, in the case of temporary or part-time employment, there may be specific consequences: If the employer has not stated that the employment relationship is temporary, it shall be assumed that the employee is permanently employed unless otherwise is considered highly probable. If the employer has not stated the scope of the post, the employee’s claim regarding the scope of the post shall be used as a basis unless otherwise is considered highly probable.

3.Probationary Period

In accordance with the WEA, a probationary period may be agreed upon in writing. The main rule is that the probationary period cannot be longer than 6 months. The parties may, however, agree to a shorter probationary period.

04 Working Standards

1.Remuneration

As a point of departure, an employer and an employee may agree on any salary level. There are, however, certain exceptions to this main rule.

There are no general rules on maximum wage; though certain regulatory requirements apply for the determination of bonus in the financial sector.

2.Statutory Benefits and Social Security

All employees working in Norway are generally obliged to participate in the national social security system, which covers old-age pensions, disability benefits, sickness benefits, unemployment insurance, parental leave, work injury compensation, and health care.

3.Working Hours

The main rule is that working hours shall not exceed 9 hours per day and 40 hours per week. Work beyond this is considered overtime and may only be required where there is a particular and time-limited need. Overtime work must be compensated with a wage supplement of 40% (in addition to the base salary). An employee in a senior or particularly independent position is not entitled to overtime pay.

4.Rest and Leave

Under Norwegian law, there are no fixed rules regarding when work must be performed. Nevertheless, an employee has a statutory right to at least 11 hours of continuous off-duty time in every 24-hour period and 35 hours in any seven-day period.

According to Norwegian law, an employee is entitled to at least one break if daily working hours exceed five hours and 30 minutes. If the daily working hours are at least eight hours, the break must be at least 30 minutes.

05 Occupational Health and Special Protection

1.Occupational Health and Security

Employers are required to ensure a fully satisfactory working environment. This entails a number of obligations for the employer.

• Risk assessment;

• Preventive measures;

• Training;

• Safety representatives and working environment committees;

• Systematic HSE work.

2.Special Protection

An employee who is on the below condition enjoys special protection against termination:

• Pregnancy leave;

• Leave of absence to care for a child;

• Maternity leave;

• Parental leave.

06 Personal Information and Privacy

1.General Rules

Norwegian law provides a comprehensive protection for employee privacy and personal data, primarily through the Personal Data Act, which incorporates and supplements the requirements of the EU General Data Protection Regulation (GDPR). Employers are subject to strict obligations regarding the collection, processing, and storage of personal data for both employees and candidates.

2.Transnational Transfer

The transnational transfer of employees’ personal information from Norway is tightly regulated under the Personal Data Act and the EU General Data Protection Regulation (GDPR). Transfers of personal data to countries outside the European Economic Area (EEA) are only permitted if the recipient country ensures an adequate level of data protection, as determined by the European Commission.

07 Anti-Discrimination and Anti-Harassment

1.General Rules

In Norway, there is strong protection against both discrimination and harassment, set out in the Equality and Anti-Discrimination Act. The legal framework provides broader protection than what is required by Norway’s international obligations, including EEA law and UN conventions.

08 Internal Policies

1.Applicability

In practice, it is very common for internal policies and rules to be formalized. Typically, these are incorporated into an employee handbook, which serves as a supplement to the individual employment agreement.

2.Validity

Under Norwegian law, prior approval or consent from affected employees, trade unions, authorities, or other third parties are generally not required for internal policies to be valid.

3.Whistleblowing

An employee has according to law a right to notify concerning censurable conditions in the company. The employee shall follow an appropriate procedure in connection with such notification, although verbal notifications to a manager may also be considered to be a valid whistleblowing.

09 Transactions

1.Employment Relationship

After a M&A or equity transfer, the legal entity (employer) will remain the same and thus the employer is not entitled to make any changes that go beyond the managerial prerogative.

2.Compensation

An employee has no statutory right to receive compensation in connection with a transfer of undertaking. Such compensation must be agreed between the parties involved in the transaction.

10 Termination of Employment

1.Termination Grounds

The employer will need a warranted reason/cause for terminating by notice (both for non-performance etc. and for reorganizations/layoffs etc.). The term "warranted reason" (cause) is a legal standard.

A summary dismissal is the strictest sanction an employer can chose, and the threshold for what constitutes a summary dismissal is high - gross breach of duty or other serious breach of the contract of employment is required and the sanction is reserved for very serious offences.

2.Termination Procedure

Only two obligations for a termination procedure are laid down in law. These obligations concern the very last stage of the termination process.

First, there is a requirement that an employer consults with the individual employee and his elected representative (unless the employee does not want elected representative participation) before making a final decision to termination. The second legal obligation is that the termination letter needs to fulfil certain requirements. The most common contractual notice period in Norway is 3 months.

3.Termination Protection

Every employee has employment protection. A dismissal, suspension, or summary dismissal must have a valid reason.

4.Severance and Compensation

Norwegian law does not contain any provisions on severance.

With regard to compensation, an employee may claim compensation for both economic and non-economic loss if they are unlawfully dismissed, summarily dismissed, or suspended.

11 Confidentiality, Non-Compete, and Non-Solicitation

1.Confidentiality

In Norway, the use of confidentiality agreements or clauses is both common and often considered necessary to safeguard business interests, particularly for employees who have access to sensitive or proprietary information.

2.Non-Compete and Non-Solicitation

In Norway, it is legal and permissible for employers and employees to agree on both non-compete and non-solicitation clauses, but such restrictions are subject to stringent statutory regulation and strict judicial scrutiny.

The maximum duration for a non-compete clause is twelve months from the termination date. During the restricted period, the employer must compensate the employee with an amount corresponding to at least 100% of the employee’s salary up to eight times the National Insurance basic amount (G) per year.

12 Work Representation and Trade Unions

1.Work Representation

Under Norwegian law, an undertaking is, subject to certain conditions, required to establish a working environment committee, a company committee, safety representatives, and employee representatives.

Employee representatives shall be included in various meetings, including those concerning the design, implementation, and major changes to control measures in the undertaking. An employee who is being considered for dismissal also always has the right to be accompanied by an employee representative in the consultation meeting.

2.Trade Unions

The Norwegian labour market is characterised by a strong governmental influence and a system of consultation on socio-economic policy concerns. Trade unions are organised on an industry basis and have a strong political influence. Every fourth year there are renegotiations of the collective agreements on a national level.

13 Dispute Resolution

1.Procedures & Enforcement

First, there are specific time limits for filing a lawsuit. In a dispute regarding dismissal with notice, summary dismissal, a breach of the provisions of this Act concerning preferential rights, or the lawfulness of a temporary appointment, hiring, or suspension, the time limit for initiating legal proceedings shall be eight weeks. If an employee claims compensation only, the time limit for initiating legal proceedings shall be six months.

Second, the employee has the right to remain in their position until the lawsuit (regarding whether a dismissal is lawful) is finally resolved, provided that the time limits for filing a lawsuit have been observed.

2.Waiver & Enforcement

However, in a voluntary termination agreement, the employer and employee may agree that the employee waives the right to contest the correctness/validity of the termination of the employment and that all matters are considered settled and resolved between the parties.

14 Others

1.Latest Development & Trends

Several key trends are shaping labor and employment regulation in Norway. Authorities are focusing on better protections for platform and non-standard workers, with proposals to address gig worker status, social security access, and collective bargaining rights. Enforcement against misclassification and abusive contracts is being strengthened.

2.Cultural and Religious Considerations

Norwegian business culture emphasizes egalitarianism, transparency, and flat organizational structures. Decision-making is typically consensus-driven, with broad employee participation and open dialogue. Work-life balance is highly valued; overtime expectations are limited and punctuality is expected. Major public holidays, often rooted in Christian traditions, along with generous leave policies, must be respected in business planning.

* To avoid ambiguity, this article should not be regarded as legal advice.

Authors

Lill Egeland is a partner of Simonsen Vogt Wiig and heads of an employment law team in Oslo.Lill has significant experience advising large international companies on employment law matters, including cross-border issues, compliance, and workplace culture. 

Translator

Jin Dongjie, Master of Laws, associate at Anli Partners. Area of expertise: Labor Law, ESG Compliance, Dispute Resolution.