Norway: limitations to be placed on temporary employment

From 1 July, companies in Norway will only be able to hire workers on fixed-term contracts in certain circumstances. These circumstances are listed in section 14.9(2) of the Norwegian Working Environment Act, as amended by the country’s parliament in April 2022. Specifically, employers will now only be allowed to recruit people on a temporary basis: “when the work is of a temporary nature”; to “temporarily replace one or more persons”; to hire a trainee; or as part of an employment programme run by the Norwegian Labour and Welfare Organization. Until now, companies were able to hire temporary employees for a maximum period of 12 months and with such workers accounting for up to 15% of their workforce without having to justify their decision. The government considered this provision to be contrary to the fundamental principle of Norwegian labour law, which states that employees must be “permanently employed”. From 1 July, employers will therefore have to prove that their use of a fixed-term contract meets one of the requirements set out in the new section 14.9(2) to constitute legal temporary work. They will also have to discuss the need for part-time employment with employee representatives in advance.