Who is an Employer of record and why you need one

An Employer of Record, also known as a Registered Employer, is a company or service that assumes full responsibility for managing aspects of hiring employees, such as contracts, wages, taxes and insurance. In this operating model, the EOR company becomes the official employer for employees hired by another organization, referred to as a client or business partner.

The main goal of Employer of Record is to facilitate the hiring and personnel management process for companies that plan to expand into new markets or operate in countries where they do not have a full presence. By working with EOR, companies can avoid the cost and complexity of setting up branches or foreign companies, and comply with local employment laws and regulations.

EOR norwegian partner - advantages

The benefits of using Employer of Record services include rapid market entry, flexibility in hiring employees and minimization of personnel management risks. Companies can focus on their core business while EOR handles all administrative aspects of employment.

EVERYTHING YOU NEED TO KNOW WHEN CONSIDERING EXPANDING YOUR BUSINESS TO NORWAY

Land of the fjords – Basic information about Norway

As a modern country with a long history and progressive social policies, Norway is located in northern Europe on the western part of the Scandinavian Peninsula. It also includes the isolated Arctic island of Jan Mayen and the Svalbard archipelago. In addition, Norway has the dependent territory of Bouvet in the subantarctic zone and claims Antarctic territories such as Peter I Island and Queen Maud Land.

The country’s capital is Oslo, its largest city, and has an area of 385,207 square kilometers, with a population of 5,425,270 as of January 20, 2022. Norway borders Sweden to the east for 1,619 km, Finland and Russia to the northeast, and the Skagerrak Strait to the south, adjacent to Denmark and the United Kingdom. Norway’s long coastline is bordered by the North Sea and the Barents Sea, which affects the country’s climate. The coasts are warmer, while the country’s interior, although cooler, is milder than similar latitudes in other regions. The coast often experiences temperatures above freezing, even during polar nights in the north, and the oceanic influence causes significant rain and snowfall in various parts of the country.

Norway is a unitary state with a constitutional monarchy, headed by King Harald V of the Glücksburg dynasty. State power is divided between parliament, government and the supreme court, according to the 1814 constitution. The kingdom was founded in 872 as a union of many small kingdoms and has existed continuously for 1150 years. For a time between 1537 and 1814, Norway was part of the Kingdom of Denmark-Norway, and from 1814 to 1905 it remained in a personal union with the Kingdom of Sweden. Norway was neutral during World War I, but was invaded by Nazi Germany in 1940 and occupied until the end of World War II.

Norway is divided into two administrative and political units: counties and municipalities. The Sámi people have a degree of autonomy and authority over their traditional territory through the Sámi Parliament and the Finnmark Act. The country maintains close relations with both the European Union and the United States. Norway has played a key role as a founder of a number of international organizations, such as the United Nations, NATO and the European Free Trade Association, and actively participates in others, such as the Council of Europe, the Antarctic Treaty, the Nordic Council and the European Economic Area. In addition, Norwegian languages are mutually intelligible with Danish and Swedish.

Norway has adopted a social welfare model typical of Nordic countries, including universal health care and a robust social security system based on principles of equality. The Norwegian government has significant influence over key industries and benefits from rich resources of oil, natural gas, minerals, timber, fish and fresh water. The oil sector accounts for about a quarter of the country’s GDP. Norway leads the world in per capita oil and gas production, with the exception of the Middle East.

EOR partner Norway - economy

According to the World Bank and the International Monetary Fund, Norway has the fourth highest GDP per capita in the world. In the CIA’s ranking of GDP (GDP PPS) per capita (2015 estimate), including autonomous territories and regions, it ranks eleventh. The country also boasts the world’s largest sovereign fund at US$1 trillion. Norway has maintained a high ranking on the Human Development Index since 2009, and also holds the top spot in a ranking that takes into account social inequality, according to 2018 data. In the 2017 World Happiness Report, Norway won first place and leads the OECD’s Better Life Index, Public Integrity Index, Freedom Index and Democracy Index. In addition, Norway boasts one of the lowest crime rates in the world.

Although the majority of Norwegians are ethnic Norwegians, population growth in the 21st century was mainly due to immigration, which accounted for more than half of that growth. In 2021, the five largest minority groups in Norway were represented by descendants of immigrants, mainly from Poland, Lithuania, Somalia, Pakistan and Sweden.

Finding qualified workers at short notice can be a challenging task. That’s why working with an Employer of Record (EOR) in Norway is the best solution, allowing organizations to focus on other aspects of international development, such as project and inventory management. EOR handles complex compliance and legal matters, while helping to expedite the recruitment process through its knowledge of national employment practices and remote recruiting tools. The best EOR providers also have the ability to enable electronic document signatures, speeding up the hiring process.

What is the labor market like in Norway?

Using Employer of Record in Norway is a favorable choice for companies that want to take advantage of the attractive situation in the local labor market. Norway is famous for its natural wealth, charming landscapes and stable economic situation. Thanks to appropriate social policies, it maintains a low unemployment rate and is seeing job growth in key sectors of the economy.

As one of the most dynamic labor markets in Europe, Norway is attracting business investment, which is conducive to job creation. The technology, engineering and medical industries in particular are in need of skilled workers, and demand is high.

A low unemployment rate settling at 4-5% testifies to the stability of the labor market. Key sectors of the economy, such as the oil and gas industry, fishing, the technology sector, tourism and healthcare, offer many career opportunities and contribute to the country’s substantial income.

Norway’s key economic sectors include:

  1. Oil and gas industry: Norway is one of Europe’s major oil and gas producers. This sector plays a key role in the country’s economy, providing numerous jobs and generating significant revenues.
  2. Fishing industry: Norway is a valued exporter of fish and fishery products. The industry is important in Norway’s food industry and provides jobs both on land and at sea.
  3. Technology sector: In recent years, Norway has become a center for technology development and innovation. Oslo, which is the country’s capital, has become an important center for startups and technology companies, attracting investment and offering highly skilled jobs.
  4. Tourism: Tourism in Norway attracts many tourists each year thanks to its picturesque landscapes, fjords and diverse attractions. The tourism sector is an important source of income and jobs, especially in regions with high tourism potential.
  5. Healthcare: Healthcare in Norway has a developed system that requires access to qualified medical professionals. This sector offers many career opportunities for doctors, nurses and medical personnel.

Using the Employer of Record service makes it easier for companies to enter the Norwegian market, minimizing the risks and costs associated with starting a business. The service provides support in the hiring process, administrative, accounting and financial services, allowing companies to focus on strategic growth. This enables companies to respond quickly to market opportunities and take advantage of the attractive opportunities offered by the Norwegian labor market.

Working under an employment contract in Norway

The basic components of employment contracts are the foundation of Norwegian labor relations. The country is famous for its well-developed system of labor rights, ensuring the protection of employees and stability in the labor market. Employment contracts must meet certain requirements and contain essential elements that precisely regulate the rights and obligations of both employees and employers.

  1. Remuneration: Employment contracts must clearly specify the amount of remuneration for work performed. Norway has a set minimum level of remuneration in various industries and professions, which ensures decent living conditions for workers.
  2. Working hours: Employment contracts must precisely define working hours, including the number of hours allocated to work per week and possible overtime. Norwegian laws regulate maximum working hours and minimum rest periods to ensure healthy employment conditions.
  3. Employee tasks: The employment contract must accurately describe the employee’s work-related tasks and responsibilities. Establishing clear provisions in this regard helps avoid misunderstandings and conflicts between the employee and the employer.
  4. Employer’s obligations: Employment contracts in Norway should also contain information on the employer’s obligations, such as providing adequate working conditions, training and possible additional benefits.
  5. Notice period: An important element of an employment contract is the determination of the notice period for both parties. Norwegian labor law sets specific notice periods that depend on the employee’s length of service.
  6. Written contracts: According to Norwegian regulations, employment contracts must be in writing. It’s important that they contain accurate and understandable provisions that provide protection for both parties.
  7. Extended employee rights: Norway provides employees with a wide range of additional rights, such as paid vacation, maternity leave, parental leave, health insurance, pension and other social benefits.
  8. Collective bargaining agreements: Some sectors in Norway have so-called collective bargaining agreements, which regulate working conditions and wages for all employees in a given industry. These agreements are often negotiated by trade unions.

In summary, in Norway, employment contracts are strictly regulated and must contain key elements according to labor law. It is necessary to have precise provisions on pay, working hours, the obligations of the employee and the employer, and the notice period. Thanks to such a system, employees in Norway enjoy a high level of legal protection and fair employment conditions.

EOR norwegian partner - contracts

Indefinite work contract (Fast Stilling)

This is the most common type of contract in Norway. The employee is hired on a permanent basis, with no set end date. Requires compliance with Norwegian regulations regarding dismissal and notice periods by the employer.

Fixed-term employment contract (Vikariat)

This type of contract is signed for a specific period of time, such as to replace another employee, during the holiday season or for a specific project. The employer must precisely specify the start and end date of employment in the contract.

Temporary employment contract (Vikarbyrå)

This is a contract with a temporary employment agency, which then hires employees to various companies for a specific period of time. This type of contract is often used for seasonal work or short-term projects.

Contract for work (Oppdragsavtale)

This is a contract that resembles a fixed-term employment contract, but focuses more on the completion of a specific task or project than on permanent employment. In this case, there is no hierarchical relationship between employer and employee.

Apprenticeship agreement (Praksisplass)

This contract is used for internships or student placements. It does not always provide full labor rights and may differ from standard employment contracts.

Part-time contract (Deltidsstilling)

This contract is concluded when an employee does not work full time, but only for a certain number of hours per week. In this case, the employee is paid in proportion to the number of hours worked.

Remote work agreement (Hjemmearbeidsavtale)

This is a contract used when an employee performs his duties from an off-site location. This form of employment is gaining popularity due to technological advances that allow remote work.

All contracts should be in accordance with Norwegian labor laws and any collective agreements in effect in the industry. It is also recommended that written contracts be drawn up to avoid misunderstandings and potential conflicts in the future for both employer and employee.

The Employer of Record (EOR) service is able to assist in establishing both full-time and part-time employment contracts with employees. This avoids the need to set up a full-time business in Norway. When the contract expires, the EOR will take care of all the formalities related to the termination of employment.

The norwegian tax system: Principles and functioning

Norway is known for its high standard of living and well-developed socio-economic system. In this country, the tax system plays a key role in financing social benefits and public services such as health care, education, infrastructure and other social benefits.

Norway’s tax system operates on the principle of progressivity, meaning that the higher the income a person earns, the higher the income tax rate they pay. There are different tax thresholds, each of which has its own rate. Those earning lower incomes are subject to lower rates, while those with higher incomes pay higher tax rates.

EOR partner Norway - progressivity

The main source of income for most workers in Norway is salary. Income tax is calculated based on a progressive tax scale, which determines the appropriate tax rates depending on a person’s income. In addition, mandatory social contributions are also based on the progressive principle. Both employers and employees pay contributions for pension, sickness and other social benefits, which are deducted from the employee’s salary before income tax is calculated.

Norway has a diverse system of tax credits that allow you to reduce the amount of tax you have to pay. For example, you can deduct expenses related to childcare, commuting and training. Deductible expenses are also expenses that can be deducted from income before calculating tax.

In Norway, taxpayers use a self-declaration system, which means they are responsible for submitting their tax return correctly and calculating the tax due themselves. They use an electronic tax system to do this, which facilitates the entire process. The Norwegian Tax Authority (Skatteetaten) oversees tax collection and compliance with the country’s tax laws. It also offers support and information to taxpayers on tax-related issues.

In addition, Norway has special taxes, such as property tax and value-added tax (VAT). These taxes are designed to finance specific budget areas and help achieve specific public goals.

Using the Norwegian tax system can be complicated and different from other countries. Therefore, a company using EOR’s services can rest assured that professionals will handle tax settlements. EOR will calculate and remit employee payroll taxes, ensuring full compliance with Norwegian tax laws. Avoiding errors in the calculation and payment of taxes is key to avoiding penalties and sanctions from the Norwegian tax authorities. By working with EOR, your company will be assured that tax regulations are being followed accurately.

Completing all the paperwork and tax requirements in Norway can be time-consuming and tedious. Therefore, using the services of an EOR will allow a company to focus on its core business rather than tax-related problems. An EOR can also help a company manage employee compensation, including calculating social security contributions and other employment-related fees.

EOR works in accordance with Norwegian regulations and standards, ensuring that the company is fully compliant with tax and employment laws. EOR has the knowledge and experience in Norwegian labor and tax law to provide support and advice in these areas. As a result, the company can be assured that all tax and employment aspects are conducted in accordance with applicable standards.

Employment regulations in Norway

Norway’s labor regulations are considered advanced and comprehensive, with an emphasis on protecting workers’ rights and maintaining a balance between employers and employees. The system is based on favorable social principles and is constantly evolving to adapt to the changing needs of society.

The main act governing Norwegian labor law is the „Working Environment, Working Hours and Employment Protection Act” (Arbeidsmiljøloven), which lays the foundation for workers’ rights. This law sets minimum standards for working conditions and requires employers to provide a safe and suitable working environment for their employees.

Working hours in Norway

Norwegian labor and working time regulations are quite strict. They are designed to ensure the health and safety of employees and work-life balance.

According to Norwegian regulations, the standard maximum number of working hours per week is 40. However, in some industries or professions, where continuous attendance is required or shifts are worked, extended working hours are allowed. Nevertheless, there are always limits to avoid overexploitation of employees.

In addition, Norwegian labor law specifies certain rest periods between shifts. After working a certain number of hours, an employee must have time to recuperate and rest before the next shift. This helps avoid exhaustion and increases work efficiency.

Norway also has regulations regarding days off, such as Saturdays and Sundays, which are generally recognized as rest days. In addition, special regulations on holidays provide employees with days off on certain occasions.

EOR norwegian partner - labor laws

Maintaining compliance with these regulations is the responsibility of both employers and employees. Failure to comply with working time regulations can result in financial and legal sanctions for employers and jeopardize the health and safety of employees.

It is worth noting that Norway is recognized by other countries for its approach to work and working time, which prioritizes the well-being of employees and quality of life, helping to build a fairer and more sustainable society.

For companies planning to expand operations in Norway, the Employer of Record service is a valuable option. Norwegian labor law is advanced and comprehensive, focusing on protecting workers’ rights and maintaining a balance between employers and employees. The system is based on favorable social principles and is constantly evolving to meet the changing needs of society.

Rest and breaks for workers in Norway

Breaks for employees in Norway are generously regulated by labor law, providing long periods of paid leave to give employees time for rest, recreation and work-life balance. Here are some key aspects of vacation in Norway:

Norwegian law stipulates that employees are entitled to paid leave during the summer, usually amounting to four weeks per calendar year. The length of leave may increase depending on seniority or a collective agreement in the sector.

Women in Norway are guaranteed maternity leave both before and after the birth of a child. The duration of this leave depends on the number of children born, but can be up to several months. During maternity leave, a female employee is protected from dismissal and retains the right to her salary.

Fathers are also entitled to leave in connection with the birth of a child. Employees can take a certain number of days of paid paternity leave to actively participate in family life.

Norwegian labor law gives employees the option to take caregiving leave when they need to take care of a family member who is ill or needs care. This type of leave can be partially paid, allowing employees to focus on supporting their loved ones during difficult times.

Thanks to these generous leave provisions, workers in Norway are protected and able to spend time with their families and recuperate. This contributes to creating a more balanced and satisfying work and personal life.

Norwegian employment and leave laws can be complex and differ from those of other countries. That’s why it’s a good idea to enlist the services of an EOR that has knowledge and experience with local regulations, ensuring that all employees, including Norwegian employees, are entitled to the right types and lengths of leave in accordance with Norwegian regulations.

The EOR is responsible for human resources management, including monitoring and calculating employees’ vacation days, thus avoiding inaccuracies and errors in vacation accrual, which can lead to legal problems and employee dissatisfaction. The EOR can act as an intermediary between the company and Norwegian employees on leave issues. It is responsible for explaining leave rules, answering employees’ questions and resolving any leave-related problems.

While employees are on leave, the EOR continues to take care of employment-related aspects such as payment for time off, monitoring vacation periods and ensuring that employees return to work as scheduled. The EOR can also support Norwegian employees on long-term sick leave or illness-related leave by handling the paperwork and procedures associated with such cases, thus relieving the company of the burden of bureaucracy.

EOR partner Norway - formalities

EOR services provide you with the support of specialists in labor law, taxes and HR management, who are well versed in Norwegian regulations and can help you solve any problems related to employment in Norway. With EOR, the hiring process can be much faster, as EOR already has the structure and procedures in place to hire employees in Norway.

Salaries of norwegian workers

Norway is known for its particularly attractive employment conditions and high salaries for workers. It is a country revered for its advanced social policies that look out for the well-being of workers and ensure fair compensation for their work. Labor law plays a key role in this process, setting minimum wages that guarantee fair compensation for work.

Wages in Norway are among the highest in the world. Minimum wages are set at a national or industry level, tailored to the specifics of the field. Through this system, workers are guaranteed decent employment conditions and equal treatment, regardless of the type of work they do.

The Norwegian government actively promotes wage policy, ensuring that its citizens have an adequate standard of living. This enables employees to enjoy prosperity and better plan for the future. High wages also provide a strong incentive to innovate and develop professional skills, which translates into higher quality work and products offered by Norwegian companies.

In addition to minimum wages, there are many additional social benefits in Norway that support employees in various aspects of life. Access to health care, education and family support programs are just a few examples that make the Norwegian labor market attractive.

It is worth remembering, however, that higher salaries come with a higher cost of living. Norway can be a relatively expensive country to live in, especially in the larger cities. Nevertheless, the benefits and quality of life it offers make it an attractive place for professional and personal development for many people.

For foreign companies that plan to hire employees in Norway, using the Employer of Record (EOR) can be very helpful, especially with regard to wages. Norway has complex regulations regarding wages, taxes and social security. With an EOR, foreign companies will avoid payroll and compliance errors, as the EOR will be responsible for meeting all payroll requirements according to local standards.

Extra and bonus pay for employees in Norway

In Norway, workers’ compensation is based on principles of social justice and high standards of living. Employees have access to various allowances, bonuses and insurance to safeguard their interests and ensure decent working conditions.

The Norwegian system rewards employees for working overtime, encouraging them to devote extra time to work when needed. Overtime rates are usually higher than for normal hours, promoting work-life balance.

Some Norwegian companies offer their employees various types of bonuses, which are based on the company’s financial performance or the employee’s individual productivity. These bonuses provide incentives for employees to perform better and be committed to the company’s growth.

Using an Employer of Record (EOR) can provide numerous benefits related to bonuses and perks for employees in Norway. The laws governing such benefits can vary from country to country. By using an EOR, you are assured of compliance with local requirements and Norwegian regulations regarding the payment of bonuses and allowances.

EOR handles the calculation and payment of bonuses for your employees in accordance with your company’s contracts and policies. It’s a convenient solution that allows you to focus on business development while EOR takes care of complicated administrative issues. With EOR, you will know the exact costs associated with each employee, including bonuses and allowances. The EOR can also help you budget appropriately for these benefits and provide cost transparency.

Bonuses and perks can involve various tax issues. The EOR ensures that taxes are paid and accounted for in accordance with current regulations, avoiding tax-related problems. Good EOR services provide transparency in payments and benefits for your employees. You will receive regular reports and data on bonuses and allowances in Norway, making it easier to monitor expenses and make appropriate business decisions.

Protection and rights of workers in Norway

As an advanced country, Norway attaches great importance to the protection of workers’ rights. The country’s legal system provides extensive rights that are designed to guarantee fair working conditions and protect against discrimination, harassment and abuse by employers.

In Norway, every employee is covered by legal safeguards that protect them from exploitation and unfair practices in the workplace. The Labor Code is a key component of this system, regulating the relationship between employee and employer. It contains provisions on working time, wages, vacations, as well as occupational health and safety.

Equality and non-discrimination are fundamental principles of labor law in Norway. Employees are protected from discrimination based on gender, age, ethnicity, sexual orientation, disability and other personal characteristics. Laws severely punish all forms of discrimination in the workplace.

In addition, in Norway, employees’ rights are effectively protected against bullying, that is, any action intended to humiliate, degrade or cause harm. Bullying is taken very seriously, and employers are required to take measures to prevent and address it in the workplace.

Norway also takes steps to protect employees from abusive employers. Labor law precisely regulates the terms and conditions of employment, including minimum wages, working hours, overtime regulations and other aspects designed to ensure decent working conditions.

An important institution in the Norwegian labor protection system is the Labour Inspectorate (Arbeidstilsynet). It is a government body responsible for overseeing employers’ compliance with labor laws and taking action when violations are found.

Norway is taking active steps to ensure decent working conditions and protect workers’ rights. The country’s legal system focuses on equality, eliminating discrimination, combating bullying and preventing abuse by employers. This makes Norway a place where employees can feel safe and respected in the workplace.

The Employer of Record (EOR) service acts as an independent intermediary between employee and employer, adding an additional layer of protection for employees. Employees can report any concerns, complaints or problems related to discrimination, harassment or abuse to the EOR. The EOR acts as an independent mechanism to monitor the employer’s actions.

The EOR usually operates in accordance with the labor laws of the country in question, including Norway, which provides reassurance to employees that their rights are being respected and that the employer’s actions comply with legal requirements, including the prohibition of discrimination and harassment. The EOR can also actively monitor an employee’s working conditions and respond to possible abuses or violations of rights. In case of disputes, the EOR can help mediate and resolve the conflict, protecting the employee’s rights.

The EOR can provide the employee with professional legal support when needed. When an employee faces situations involving discrimination, harassment or other abuse, providing legal assistance is critical to protecting his or her interests. Employees who are afraid to disclose their objections or complaints to their employer can maintain anonymity and confidentiality by using EOR services. As a result, the employee does not have to worry about retaliation or reprisals from the employer.

Working conditions and employer responsibility for safety in Norway

Norway is known as a leader in providing safe working conditions for its employees. The country has a well-functioning occupational health and safety system that focuses on risk reduction in workplaces and cares about the well-being and health of employees. The following are the main principles of safe working conditions and employers’ responsibilities in Norway.

Norwegian labor and occupational safety law meticulously defines employers’ responsibilities and employees’ rights. The key legal acts are the Working Environment Act and the Labor Code. These documents specify requirements for the work environment, occupational risk assessment, employee training and other relevant workplace safety issues.

Employers in Norway are required to regularly conduct occupational risk assessments at all workplaces. The purpose of these assessments is to identify potential risks to the health and safety of employees and to introduce appropriate preventive measures. Where risks are high, employers are required to take appropriate measures to minimize them.

In Norway, employers are required to provide adequate training related to occupational health and safety for their employees. Employees must be properly informed of the potential hazards of their position and how to minimize the risks.

Norway’s health care system is advanced, and employees have access to specialized medical care in case of workplace accidents. In some industries, regular health examinations are required to monitor the impact of work on workers’ health.

Labor rights and protection are a high priority in Norway, which includes limiting working hours, lunch breaks and providing adequate rest periods. All of these measures are aimed at ensuring a proper work-life balance for employees and protecting them from excessive workloads.

The Norwegian Labor Inspectorate is responsible for monitoring and enforcing compliance with safety and health regulations at workplaces. It conducts regular inspections to ensure that employers are complying with statutory requirements.

Employers in Norway are fully responsible for ensuring safe working conditions for their employees. If they break regulations or violate employee safety, they may face legal liability.

Norway has strict regulations on working conditions, wages, taxes and social security. By specializing in local labor law, the EOR helps avoid mistakes and violations, ensuring that workers are treated properly and have safe working conditions. The EOR also provides adequate insurance for employees, such as accident and health insurance. In case of unfortunate incidents in the workplace, employees are protected by insurance, which helps them in emergency situations.

The Employer of Record (EOR) has the role of being responsible for the correct taxation of employees’ salaries and the payment of the required social and health insurance contributions in Norway. This ensures that employees are fully insured and have access to public social and health services. The EOR also oversees compliance with health and safety regulations at the place of employment. It works with the client to ensure adequate training and safety measures for employees, minimizing the risk of accidents and health hazards.

By outsourcing EOR services, the client delegates many of the administrative tasks related to hiring and managing employees to an outside company. This allows the client to focus on its core business, while ensuring that legal requirements are fully met. EOR guarantees clear and transparent employment contracts, making it easier for employees to understand their rights and obligations. This transparency in contracts promotes a good working atmosphere and minimizes potential disputes with employees.

Norway’s tax system can be complex and differs from other countries. The EOR assumes responsibility for maintaining tax accounts, calculating and withholding taxes on employees’ wages, and ensuring compliance with Norwegian tax laws. Errors in calculating or withholding taxes can result in sanctions or penalties from the Norwegian tax authorities. Therefore, using EOR’s services allows a company to avoid such problems, as EOR constantly monitors and adapts to current tax regulations.

Dealing with all the paperwork and tax requirements in Norway can be cumbersome and time-consuming. Therefore, using Employer of Record (EOR) services allows a company to focus on its core business instead of agonizing over tax issues. An EOR can also support a company in managing employee compensation, including the correct calculation of social security contributions and other employment-related fees.

The EOR works in full compliance with Norwegian regulations and standards, giving the company confidence that it is complying with all legal requirements regarding taxes and employment.

Termination and dismissal processes for employees

As a country with an advanced labor rights system, Norway focuses on ensuring that employees are protected from abusive employers. Therefore, the dismissal of employees is subject to strict rules and must be carried out in accordance with proper procedures.

First, Norwegian labor law requires that employers have a legitimate reason for firing an employee. Typical reasons include insufficient productivity, downsizing for economic reasons or violation of internal company regulations. Dismissal on the basis of personal characteristics, such as gender, age or sexual orientation, is strictly forbidden and can result in labor court proceedings.

Second, Norwegian labor law dictates that certain procedures must be followed when dismissing an employee. Typically, a written notice of dismissal is required, along with a sufficiently long notice period. The length of this period varies depending on the length of service with the company and the type of position held. In some cases, it can be as long as several months, allowing the employee to find new employment in the meantime.

Another important aspect is compliance with the collective dismissal procedure. When an employer plans to lay off a larger number of employees in a short period of time, it is necessary to strictly follow certain rules and consult with employee representatives or trade unions.

It is also worth noting that an employee has the right to appeal a dismissal decision to the labor court if he believes that his dismissal was unjustified or his rights were violated.

Norwegian labor law aims to ensure fair and equitable conditions for dismissal of employees. Employers must have legitimate grounds for termination and follow certain procedures to protect employees’ rights. This prudent and responsible approach to human resource management is the foundation of a compassionate and ethical approach to work in Norwegian companies.

Engaging with a local Employer of Record (EOR) provider in Norway ensures compliance with local laws and employment practices. This is especially important when it comes to layoffs and terminations to avoid misunderstandings and potential legal problems. With knowledge of Norwegian layoff and termination laws, the EOR follows proper procedures and documentation to prevent irregularities and disputes.

The EOR can act as a mediator between the employer and employees during layoffs. It helps negotiate the terms of termination and minimize conflicts. In addition, the EOR handles the required documents and procedures related to dismissal or termination, which speeds up the process and minimizes the risk of errors.

Working with a professional EOR provider in Norway helps minimize the risk of potential claims and compensation from employees after termination. EOR employs labor and HR law specialists who are well versed in Norwegian regulations, enabling effective advice and ensuring full compliance with the law.

Trade unions In Norway

Trade unions in Norway are treated favorably by law and play an important role in the country’s socio-economic model. Norwegian laws guarantee the full rights of workers to organize into trade unions, allowing them to effectively protect their interests in the workplace.

Norwegian law recognizes trade union organizations as important partners in social dialogue and a key tool in the co-determination process on labor and employment issues. Unions have the right to represent workers, negotiate collective agreements and take action to improve working conditions and wages.

The Norwegian approach places great emphasis on the balance between employers and employees. Governments and companies realize that strong and well-organized unions contribute to labor market stability and empower workers. Appropriate legislation also ensures that workers are protected from unfair practices by employers.

Norway is characterized by a diversity of trade union activities that span various industries and sectors of the economy, representing workers in both the public and private sectors. In this country, workers from a wide range of occupations and positions have the opportunity to organize into unions, enabling effective representation of their needs and aspirations.

Norwegian unions, with their well-established corporate tradition and democratic approach to management, play a key role in shaping the country’s social and economic policies. Their activism influences many aspects of the working lives of Norwegians, and contributes to the development of a sustainable and equitable economy.

Companies using Employer of Record (EOR) services can gain many benefits associated with Norwegian trade unions, such as: [fill in the benefits listed]. EOR can help with union compliance, collective bargaining and employee representation on issues related to employment and working conditions. This allows companies to operate effectively in the Norwegian labor market, even if they do not have a physical presence in the country.

EOR, as the company’s agent, focuses on compliance with Norwegian labor laws, including those relating to trade unions. This ensures that employees are properly registered with the relevant trade organizations, enabling them to take advantage of the protections provided by Norwegian labor law.

The EOR can also assist in resolving possible union disputes that may arise during the employment of workers in Norway. With years of experience in trade union operations, the EOR acts as a mediator and assists in negotiations, seeking to find compromise solutions.

By working with EOR, employees employed by foreign companies can count on full representation and support from Norwegian trade unions. The EOR acts as an intermediary, establishing contact between employees and the relevant unions, and ensuring that their rights and interests are duly protected.

The EOR has the role of monitoring changes in Norwegian labor law and union regulations. This ensures that employment policies and procedures are regularly aligned with current requirements, allowing employers to avoid the concerns associated with frequent updates and changes in regulations.

Employer of Record’s services in Norway provide valuable support for companies to effectively manage unions and ensure compliance with Norwegian regulations. At the same time, it allows you to focus on strategic business operations. In addition, employees are guaranteed full union protection and support.

HOW TO CHOOSE THE RIGHT EMPLOYER OF RECORD IN NORWAY: TIPS FOR COMPANIES

Choosing the right Employer of Record (EoR) in Norway is a key element for companies that intend to expand their business in a dynamic and growing market. An EoR is a company or service that specializes in managing HR and payroll of employees for other companies that do not have a local presence in Norway. Here are some important steps to help you choose the right EoR in Norway:

EOR norwegian partner - steps

  • Knowledge of the local market: It is worthwhile to make sure that EoR has an in-depth knowledge of the Norwegian labor market. Understanding local hiring practices, salary expectations and benefit preferences is extremely valuable when hiring employees.
  • Flexibility and scalability: your company may need flexible solutions, such as quickly hiring additional employees during periods of increased activity. Make sure EoR is able to adapt its services to the changing needs of your business and offer scalable solutions.
  • Experience: It is important for the Employer of Record (EoR) to have relevant experience and knowledge of Norwegian labor and tax law. Having such knowledge will allow you to properly calculate wages, pay contributions and comply with legal requirements related to employment. If your company plans to hire employees who are covered by labor unions, make sure the EoR has experience in managing labor union relations.
  • Reputation: It’s a good idea to check the reputation and credentials of a potential EoR before making a decision. Consult with other clients to learn about their experiences with a particular service provider and make sure it will meet your expectations.

Careful selection of the right Employer of Record in Norway will be crucial to the effective growth of your business, and will also ensure compliance with local regulations, allowing you to focus on your company’s strategic initiatives.