Employer of Record Guide in 

Norway

Vacation Leave

Norway provides some of the most generous vacation entitlements globally:

• Standard Entitlement: 25 working days (5 weeks) of paid vacation per year
• Accrual: Earned during the calendar year, taken the following year
• Holiday Pay: 12% of previous year's gross earnings
• Timing: Employees have the right to take 3 consecutive weeks during June-September
• Payout: Unused vacation must be paid out upon termination

Sick Leave

Norway offers comprehensive sick leave coverage:

• Self-certification: First 3 days (employee declares illness)
• Employer-paid: Days 1-16 at 100% of salary
• National Insurance: From day 17 onwards, paid by NAV (Norwegian Labour and Welfare Administration)
• Duration: Up to 52 weeks for the same illness
• Medical Certificate: Required from day 4 (or day 1 if requested by employer)

Maternity Leave

• Duration: 15 weeks of paid leave (49 weeks total parental leave)
• Timing: 3 weeks must be taken before birth, 6 weeks after birth
• Payment: 100% of salary (up to 6G = NOK 744,168) or 80% for extended period
• Job Protection: Full protection with right to return to same position

Parental Leave

Norway's parental leave system is among the world's most progressive:

• Total Duration: 49 weeks at 100% pay or 59 weeks at 80% pay
• Father's Quota: 15 weeks reserved exclusively for fathers (non-transferable)
• Mother's Quota: 15 weeks reserved exclusively for mothers
• Shared Period: 16-26 weeks that can be divided between parents
• Flexibility: Can be taken part-time or in blocks until child turns 3

Other Statutory Leave

Bereavement Leave:

• Up to 14 days for death of spouse/cohabitant or child
• Up to 3 days for death of parent, sibling, or grandparent

Care Leave:

• Up to 10 days per year to care for sick children under 12
• Up to 15 days for single parents
• Additional days for children with chronic illness or disability

Emergency Leave:

• Necessary time off for sudden family emergencies
• Typically unpaid unless covered by collective agreement

Leave Summary

Termination Categories

Termination for Cause (Oppsigelse):

• Requires objective grounds related to the employee or business needs
• Must follow proper procedures including warnings and improvement opportunities
• Common grounds: poor performance, misconduct, redundancy, business closure

Summary Dismissal (Avskjed):

• For serious breaches of contract
• No notice period required
• High burden of proof on employer
• Examples: theft, serious insubordination, breach of confidentiality

Notice Period Requirements

Notice periods are based on length of service and age:

Mutual Notice:

• Employee notice to employer: 1 month (unless otherwise agreed)
• During probation: 14 days' notice from either party

Severance Pay

Norway does not mandate statutory severance pay beyond the notice period. However:

• Collective agreements may provide additional severance
• Employees over 50 with long service may negotiate enhanced packages
• Redundancy situations may trigger additional compensation under collective agreements

Legal Protections

Protected Categories:

• Pregnant employees and those on parental leave
• Employee representatives and union officials
• Employees who have filed complaints or whistleblown
• Employees over 70 (special rules apply)

Procedural Requirements:

• Written termination notice with clear reasoning
• Consultation with employee representatives if applicable
• Opportunity for employee to respond to allegations
• Proper documentation of performance issues or misconduct

Final Pay Requirements

• Final salary payment: By the end of the month following termination
• Accrued vacation pay: Must be paid out based on 12% calculation
• Outstanding expenses: Reimbursement within 30 days
• Certificate of employment: Must be provided upon request

National Public Holidays

Norway observes the following public holidays:

Holiday Pay Rules

Eligibility:

• All employees are entitled to holiday pay regardless of length of service
• Part-time employees receive pro-rated holiday pay

Payment Rates:

• Working on holidays: Double pay (100% premium) plus a substitute day off
• Holiday pay: 12% of previous year's gross earnings, paid before vacation period

Timing:

• Holiday pay is typically paid in June before the main vacation period
• Employees can request advance payment of holiday pay

Regional Variations

While national holidays apply throughout Norway, some regions may observe additional local holidays or have different customs around holiday observance. Collective agreements may also provide additional days off specific to certain industries or regions.

Required Documentation

Employment Contract Requirements:

• Written contract mandatory for all employees
• Must include: job title, duties, salary, working hours, vacation entitlement, notice periods
• Must be provided within one month of employment start
• Language: Norwegian or English (employee's choice)

Government Registration:

• National ID Number (Fødselsnummer): Required for all employees
• Tax Card (Skattekort): Obtained from Skatteetaten (Tax Administration)
• EU/EEA Citizens: Right to work automatically
• Non-EU Citizens: Work permit required before employment begins

Banking Setup:

• Norwegian bank account typically required for salary payments
• International transfers possible but may incur fees
• Bank account opening requires proof of employment and residence

Work Authorization

EU/EEA/Swiss Citizens:

• Automatic right to work
• Must register with police if staying longer than 3 months
• Registration certificate (Registreringsbevis) required for long-term residence

Non-EU Citizens:

• Work permit required before arrival
• Skilled worker permit, specialist permit, or seasonal worker permit
• Application process can take 2-6 months
• Employer may need to demonstrate labour market testing

Background Checks

Permitted Checks:

• Criminal background check (Politiattest) for relevant positions
• Education verification
• Employment history verification
• Credit checks only for financial positions

Legal Requirements:

• Employee consent required for all background checks
• Must be relevant to the position
• Results must be handled confidentially under GDPR

Data Protection Compliance

GDPR Requirements:

• Employee consent for data processing
• Clear privacy policies
• Data minimisation principles
• Right to access, rectify, and delete personal data
• Data breach notification procedures

Employment Records:

• Personnel files must be maintained securely
• Employee access rights to their own files
• Retention periods specified by law
• Cross-border data transfer restrictions

Probationary Periods

• Standard Period: Up to 6 months
• Shorter Notice: 14 days' notice during probation (both parties)
• Full Rights: Employees retain most employment rights during probation
• Performance Standards: Must be clearly communicated and reasonable

Onboarding Timeline

Worker Classification

Employee vs Independent Contractor: Norwegian authorities strictly scrutinise worker classification to prevent misclassification:

Employee Indicators:

• Work under employer's direction and control
• Use employer's equipment and facilities
• Integrated into employer's organisation
• Regular salary payments with tax withholding
• Entitled to vacation, sick leave, and other benefits

Contractor Indicators:

• Independent business operation
• Own equipment and bear business risk
• Invoice for services with VAT
• Multiple clients
• Responsible for own taxes and social security

Consequences of Misclassification:

• Retroactive employment rights and benefits
• Back payment of social security contributions
• Tax penalties and interest
• Potential criminal liability for tax evasion

Collective Bargaining

Union Density:

• Approximately 50% of Norwegian workers are union members
• 70% of workers covered by collective agreements
• Strong tradition of tripartite cooperation (government, employers, unions)

Collective Agreement Impact:

• Often provides better terms than statutory minimums
• May include higher wages, additional vacation days, enhanced benefits
• Dispute resolution procedures
• Industry-specific working conditions

Key Sectors with Strong Union Presence:

• Public sector (education, healthcare, government)
• Manufacturing and industry
• Transportation and logistics
• Construction

Cultural Workplace Norms

Work-Life Balance:

• Strong emphasis on work-life balance
• Flexible working arrangements common
• "Dugnad" culture - collective voluntary work
• Flat organisational structures with informal communication

Communication Style:

• Direct but respectful communication
• Consensus-building approach to decision-making
• Punctuality highly valued
• Informal dress codes in many workplaces

Diversity and Inclusion:

• Strong anti-discrimination laws
• Gender equality emphasis (parental leave, board representation)
• Accommodation requirements for disabilities
• Integration support for immigrant workers

Remote Work Regulations

Legal Framework:

• Employees have right to request flexible working arrangements
• Employer must provide written response to requests
• Health and safety obligations extend to home offices
• Working time regulations apply to remote work

Employer Obligations:

• Provide necessary equipment or reimbursement
• Ensure ergonomic home office setup
• Maintain regular contact and supervision
• Cover reasonable home office expenses

Cross-Border Considerations:

• Tax implications for employees working from other countries
• Social security coverage may be affected
• Work permit requirements for non-EU citizens working remotely from Norway

What Borderless AI Handles

When you hire through Borderless AI in Norway, we manage:

• Employment contract drafting and compliance
• Payroll processing and tax withholding
• Social security registration and contributions
• Holiday pay calculations and reserves
• Compliance with Working Environment Act
• Local labour law updates and changes
• Employee onboarding and documentation
• Termination procedures and final settlements