NORWAY
List of countries
HR Services for Norway
Many UK and US based companies have been looking to Norway as a potential site for expansion. It makes sense, too, because Norway is an ideal destination for international businesses that are looking to grow.
Thanks to a strong economy, exciting developments in growing industries, and a business-friendly culture, Norway is rising to the top of the list of top contenders for many company’s expansion plans.
ALL YOU NEED TO KNOW ABOUT
HR OUTSOURCING IN NORWAY
NORWEGIAN EMPLOYMENT
REGULATIONS TO KNOW
THE BENEFITS OF
EXPANSION IN NORWAY
THE CHALLENGES OF
EXPANSION IN NORWAY
FAQ for Norway
All you need to know about outsourcing
your HR in Norway with EHRS
Comprehensive HR Management
Europe HR Solutions simplifies your HR operations in Norway by managing payroll, recruitment, compliance, and employee relations, ensuring a seamless process tailored to Norwegian laws.
Compliance with Norwegian Labor Laws
Norway’s labor regulations are robust and employee-focused. We ensure your HR policies align with local legal requirements, helping you avoid compliance risks and fines.
Cost-Effective Solutions
Outsourcing HR reduces overhead costs and administrative burdens, allowing your business to focus on strategic growth while maintaining high-quality HR management.
Norway employment regulations to know
Employment Contracts
Norwegian law requires written employment contracts for all employees. These contracts must outline terms such as salary, working hours, and notice periods, ensuring transparency and compliance.
Working Hours & Overtime
The standard workweek in Norway is 37.5 hours. Overtime is permitted but heavily regulated, requiring additional pay or time off, as specified by labor laws or collective agreements.
Social Security Contributions
Employers in Norway must contribute to social security programs covering pensions, healthcare, unemployment, and parental leave. These contributions are mandatory and ensure employee welfare.
The benefits of expansion in Norway
Strong Economy
Norway has a stable and prosperous economy, driven by industries such as energy, technology, and shipping, making it an attractive market for expansion.
Skilled Workforce
Norway’s highly educated and multilingual workforce, with strong expertise in engineering, technology, and renewable energy, offers a significant advantage for businesses.
High Living Standards
Norway’s high quality of life, excellent infrastructure, and strong focus on work-life balance make it an appealing location for attracting and retaining top talent.
The challenges of expansion in Norway
High Labor Costs
Norway has one of the highest labor costs globally due to competitive wages and mandatory benefits, requiring careful financial planning for sustainable growth.
Complex Regulations
Strict labor laws, including rules on working conditions, employee rights, and dismissal procedures, can be challenging to navigate without professional HR expertise.
Cultural Adaptation
Norwegian workplace culture emphasizes equality, collaboration, and work-life balance. Companies must adapt their management styles to align with these cultural expectations.
Most Asked Questions
About Norway
Why do I need detailed employment contracts in Norway? Aren’t verbal agreements good enough?
Verbal agreements may be valid, but Norwegian law requires written employment contracts for all employees. Without one, disputes over wages, duties, or terms can lead to legal issues and fines.
Why It’s Risk-Free: We draft compliant contracts that protect your business while ensuring clarity and avoiding potential disputes.
Do I need to track working hours in Norway? Isn’t it common to trust employees to manage their time?
Norway’s Working Environment Act limits weekly hours to 40, with stricter limits for certain employees. Employers must track hours to comply with regulations and avoid fines or employee claims.
Why It’s Risk-Free: We implement systems to track working hours and ensure compliance, protecting your business from penalties.
How much annual leave must I provide? Isn’t the statutory minimum enough?
Employees in Norway are entitled to 25 days of leave per year under the Holidays Act, but collective agreements often grant more. Holiday pay must also be provided, typically at 10.2% of the annual salary.
Why It’s Risk-Free: We help you manage leave policies that comply with legal requirements and remain competitive to attract and retain talent.
Parental leave in Norway seems excessive. How can I maintain productivity with employees away for so long?
Norway offers generous parental leave benefits, including up to 49 weeks with full pay (or 59 weeks at reduced pay). Planning replacements ensures continuity during absences.
Why It’s Risk-Free: We help you navigate parental leave planning, ensuring compliance while maintaining operational stability.
Are collective agreements (CAs) mandatory? Can I set my own employment terms?
CAs are not mandatory unless your industry is covered by one. However, many businesses voluntarily adopt them to standardize wages and working conditions.
Why It’s Risk-Free: We assess whether CAs apply to your business and help you align your policies, ensuring smooth operations and avoiding disputes.
How do payroll taxes work in Norway? What happens if I make a mistake?
Employers must deduct income tax, social security, and employer contributions to the Norwegian Labor and Welfare Administration (NAV). Errors can lead to fines and audits.
Why It’s Risk-Free: We handle payroll compliance, ensuring accurate deductions and timely filings with Norwegian authorities.
Do I really need to focus on health and safety in Norway? Aren’t workplaces here already safe?
Employers are obligated to ensure a safe workplace, conduct risk assessments, and address hazards. Non-compliance can result in fines and operational restrictions.
Why It’s Risk-Free: We conduct risk assessments and implement safety policies, ensuring your business complies with regulations and avoids liability.
Compliance sounds expensive. Is it really worth the investment?
The cost of non-compliance—fines, lawsuits, or employee turnover—far outweighs the investment in getting it right. Compliance also builds trust and operational stability.
Why It’s Risk-Free: We streamline compliance, saving you time and money while helping you maintain a secure, employee-friendly workplace.
Are probation periods necessary? Can’t I just let go of employees if they don’t work out?
Probation periods must be explicitly outlined in the employment contract, and they allow for easier terminations during the initial 6 months. Without one, standard termination rules apply, which are more restrictive.
Why It’s Risk-Free: We structure compliant probation periods, giving you flexibility to evaluate employees without added risks.
Is overtime pay mandatory? Can’t it just be part of the salary package?
Overtime pay is mandatory unless clearly waived in the contract or collective agreements. Employers must compensate overtime at a 40% premium or more, depending on agreements.
Why It’s Risk-Free: We ensure your overtime policies are clear and compliant, avoiding disputes and unexpected costs.
Do I have to pay employees during sick leave? Isn’t this covered by the government?
Employers must pay full salary for the first 16 days of sick leave. Beyond this, benefits are covered by the Norwegian National Insurance Scheme, but accurate reporting is essential.
Why It’s Risk-Free: We manage sick leave documentation and compliance, ensuring timely filings and accurate payments.
Termination rules in Norway seem restrictive. What if I need to reduce staff quickly?
Termination requires valid grounds, such as redundancy or misconduct, and adherence to notice periods. Failure to comply can lead to reinstatement orders or fines.
Why It’s Risk-Free: We guide you through compliant termination processes, ensuring fairness and protecting your business from legal claims.
Are pensions mandatory in Norway? What’s the benefit of offering them?
Employers are required to offer a minimum occupational pension plan. Non-compliance can lead to penalties and reputational damage.
Why It’s Risk-Free: We ensure your pension scheme meets legal requirements, supporting employee retention and avoiding penalties.
Can I hire non-EU workers in Norway? Isn’t the process too complicated?
Yes, non-EU workers can be hired under permits such as the Skilled Worker visa. However, missing steps or improper documentation can delay onboarding.
Why It’s Risk-Free: We manage the entire visa and permit process, ensuring compliance and a smooth experience for you and your employees.
What happens if I fail a compliance audit in Norway? Could it impact my business operations?
Non-compliance can result in fines, back pay claims, or reputational damage. Norwegian authorities closely inspect payroll, contracts, and safety practices.
Why It’s Risk-Free: We proactively review your policies and practices, ensuring you’re prepared for audits and compliant with regulations.