The EFTA Court has concluded that Norway's strict rules on hiring from temporary employment agencies do not violate the EEA Agreement, as long as they are well justified. However, the final decision lies with the Norwegian courts, and the case is now continuing in Oslo District Court.
The Norwegian Parliament's tightening of hiring regulations in 2023 has sparked extensive debate. The rules include the following provisions:
- It is no longer permitted to hire from staffing agencies because the work is of a temporary nature.
- Hiring is still permitted for temporary positions and by special agreement with employee representatives.
- Exceptions have been made for the hiring of healthcare professionals and advisors/consultants with specialised expertise, provided that certain requirements are met.
- Hiring for construction work at building sites in Oslo, Akershus, Østfold, Buskerud and Vestfold is prohibited.
Several staffing agencies have reported significant financial losses due to the rule changes. Ten of these agencies filed lawsuits against the state, arguing that the restrictions violate the EEA Agreement. The case is being heard in the Oslo District Court, which sought an advisory opinion from the EFTA Court.
The EFTA Court has now clarified that Norway's hiring regulations do not, in principle, conflict with the EEA Agreement, provided they meet the requirements of legitimacy, suitability, and proportionality. However, it is up to Norwegian courts to determine whether the specific restrictions meet these criteria.
The EFTA Court's conclusion does not provide a definitive resolution but allows Norwegian authorities to impose hiring restrictions as long as the measures are well justified. The case now continues in the Oslo District Court, where the state's defense of the rules will play a central role.
Does your company have questions about the hiring regulations? At Littler, we have extensive experience in this area and are happy to provide an assessment.
Read more about the regulations here.
