Employment and labour law news - First half of 2025
The summer holidays are now behind us, and employers across the country are ready to take on the work ahead this autumn. As a brief reminder, Littler provides you with a summary of what happened in the field of employment and labour law in the first half of 2025.
Legislative changes:
More tools for the Norwegian Labour Inspection Authority
From July 1, 2025, the Labour Inspection Authority will have more tools at its disposal in its work to uncover and follow up violations of the Working Environment Act. The Labour Inspection Authority can now also request information from companies other than those subject to inspection, secure evidence following a court decision, and, if necessary, gain access to premises covered by the Working Environment Act.
Another important change is that persons who manage the business may be subject to administrative fines if they intentionally or through gross negligence violate certain provisions of the Working Environment Act. The fine can be up to 25 times the base amount (grunnbeløpet) in the National Insurance Scheme.
The main responsibility will still lie with the business, but personal liability may be relevant where the Labour Inspection Authority has reasonable grounds to believe that sanctions against the business will not be sufficient.
Clarification of requirements for the psychosocial working environment
Just before the summer, the Norwegian Parliament adopted an amendment to Section 4-3 of the Working Environment Act, which sets requirements for the psychosocial working environment. The amendment is not intended to change current law, but rather to clarify and specify the requirements that apply.
A practical aspect of the new provision is that the requirement for a psychosocial working environment also sets requirements for “workload and time pressure.” This may affect employees in managerial or particularly independent positions. These positions are exempt from the working time rules in the Working Environment Act, but the employer is still obliged to consider safety, health, and welfare, including psychosocial factors.
The amendment will enter into force on January 1, 2026.
You can read more about the practical implications of the amendment in our article here.
More people will have to work until age 72
The Norwegian Parliament has decided to raise the general retirement age in the public sector from 70 to 72. The possibility of setting lower company-specific age limits in accordance with the Working Environment Act will be restricted, so that in future it will only be possible to set lower internal age limits if necessary for reasons of health and safety. The amendment will come into force on January 1, 2026, and will require many companies to change their current practices in this area.
Case Law
Supreme Court ruling on pensionable income in the public sector
The Supreme Court has handed down a ruling regarding the interpretation of the rules for determining pensionable income in the public sector. The question before the Supreme Court was whether vessel and duty allowances in the service of the Coast Guard were to be considered pensionable income. The majority of the Supreme Court found that the allowances were not to be considered part of the “fixed income” under Section 11, first paragraph, of the Public Service Pension Fund Act, partly because the allowances were paid on the basis of actual service performed. However, the majority concluded that the allowances were to be considered pensionable income under the applicable collective agreement (Main Collective Agreement for the State, Appendix 4), cf. Section 11, second paragraph, first sentence, of the Public Service Pension Fund Act.
The judgement is available here.
Employee or contractor?
The Norwegian Soloists' Choir is an elite choir for professional singers. In January, the Court of Appeal considered a claim from a singer who argued she was an employee rather than an independent contractor. The court conducted a broad assessment of the relevant factors, placing particular emphasis on the fact that the singers themselves could choose to take on assignments for the choir and that they had a great deal of influence on the choir's activities, including the framework conditions. This indicated an imbalance in favor of the singers and was not consistent with the dependency typical of employees. The Court of Appeal therefore concluded that the singer was a contractor.
The judgement, which is now final, emphasizes the importance of the case-by-case specific assessments that must be made in distinguishing between employees and contractors, and highlights that a relevant factor is whether the person needs the protection provided by the Working Environment Act.
The judgement is available here.
The Court of Appeal clarifies employer's right to dismiss long-term sick employees
In a ruling handed down by Frostating Court of Appeal, the requirements for dismissing employees on long-term sick leave were clarified - and potentially tightened. The court found that the employee would not be able to resume work within a reasonable period of time, and that the employer had fulfilled its’ obligation to accommodate. Nevertheless, the court concluded that it was unreasonable to terminate the employment. The Court of Appeal placed particular emphasis on the fact that the employee, due to age (57) and qualifications, could have difficulty finding a new job. In balancing the interests, the Court also placed emphasis on the fact that the employer's accommodation, although formally fulfilled, was not optimal.
The judgment is final and available here.
Considering dismissing an employee? Conduct thorough assessments beforehand!
In another case before the Court of Appeal, the court found it proven that a nurse had struck a patient in the face with an open hand, which the Court of Appeal described as clearly reprehensible. Nevertheless, the dismissal was declared invalid and could not be upheld as a termination. The court found that the employer had not conducted a sufficiently broad assessment, particularly with regard to the possibility of redeployment to a 100% administrative position. The nurse already had a 40% administrative role, and the employer could not reject redeployment solely on the basis of how it might be perceived externally.
The ruling emphasizes the importance of thorough assessments prior to dismissal, not only of the grounds for dismissal itself, but also of potential alternatives such as redeployment. A weak basis for the decision may prove costly for employers: in this case, the nurse was awarded NOK 400,000 in damages and compensation.
The judgment has been appealed, and the Supreme Court heard the case on August 12, 2025. The Supreme Court's decision is expected in September. You can read the Court of Appeal's judgment here.
Accommodation duties in cases of long-term sick leave
Sick leave in Norway is now at its highest level in 15 years. Employers have a duty to accommodate employees on sick leave, but how far does this duty go? In one case, the Court of Appeal held that long-term illness may constitute valid grounds for dismissal. However, the municipality's dismissal was found unjustified because no thorough assessment of the possibility of redeployment had been made. As a large employer with substantial resources, the municipality had a particularly extensive duty to accommodate.
The judgment is final and available here.
Oslo District Court ruling on the classification of Wolt couriers
Oslo District Court has handed down a ruling in the so-called “Wolt case”, where three Wolt couriers succeeded in their claim to be classified as employees, despite having signed agreements as independent contractors. The ruling is one of a series of cases dealing with the distinction between contractors and employees. You can read more about the significance of the ruling in our previous article.
The ruling from Oslo District Court is available here. It has been appealed to the Court of Appeal.
New inclusive workplace agreement (IA agreement)
In February, the social partners agreed on a new and strengthened agreement for an inclusive working life (IA agreement). The overall goal is to reduce the steadily increasing level of sick leave in Norwegian workplaces. Among other things, the parties have agreed to increase the focus on a good working environment to prevent illness and to improve the follow-up of sick leave by all parties involved.
Littler assists employers in all types of employment and labour law issues. Does your company need assistance in matters relating to working life? We would love to hear from you!
