Now the new hiring rules come into force, but the festival summer has been saved

On 1 April 2023, the much-discussed tightening of the rules on the hiring of labour will come into force. From this date, the framework is far narrower than previously for businesses that need to hire labour from staffing companies (temporary agencies). Perhaps the most important change is that agreements on hiring of labour can no longer be entered into on the grounds that the work is of a temporary nature - for example during seasonal work and production peaks.

Transitional rules have been provided for already concluded agreements which mean that the rule changes will only take effect from 1 July 2023. First, it includes specific agreements on hiring of labour that exist as of 1 April 2023. Second, it includes assignment contracts entered into before this date, provided that hire can be used in the execution of the assignment. This also applies if a binding offer is made before 1 April 2023. For these groups, it is therefore permitted to use workers hired from staffing companies to perform work of a temporary nature until 1 July 2023.

However, for hiring of labour for short-term events, the entry into force of this rule change has been postponed until further notice. This includes, among other things, individual cultural events such as concerts and festivals, limited events and events within sports and the like. Here, it will still be possible to hire workers on the grounds that the work is of a temporary nature. It is not yet clear how long this will last - but the festival summer of 2023 has anyhow been saved.

Overview of the new rules

Here is a brief summary of the new rules that companies hiring labour must now comply with:

• It is no longer allowed to hire from staffing companies because the work is of a temporary nature. This means that the temporary workforce needs must be met in other ways, for example through temporary employment directly in the business or through the use of independent contractors.

It is still allowed to hire from staffing companies to cover temporary work. Furthermore, it will still be allowed to hire workers temporarily if you have a separate agreement on this with the employee representatives.

• For two types of cases, exception rules have been provided which mean that it is still permitted to hire labour for work of a temporary nature: 

• • The first concerns the hiring of health personnel. For this option, there are three requirements for the hiring to be lawful. Firstly, the hiring must be done to ensure proper operation of health and care services. Secondly, the hiring must be due to the fact that the hiring business has a temporary need for labour. Thirdly, the hiring company must discuss the need with the employee representatives in advance. If the hiring company can cover the staffing needs in other ways, for example through permanent or temporary employment, it shall not be possible to hire health personnel according to the exception provision.

• • The second concerns the hiring of advisers and consultants with special expertise. An advisor or consultant will have "special expertise" if the person concerned has professional expertise or specialist expertise that the business itself cannot be expected to have. The hiring must also apply to a clearly defined project.

• Hiring from staffing companies for construction work on building sites in Oslo, Viken and formerly Vestfold will be prohibited. Simply explained, it covers all work that involves rehabilitation, refurbishment and additions to existing buildings or new buildings. Employers with activities on construction sites must therefore obtain labour in other ways than by hiring from staffing companies, typically through temporary employment or hiring from another production company.

• A separate definition of hiring has been introduced. The definition should make it easier to distinguish hiring from so-called contract working, where the work is outsourced to independent contractors. Key points are whether:

1. 1. the client has the responsibility for management of the work and for the result;
   2. mainly labour must be supplied;
   3. the work takes place in close connection with the client's business;
   4. the work covers a continuing need for labour at the client's side;
   5. the work takes place within the employer's core or main activity.

Contracts entered into with independent contractors (contract working) after 1 April 2023 should be designed with these elements in mind, so that misclassification is avoided.

• The rule on the requirement for permanent employment after a longer period of hiring (the three/four-year rule) is changed so that hiring on the basis of an agreement with employee representatives is also included in the calculation.