Reintroduction of "collective right to bring an action" - what does this mean in practice?

In line with the Hurdal platform, the unions can from 1st July 2022 take legal action against companies in matters where they believe there is illegal hiring of labor. They can do this regardless of whether their member supports or wants to participate in the lawsuit. Will this lead to an increase in the number of lawsuits about illegal hiring? And will the union eventually get a "collective right to bring an action" also in other areas, i.e., for temporary employment?

What do the changes mean?

This week, the Parliament decided to reintroduce the so-called "collective right to bring an action". This right was originally introduced by the red-greens in 2013 with the aim of strengthening compliance with the hiring rules. Two years later, the collective right to bring an action was repealed by the blue ones, before it is now reintroduced by the red-greens now that they are back at the helm.

Today, and until 1st July 2022, the unions must bring the hired person with them if they are to sue companies in cases of illegal hiring of labor. This requires that the hired person is both a member of the trade union and wishes to bring such an action in his/her name.

The change that has now been adopted means that the unions can bring an action regardless of whether the hired person is a member and regardless of what the hired person wants. The collective right to bring an action does not affect the hired person’s own right to bring an action.

The collective right to bring an action, which is now being reintroduced, gives unions the opportunity to sue companies in cases where they believe that the company hires labor from a temporary employment agency without the conditions in the Working Environment Act § 14-12 being met. The union will not, in its own name, be able to take legal action concerning the employee's right to permanent employment or compensation. The hired person must still do so in his/her own name.

Both the union and the hired person can, together or separately, demand negotiations in connection with an allegedly illegal hiring. There were few cases from the union in the two-year period in which they previously had a collective right to bring an action, and they will now use this right to a greater extent.

Will the unions also get the right to bring an action for temporary employment?

The current government is concerned with strengthening employee protection and the main rule on permanent employment. In the Hurdal platform, the government states that it must «… consider collective right to bring an action in several areas». In the process that has now been to reintroduce collective right to bring an action in hiring cases, several, in their consultation responses, have written that the government should consider introducing collective right to bring an action also in the matter of illegal temporary employment.

In the draft resolution that was eventually sent to the Parliament, the government states that any proposals will come in a separate process. Going forward, it will therefore be exciting to see what comes from the government. It has already tightened the possibilities for temporary employment, and our hot tip is that it will propose that the collective right of action should also include illegal temporary employment.