Hiring a Norwegian employee—9 legal requirements you must know

Are you a foreign company planning to hire a Norwegian employee to work in Norway? Norwegian employment law is comprehensive and applies fully to foreign employers — regardless of where your company is registered. From written contracts and working hours to pension schemes and tax exposure, here is what you need to know before you hire. 

1. Written employment contract

All employees in Norway are protected by the Norwegian Working Environment Act, which requires a written employment contract for both permanent and temporary positions. As the employer, you are responsible for drafting and signing the contract. It must cover all key employment terms as specified by the Act — including job title, workplace, working hours, salary, and notice periods.

Also read: Norwegian employement contracts - do's and don'ts

2. Working hours

Norway has strict statutory limits on working hours that employers must follow:

• Standard hours: maximum 9 hours per 24-hour period and 40 hours per week

• Reduced hours (shift, night or Sunday work): 38 or 36 hours per week

Working hours must be stated in the employment contract, and employers are required to keep records of hours worked. Overtime is permitted but must be compensated at a minimum of 40% above the agreed hourly rate.

Also read: The rules for working hours and overtime in Norway

3. Minimum wages

Norway has no general statutory minimum wage, but sector-specific minimum wages apply in several industries — including construction, cleaning, and hospitality. These are set through generally applicable collective agreements and exist specifically to prevent foreign workers from being paid less than local workers.

If your employee works in a regulated sector, you are legally required to pay at least the applicable minimum rate.

Also read: Minimum wage in Norway

4. Holiday pay

In Norway, employees do not receive their normal salary during holiday absence. Instead, they are entitled to holiday pay, accrued the year before the holidays are taken.

Key rates:

• Standard: 10.2% of annual salary (4 weeks + 1 day)

• Extended (common in collective agreements): 12% (5 weeks)

• Employees over 60: 12.5% or 14.3% respectively

Employees who did not work the previous year are entitled to holidays but not to holiday pay. 

Also read: Calculation and payment of holiday pay in Norway

5. Leave of absence

Employees in Norway have statutory rights to both paid and unpaid leave in certain situations. As an employer, you need to know who pays:

Paid leave (employer covers):

• Pregnancy leave

• First 10 days of sick child leave

Paid leave (NAV covers):

• Maternity and paternity leave

• Sick child leave beyond day 10 (employer can claim reimbursement)

• Hospital stays for children

• End-of-life care for a close relative

Unpaid leave:

• Education leave

• Military service

• Care for close family members
  
  

6. Mandatory Occupational Pension

Foreign employers with staff working in Norway are generally required to establish an occupational pension scheme.

The obligation applies if:

• You have at least two employees each working 75% or more of full time

• You have at least one employee (with no ownership stake) working 75% or more of full time

• Your employees collectively work the equivalent of two or more full-time positions at 20%+

Employees who can document an A1 certificate — confirming social security contributions in their home country — are exempt from this requirement.. 

Also read: What is the Norwegian Mandatory Occupational Pension Scheme

7. Occupational Injury Insurance

All employers in Norway are legally required to take out occupational injury insurance (yrkesskadeforsikring) for their employees. This covers injuries and death resulting from work-related accidents.

Also read: Employers occupational injury insurance in Norway

8. Termination of employment

Terminating an employee in Norway is strictly regulated. Dismissals must be objectively justified, and specific procedural requirements must be followed — including a formal meeting with the employee before notice is given. Failure to comply can result in the dismissal being declared invalid.

Also read: Be aware of the strict rules for termination of employement in Norway

9. Permanent establishment and tax exposure

Before you hire, consider your company's tax position. Under Norwegian domestic law, hiring an employee to work in Norway can trigger corporate tax liability — even without a physical office.
Norway has tax treaties with around 90 countries, and the key threshold is whether your company has a permanent establishment (PE) in Norway. A PE may arise if your company:

• Has a fixed place of business in Norway

• Is running a construction or installation project exceeding 6–12 months

• Has a dependent agent in Norway authorised to conclude contracts on your behalf

• Conducts petroleum-related activities on the Norwegian continental shelf for more than approximately 30 days in aggregate

Tax liability must be assessed individually based on the relevant tax treaty. Get advice before you hire.

Also read: What is considered permanent establishment in Norway?

Hiring Norwegian employees?

For foreign companies operating in Norway The Norwegian Working Environment Act can be overwhelming, yet crucial to follow. If you need guidance and advice on how to ensure your operations are complaint with the act, please feel free to contact us. 

Visit our website for information about how we can help your company with Norwegian Labour law.