A Norwegian nurse had his job offer withdrawn one week before commencement, based on a police suspicion that turned out to be unfounded. The Norwegian district court ruled that this was an unlawful dismissal and awarded the employee NOK 250,000 in compensation. The ruling provides important clarifications on the rules that apply when an employment relationship is terminated before commencement.
Background of the case
The nurse was offered a permanent position in a Norwegian municipality and made all the necessary arrangements: he rented out his home in Oslo, found temporary accommodation in the municipality, and resigned from his existing position. He obtained a police certificate with no remarks, but at the same time, the Oslo Police District sent a separate letter to the municipality stating that he was registered as a suspect in an investigation – something the plaintiff himself was unaware of.
On 13 May 2025, seven days before his planned start date, the municipality declared itself released from the employment contract on the basis of the Contracts Act. On 28 May 2025, the plaintiff was informed that he was no longer a suspect – he was instead summoned as a witness.
Legal clarifications
The District Court considered three legal questions:
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Was the employment contract invalid? The court found that the plaintiff had neither committed the act he was suspected of nor been aware of the investigation. Section 33 of the Contracts Act requires "positive bad faith" on the part of the contracting party – this requirement was not met. Nor did Section 36 of the Contracts Act provide grounds for invalidity; it takes a great deal to set aside an agreement to the detriment of the clearly weaker party.
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Which set of rules applies to termination before commencement of employment? The court concluded that employers may terminate an employment relationship before commencement either under the rules on invalidity in contract law – provided that there are actual grounds for invalidity – or under the rules on dismissal or summary dismissal in the Working Environment Act, Sections 15-7 and 15-14. If none of these grounds are met, the employee is entitled to compensation under Section 15-12, second paragraph, of the Working Environment Act.
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Was the termination a valid summary dismissal? The court ruled that a police suspicion alone – without even the status of being charged – cannot form the basis for summary dismissal under Section 15-14, first paragraph, of the Working Environment Act. The plaintiff was considered to have been summarily dismissed, and the dismissal was unlawful.
Consequences for employers
The ruling sends a clear message to employers, particularly in the health and care sector:
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A valid employment contract is binding on both parties. The period between signing and commencement is not a cost-free zone – if the declaration of invalidity is not upheld, the employment contract remains in force.
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Police suspicion alone is not grounds for summary dismissal. The Working Environment Act requires "material breach" of the employment contract – an unresolved police suspicion does not fall within this.
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Consider alternative measures. Adapted work or suspension in accordance with Section 15-13 of the Working Environment Act should always be investigated before termination.
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Be cautious with employees who have relied on the offer. The more an employee has arranged their affairs in reliance on the position – by resigning from their job, entering into rental agreements, and relocating – the greater the risk of a damages claim.
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A new job offer may limit liability—but only if it is communicated clearly and explicitly, and the employee is met with sufficient understanding and explanation.
Concluding remark
The judgment is not yet final, but represents a clarification of principle in an area of law where there has long been legal uncertainty: the employment protection rules in the Working Environment Act may apply even before the employee takes up the position, and employers who wrongfully claim invalidity in order to free themselves from a binding employment contract risk liability in damages.
Do you need assistance in assessing the risks involved in terminating an employment relationship, or in ensuring that the process complies with the requirements of the Working Environment Act? Contact us for assistance.
