At the same time it was revealed that Equinor is paying out 1.3 billion kroner in bonuses to its own employees, a Norwegian court ruling was issued that may also entitle staffing agency workers to a share. The court confirmed that under Norwegian labor law, the rules on equal treatment for agency workers can create a right to bonuses, including when changing staffing agencies.
Background
The court case concerns a class action in which a group of staffing agency workers claimed that, under the principle of equal treatment, they were entitled to the same bonus payments as Equinor's directly employed staff.
The workers had been working continuously at Equinor but had switched from one staffing agency to another during their assignments. The bonus claim was based on the equal treatment provisions for hiring from staffing agencies set out in sections 14-12 a and 14-12 b of the Norwegian Working Environment Act, which are intended to ensure that temporary agency workers receive at least the same pay and working conditions as they would have received if employed directly by the hiring company.
Equinor's bonus scheme required employees to have been employed for at least three months during the accrual year and not to have resigned or been given notice before the time of payment. Because the workers had switched staffing agencies during the period, they did not meet the conditions for bonus payment unless the time spent as a temporary worker through the first staffing agency was also considered. The key question in the case was therefore whether the period of employment with the first staffing agency could be included when assessing whether the three-month requirement was met, or whether the accrual period started afresh upon the transition to the new staffing agency.
The bonus claim
The court ruled fully in favor of the temporary agency workers on the bonus claim, holding that the entire period of assignment at Equinor must be considered, regardless of which staffing agency employed them.
The court relied on several factors in reaching its conclusion:
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First, it found support in the Temporary Agency Work Directive (Directive 2008/104/EC), which is part of the EEA Agreement and permits such interpretation.
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Second, it emphasized the purpose of equal treatment provisions: to ensure that agency workers are not placed in a worse position than permanent employees.
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Third, it attached weighs to the fact that the work performed before and after the change of staffing agency was identical, including the same tasks, at the same location, for the same client. In the court's view, resetting the accrual period upon a change of staffing agency would undermine the principle of equal treatment.
What does this mean for staff agencies and companies that hire labor?
The ruling is of considerable importance to staffing agencies and hiring companies alike. It establishes that the equal treatment obligations set out in the Working Environment Act attach to the entire duration of the assignment with the hiring company, irrespective of whether the staffing agency provider is changed during that period, provided the same workers continue to perform the assignment. Accordingly, bonus obligations and other requirements flowing from the equal treatment provisions cannot be avoided through a change of staffing agency. Hiring companies should also note that this principle is relevant in the context of their joint and several liability for pay obligations under the equal treatment rules.
The ruling is not yet final and may be appealed. If it stands, it could shape the legal landscape for equal treatment of temporary agency workers going forward. We will provide updates as the case progresses.
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