Norway

In Norway, the Working Environment Act (WEA) outlines the minimum notice period required for both employers and employees during termination of employment. The minimum notice period depends on the employee's seniority and age.

Minimum Notice Periods

For employees with less than 5 years of employment, the minimum notice period is 1 month (WEA § 15-3). If the employee has 5 or more years of employment, the minimum notice period is 2 months (WEA § 15-3). For those with 10 or more years of employment, the minimum notice period is 3 months (WEA § 15-3).

Age-related extensions apply for employees with at least 10 years of seniority. Employees aged 50-54 have a minimum notice period of 4 months (WEA § 15-3), those aged 55-59 have a minimum notice period of 5 months (WEA § 15-3), and those aged 60 and above have a minimum notice period of 6 months (WEA § 15-3).

During the initial probationary period (up to 6 months), the minimum notice period is 14 days for both parties (WEA § 15-6).

Collective Agreements

Collective agreements between employer organizations and trade unions may supersede the minimum notice periods outlined in the WEA. These agreements can stipulate a longer notice period for specific industries or job roles.

Notice Period Calculation

The notice period typically starts on the first day of the month following the date the notice is received by the other party (WEA § 15-3). For instance, if an employee receives a termination notice on March 15th, the notice period begins on April 1st.

Employers must provide written notice to employees outlining the reason for termination (WEA § 15-3). Both employers and employees can agree to a shorter notice period in writing, exceeding the legal minimums.

In Norway, there is no statutory right to severance pay, meaning that there's no general legal requirement for employers to offer severance packages when terminating employment. However, there are a few scenarios where severance pay might come into play.

Collective Agreements

Collective agreements are agreements between employer organizations and trade unions that can outline terms and conditions of employment beyond the legal minimums. Many collective agreements include provisions for severance pay under specific circumstances. If your employment is covered by a collective agreement, it's important to carefully review it to determine any potential severance pay entitlements.

Individual Agreements or Company Policy

Employers not bound by a collective agreement may choose to offer severance pay. This can be part of an individual employment contract where the employer and employee agree to a severance package. Alternatively, the employer may have a severance policy outlining conditions under which they offer severance pay.

Severance Agreements

During termination negotiations, a severance agreement may be offered which often includes compensation. It's essential to get qualified legal advice before signing any severance agreement to understand your rights and potential benefits.

Taxation of Severance Pay

Previously, certain forms of severance pay were tax-exempt in Norway. However, changes in tax law from January 1st, 2016 mean that the majority of severance payments are now taxable as regular employment income.

Norwegian labor law prioritizes job security, emphasizing fair and justified grounds for termination. The termination process in Norway must follow specific regulations outlined in the Working Environment Act (WEA).

Objective Justification for Termination

Employers must have an objectively justified reason for terminating employment. These reasons fall under two categories (WEA § 15-7):

• Reasons related to the business: E.g., downsizing, restructuring, financial difficulties
• Reasons related to the employee: E.g., poor performance, misconduct, breach of contract

Procedure for Termination

1. Written Notice: The employer must provide a written notice of termination to the employee. The notice should state (WEA § 15-4):

   • The reason for termination
   • The employee's right to negotiate
   • The employee's right to legal action

2. Negotiation Meeting (optional): The employee can request a negotiation meeting with the employer within two weeks of receiving the termination notice (WEA § 17-3). The purpose is to discuss the termination and potentially reach an agreement.

3. Contesting the Termination: If the employee believes the termination is unjustified, they can challenge it legally. They must initiate proceedings within four months of the dismissal (WEA § 17-4).

4. Right to Remain in Position (during legal proceedings): If an employee files a lawsuit following the termination, they have the right to remain in their position until the case is resolved, provided they have passed their probationary period (WEA § 15-11).

Special Considerations

• Redundancies: Collective redundancies may entail additional consultation procedures with employees and unions.
• Protected Groups: There is enhanced protection against dismissal for certain groups such as pregnant employees and those on parental leave.