Employer of Record in Svalbard and Jan Mayen

An Employer of Record (EOR) is a service that legally employs your team in Svalbard and Jan Mayen on your behalf. This means the EOR handles all the legal and HR responsibilities of employment, while you manage your employees' day-to-day work. It's a way to hire people in the region without setting up your own local entity. For companies looking to hire in Svalbard and Jan Mayen, an EOR like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Svalbard and Jan Mayen

Using an EOR to hire in Svalbard and Jan Mayen follows a straightforward process:

1. You Find the Talent: You identify the candidate you want to hire in Svalbard and Jan Mayen.
2. The EOR Hires Your Candidate: The EOR legally hires the employee under their local entity.
3. Compliant Contracts are Created: The EOR drafts an employment contract that complies with local labor laws.
4. Onboarding is Handled: The EOR manages the onboarding process, including setting up payroll and benefits.
5. Payroll and Taxes are Managed: The EOR takes care of monthly payroll, tax withholding, and contributions, ensuring compliance with the specific tax rules of Svalbard and Jan Mayen.
6. HR and Legal Support is Provided: The EOR provides ongoing HR support and ensures that all employment practices remain compliant with local regulations.

Benefits of Using an EOR for Hiring in Svalbard and Jan Mayen

Using an EOR to hire in Svalbard and Jan Mayen offers several advantages. It allows you to access talent in the region without the significant time and expense of establishing a legal entity there. This makes it a faster and more cost-effective way to grow your team.

• Faster Market Entry: You can hire employees and start operations in a fraction of the time it would take to set up a local company.
• Reduced Administrative Burden: The EOR handles all HR-related administrative tasks, including payroll, taxes, and benefits management.
• Compliance with Local Laws: EORs are experts in local labor laws, reducing the risk of non-compliance with complex regulations regarding contracts, termination, and leave.
• Access to Local Expertise: You gain the support of local HR and legal professionals who understand the specific employment landscape of Svalbard and Jan Mayen.
• Focus on Your Business: By outsourcing employment administration, you can concentrate on your core business activities and managing your team.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Svalbard and Jan Mayen includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Svalbard and Jan Mayen.

Hiring in Svalbard and Jan Mayen is unique. These territories fall under Norwegian law, but have their own specific considerations. For instance, Svalbard has a visa-free policy, but Jan Mayen follows mainland Norway's immigration rules. Understanding these local rules is key to successfully hiring talent in this remote Arctic region.

Employment contracts & must-have clauses

Written employment contracts are required. They are the foundation of your relationship with your new hire. To keep things clear and compliant, include these essential clauses:

• Job details: Clearly define the role and responsibilities.
• Compensation: State the salary and any other benefits.
• Working hours: Specify the expected hours of work.
• Contract length: Note whether the contract is for a fixed term or is permanent.
• Probation period: If applicable, outline the terms of the probationary period.
• Termination: Detail the notice periods for termination.

Probation periods

In Svalbard and Jan Mayen, probation periods are governed by Norwegian law. Here’s what you need to know:

• Maximum length: A probation period can last for a maximum of six months.
• Written agreement: The probation period must be agreed upon in writing in the employment contract.
• Termination: During probation, the notice period is typically 14 days, unless otherwise agreed. Termination must be justified based on the employee's performance, skills, or reliability.
• Public sector: For government jobs, a six-month probation period is standard.

Working hours & overtime

Working hours in Svalbard and Jan Mayen also follow Norwegian regulations.

Public & regional holidays

Your employees in Svalbard and Jan Mayen are entitled to the following public holidays in 2025:

• New Year's Day: January 1
• Maundy Thursday: April 17
• Good Friday: April 18
• Easter Sunday: April 20
• Easter Monday: April 21
• May Day: May 1
• Constitution Day: May 17
• Ascension Day: May 29
• Pentecost: June 8
• Whit Monday: June 9
• Christmas Day: December 25
• Second Day of Christmas: December 26

Hiring contractors in Svalbard and Jan Mayen

You can hire independent contractors, but it's important to classify them correctly. If a contractor's work relationship looks more like an employment relationship, you risk misclassification. This can lead to legal and financial penalties.

An Employer of Record (EOR) can help you avoid these risks. An EOR allows you to hire employees compliantly without setting up a legal entity in the territory. This simplifies the hiring process and ensures you follow all local labor laws.

Working in Svalbard and Jan Mayen is unique, and so are the rules for compensation and payroll. These territories are part of Norway but have their own distinct regulations, especially Svalbard. You'll find that many of Norway's labor laws apply, but with local adjustments. This means you need to pay close attention to the specific rules for each location to ensure you're doing things right.

Payroll cycles & wage structure

The standard payroll cycle is monthly. You will typically pay your employees once a month, usually at the end of the month. Payments are almost always made by bank transfer to a Norwegian bank account. You must provide a payslip with a clear breakdown of gross salary, all deductions, and the net pay.

Salaries in Svalbard are competitive to reflect the high cost of living. The actual wages are often determined by collective bargaining agreements between employers and trade unions. These agreements will specify minimum pay rates for different types of jobs. For positions not covered by these agreements, you will negotiate the salary directly with the employee as part of their contract.

Overtime & minimums

There is no official government-mandated minimum wage in Svalbard and Jan Mayen. Instead, collective agreements usually set the minimum pay for various industries.

Standard working hours follow Norwegian law, which is typically a 40-hour work week, or 8 hours per day. Any work beyond these hours is considered overtime. You must compensate employees for overtime at a higher rate, usually 1.5 times their normal hourly wage. There are also limits on how much overtime an employee can work:

• 10 hours in a 7-day period
• 25 hours in 4 consecutive weeks
• 200 hours in a calendar year

Employer taxes and contributions

As an employer in Svalbard, your main payroll-related cost is the social security contribution. This rate is much lower than on mainland Norway. For Jan Mayen, the rules generally align with mainland Norway, which means higher contribution rates.

Employee taxes and deductions

You are responsible for withholding income tax from your employees' salaries. Svalbard has a simplified, low-rate tax system. In Jan Mayen, employees are subject to the same income tax rates as mainland Norway, which are higher and more complex.

In Svalbard and Jan Mayen, your benefits and leave are largely based on Norwegian law. This means you get a solid foundation of paid time off and social security. However, because of the remote location, there are some unique aspects to consider. Think of it as Norwegian benefits with an arctic twist.

Statutory leave

You are entitled to several types of paid leave. These are the minimums set by law.

• Annual Leave: You get 25 working days of vacation each year. If you are over 60, you get an extra week. Vacation pay is calculated from your previous year's earnings.

• Parental Leave: New parents receive a generous leave package. You can take a total of 49 weeks at 100% pay or 59 weeks at 80% pay. This is a combined leave for both parents. Mothers have a specific quota of 15 weeks, and fathers or co-mothers also have a 15-week quota.

• Sick Leave: If you are sick, you are entitled to sick leave. Your employer pays for the first 16 days. After that, the Norwegian Labour and Welfare Administration (NAV) takes over.

• Leave to Care for a Child: You can take time off to care for a sick child under 12. This is typically up to 10 days per year for each parent.

Public holidays & regional holidays

You get paid time off for public holidays. Here are the holidays for 2025.

Typical supplemental benefits

Many employers offer more than the legal minimum to attract and keep good people. The unique environment of Svalbard and Jan Mayen means some benefits are especially valuable.

How an EOR can help with setting up benefits

Setting up benefits in a new place can be tricky. An Employer of Record (EOR) simplifies this for you.

An EOR acts as the legal employer for your team in Svalbard and Jan Mayen. This means they handle all the administrative and legal tasks related to employment. You still manage your team's day-to-day work.

Here is what an EOR does:

• Ensures Compliance: They make sure your benefits package meets all local legal requirements.
• Administers Benefits: An EOR manages everything from enrolling your team in mandatory plans to handling renewals.
• Handles Payroll: They take care of payroll processing, including all the necessary tax withholding and contributions.
• Provides Local Expertise: An EOR understands the local market and can help you offer competitive benefits to attract top talent.

When your company and an employee part ways in Svalbard and Jan Mayen, you need to follow a clear process. This ensures you treat your former team member fairly and stay on the right side of the law. The rules for termination in Svalbard and Jan Mayen are largely based on Norwegian law. You must have a valid reason to end an employment contract, such as issues with an employee's performance or if you need to downsize your company.

Notice periods

You must provide a written notice period before an employee's last day. The length of this period depends on how long the employee has worked for you. These are the minimum notice periods required by law:

• Up to 5 years of service: 1 month
• 5 to 10 years of service: 2 months
• Over 10 years of service: 3 months
• Over 10 years of service (and over 50 years old): 4 months
• Over 10 years of service (and over 55 years old): 5 months
• Over 10 years of service (and over 60 years old): 6 months

Keep in mind that an individual employment contract could specify a longer notice period. During the notice period, the employee continues to work and receive their regular pay and benefits.

Severance pay

In Svalbard and Jan Mayen, you are not automatically required to pay severance to an employee upon termination. However, a court can order you to pay compensation if a dismissal is found to be unfair.

How Rivermate handles compliant exits

When you use an Employer of Record like Rivermate, we manage the entire offboarding process for you. We make sure that every step is compliant with local laws. This includes:

• Ensuring valid grounds for termination: We work with you to document the reasons for termination, making sure they are legally sound.
• Managing notice periods: We calculate and manage the correct notice period for your employee based on their length of service and any contractual agreements.
• Handling final pay: We ensure your employee receives all their final wages and any outstanding benefits.
• Reducing your risk: By managing the process for you, we help you avoid the legal risks of unfair dismissal claims.

Svalbard and Jan Mayen have unique immigration rules. Svalbard is visa-free for everyone, but you must support yourself financially. Jan Mayen, on the other hand, follows the same immigration laws as mainland Norway. This means you will likely need a visa or residence permit to live and work there.

Employment visas & sponsorship realities

Svalbard's open immigration policy means you do not need a visa or work permit to be employed. People from any country can live and work in Svalbard. The key requirement is that you can support yourself. You must have a job or enough money to live on. It is a good idea to find a job and a place to live before you arrive.

Because of this system, the concept of visa sponsorship by an Employer of Record (EOR) is not applicable in Svalbard. An EOR can still employ you, handle your payroll, and ensure you comply with local labor laws, but they will not be involved in any visa or work permit process.

For Jan Mayen, the situation is different. Since it follows mainland Norway's immigration rules, you will need a residence permit for work. This process typically requires a job offer from a Norwegian employer. An EOR can act as your legal employer and sponsor your work permit application, provided you meet the eligibility criteria set by the Norwegian government.

Here is a simple breakdown:

Business travel compliance

For short-term business visits to Svalbard, you do not need a visa. However, you will likely travel through mainland Norway, which is part of the Schengen Area. If you need a visa for the Schengen Area, you must get one before you travel. Make sure to get a double-entry visa. This allows you to re-enter the Schengen Area from Svalbard on your way home.

When you arrive in Svalbard, you must be able to prove your identity. A passport is the standard travel document.

For business travel to Jan Mayen, you must follow the same rules as for mainland Norway. This typically means you will need a business visa if you are not from a visa-exempt country.