New requirements for employment contracts from 1 July 2024

1. Additional information needs to be included in employment contracts

Much more information than before need to be included in employment contracts. Examples of such information is information about probationary periods, training, arrangements for overtime and working hours, whether your employer compensates other forms of absence, the procedure for dismissal, whether remuneration includes more than salary and information about skills development, pregnancy benefits and more.  

Place of work: If the employee is free to decide the place of work, this must be stated in the employment contract.  Employees who work from home on a permanent basis must have a separate agreement regarding home office in accordance with home office regulation.

Salary and other remuneration: The various parts of the salary, any supplements or other forms of remuneration, must be specified in the employment contract. To ensure that you have the opportunity to change the structure of remuneration and supplements, a sentence may be included stating that the employer reserves his right to change the terms and conditions. The information may  be included in an appendix to the employment contract.

Working hours: If the work is to be carried out periodically or the daily and weekly working hours will vary, this should be stated in the contract. It should also clarify within which time frames the work is to be performed. Arrangements for shift changes and for work beyond the agreed working hours, including payment for such work, must now be specified in the employment contract. Work plans should therefore be sent to the employees no later than 14 days before the work period begins.

Holiday pay: The right to holiday pay, the rules for determining the time of holiday and any right to other forms of absence paid by the employer must be stated in the contract. It is however sufficient to refer to the Holiday Act.

Other forms of paid absence: Some employers offer a right to be away from work other than holidays, whether such absence is paid or not. Such time off may be relocation, assisting funerals, or continuing education. Other forms of compensation may be full salary compensation in the event of illness or a statutory right for a leave. Such rights must be included in the employment contract. Benefits provided by parties other than the employer, such as sickness benefit from NAV, are not included. If you as an employer want the opportunity to change the types of absence that are allowed in addition to, for example, holiday and illness, it is recommended that a sentence is added, stating that the employer is entitled to change such rights.

Probationary period: The law is limiting the use of probationary periods. For temporary employment, the probationary period may not exceed half of the duration of the employment.

Termination: The employee's and employer's notice periods and procedure for termination of employment contracts must now be included in the agreement. A reference to Chapter 15 of the Working Environment Act will be sufficient to meet the requirements of the law.

Hiring out of employees: If the employee is to be hired out and the employer is a staffing company, the employment contract must contain information about the hirer's identity.

Social security: Social security benefits under the auspices of the employer (including pension contributions and insurance), as well as the names of institutions that receive payments from the employer in this regard, must be included in the employment contract. The employer may reserve his right to make changes. Such information can be included in a separate appendix to the employment contract.

Competence development: The right to competence development offered by the employer is to be  stated in the employment contract. The employer may reserve his right to make changes. This is also information that may be included in a separate appendix to the employment contract.

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2. There will be stricter requirements for when the employment contract must be in place

Today, you have 30 days as an employer, while when the rules come into force on 1 July 2024, you will have only 7 days to have the contract in place.

If amendments are med to the employment contract, the contract must be updated the same day.

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3. There will be rules on the duration and use of probationary periods

Provisions have been adopted stating that for temporary employment, the probationary period may not exceed half of the duration of the employment relationship. There will also be a new provision on the use of probationary periods if the employee is to continue in the same or substantially similar position. This has previously only been solved through case law.

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4. The amendments imply improved rights for the employees‍

Employees who work part-time or are employed temporarily are entitled to a written and reasoned response from the employer if the employee demands for more predictable and secure working conditions.

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5. There will be rules on what is to be taken into account if the information in the employment contract is missing‍

If the agreement does not state that the employment is temporary, a permanent position shall be used as a basis. If no information is provided about the scope of the position, the employee's claim to this effect shall be taken as a basis. The employer has the burden of proof if he wishes to disprove this.

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The law firm Seland | Rödl & Partner AS has expertise in the field of business law and employment law and may assist your company in adapting your employment contracts and employment contract templates.

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