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Employees have the right to take 25 unpaid “work days” as their annual holiday, but it’s common for employers to provide a generous 5 week unpaid holiday allowance.
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Norwegians are known for their strong work ethic and dedication to their jobs. Hiring individuals who have these qualities and skills can contribute to a productive work environment. Their substantial investments in research and development make it an appealing destination for companies operating in sectors such as technology, renewable energy, and biotechnology. Numerous Norwegians have a high level of proficiency in English, offering advantages to international businesses. This facilitates more seamless communication and expands possibilities for global collaboration.
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Norway does not have a designated national minimum wage. Instead, minimum wage rates are typically determined by specific collective bargaining agreements and individual employment contracts within various sectors.
Standard Working Hours
The standard working hours in Norway vary depending on the industry and the specific collective bargaining agreements or employment contracts. However, in general, the standard full-time work week in Norway is 37.5 hours, usually over a period of 5 days. The standard workweek is Monday – Friday.
Any work performed beyond the standard working week is considered overtime and governed by employment contracts or collective agreements. When an employee is required to work overtime or during holidays, there are maximum limits on the number of hours allowed. All overtime hours exceeding 40 hours per week are compensated at an overtime rate, commonly set at 140.00% of the employee’s regular pay rate.
In Norway, the frequency of payroll payments is determined by the employer and employee in the employment contract. However, it is mandatory for salary payments to be made at least once per month. There is also not have a compulsory requirement for a 13th-month salary but commonly give performance based bonuses are given at the employer’s discretion.
Paid time off
Employees are entitled to 4 weeks and 1 day of paid holidays annually (1 additional week for employees over 60), and 12 public holidays.
Employees are entitled to 16 days paid by the employer and after this period sickness benefits are paid by the National Insurance Scheme for a duration of up to 260 working days.
In case of sickness, employees are required to submit a completed written sick leave form within 3 days, and if the sick leave extends beyond 3 days, a doctor’s note is necessary.
Maternity rules provide comprehensive support to expectant mothers in Norway. Pregnant employees are entitled to paid maternity leave equivalent to 100% of their salary lasting a total of 49 weeks. Out of these 49 weeks, 15 weeks are reserved for the mother, and they must be taken before the expected due date. The remaining 34 weeks can be shared between the mother and the father, giving them the flexibility to choose how to divide the leave.
Fathers are entitled to paternity leave of up to 15 weeks, which is in addition to the 49 weeks of maternity leave available to the mother. Out of these 15 weeks, 10 weeks are non-transferable, meaning they are exclusively reserved for the father. The remaining 5 weeks can be shared between the parents as they see fit. Paternity leave is compensated at 100% of the father’s regular salary.
Termination of Employment
In Norway, every employer is obligated to follow the regulations stated in the Working Environment Act. Prior to termination, it is mandatory for an employer to engage in a consultation with the employee to address the possibility of dismissal. There is no legally mandated severance pay, but it can be arranged through collective bargaining agreements.
In Norway, the notice period for resignations is one month. However, for dismissals, the length of the notice period depends on the employee’s seniority. For employment of less than 5 years a notice period of 1 month is required. This extends to 2 months’ with over 5 years of service and 3 months notice for over 10 years service.
The probationary period is optional but it is usually 6 months.
If you are a non-EU/EEA citizen, it is essential to get in touch with the Norwegian Directorate of Immigration to determine the applicable regulations for your situation. Norway’s immigration system offers various options for employers hiring foreign nationals.
Business visitors to Norway usually use a local version of the Schengen C Visa, except for those who are visa-exempt based on their nationality. In the Schengen Area, visitors are limited to a stay of 90 days within any 180-day period.
The primary work authorisation categories include the residence and work permit for service providers, designed for highly skilled personnel on temporary assignments to a Norwegian subsidiary or client. This permit can be obtained in two-year increments, allowing a total stay of up to 6 years. Additionally, there is the residence and work permit for skilled workers, suitable for highly skilled individuals locally employed by a Norwegian company. This permit is issued in 3 year increments, with no restriction on the total duration of stay.
The standard rate of VAT in Norway is 25%.