All employment relationships must be governed by a written contract of employment. The contract stipulates the framework for the employment relationship and cannot generally be altered unilaterally by the employer or employee.
About the employer's management prerogative
The employer’s management prerogative is limited by the employment contract. Major or material changes cannot take place unless the parties have agreed to enter into a new agreement, or the employer issues a formal redundancy notice - termination and offer of other employment.
Whether the changes are material must be determined in each case. For some changes, the employer has the right to exercise his management prerogative. The main principle is that the fundamental characteristics of the position should not be changed significantly, and the changes must be within the framework of the working relationship that the parties have entered into.
Minor changes to e.g. working hours, date of salary payment etc. are usually within the employer's management prerogative. This entails that the employer may to a certain extent change the contract of employment unilaterally, permanently as well as temporarily. It is a prerequisite that the employer has objective grounds for such changes.
In what situations can termination and offer of other employment be given?
The employer must have objective grounds for the termination and offer of other employment based on circumstances relating to the undertaking, the employer or employee.
What constitutes objective grounds must be based on a discretionary assessment in each case. In the event of dispute, the matter can be settled by the courts.
How should termination and offer of other employment take place?
The employer must discuss the matter with the employee (and if relevant the shop steward) before deciding to proceed with the termination and offer of other employment.
The purpose of such discussion is to ensure that the matter is properly considered and as much information as possible is presented before the employer makes his decision.
If the requirement for objective grounds has been satisfied, the employer may proceed with the termination and offer of other employment and implement material changes to the position. This may include changing the employee's place of work, reducing the number of working hours or changing the employee's work tasks and salary.
What can the employee do in the event of termination and offer of other employment?
In this case, an employee has the following options:
- The employee accepts the change and takes up the revised position immediately by agreement with the employer.
- The employee accepts the change but opts to continue in his or her old position until the end of the period of notice.
- The employee rejects the change and may opt to initiate proceedings against the employer or terminate his or her employment at the end of the notice period.
The procedure for termination and offer of other employment is the same as for regular dismissal with notice.
What can the Norwegian Labour Inspection Authority do?
The Norwegian Labour Inspection Authority can provide guidance and advice in relation to regulatory provisions but does not have authority to intervene in such matters.
In the event of conflict, you should seek legal assistance, if relevant through your labour union.