Hiring of labour from staffing enterprises

On 1 April 2023 the rules relating to the hiring of labour from staffing enterprises were tightened. Hiring from staffing enterprises is only legal if certain terms are met. The hiring of labour to carry out construction work on construction sites in the counties of Oslo, Akershus, Buskerud, Østfold og Vestfold is prohibited.

Changes to the regulations applicable to the hiring of labour took effect on 1 April 2023. In some cases these rules will not apply until a later date. Read more about the transitional arrangements and specific exceptions.

As a general rule, employees should be employed on a permanent basis in the enterprise in which they are carrying out their work. Nevertheless, the enterprise may legally cover any temporary need for labour if the rules are met through:

When are you allowed to hire staff from a staffing enterprise?

For the hiring of staff to be legal, the staffing enterprise you use must be registered with the Norwegian Labour Inspection Authority

As a general rule, it is only legal to hire staff from staffing enterprises in the following circumstances:

Hiring of labour for construction work is prohibited in some counties

The hiring of labour from staffing enterprises in order to carry out construction work on construction sites in the counties of Oslo, Akershus, Buskerud, Østfold and Vestfold is prohibited.

This ban applies to the hiring of labour for actual construction work. Construction enterprises may continue to hire in staff in other employee groups for other types of work, including engineers and administrative personnel.

Where is the boundary between hiring labour and contract work?

A clear starting point is to note that it is a hire if the entity that orders the work to be carried out is overseeing works and is responsible for the outcome.

If there is any doubt as to who is overseeing the works and is responsible for the outcome, the following factors will indicate that it is likely to be a hire:

  • It is primarily labour that is being supplied
  • Work takes place in close proximity to the client’s activities
  • Work covers the client’s ongoing need for labour
  • Work takes place within the client’s main or principle activity

Not all these factors must be fulfilled in order for it to be considered a hire. An overall assessment must be made.

The facts of each case are decisive and take priority over whether the relationship is referred to as a hire or contract in any documentation.

What are the consequences of the illegal hire of labour?

If you do not meet the requirements to hire labour from staffing enterprises, the following may happen:

  • Hired workers may sue and demand permanent employment. If the court finds that the hire has been illegal in character, it may rule that the hired individual is a permanent employee of the hirer.
  • Hired workers may claim compensation from the hirer.
  • The Norwegian Labour Inspection Authority will order you to terminate the illegal hire.
  • The Norwegian Labour Inspection Authority will issue you a fine for violating the regulations.

A trade union with members in an enterprise that hires labour may also bring a case before the courts if they believe the hire is illegal in character. Hired personnel do not have to be members of the trade union in question. Workers may still sue on their own behalf to demand permanent employment.

What are your obligations when hiring labour from staffing enterprises?

A hirer has both duties and rights vis-à-vis the staffing enterprise and the hired worker.

When can be labour be hired from enterprises other than staffing enterprises?

Employees may also be hired on a time-limited basis from enterprises that do not pursue the aim of hiring staff – known as manufacturing enterprises. For example, this applies when there is a temporary surplus of labour and is an alternative to lay-offs or redundancies.

In order for this to be permitted, the following must be met:

  • The individual being hired must be a permanent employee of the enterprise they are being hired from
  • The hire must occur within the same fields that constitute the ordinary employer’s main occupation
  • No more than 50 per cent of permanent employees of the ordinary employer may be hired out

The hire must also be discussed with the employee representative/s and in some cases the subject of agreement in the enterprise that is hiring the labour.

Read more about hiring labour from manufacturing enterprises [in Norwegian]

Transitional arrangements and specific exceptions

A transitional arrangement applies until 1 July 2023 in relation to:

  • Specific staffing and hire agreements already in place on 1 April 2023.
  • Assignment contracts entered into prior to 1 April 2023. The same applies in instances where binding offers were issued prior to 1 April 2023.

It will remain possible to hire labour from staffing enterprises in the following instances:

  • To provide replacement labour in agriculture
  • When hiring for short-duration events

More about hiring of labour from staffing enterprises:

Apply for authorisation of a staffing enterprise