Employer of Record in Norway
An Employer of Record (EOR) serves as a crucial service provided by specialized companies, acting as the official employer for workers on behalf of other businesses. By partnering with an EOR, companies can effortlessly deploy their workforce across various countries without grappling with the complexities of employment administration.
How does EOR operate in Norway?
When a company aims to deploy talent in Norway sans an established local presence, they can enlist the services of an EOR partner. Acting as the official employer, the EOR partner assumes responsibility for managing wages, taxes, social security contributions, and other employment-related obligations in compliance with Norwegian laws and regulations.
You can also read more about our Employer of Record service in Sweden
About workforce contracts in Norway
Every employee is entitled to a written contract with their employer, regardless of whether the position is permanent or temporary, and regardless of the duration of the employment. No exceptions apply to this rule.
It is the employer’s responsibility to furnish employees with a written employment contract, which is essential for affirming the terms of employment. This contract should encompass crucial details such as salary, payment dates, work hours, holiday pay, and the duration of employment.
Understanding the content of the employment contract is crucial.
Key points to consider include:
- Employment status: permanent or temporary?
- Specified daily and weekly work hours.
- Workplace location: Will employees need to work in multiple locations?
- Salary and payment terms, including holiday pay supplements.
Special provisions such as:
- Calculation of average work hours.
- Compensation for nighttime and Sunday work.
- Subsidies for board and lodging, especially if employees are required to work in different locations or provided housing by the employer.
If an employee has been assigned to work in Norway by their employer, they generally enjoy the same rights as Norwegian workers, irrespective of whether they are employed by a temporary work agency or a corporate entity.
The importance of work environment in Norway
Employers bear the responsibility of ensuring a safe and healthy workplace environment. This entails collaborative hazard assessments with employees and the implementation of measures to mitigate risks of illness or injury. Employers must also ensure that employees receive adequate training in a language they comprehend.
Every Norwegian company must elect a safety representative chosen by the employees. Employees should be aware of who their safety representative is and how to contact them. Safety representatives oversee employers’ compliance with safety, health, and welfare duties towards employees. Employees can address workplace issues with their safety representative if needed.
An Employer of Record (EOR) serves as a crucial service provided by specialized companies, acting as the official employer for workers on behalf of other businesses. By partnering with an EOR, companies can effortlessly deploy their workforce across various countries without grappling with the complexities of employment administration.
Work hours regulations in Norway
There exist constraints on the amount of time employees can dedicate within a 24-hour period and throughout a week. These constraints are delineated in the Working Environment Act, and they may also be governed by individual employment agreements and collective bargaining agreements.
According to the Working Environment Act, typical work hours entail 9 hours per 24-hour cycle and 40 hours per 7 days. If employees engage in shifts, nighttime work, or work on Sundays, the standard weekly working hours are reduced to 38 or 36. The specific allocation and duration of daily and weekly working hours should be clearly specified in the employment contract.
Employees are entitled to at least one break if their daily work hours exceed five and a half hours. For workdays totaling eight hours or more, breaks must cumulatively amount to at least half an hour. If an employee is required to remain at the workplace during breaks or if suitable break areas are unavailable, the break period is considered part of the work hours. Furthermore, if an employee works beyond regular hours for more than two hours, they are entitled to an additional break of at least half an hour, which is included in the work hours.
Regulations concerning daily and weekly rest periods are established to ensure employees have sufficient time for rest and recreation. Employees are entitled to a minimum of 11 hours of continuous off-duty time within a 24-hour period and 35 hours within a 7-day period.
Advantages of Using Cool Company as an EOR partner:
1. International Payment Handling: Since the recruitment agency is often based in another country, managing salary and taxes for consultants working in Sweden or Norway can be challenging. By using Cool Company as an EOR, the recruitment agency can avoid this hurdle and ensure proper and legal payment to the consultants.
2. Local Expertise and Legal Compliance: Cool Company has in-depth knowledge of labor laws, tax regulations, and local requirements in both Sweden and Norway. By relying on their expertise, the recruitment agency can be confident that all necessary legal requirements are met, minimizing the risk of fines or other penalties.
3. Administrative Relief: Cool Company handles all administrative tasks related to employment, including payroll processing, social security contributions, and taxes, freeing up time and resources for the recruitment agency to focus on its core business and business development.
4. Compliance: By transferring employer responsibility to Cool Company, the recruitment agency reduces the risk of facing labor disputes, tax conflicts, or other legal complications that may arise when hiring staff in foreign markets. Without any hidden fees or commitments.
5. Flexibility and Scalability: Cool Company’s flexible services allow the recruitment agency to adapt to different consultant assignments and project needs without having to manage complex HR processes. This provides increased scalability and flexibility for the recruitment agency’s operations.
6. Support and Guidance: Cool Company provides continuous support and guidance to both the recruitment agency and its consultants, ensuring a smooth and professional workflow and providing security to all parties involved.
7. Geographical Coverage and International Expansion: By using Cool Company, the recruitment agency can easily place consultants in both Sweden and Norway, enabling improved business opportunities and expanded market share in Scandinavia and other international markets. It’s basically like having the entire European map as a search field for talents.
8. Cost-effectiveness: Using Cool Company as an EOR can be cost-effective compared to establishing and maintaining a presence in foreign markets, especially for smaller or startup recruitment agencies that may not have sufficient resources or experience to handle these processes independently.
Want to know more?
Learn more about Cool Company as your Employer of Record partner in the Nordics and the advantages and experience we bring.