Hiring labour

Overview - regulations for various types of hiring

What is considered as hiring of labour?

The hiring of labour entails an agreement to hire staff from an employer (the lessor) to a client (the enterprise hiring labour), where the hired staff is temporarily under the management of the client. As a hirer, you make use of the employees as if they were your employees, while the lessor has employers´ liability and is responsible for paying salary, holyday pay, following up sick leaves and paying for the pension scheme. When considering if an agreement between two enterprises constitutes hiring of labour rather than contract work it is especially important to note if the entity that orders the work to be carried out is overseeing works and is responsible for the outcome. Other relevant aspects indicating that the contract is for the hire of labour are if the contract is primarily to supply labour, if the work takes place in close relation to the client's activities, if the work covers the client's ongoing need for labour, and the work takes place within the client's core or principal activity.

Hiring labour from staffing enterprises

Generally, hiring labour is legal if the purpose is to carry out work on behalf of someone else (temporary post). For enterprises with collective agreement with larger trade unions (Unions with nomination rights) it is also permitted to hire labour on a time-limited basis following a written agreement between the employer and the employees' employee representative. Employees hired from staffing agencies are entitled to salary and working conditions as if they were employed directly by the client. 

Arbeidstilsynet om innleie av arbeidskraft

The Norwegian Labour Inspection Authority - find approved staffing enterprises in your area (in Norwegian only)

Hiring staff with specialist expertise to perform advisory and consultancy services in a clearly defined project

It is permitted to hire staff with specialist expertise to perform advisory and consultancy services in a clearly defined project. Advisory and consultancy services in this context means supplying specialist know-how and advice within a certain area of expertise. A "clearly defined project" means that the work to be performed by the hired staff should, to a certain degree, differ from the core activity of the client. The client hiring staff must be able to document the basis for hiring staff in accordance with this regulation when the employees' representative request it.

Hiring health care personnel

The hiring of health care personnel from staffing enterprises is permitted similarly to temporary employment when the work is of a temporary nature. It is a requirement that the hire of labour is necessary to ensure proper function of the health care service. The client hiring staff must be able to document the basis for hiring staff in accordance with this regulation when the employees' representative request it.

Ban on hiring staff from staffing enterprises for construction work on sites in Oslo, Akershus, Buskerud, Østfold og Vestfold

A total ban is in place on hiring staff from staffing enterprises for construction work on sites in Oslo, Akershus, Buskerud, Østfold og Vestfold.

Construction work in this regard is:

1. Erection of buildings
2. Fitting, decoration, and installation work
3. Installing and disassembling prefabricated elements
4. Demolition work, disassembling, remodelling, and refurbishment
5. Remediation and maintenance work beyond that which are routine and less comprehensive
6. Excavation, blasting and other groundworks on construction sites
7. Other work carried out in connection with construction activities

A construction site is defined as any workplace where temporary or varying building activities of a certain scope is carried out.

Right to a permanent position after a prolonged period as hired staff

An employee who has been continuously hired from a staffing agency to a client for more than three years has the right to permanent employment with the client. This includes, among other things, that the rules regarding termination apply after three years.

Obligation to provide information to staffing agencies and internal employee representatives

When hiring labour, you must provide written information to the staffing agency about:
- the duration and location of working hours
- overtime work
- breaks and rest periods
- night work
- vacation, holiday pay, days off, and allowances
- salary and expense reimbursement
- employee benefits

The union representatives can request documentation of the salary and working conditions agreed upon between the hired employee and the staffing agency.

Clarifying procedures and responsibilities for HSE

As the hiring party, you must, together with the staffing agency, clarify who is responsible for different aspects of HSE in the workplace. The hiring party is responsible for ensuring a safe working environment, which includes providing necessary training to ensure that the hired personnel have the required qualifications and approvals.

Joint liability for hired staff

If the staffing agency is unwilling or unable to pay what the hired labour are entitled to, you as the hiring company are responsible for making these payments. The employee must submit the claim in writing to the hiring company within three months after not receiving wages, holiday pay, or allowances.

Discussion of the use of hired labour

As an employer, you are required to discuss the use of hired labour and the implementation of the equal treatment requirement with the union representatives at least once a year. The basis, scope, and consequences for the working environment should be addressed. The union representatives must be provided with the necessary documentation to facilitate these discussions.

Hiring of labour from a manufacturing company

Hiring personnel from a company whose purpose is other than hiring out labour is allowed when the hired employee is permanently employed by the lessor. For the business not to be considered intended for leasing, a condition is that leasing occurs within the same professional areas that constitute the lessor's main activity, and that hiring out labour do not involve more than 50 percent of the lessor's permanent employees. Sometimes stricter requirements apply.

The Labour Inspection Authority on hiring labour from other businesses than staffing agencies (in Norwegian only)

Consequences of illegal hiring

Hired personnel can file a lawsuit and demand permanent employment if you fail to meet the requirements for hiring temporary labour from staffing agencies. Employees can also claim compensation from the hiring company. The hiring company may be required to terminate illegal hiring arrangements and may face penalty fines for serious breaches of regulations. A trade union with members in a company that hires temporary workers can take legal action against a case of illegal hiring. The hired worker does not need to be a member of the relevant trade union.

The Labour Inspection Authority on penalty fines (in Norwegian only)