Right to govern and right of co-determination
Employers have the right to make decisions within the business through the employer’s right to govern. However, employees have a right of co-determination, which means that they are entitled to have a say in decisions that are taken.
Employer's right to govern
The right to govern includes the right to organise, manage, allocate and check work and to appoint and dismiss employees. The right to govern is not a statutory right, but forms the basis for all employment and is accepted in case law. The right to govern is limited by the applicable employment agreement, any collective agreements, practice and many laws, such as the Working Environment Act, the Annual Holidays Act, the Gender Equality Act and the National Insurance Act.
The right to govern is also limited by more general standards of reasonableness. When exercising management rights, consideration must be given to industry customs, practices in the specific employment relationship, and what is considered reasonable in light of societal developments. Decisions must have a sound basis and must not be arbitrary or based on irrelevant considerations.
Employees' right of co-determination
Employees have a right of co-determination in connection with decisions which are of importance to their employment. The principle of right of co-determination is laid down in the Norwegian Constitution. The right of co-determination has also been incorporated into other laws. For example, it follows from the Working Environment Act that employees must contribute to the formulation of systems which are used for planning or carrying out work. All businesses with more than 30 employees must establish a working environment committee (AMU). All businesses with more than four employees must have a safety representative who are responsible for safeguarding the interests of employees regarding matters which relate to the working environment.
Norwegian Labor Inspection Authority – the Working Environment Committee (AMU) (in Norwegian only)
Norwegian Labour Inspection Authority on employee representatives (in Norwegian only)
The Working Environment Act on requirements regarding co-determination (in Norwegian only)
The Working Environment Act on safety representatives (in Norwegian only)
