The workplace regulation governs the daily operations within the company and is designed to protect the rights and obligations of both the employer and the employees. As the employer, it is essential to ensure that your company’s internal rules are clear, up-to-date, and in compliance with current legislation. In this blog, we provide an overview of what the Working Environment Act requires and share practical tips for drafting and amending your workplace regulation.
Who is required to have workplace regulations?
In Norway, certain businesses are legally required to have workplace regulations in place to ensure clear guidelines for employees. The requirement primarily applies to specific industries, but other businesses may also benefit from having formal regulations. Below is an overview of which companies are obligated to implement workplace regulations and why it may be beneficial even for those not strictly required to do so.
- Industrial, retail, and office businesses: The term industrial business includes, for example, a craft or manufacturing company, but does not extend to a transportation company. The term retail and office business cover areas such as retail outlets, wholesale companies, pharmacies, bookstores, as well as banks, insurance companies, and similar enterprises. The obligation to have workplace regulations also applies to office-based companies. If the business employs more than 10 employees (who are not in managerial or supervisory positions), the Working Environment Act mandates that a workplace regulation must be in place for the types of businesses described above.
- Other businesses: The Ministry may determine that other types of businesses are also required to have workplace regulations for certain employees. Even in companies that do not automatically fall under the statutory requirement, it can still be advantageous to develop a workplace regulation.
Also read: Key considerations for drafting Norwegian employment contracts
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What should the workplace regulation contain?
According to Section 14-16 of the Working Environment Act, the regulation should, among other things, include:
- Rules of order: Provisions for maintaining order in the workplace, such as regulations regarding attendance, smoking, breaks, etc.
- Rules for the work schedule: Provisions covering aspects such as working hours, holidays, absences, and similar matters.
The regulation must not include any provisions that conflicts with the law, nor may fines be imposed for violations.
The process for developing the workplace regulation
The Working Environment Act provides for two alternative processes, depending on whether the company is bound by a collective bargaining agreement:
- For businesses bound by a collective bargaining agreement: In these companies, the employer and the employees’ union representatives must jointly negotiate and establish the regulation. If the agreement covers a majority of the employees, it may be applied to all employees within the scope of the agreement.
- For businesses not bound by a collective bargaining agreement: In companies without a collective bargaining agreement, or where an agreement cannot be reached, the employer must prepare a draft of the workplace regulation. The employer is then required to negotiate with employee representatives (typically, five elected representatives, unless otherwise agreed). The draft regulation must be submitted to the Norwegian Labour Inspection Authority for approval within three months after the business commences operations. If the employee representatives propose alternative provisions, these must be attached when the employer submits the draft for approval.
Once the regulation is established, the law requires that it must:
- Be prominently displayed and easily accessible in one or more conspicuous locations within the company.
- Be distributed to every employee to whom the regulation applies.
Validity and amendments of the workplace regulation
The regulation is only valid if it is drafted in accordance with legal requirements and does not contain provisions that conflict with the law. If the draft includes provisions that are either contrary to the law or unreasonable for the employees, the Norwegian Labour Inspection Authority will refuse approval.
The rules for amending the workplace regulation are subject to the same requirements as those for its establishment. This means that any changes must be discussed with the union representatives or employee representatives and, where applicable, submitted to the Norwegian Labour Inspection Authority for approval.
What content should a workplace regulation include?
Examples and practical advice
- Scope: Clearly define to whom the regulation applies, with reference to collective bargaining agreements and employment contracts.
- Employment and employment contracts: Include rules regarding hiring, employment contracts, and the obligation to distribute the regulation upon commencement of employment.
- Working hours, breaks, and holidays: Provide detailed provisions on working hours and rest periods, as well as rules for scheduling holidays in accordance with the Holiday Act and applicable collective agreements.
- Absences and sick leave: Set out rules regarding absences, self-certification, and the need for medical certificates, including clear reporting deadlines.
- Salary and payment: Detail provisions for salary payments, advances, procedures for correcting any errors, the return of company property upon termination, and the control of equipment.
- General order: Establish rules for attendance, substance use policies, dress code, workplace conduct, and the use of telephones/mobiles during working hours, along with other matters essential to daily operations.
- Financial responsibility, equipment handling, and confidentiality: Include provisions regarding financial management, proper use of equipment, and the safeguarding of confidential information.
- Termination, dismissal, and leave: Set out clear procedures for termination, dismissal, or suspension, with references to the relevant legal provisions.
Practical tips for employers
- Start the Process Early: Ensure that the workplace regulation is drafted and implemented as soon as the business becomes operational—this is particularly important for companies without a collective bargaining agreement, as the draft must be submitted to the Norwegian Labour Inspection Authority within three months.
- Involve the employees: Engage the employees either through union representatives or elected employee representatives in the process. This approach not only results in a better regulation but also increases acceptance and understanding of the rules.
- Ensure accessibility: It must be easy for all employees to access the regulation. Posting it in common areas and distributing a copy upon commencement of employment is a legal requirement.
- Keep the regulation up to date: Regular review and updating of the regulation is crucial, especially in response to changes in laws, collective agreements, or internal processes.
- Seek legal assistance when needed: If you are uncertain about how certain provisions should be drafted or whether the regulation complies with legal requirements, it is advisable to seek legal counsel.
Do you need help drafting your workplace regulation?
A well-functioning workplace regulation contributes to clarity and predictability for both employers and employees, and it is a legal requirement that you must fulfill if you operate an industrial business or a retail/office enterprise.
If you have any questions or require guidance in the process of drafting or amending your workplace regulation, please do not hesitate to contact us for a no-obligation consultation.
NEED HELP WITH NORWEGIAN LABOR LAW?
Unsure if your employees in Norway are fully compliant with local labor regulations? Contact us today for expert guidance!
