New rules on the use of temporary agency workers

The Norwegian parliament has adopted new rules restricting the use of temporary agency workers in Norway. The new rules enter into force on 1 April 2023. For temporary agency worker agreements entered before 1 April 2023, the rules will apply from 1 July 2023.

The new rules are the latest of a series of changes to Norwegian working life, where permanent full-time employment is the main rule. We have previously written about the new rules for fixed-term employment here, and the new rules for part-time employment here.

Work of a temporary nature is no longer an option

By adopting the new rules, the situations where companies can use temporary agency workers are limited. The new rules include:

• Today, temporary agency workers can be used for work of a temporary nature, as a temporary replacement for another employee, as trainees, for participants in labour market schemes or in organized sports. Going forward, the use of temporary agency workers for work of a temporary nature will no longer be permitted.
• Today, there are no restrictions for use of temporary agency workers in construction. Going forward, temporary agency workers will be prohibited from construction work on sites in Oslo, Viken and the former Vestfold.
• Today, temporary agency workers are entitled to permanent employment after 3 to 4 years, depending on the reason for using temporary agency workers. Going forward, temporary agency workers will be entitled to permanent employment after 3 years, regardless of the reason.
• Going forward, the Norwegian Working Environment Act will include a new section that clarifies the difference between a contractor and a temporary agency worker. Workers who were previously considered contractors might now be considered temporary agency workers. It is crucial to determine who is managing the work and responsible for the result.

IUNOs opinion

With the new rules, it will make sense for some companies to expand their permanent workforce as an alternative to using temporary agency workers. For other companies, such as start-ups with limited funds, this is not an option.

However, other alternatives are available. Temporary agency workers for work of a temporary nature can still be agreed with the employee representatives. This is provided that the company is bound by a collective bargaining agreement. Companies can also use fixed-term employees for work of a temporary nature. IUNO recommends that companies take the time to consider the best alternative as we advance.

[The Norwegian Working Environment Act of 1 April 2023]