New sanctions will cost an arm and a leg

In a new draft bill, the Norwegian government proposes to increase the cap for administrative fees from 15 times the basic amount in the National Insurance Scheme (15 G) to 50 G or, alternatively, up to four per cent of the company's annual turnover. The higher of these two amounts constitutes the financial cap in the individual case.

An administrative fee is a sanction that the Norwegian Labour Inspection Authority can apply in the event of a company's breach of, for example, the provisions on the working environment or working hours.

The government’s proposal aims to prevent and deter work-related crime. It wants to avoid a situation in which an administrative fee is more profitable because the gain from a breach is greater than the sanction.

IUNO’s opinion

If the government's proposal is adopted, the sanctions against companies will be increased considerably. This will particularly be the case for larger companies. However, it is important to note that the changes will only change the maximum cap. The size of the administrative fee will be considered individually for each case, and severity can be a factor.

IUNO recommends that companies keep up to date with the rules in force at any given time and the various documentation obligations.

[Prop. 76 L (2023-2024) to change the Norwegian Working Environment Act of 1 January 2024]