Employer’s Duty to Pay Salary During Temporary Layoffs

New Legislation Enacted

Author: Ole Kristian Olsby, Partner – Littler Norway

As of January 1, 2019, employers’ obligation to pay salaries during the first period of a temporary layoff increased from 10 to 15 days. Previously, an employer’s duty to pay salaries during a temporary layoff was reinforced for a limited period if the temporary layoff had lasted 30 weeks. This obligation has been repealed, and the total period during which the employer is exempted from the obligation to pay salaries during a temporary layoff has been reduced from 49 to 26 weeks. On January 31, 2019, the Supreme Court concluded that the basis for calculating the salary that an employer is obligated to pay employees during a temporary layoff is the full ordinary salary, without any limitations.

Selection Criteria and Documentation in Workforce Reductions

Precedential Decision by Judiciary or Regulatory Agency

Author: Ole Kristian Olsby, Partner – Littler Norway

On February 28, 2019, the Supreme Court pronounced a judgement concerning the use of the selection criteria “length of service” in a redundancy process. The principle in the matter had its basis in a collective bargaining agreement that applies to a large number of companies in Norway. The Supreme Court concluded that, according to the circumstances, it was objectively justified to deviate from the principle concerning length of service, even when there was no substantial difference in the employee’s competence and professional excellence. The Supreme Court also emphasized the importance of the employer’s assessments and thorough processing and documentation of the redundancy process, especially in relation to the assessment of employees made redundant based on discretionary and subjective selection criteria.