If you have contractual work in the Norwegian construction industry that requires short-term employment or the use of recruitment agencies, the new rules also apply to you - read more here.
27. February
New law underway in Norway for the use of temporary personnel
From April 1, 2023, a new law will prohibit companies working in or with the construction industry to hire short term labour through recruitment agencies.
Under this new law, hiring personnel from staffing agencies will only be allowed under the same circumstances as temporary employment according to section 14-9, subsection 2, paragraphs b-e.
The basis for temporary work, according to subsection 1, can no longer be used as a reason to hire personnel from a staffing agency. This means that from April 1, 2023, companies will no longer be able to hire personnel from staffing agencies to cover temporary needs for more staff on a project. In such cases, the employer must hire staff on a permanent or temporary basis within their own company.
However, what does this have to do with Danish companies that only send their Danish employees to work on projects in Norway?
The Norwegian supervisory authorities have announced that they will increase their supervision following this new law to ensure that the rules regarding the use of personnel are not circumvented now that the boundary between personnel leasing and contracting has been legally established. Whether a contract is considered a lease or a contract for services will depend on the actual circumstances. As a result, we can expect more supervision on construction sites and projects.
This means that Danish companies must have a complete understanding of their employees and the reporting obligations that come with contracting work in Norway. If the Norwegian supervisory authorities visit a construction site, these things must be in order. Even if the supervisory authorities are looking for violations of the rules regarding the use of staffing agencies, they will likely want to examine other areas as well.
We often hear in the field that "we haven't reported anything to anyone, we've never done that before" or "we don't need to do that for this small project, nothing has ever happened before." However, as the Norwegian authorities are warning, they will be tightening up on these inspections, and this could have implications for Danish construction companies, both large and small. Therefore, this is important information for everyone in the construction industry.
In conclusion, this new law in Norway regarding the use of temporary personnel from recruitment agencies in the construction industry will have implications for Danish companies that have construction activities in Norway. Danish companies must be aware of their employees and the reporting obligations that come with contracting work in Norway to avoid violating the new law and potentially facing increased scrutiny from the Norwegian supervisory authorities.
If you need assistance with the authorities or handling of work permits, salaries etc. you are welcome to contact IntraVAT today, and we will assist you.
