Lay-off from a job in Norway

Lay-off is a temporary arrangement where an employee must stop working for a period because the employer or the company cannot offer work. If you are laid off, this is not the same as being dismissed. If you are laid off, you are temporarily exempt from your obligation to come to work, while the employer is exempt from the obligation to pay your wages. However, the work relationship between employee and employer remains unchanged during a lay-off, and it is assumed that the stop in work is temporary. If it is not temporary,  the employee must be given notice.

A lay-off must always be caused by factual grounds relating to the company, and not to the employee. Examples of factual grounds can be a need to reduce costs, lack of orders, and practical obstacles to work.

Various forms of lay-off

In a full-time lay-off the employee is completely freed from their obligation to work. In a part-time lay-off the employee must work part of their employment percentage, and is laid off for the rest of the time. Lay-off should not be confused with

• Complete or partial dismissal
• Reduction of working time, which means that the employee is entitled to salary during the period of notice
• Leave – if the employee has requested to be free from work, with or or without salary

Notice of lay-off

The employer must give notice of the lay-off in writing, no later than 14 days before the lay-off comes into effect. During this period of notice, the employee must work normally and receive the appropriate salary. Lay-off can apply for an undetermined period, up to a maximum of 52 weeks. The period of lay-off must be stated in the lay-off notice given to the employee. When the lay-off period is over, the employee is obliged to return to work again. During a lay-off of undetermined length, the employee is obliged to attend meetings within two days of the employer giving notice of the meeting.

If you have become unemployed, you may be entitled to financial support and help to get you back into work. 

When you are laid off, you are entitled to unemployment benefit if you satisfy the usual conditions for unemployment benefit. In addition, the lay-off must be caused by a lack of work or other conditions beyond the employer’s control. 

It is the Norwegian Labour and Welfare Administration (NAV) that is responsible for payment of financial support such as unemployment benefit. If you are laid off, you should contact NAV so that you can give them the documentation needed.

Contact The Norwegian Labour Inspection Authority (Arbeidstilsynet) if you have questions about the regulations regarding lay-off. Contact NAV if you have questions about unemployment benefit during a lay-off.