Who is considered an employee?

• Does the person work primarily for one employer or client?
• Is their affiliation relatively stable?
• Can the affiliation be terminated with a given notice period?
• Is the undertaking (employer) liable for the work performance?
• Does the undertaking (employer) provide the tools, equipment or aids necessary to perform the work?

If you can answer all of these questions with ‘yes’, it is indication that the person is an employee.

Which of these factors are given the most weight and significance may vary from case to case. As no two cases are the same, an individual and specific assessment must be made of the person’s affiliation in each case.

The list above is not exhaustive, and also other factors may be taken into consideration, such as whether the work is associated with health and safety risks that necessitates protection as an employee.

In addition, while the assessment may be accurate today, it may not necessarily be accurate after some time. Changes in affiliation may affect the assessment.

The Working Environment Act distinguishes between employees and independent contractors. These categories are mutually exclusive. This means one person cannot simultaneously be both an employee and an independent contractor in a single affiliation.

In summary, the difference between an employee and an independent contractor is as follows:

• An employee performs work for, and is subordinate to, someone else.
• An independent contractor performs work for him/herself and is clearly independent.

The Working Environment Act consistently uses the term independent contractor (“selvstendig oppdragstaker”) about persons who perform independent contract work. This term includes any person who (without having employees of their own) perform work by taking on assignments from an undertaking without being an employee.  

It is unfavourable for both parties when it is unclear whether a person should be considered an employee or an independent contractor.  The Working Environment Act therefore includes a requirement that clients must be able to prove that the independent contractor is, in fact, an independent contractor.

The person shall be considered to be an employee unless the client shows it to be “highly probable” that an independent contractual relationship exists.

This standard was implemented on 01 January 2024, and the motivation behind the amendment is to reduce grey areas for workers in terms of their affiliation. A correct classification is significant for the person’s rights under the law, see below.

The amendment implemented on 01 January 2024 did not change the right of undertakings to use independent contractors, and it also did not change the definition of who is considered an employee and who is considered an independent contractor.

The contract regulating the affiliation plays an important role as evidence in a determination of whether a person is an employee or an independent contractor.

Nevertheless, if the contract does not accurately reflect the true nature of the contractual relationship, it will not have much relevance as evidence. The actual circumstances are the determining factor. The contract may be titled “Contract for independent contractors”, but this is not a determining factor in whether or not the person is considered to be an employee or an independent contractor.

Employment contract requirements

Employees who are in a contractual relationship as an employee, must be provided with a written employment contract. The Working Environment Act includes requirements for the contents of an employment contract. 

Read more about employment contracts

When you are classified as an employee, it means you have been employed by an employer. This means you have many rights under the Working Environment Act and the Holiday Act, including:

• a safe working environment  
• a written employment contract that regulates your employment relationship
• receiving salary and a pay slip
• minimum pay (in some industries)
• protection from unfair dismissal
• holiday leave and holiday pay
• regular working hours and overtime pay for overtime work
• daily and weekly off-duty time
• restrictions on night work and work on Sundays
• rights to leave of absence

Other laws

Other laws also include rules on the classification of employees. The National Insurance Act, for example, includes a definition for the term employee, which differs slightly from the definition provided in the Working Environment Act. If you have questions about your rights under the National Insurance Act, please contact Nav (nav.no)

When you are classified as an independent contractor, it means you are not employed by an employer. There are many rights under the Working Environment Act and Holiday Act that do not apply to you.

Other laws

Other laws also include provisions on the classification of independent contractors. The National Insurance Act, for example, has its own definitions and distinguishes between the terms ‘freelancer’ (frilanser) and ‘self-employed persons’ (selvstendig næringsdrivende). If you have questions about your rights under the National Insurance Act, please contact Nav (nav.no).

If you are an independent contractor, you should read up on your duties and rights in accordance with other Acts. Read more about this at Altinn, under “Start and run a business”:

Are you an employee or running a business? (altinn.no)

Freelancers (altinn.no)

If a client has incorrectly classified a person as an independent contractor, this could have serious legal and financial consequences. 

In Norway, it is up to the courts to decide if a person has been incorrectly classified. They can decide that a person in an independent contractual relationship should have been classified as an employee in an employment relationship. In these cases, the client will be classified as the person’s employer. 

The courts have held these employers liable for back payment of salary, overtime pay, pensions and holiday pay. The employer may also be held liable for violating the Working Environment Act if a person is incorrectly classified. 

It is therefore important to make a careful assessment of the true nature of the contractual relationship in order to determine whether a person is correctly classified. 

It is important to note that, when determining the correct classification, most emphasis must be placed on the actual, specific circumstances and the true nature of the relationship - rather than what is stated in the agreement between the parties, such as an independent contract.  

The provisions of the Working Environment Act apply to undertakings who engage employees. These undertakings have a duty of responsibility as employers under the Act and a number of duties vis-à-vis the employees. 

An employer is anyone who has engaged an employee (as defined by the Working Environment Act). This means that you have a duty of responsibility as an employer under the Working Environment Act if the person performing work for the undertaking is classified as an employee based on an overall assessment.

An undertaking will have more duties to an employee than to an independent contractor. 

Read more about the duties of employers (in Norwegian)

The undertaking has a more business-like relationship with an independent contractor. The independent contractor is not an employee, but a contractual partner.

The undertaking does not have an employer responsibility vis-à-vis a contractual partner from whom they purchase a service or with whom they establish a contract for the performance of work. In Norwegian, the word often used for these types of service purchases is “entreprise”.

See also the difference between hiring labour and contract work

HSE responsibility for non-employees

Employers are also sometimes responsible for health, safety and environment (HSE) for persons who are not the undertaking’s employees. Examples include situations where multiple employers have to coordinate their HSE efforts, or when the work is performed by volunteer workers. 

Read more about coordinating HSE efforts (in Norwegian)

Read more about volunteer work (in Norwegian)