The Importance of a Tidy Process in Regard to Redundancy or Dismissal
If you as an employer are going to make an employee redundant it is important to follow the procedural rules in the Norwegian Employment law to ensure a tidy process. If the process is tidy you avoid unnecessary issues in the redundancy.
As an employer you can terminate the employment either by redundancy or by dismissal of the employee.
Making an Employee Redundant or Dismissal of the Employee?
As an employer you can terminate the employment either by making the employee redundant or by dismissing the employee. Making an employee redundant can be done according to the law if there is a reasonable cause for this in regard to the employee’s, the employer’s or the company’s affair. Dismissal of an employee can be done if the employee is guilty of a gross breach of duty or significant defaults of the employment contract. The procedural rules according to the Norwegian employment law are more or less similar for redundancy and dismissal of an employee. They apply both in private and public businesses. But for public workers the procedural rules of the Norwegian administration act (forvaltningsloven) are additional.
Authority to Make an Employee Redundant
It is the employer who determines who has the authority to make an employee redundant. An employee made redundant by someone who does not have such authority may be rendered void.
Redundancy Time Period
With dismissal the employment ceases immediately, without a time period following an employee being made redundant. In relation to redundancy the employment ceases after the expiry of a period of redundancy. This period lasts from the first month after the employee was made redundant. Normal time is one month if no other agreement has been made in the specific employment contract or in a tariff agreement.
Discussion Meeting
For a decision to be made regarding an employee being made redundant or the dismissal the employer must as far as practically possible discuss the question with the employee and his representative. Unless the employee himself does not want the meeting to take place. The employee does, through the meeting, get the opportunity to give his view on the decision, and the employer get a better basis for his decision. It is very much subject to criticism if the question is not discussed with the employee, but an omission of this will not in itself render the decision of making an employee redundant or dismissal void.
It Must be Made in Writing
A redundancy or dismissal must be made in writing and must be delivered to the employee personally or sent registered. The redundancy or the dismissal will not be considered to have been made until it is received by the employee.
Right to Questions and Deadlines
A redundancy or dismissal must contain information about the right to demand negotiations and to bring legal actions. It must contain the relevant deadlines for this, and information about who has the right to negotiations and who a potential lawsuit should be aimed at. If the employee demands negotiations this must be done within 14 days after the redundancy or dismissal is received and it is the employer that must ensure that the negotiations are held within the next 14 days, unless the parties agree otherwise. A lawsuit must be made eight weeks after the redundancy or dismissal was received if negotiations have not been held. If the employee only claims compensation, the deadline for the lawsuit is six weeks from the employee received the redundancy or the dismissal.
The Right to Remain in the Position
The letter of the redundancy or the dismissal must give information about the employees right to remain in the position until the case is decided in writing. If the reason for the redundancy is lack of work from the employer, the redundancy or dismissal must also contain information about the employee’s preferential right to a new position within the business.
Form or Content Deficiencies
If the requirements of the law in relation to the content and the form of the redundancy or dismissal are not satisfied, there will not be a deadline for lawsuits. For making an employee redundant there are additional requirements, where a lawsuit is instituted within four months after the redundancy is received, the redundancy must be rendered void unless that it clearly unreasonable.
Reasoning
There is no requirement of that redundancy or dismissal is reasoned. But the employer must give a written reason if the employee demands this. The employee also has the right to a reference independently of the reasons for the redundancy.
Osloadvokatene will assist you with any questions regarding making an employee redundant or dismissing an employee
Related cases:
Making an employee redundant in the probation period cannot be made without reason (Norwegian)
Made redundant because of breach of loyalty (Norwegian)