Are you considering signing a severance package or have you been offered a severance agreement? Before you accept, you should know what your rights are, what you can negotiate, and what consequences the agreement may have on your finances, unemployment benefits, and future career.
In this guide, you will get a complete overview of what a termination agreement is, how the rules in the Working Environment Act work, and what you should consider before signing the agreement.
A severance package (also called a termination agreement or severance agreement) is a voluntary agreement between employer and employee to terminate the employment relationship on specific terms.
Instead of the employer carrying out a formal dismissal, the parties enter into an agreement that regulates:
You are not automatically entitled to a severance package. The terms are determined through negotiation.
Final agreements are often used for:
For the employer, the agreement provides predictability and reduced risk of litigation. For the employee, it can provide financial security and a more controlled termination. However, it is important to remember that a termination agreement is voluntary – you are normally under no obligation to accept the offer.
A well-drafted final agreement should be clear and detailed, with the following points being key:
1. End date : When does the employment relationship formally end? This affects salary, pension accrual and seniority.
2. Salary and work obligation during the notice period: Will you have to work during the period, or will you be exempt from work obligation? Many agreements mean that the employee is exempt from work, but receives salary as normal.
3. Severance pay: The severance package itself often consists of a severance pay – extra compensation above and beyond the ordinary salary during the notice period.
4. Holiday pay, bonuses and other benefits: The agreement should regulate earned but not paid holiday pay, as well as any bonuses and other benefits such as a car, telephone or insurance.
5. Certificate and references: Many employees are concerned about how their resignation is described. The agreement may include a statement about what type of certificate or reference should be provided.
One of the most common questions is: How large a severance package can I claim?
The size varies and is influenced by, among other things, how long you have been employed, age, position level, the possibility of getting a new job, and how strong the employer's grounds for dismissal are.
In other words, there is no definitive answer, but severance pay is often similar to:
If there is uncertainty related to the fairness and legality of the termination, this will often strengthen the employee's negotiating position and could provide a basis for increased financial compensation.
An important issue is the right to unemployment benefits from NAV.
If you enter into a voluntary agreement to terminate your employment, it may lead to an extended waiting period before you receive unemployment benefits. NAV may consider this to mean that you yourself contributed to your becoming unemployed.
In addition, the size of the severance pay may affect the timing of when unemployment benefits can be paid.
These consequences should always be considered before the agreement is signed.
Severance pay is normally taxed as ordinary income. This means that advance tax is deducted and the amount is included in your ordinary income.
Larger payments may have an impact on the marginal tax for the year in question. The timing of payment may therefore be relevant to discuss when concluding an agreement.
It is also important to consider how the agreement affects:
You should be especially careful if you:
In such cases, you may have strong job security, and it may be financially disadvantageous to accept a low severance package.
In most cases – yes.
An initial offer is rarely final. You can ask for:
Once the agreement is signed, it is binding, so it is essential that you fully understand its content and consequences.
A final agreement can have significant legal and financial consequences, often waiving the right to file a claim later. A lawyer can assess whether the offer is reasonable, strengthen your negotiating position, and ensure that the agreement protects your interests.
In many cases, the employer also covers the costs of legal assistance. It may be natural to request this as part of the negotiation.
At Insa lawyers you can get assistance from an experienced lawyer in employment law who knows the regulations and can help you with everything from advice and contract drafting to mediation and possible legal proceedings. Contact us for a free consultation.
Being called to a discussion meeting is something most employees hope to avoid. Yet it happens to many employees in Norwegian employment every year. Uncertainty about discussion meetings, termination and rights under the Working Environment Act is completely normal. That is precisely why we have created this thorough guide. Here you will find a detailed and updated overview of:
The goal is for you to feel better prepared if you are ever called to a discussion meeting.
A discussion meeting is a legally required meeting between the employer and employee that must be held before a decision is made regarding termination or dismissal.
The obligation follows from Section 15-1 of the Working Environment Act . The provision states that the employer, as far as is practically possible, shall discuss the issue of dismissal with the employee before a decision is made.
The purpose of a discussion meeting is to ensure:
A discussion meeting is therefore part of the dismissal procedure. It is not the dismissal itself.
Important: You are not dismissed just because you have been called to a discussion meeting. The meeting must be held before the employer reaches any conclusions.
There are several situations where an employer can call a discussion meeting. These are generally divided into two main categories: employee-related and business-related.
This may apply, for example:
In such cases, the employer will often believe that there is objective reason for termination. The discussion meeting gives you the opportunity to correct factual errors, explain the background or document circumstances that the employer is not aware of.
Discussion meetings are also used when termination is considered due to business circumstances, for example:
In such cases, it is not necessarily about something you have done, but about the company's need to reduce staffing.
The reason for the meeting must be stated in the notice. If you find that the notice is unclear or incomplete, you have the right to request a further explanation before the meeting takes place.
A proper notice of a discussion meeting should be in writing and clearly worded. It should contain at least:
In some cases, inadequate notice can weaken the employer's case management. An orderly process is important if the case is later considered legally.
Many people ask: Do I have the right to have a lawyer present at the discussion meeting? The answer is yes.
According to the Working Environment Act, you can bring an advisor. This can be a shop steward, union representative, lawyer or other support person. The advisor's role includes:
In cases involving possible dismissal, gross breach of duty or complicated conflicts, legal assistance can be particularly important.
Good preparation can be crucial to the outcome. Many people underestimate how important this is.
Read carefully:
This gives you an overview of what you are actually committed to.
Documentation can be crucial if there is a dispute about fact. Collect:
Write down your version of the story. Stick to:
Avoid speculation and emotionally based arguments – stick to the facts.
Ask yourself some control questions:
The more serious the situation, the more important it may be to contact a lawyer with expertise in employment law before the meeting.
A discussion meeting should be a real dialogue, not a formality.
Typically, the meeting will take place as follows:
A report is normally written. Read this carefully before signing. If you disagree with the presentation, you should request that your comments be recorded in writing.
You are under no obligation to sign a report that you believe is incorrect.
After the discussion meeting has been completed, the employer must make an assessment before any decision is made. Possible outcomes may be:
Strict formal requirements apply when terminating an employment contract. The termination letter must include information about:
The deadlines for contesting a dismissal are short, so it is important to react quickly if you believe the dismissal is unfair.
For a dismissal to be valid, it must be objectively justified. The courts make a comprehensive assessment that takes into account both the employer's needs and the employee's situation.
A dismissal may be unfair if:
A missing or inadequate discussion meeting may in some cases affect the validity of the termination. You can read more about objective grounds for termination here .
Special rules apply when downsizing. Even if the reason lies with the company, you still have the right to a discussion meeting before termination is decided.
The employer must, among other things, be able to document:
If you believe the selection is unfair, there may be grounds for contesting the dismissal.
In the process of negotiating a severance package? Read more here .
A discussion meeting is a central part of the dismissal process in Norwegian employment. Although the situation can be stressful, the Working Environment Act gives you clear rights and important protection.
With proper preparation and a good overview of the regulations, you will be in a much stronger position if you are called to a discussion meeting.
Get help from an experienced lawyer
At Insa advokater you can get assistance from an experienced lawyer in employment law who knows the regulations and can help you with everything from advice to mediation and possible legal proceedings. If you are unsure - contact us for a free consultation.
Have you been dismissed by your employer? If the dismissal is unfair, you are entitled to compensation. An employee cannot be dismissed unless it is objectively justified by the circumstances of the company, the employer or the employee.
The requirement for objectivity means that the dismissal must not be based on extraneous or improper considerations. In addition, the circumstances invoked as grounds for dismissal must be sufficiently weighty to justify dismissal. The factual basis for the dismissal must also be correct. The employer has the burden of proof in dismissal cases, which means that the employer must prove that the dismissal is objective.
Do you suspect that your employer has no objective basis for the dismissal and want to claim compensation? We at Insa advokater can help you with this process.
The legal system is such that you as an employee can claim compensation if the dismissal is unfair. The compensation is set at the amount that the court finds reasonable, taking into account the financial loss, the employer's and employee's circumstances and the circumstances in general.
Normally, you will be entitled to compensation for the financial loss you suffer until the judgment is delivered. In the assessment of compensation, it may also be considered whether you have a future financial loss as a result of the uncertainty of finding new work. You may also be entitled to compensation for non-economic loss if the employer has not followed the procedural rules in the law, for example if you were not invited to a discussion meeting before you were dismissed. Remember that you are also entitled to written notice of termination.
ATTENTION: According to the Working Environment Act, there are different time limits for legal action, depending on what you as an employee are claiming. For compensation due to unfair dismissal, the deadline for legal action is six months from the date of dismissal.
Are you unsure about your rights after being dismissed? Do you want compensation without taking the case to the courts? We have skilled lawyers in employment law who can help you in negotiations with your employer. Contact us for an informal conversation .
Receiving a termination can be both unexpected and demanding, and for employers, terminating an employee is a legally and practically challenging process. In Norway, the Working Environment Act sets strict requirements that any termination must be objective. This article gives you as an employee or employer an overview of what is considered objective grounds for termination – and what rights and obligations apply.
According to Section 15-7 of the Working Environment Act, a dismissal must be objectively justified in the circumstances of the business, the employer or the employee. This means that an employer cannot dismiss an employee without a legitimate need or a clear reason that can be documented.
The objective assessment is a comprehensive assessment in which the interests of both the employer and the employee are weighed against each other. It is not sufficient that the employer wishes to terminate the employment; there must be a real and documentable reason.
Layoffs due to business circumstances often involve finances, reorganization, or efficiency improvements. Examples include:
Even in the event of legitimate needs, the employer must consider alternatives such as reassignment, and follow selection criteria such as seniority and competence in an objective and fair manner.
Terminations based on this option are based on circumstances that are more personal to the employer. The option is only applicable in very special situations.
Termination due to circumstances at the employee's own risk applies when the person is not functioning in the role, even after follow-up and facilitation. Examples include:
In such cases, the employer must be able to show that the situation is so serious that dismissal is necessary and not a disproportionate reaction.
In certain situations, employees have extra strong protection:
In such cases, the employer must be able to prove that the termination is not related to the protected relationship.
For a termination to be valid, the employer must follow clear procedures:
If the employee believes the termination is unfair, negotiations may be required and possibly legal action may be taken. In a court case, both the basis and the process behind the termination are assessed. An invalid termination may be declared invalid by the court, and the employee may be entitled to compensation.
Have you found yourself in a conflict or are unsure of your rights? Contact a lawyer with experience in employment law . We offer a free and non-binding video meeting to assess your case.
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