Classification of Employee/Contractor under the Working Environment Act
The Seven Key Criteria for Classification
In Norwegian law, case law, and legal theory, seven key criteria have been developed to determine whether an individual should be considered an employee or a contractor. These criteria must be viewed collectively, with the overall assessment being decisive.
Obligation to Provide Personal Work Performance
The employee must personally make their labor available and typically cannot use assistants at their own expense. For example, serving as a team leader without the ability to recruit one’s own assistants without the employer’s control. Long-term and stable affiliation strengthens employee status.
Subordination and Employer’s Control
The employee must subordinate themselves to the employer’s leadership and control, for instance, through instructions, regular meetings, job descriptions, or ongoing reporting. Continuous contact via digital channels and task management indicate an employment relationship.
Employer Provides Necessary Tools
It indicates an employment relationship when the employer provides equipment, platforms, software, or other necessary tools to perform the work. Even when working from home, such tools and access to internal systems suggest employee status.
Employer Bears the Risk for Work Results
In an employment relationship, the employer is responsible for errors and deficiencies in the work results, not the employee. The employee receives salary regardless, and any mistakes may lead to termination of employment, not financial liability. A client in a genuine contract does not bear such risk.
Remuneration/Salary
Fixed salary or regular payments, as well as potential rights to bonuses, are typical for employment relationships. Hourly wages and frequent payments, especially with long-term affiliation, are important factors.
Duration and Stability of the Relationship
Long-term cooperation, with fixed working hours and notice periods, points towards an employment relationship. A contract is often time-limited and involves less loyalty or commitment to future collaboration.
Work Primarily for One Client
Working almost full-time for one client, with very limited or no other income during the period, strengthens the assessment of an employment relationship over a contract. Other side jobs or minor engagements do not necessarily change this assessment.
Conclusion: The Overall Assessment
The decisive factor is a comprehensive overall assessment based on the above criteria and actual practice. If the reality indicates subordination, ongoing work, personal service provision, employer’s instruction, and fixed salary, it will generally constitute an employment relationship under WEA § 1-8. This can entitle the individual to benefits such as holiday pay, job protection, and compensation, as referenced in the Holiday Act and the Working Environment Act Chapter 15.
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