Employment Protection Act came into existence to increase security of employment by prohibiting undue notice of dismissal and summary dismissal. Moreover, the trade union organisations were given the opportunity, through special rules regarding notice, to prevent unnecessary cutbacks in operations.
Employment Protection Act covers all employees in principle. Exceptions are for such people as company executives and equivalent personnel and employees who are members of the employer’s family.
Forms of employment
The main rule is that employment is until further notice, i.e. what is normally called permanent employment.
Employment for a limited period may be admissible in specially specified cases, such as seasonal employment, substitute jobs for a certain period, probationary employment and so on. Employment for a limited period may also be admissible in order to cover peaks in the workload, though for a maximum of six months during a two-year period.
Old age pensioners may also be employed for a limited period, as may young people just before they are to perform their military service. If such reasons do not exist, the employment for a limited period may be for a maximum of twelve months (18 months in newly established companies). Moreover, there is now the form of employment called agreed employment for a specified period.
For this form of employment the employer does not need to have any reason for the employment for a limited period. The employer has the right to employ a maximum of five employees on such agreed employment for a specified period.
The same employee may be employed using this form of employment for a maximum of twelve (or for newly established companies a maximum of 18) months over a three year period. As regards substitute posts, it can be mentioned that in the year 2000 a rule came into force that means that an employee who has been employed as a substitute by the same employer for more than three years in the past five year period will automatically become permanently employed.
Transfer of operations
When public or private operations, or parts thereof, are transferred from one employer to another the employment contracts in force at the time of the transfer are also transferred to the new employer.
However, the individual employee may choose to stay with the employer transferring the operations. The concept of transfer may include change of contractor.
Written information
The employer shall, within one month of the employee having started his or her employment, inform the employee of the conditions applicable to the employment.
Objective grounds for termination of employment
Notice of termination of employment must be on objective grounds. This applies both to notice due to cutbacks in operations or if the reason is due to personal circumstances.
The Act does not specify any definite rules for what constitutes objective grounds, but there are certain guidelines, and a restrictive practice has been developed by the Labour Court. The employer is in the first place obliged to try to transfer the employee. Illness and a reduced capacity to work etc do not in principle constitute objective grounds. Shortage of work usually, however, constitutes objective grounds.
Period of notice, wages
Special regulations govern the forms of notice. For example, notice must always be given in writing. During the period of notice the employee has the right to reasonable leave of absence with pay to be able to seek another job.
For employees employed before 1 January 1997 the following applies: The employee and the employer both have at least one month’s period of notice. The employee is entitled to a prolonged period of notice as follows if she/he has been employed continuously for at least six months out of twelve in the past two years:
- two months, if she/he has reached the age of 25,
- three months, if she/he has reached the age of 30
- four months, if she/he has reached the age of 35,
- five months, if she/he has reached the age of 40,
- six months if she/he has reached the age of 45.
For employees employed on 1 January 1997 or later the following applies: For both employer and employee a minimum period of notice of one month applies. The employee has the right to a period of notice of:
- two months, if the total period of employment with the employer is at least two years but shorter than four years,
- three months, if the total period of employment with the employer is at least four years but shorter than six years,
- four months, if the total period of employment with the employer is at least six years but shorter than eight years,
- five months, if the total period of employment with the employer is at least eight years but shorter than ten years,
- six months, if the total period of employment with the employer is at least ten years.
- Rules for order of priority
- In the event of notice of termination due to shortage of work the employer is obliged to follow a special order of priority. This entails priority for continued employment for those who have been employed longest (the “first in, last out” rule). Where the length of employment is equal, higher age gives a better placement in the order of priority.
Priority for re-employment
Employees who are dismissed with notice due to shortage of work have priority for re-employment for up to nine months after the termination of employment.
Summary dismissal
In the event of immediate termination of employment or notification of summary dismissal due to personal circumstances, the notification must given to the employee in person.
If the employee is a member of a trade union organisation, that organisation shall also be notified. If the notification refers to notice of dismissal, it shall be given at least two weeks in advance.If it refers to summary dismissal it shall be given at least one week in advance.
Lay-off
A person laid off is temporarily without work due to shortage of work, but is still employed.
Redundancy payment
In the case of lay-off a person is still entitled to full pay (called redundancy payment) during the period of lay-off.
Trade union influence
The trade union has influence over matters concerning notice of dismissal, summary dismissal, lay-offs etc. This influence is exercised mainly through negotiations.
This right is based on both the Employment Protection Act,, and the Act on Co-determination at Work, MBL.
Declaring notice of dismissal invalid
A notice of dismissal without objective grounds or an unjust dismissal may be declared invalid by a court so that the employee may retain his employment. Damages may also be awarded. Limitations: if a person wishes to have a dismissal or summary dismissal declared invalid he or she must inform the employer of this and request negotiations within 14 days of the notice of dismissal or summary dismissal took place.
Claims for damages must be presented to the employer within four months. In addition, short- time limits apply for bringing an action for a declaration of invalidity or damages in a court.
Dela